Are efficiency and effectiveness the same thing? Why should your business strive to cultivate both qualities?

Efficiency can be defined as doing things in a way that saves the most resources, including time, money, and energy. All businesses strive for efficiency since it can be one of the easiest ways to increase profit. But being efficient does not guarantee that your company or product will be effective or profitable.

For example, think about a baseball batter. How much energy does it take to swing the bat? It might be an efficient use of energy to only swing if they’re absolutely sure they’ll hit the ball, but they might be missing many homeruns.

Effectiveness can be thought of as doing what needs to be done in a way that has the most impact. If your employees are doing their best to follow your business plan, they are efficient. However, if your company is struggling, it’s possible that the plan is not effective. 

When trying to balance efficiency with effectiveness, ask yourself: What do you want to see as the end result for your company? Are the plans and goals you are setting leading you toward that path?  Sometimes the harder or more expensive route is the one you need to take first to find a way forward. But when you see your business model is effective, look for ways to increase its efficiency to truly succeed.

If you want a highly effective way to increase your efficiency, give me a call!