The Difference Between Being Efficient and Effective
Effectiveness is doing the right things, while efficiency is doing things right. — Peter Drucker
It is a simple definition, but balancing the two is challenging in practice. How do you argue the case for getting many things done, or getting things done right? Seems like you need both, right? Yes, is the short answer, but much like the simple definition above, there is more to it than that. We all feel that struggle and the opposing allure of both on a regular basis. Who doesn’t want (heck need to) get more done? And few people set out to do the wrong things or do them incorrectly. How do we resolve these two forces?
Below we’ll look at some common drivers for both efficiency and effectiveness, but before we do, ask yourself a couple of questions to establish the mindset from where you will be working.
What outcome are you looking for?
Do you have a clear goal in mind for what you are trying to accomplish? You’ll need that up front.
What does efficiency look like for you, and how are you defining it?
Without a purpose for your activity, understanding efficiency could be challenging. You’ll need to define what an efficient outcome looks like.
What does effective look like for you on this project?
No different from the question about efficiency. You need to know what you are seeking from an effectiveness standpoint first to be able to measure it later.
Looking at some common traits of efficiency and effectiveness
Efficiency
Maximum output in the shortest period of time
Methodical workflow
Follow guidelines and process
Standardization
Prioritize Action
Role clarity and delegation
Time based scheduling
Cost Conscious
You can define many of these in different ways depending on the situation. Your role as a leader is to bring clarity to these elements for the team in the situations that require efficiency. Managing time and energy can be crucial to the productive use of efficiency driven work.
Some examples of work that may be more efficiency driven initially — brainstorming and idea generation. Drafting notes for feedback sessions (quality comes later). A first pass in creating a to-do list. Efficiency can also come from routine processes, such as working product from the warehouse to the shelf. Processing transactions through the register. Preparing orders for pickup. All of those are very process driven that have efficiencies that can be built for them.
Effectiveness
Right things, right way
Results driven
Quality versus quantity
Bigger picture
Flexibility and adaptability
Collaboration and delegation
Prioritize Planning
Value oriented
Effectiveness also is situationally dependent. It can be a moving target, with its definition and necessity driven by specific circumstances and desired outcomes.
Some examples of activities that may be more effectiveness driven — engaging with customers, especially ones that are new to your business. Creating an update to discuss your profit and loss statement to your supervisor. Delivering performance feedback to a team member is about being effective; you do not want to rush through that.
Measuring efficiency and effectiveness
Efficiency is a quantity metric. Effectiveness is a quality metric. Both are important and necessary. They are different, however. Where you can balance the two, even better. Ensuring you can measure qualitative and quantitative actions will keep things more in balance. It will give you the visibility you need as a leader to ensure you are getting more of the right things done.
As a leader, a big part of your role is determining which projects or activities need to get done and when. You also set the standard and expectations for the quality of that work. Through this, you are managing quantity, quality, and timing. Efficiency and effectiveness can be complementary to each other when well managed. Leaders that try to always put one (effectiveness or efficiency) ahead of the other likely will only realize short-term, non-sustainable outcomes. In certain instances, that may be preferable for a defined period of time. However, when looking at the bigger picture, the delicate balancing act between the two is necessary for sustained success.
This is a subject that requires additional review, so we will be diving in deeper in future articles. Until then, how do you define effectiveness versus efficiency? And better yet? How do you balance the two?
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