Business How are efficiency and effectiveness related

Effectiveness and efficiency

First off wonderfulfor asking this question! So many people still spend time getting things done efficiently. Nice, then it's ready - but: was the right thing processed? Let's take a simple example:

Let's say you want to put out a candle.

To do this, open a bottle of champagne and pour the contents over the candle. That was effective. The effect - candle is out - occurred.

Sure, there is also a more efficient way to achieve the effect ;-).


The achievement of goals and effectiveness counts for effectiveness.

So here you are looking at the ratio of Result to goal. It's about, do the right things.

Efficiency looks at profitability, the relationship between effort and result.

It's about the ratio of Result to effort to rate, to do things right.


That means: focus first on effectiveness and then on efficiency

There is no point being particularly efficient when time is spent on tasks that are ineffective. For example, those who “tinker” with their logo as a self-employed person instead of investing their time in acquiring customers are not working effectively.

What is efficient work?

If standard texts are used for recurring e-mails, that is efficient. However, if these are first copied from another area and then pasted, this is inefficient. To stay with the example, the use of quick modules (Word, Outlook) or Windows functions (Windows key and the "point" when the clipboard is activated) would be more efficient = faster to achieve the result.

Efficient work uses software options and largely dispenses with paper.

How can efficiency be measured?

The key figures for this are as varied as the work itself. It is worthwhile to spend the time doing a task with a defined quality among different employees to compare. Let your employees estimate how long they need for a specific process. Many do not initially commit themselves. But then the "price tag" comes into play, and is often discussed. Because efficiency depends on

  • no to little media discontinuity (paper, digital, auditory)
  • well coordinated and interlinked processes
  • Integrated software system, instead of multiple input and maintenance of data in different platforms
  • Lead times
  • Key figures such as number of sales / day, number of offers / day, ...
  • PC know how
  • Soft skills (communication, decision-making, ...)


Is the metric “overtime” evidence of inefficiency?

There are jobs with “creeping expansion”. What originally worked can get into difficulties due to the season, illness or vacation replacement and other influences. In any case, overtime is an indication of dealing with the products, process improvements, further training and new software.

We have put together a checklist that you can use to record and adjust the current status.

Current situation - 5 weeks of coaching letters