Understanding technical efficiency and its relevance across sectors

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OPINION

By Rev. Dr Richardson Balinda

Introduction

In the context of organisational and institutional performance, technical efficiency (TE) is a critical concept that reflects how well resources (inputs) are transformed into desired results (outputs).

My PhD research focused on identifying the factors affecting technical efficiency in Uganda’s Universal Secondary Education (USE) schools. The findings of this research have broad relevance not only for schools but also for government systems, universities, and individual learners (Balinda, 2025).

Key concepts in technical efficiency

Through detailed analysis, I discovered that a meaningful understanding of technical efficiency must incorporate four essential concepts:

Input-Oriented Technical Efficiency: Minimising inputs while maintaining output levels (Farrell, 1957). Output-Oriented Technical Efficiency: Maximising outputs with given inputs (Coelli et al., 2005).Slackness: The presence of unused or misused resources that hinder maximum efficiency (Tone, 2001).Optimum Output: The highest attainable output given a set of inputs, without waste (Lovell, 1993).

These concepts are not just theoretical—they have practical implications across all levels of the education system and governance structures.

Relevance across systems 

Government Systems: A government that grasps and applies the principles of technical efficiency can eliminate wasteful spending (World Bank, 2019). Optimise public service delivery (Kusek & Rist, 2004). Merge overlapping agencies that duplicate functions (Auditor General's Report, 2022). Allocate resources strategically and transparently. Fighting corruption, which is a major driver of slackness, becomes an essential step toward improved efficiency in public institutions (Transparency International, 2023).

University Systems: Universities must focus on Smart operations through resource optimisation (Altbach, Reisberg & Rumbley, 2009). Continuous professional development for academic and administrative staff (Knight, 2013).

Designing academic programs that align with national development priorities. Embracing output-based funding models to reward efficiency and innovation (OECD, 2021).

School Systems: Schools, especially those under the Universal Secondary Education program, can: Use performance data to reduce inefficiencies (Ministry of Education & Sports, Uganda, 2022). Align inputs like teacher deployment and infrastructure investment with outcomes. Develop internal monitoring systems to detect slackness early. Emphasise value addition over rote learning (UNESCO, 2020). 

Individual Learners: For students, understanding technical efficiency means managing time and effort effectively. Focusing on skill acquisition and value creation. Avoiding redundancy in learning through goal-oriented study. Seeking higher-order values such as patriotism, honesty, and selflessness as critical drivers of personal and national growth.

Leadership and Mindset Transformation: By mentioning Technical efficiency in his speech, H.E. General Yoweri Kaguta Museveni, delivered by Her Excellence the Vice President Jessica Alupo during the 21st Graduation Ceremony of Bishop Stuart University (BSU) on October 27, 2025, recognises its importance, but a broader perspective is needed for future reference.

A transformational leadership mindset of Leaders and managers must: Promote value addition in every operation. Uphold ethical standards and eliminate social evils like corruption. Invest in smart systems for planning, monitoring, and evaluation if technical efficiency is the driver of their managerial trajectory.

Recommendations

Based on my findings, I recommended the following strategies to embed technical efficiency in institutional frameworks: Targeted and Strategic Funding: Resources should be allocated based on real needs and potential impact. Output-Based Resource Optimisation: Institutions should focus on maximising outcomes per unit of input. Continuous Professional Development: Equip leaders and managers with tools for smart and efficient decision-making (Balinda, 2025). Institutional Mergers: Avoid duplication by consolidating entities with overlapping roles (Auditor General’s Report, 2022).

Conclusion: Technical efficiency is more than a theoretical framework—it is a strategic approach to development. Systems that ignore its principles are likely to suffer from: Resource wastage, Poor service delivery, Institutional stagnation, and persisting inefficiencies.

As a national agenda, mastering and applying technical efficiency will accelerate Uganda’s journey toward sustainable development and prosperity.

The writer is Headteacher Nyakasura School and a researcher of technical efficiency and resource optimisation