what is the difference between effectiveness and efficiency?
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Faster, cheaper, better. There’s a lot of focus in organisations on doing more in less time with less resources. Looming deadlines with the drive to do more engenders execution driven mentality where employees do not pause to question the effectiveness of their work – In doing what you are doing efficiently is it contributing to effectiveness? Effectiveness vs Efficiency – which one is more important?
The desire to launch new products, optimise existing offerings, provide feature enhancements occupy a large mindshare of people who then rush through decisions without managing to determine how all this work lines up to the goals and vision of the organisation and their team. There’s constant pressure to spend time on inconsequential things that do not add value to work or contribute to organisation’s success.
Efficiently doing things that should not be done at all leads to failures as people waste time doing the wrong things with less time left to do the right things.
In keeping with the technological advancements, changing environment and global competition, successful organisations need to spend all of their time and energy in doing Right Things Right. In other words, doing work that aligns with the goals of the company and doing it efficiently.
Effectiveness trumps efficiency. Identifying what needs to be done comes first (effectiveness) and then we need to find a way to do it efficiently. It’s better to do the right thing less efficiently (effective but inefficient) than to do the wrong thing efficiently (ineffective but efficient).
In his book, The Effective Executive, Peter Drucker talks about effectiveness:
Intelligence, imagination, and knowledge are essential resources, but only effectiveness converts them into results. By themselves, they only set limits to what can be attained. To be reasonably effective it is not enough for the individual to be intelligent, to work hard, or to be knowledgeable. Effectiveness is something separate, something different. But to be effective also does not require special gifts, special aptitude, or special training. Practice effectiveness until it becomes a habit. Effectiveness can be learned—and it also has to be learned.
What’s the difference between effectiveness and efficiency?
Learn 7 most important differences between effectiveness and efficiency to be a leader who prioritises effectiveness over efficiency
The two Effs (Effectiveness and Efficiency) are a crucial part of a leader’s journey to achieve success and not end up in a muddled up state. It’s imperative for leaders who want to invest in building the foundation and are not looking for magic to achieve the right balance of effectiveness and efficiency in their work. But, first let’s understand the difference between them:
Efficiency
Efficiency is asking “What needs to be done”.
Efficiency is doing things the right way in the best possible manner with the least resources, time and effort.
Efficiency focuses on process.
Efficiency is about current work, what must improve now.
Efficiency is easily measurable by analysing specific metrics.
Efficiency is internal within the bounds of the organisation.
Efficiency requires objective analysis.
Effectiveness
Effectiveness is asking “Why is this being done”.
Effectiveness is doing the right things. It means demarcating that which shouldn’t be done at all and that which adds value to your organisation. Another way to think about it is to ask the question “Will this add value to my customers”. If not, it’s not worth doing.
Effectiveness aligns with objectives and goals.
Effectiveness is future looking with the desire for a better future, encouraging innovation, laying down future strategy, adapting to changing environments, everything that leads to growing people and business.
Effectiveness is not easy to measure.
Effectiveness in its true sense requires external view (outside organisation), ability to understand competition, economy, market trends and customer insights.
Effectiveness requires subjective visioning.