Effectiveness vs. Efficiency

Effectiveness vs. Efficiency

Often times we toss these words around as if they are synonymous in definition and implication, I know I have. I found a few insights from some articles and have compiled them here. In understanding the difference between effectiveness and efficiency, I believe we will practice both, better.

"Are you doing the right things? The key to effectiveness is that you’re doing things that lead to results in the realm of your responsibilities. Meanwhile the key to efficiency is getting your things done in a manner that consumes just the appropriate amount of energy and resources."

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"Guy 1: I am so efficient I can fold 100 parachutes in a hour.

Guy 2: I am so effective I can fold 100 parachutes and every single one of them will open right.

Would you rather give your parachutes to the efficient or to the effective guy?"

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"I do not think that effectiveness and efficiency are mutually exclusive things. For a manager, they are both fundamental preconditions. Being effective means that one is able to properly analyze the evolving environment and selecting the right things as the areas of strategic focus for the enterprise. On the other hand, being efficient requires a carefully carved cultural and operational framework which helps the manager to achieve a particular degree of success, given the level of resources applied to a particular objective. In fact, it is fallacy to differentiate the two things as mutually exclusive. One can say that effectiveness is probably a thing that is more affected by the external environment. There will be inherent limitations to anyone's ability to keep on continually selecting the best objectives, given one's perceptions about the evolving strategic environment. Commitment of resources to a previously selected strategic objective also limits one's degree of freedom to keep on being effective on an eternal basis. On the other hand, being efficient is dependent upon the ability to adapt the internal operational environment by establishing a conducive operational culture. This is a relatively easier thing conceptually; however, it can be extremely hard to achieve in reality.

All said and done, a manager has to keep on striving to be both efficient and effective. That is his life!"

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