Efficiency and effectiveness – Find the difference

When it comes to business growth and increased employee efforts, it is useful to recall that growth creates complexity, and complexity often reduces growth.

Therefore it is recommended for business owners to take effective measures and simplify processes in a timely manner, eliminate those steps that require too much time and resources and in return give too little or no value.

Simplifying work processes is a key product of effectiveness that leaders can create in addition to motivating employees to be proactive, enabling easier team adaptation to change and innovation.

For this reason, it is important for team leaders to continually improve themselves in order to effectively manage the team, understand all processes, identify potential areas that can be automated, and provide employees with time-saving tools and techniques.

Proper planning leads to higher efficiency and shortening the time for performing tasks. On the other hand, performing the wrong tasks efficiently does not lead to success because employees are challenged to complete the required work in less time. Therefore, effectiveness and determining the tasks that need to be performed, precedes efficiency.

To further clarify these two concepts, we will present the difference between effectiveness and efficiency:

 

EfficiencyEffectiveness
It answers the question “What needs to be done?”The answer to the question “Why is a certain task being done?”
It influences the task to be done in the best possible way with the least resources, time and effort as possibleDistinguishes tasks that should be done and those processes that do not give value to the organization. Another way to think about it is to ask the question “Will this task add value to my customers?”
The focus is on the processAligning tasks and priorities according to the goals and vision of the company
It refers to the current situation and what can be improved immediatelyIt encourages innovation, setting future goals, adapting to changing environments, everything that leads to business and employee growth
It can be easily measured by analyzing certain dataIt is not easy to measure
Requires objective analysisIt requires a subjective point of view
It depends on internal factors within the organizationIt requires adaptation to external factors, the ability to monitor the competition, the economy, market trends and regular insight into customer opinions

 

Ability to manage time

At the end of the 20th century, time management specialist Stefan Rechtshafen drew attention to the fatality and danger of the race against time, the constant rush in which most people in developed countries live in. Managing time leaders should always keep in mind that the greatest values ​​it brings are greater efficiency, optimal daily schedule and higher quality of finished work.

Along with the fast-paced life, it is necessary to react in a timely manner and fit into tight deadlines, time management is one of the most useful tools to achieve greater work efficiency.

This is the reason why effective leaders recognize where their time is going and take control of it by eliminating steps that unnecessarily require commitment. Then they organize tasks using various techniques and dedicate time to important activities.

Have you ever heard of the terms “chronos” and “kairos”?

These words were used by the ancient Greeks for denoting categories of time more precisely. Chronos meant linear, measurable time, convenient for planning and organizing. Kairos, on the other hand, is a more flexible term that refers to the appropriate moments and circumstances for doing a job “along the way”.

Many tasks are practically impossible to tell exactly how much time it will be necessary to complete it. The possibility of fulfilling them is related to the existence of kairos context and favorable circumstances. That is why leaders and managers often have one table with tasks whose execution time is not clearly defined, and which can be done when they do not have enough concentration for more complex tasks.

Creating a personal time management system

When you manage time, you see it as a resource that you have control over, and then it is much easier to make time to rest, which is an integral part of the creative process, meditation and other activities that seemingly have nothing to do with your goal. Personal management system should include:

  • Rhythmic rest during the working day
  • Maximum diversion of intrusive thoughts to get a better and more creative result
  • Exploitation of leisure for creative purposes
  • Increasing quality of life and sleep efficiency
  • Applying the power nap system

In his book, The Effective Executive, Peter Drucker identified five key skills for effective executives:

1. Time management skills in three steps

  • Keep track of your working time and eliminate all the steps that represent a waste of time.
  • Delegate tasks to someone who can do them as well as you.
  • Don’t waste the time of those who work for you or with you.

2. Focus on results

Ask yourself how you can significantly contribute to companies’ end results and goals. Try and contribute in these three areas:

  • direct results,
  • building and reaffirming values,
  • development of skills and knowledge of employees according to strategies for the future.

3. Discovering how manpower becomes productive

This is a process of analysis and focusing on the human resources and strengths of individuals, not on their weaknesses. It is necessary to recognize and use the strength of your associates, the strength of your superiors, but also your own strength.

4. Set priorities to focus energy on

Perform the most important tasks on the priority list first. Effective people do the most important and difficult things in the begining, often dividing them into smaller step beforehand. Therefore, it is necessary to decide which jobs you should prioritize because they are important and which are less important.

5. Make effective decisions

Decisions are best made when they are based on a clear decision-making process and different views. Instead of searching for solutions on their own, team members should exchange opinions on the topic.

Synergy of effectiveness and efficiency

World today is the world of rapid technology development and frequent change, a synergy between effectiveness and efficiency is crucial for all team members to perform the necessary tasks in the best way possible.

In order not to confuse activity with progress, and to check if you are just busy or doing what makes you productive, do this simple test. Three times per day (at 9am, 12pm and 18pm), according to the schedule, ask yourself the question “Am I doing what really matters or am I just busy?”.

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