Effectiveness vs. Efficiency

Is it better to be effective or efficient?

Many businesses wrestle with this question on a daily basis. When building marketing or business plans, when assigning duties, when filling orders, the question is always there. “What’s the best way to do this” is basically asking, “How do we find the correct balance of effectiveness versus efficiency when planning this project/duty/task?”

Sometimes these terms can even be mistaken for synonyms, but in truth they are polar opposites. Both are important considerations, but they indicate very different measures. The trick is striking the right balance between the two.

Effectiveness relates to how a given task performs against a set of standards, and is often expressed in terms of which goals are achieved and the extent to which the issues being addressed have been solved. For example, a certain brand of hand sanitizer may be marketed as killing 99.9% of germs, speaking directly to the effectiveness of the product against its perceived objective of providing a higher level of personal cleanliness.

Efficiency refers to how well a given task performs against a standard norm, and is often represented in terms of how much time, energy or investment has been reduced or eliminated. For instance, a refrigerator may be marketed as reducing energy consumption by up to 30%, resulting in energy efficiency savings for the purchaser of said refrigerator and, in theory, freeing up resources for others to consume.

In short, effectiveness is doing the right thing, and efficiency is doing the thing right.

So, how do we find the optimal middle ground, the happy medium that maximizes efficiency whilst solidifying effectiveness? Are there steps we can take that will tell us how to do this, and let us know when we’ve reached that goal?

We’re in luck – there are three simple steps we can take to ensure we’re striking the right balance between doing something correctly and doing it for the right reasons. By applying structure to a given process, planning and measuring activities and results, and delegating responsibilities and communicating changes, we can realize increased production that meets – and often exceeds – our goals and objectives.

Apply structure. The first step is to make sure all the pieces are in place – everyone is on the right bus, and in the right seat. Duties and responsibilities need to be clearly defined and communicated. Corporate goals are useless without buy-in from the entire staff, so be sure to allow for a means for everyone to have the opportunity to voice their ideas, concerns and opinions.

Once a basic structure is in place, it is imperative that it be followed. This structure will be what guides everyone through all phases of the current project and beyond – if it is initially created to be scalable, that’s all the better. It will be easier to disseminate this new structure up and down the organization, resulting in revenue gains across the board and increasing customer engagement and satisfaction.

There are many organizational operating systems out there to utilize as an example. Much like the operating system on your computer, an organizational operating system will assist you in ensuring all of the pieces are in place, that everyone’s strengths, weaknesses, likes, and dislikes are all being taken into consideration. It will be an indispensable tool in helping you to create a world-beating organization.

Plan and measure. Once you have the structure in place, begin planning for success. There are many business and marketing plan templates, but once you understand the basics, there’s no sin in developing your own. This will allow you to capture the essence of what your business is all about, and will also help you in determining what it is you need to measure.

The importance of data cannot be understated. Having goals and objectives that are forward-looking, attainable, and measurable are just as important to the long-term health of your business as anything else. Without the ability to measure exactly how well you’re doing, a company is flying blind. This is a dangerous situation for any organization that wishes to make a long-term, lasting impact on their industry or line of business.

Delegate and communicate. Now that you have all of the pieces for a successful venture in place, it’s time to get down to work. The old saying too many chefs spoil the broth applies here – it’s imperative that everyone knows, and is comfortable with, their role.

Delegating duties and responsibilities is how the actual work gets done. You’ve already determined where everyone best fits and what everyone’s strengths and weaknesses are; now it is time to put the plan into action.

Above all else, keeping the lines of communication open up and down the chain of command will ensure the ultimate success of your venture. By creating a workplace where all voices are heard, where every opinion is considered, and where employees at all levels feel that they are vitally important to the operation and not just another cog in the machine, you are setting yourself up for a successful venture.

The steps we take and decisions we make will ultimately decide how effective and efficient we are, and when made well, will keep us from going 100 miles an hour in the wrong direction.