Efficient or Effective?

I’m starting to get tired of listening to people talk about efficiency. That may sound strange for someone in my position, but hear me out on this. We read things all the time about how to be more efficient. People talk about being more cost-efficient, more efficient with their time, and tracking employee efficiency. Merriam-Webster defines efficient as productive without waste. In other words: doing things the right way.

But, I think we’re missing the other half of the equation. I can be very efficient at, say, photocopying documents and filing them in filing cabinets. But that is not the best way to make the information on those documents more organized and accessible. In addition to being efficient, we also need to be looking at effectiveness. Merriam-Webster defines effective as producing a decided, decisive, or desired effect. In other words: doing the right things. Back to my earlier example, if I want to make the information more organized and accessible, a more effective approach may be to scan the documents into a searchable database. Another option is to change the process so the information is entered electronically the first time instead of generating paper documents.

Too often, businesses are looking at “how do I take waste out of the process” and forget to ask “Is this the best process to achieve the desired output.” When you consider that everything we do is a process, from brushing your teeth, to writing a blog, to manufacturing a locomotive, the question becomes what is the desired output of that process. Why are we performing this process? What do we hope to accomplish by following this process? By doing this, you may discover that some processes can or should be eliminated.

After you’ve identified what the desired output is, then you need to decide: what is the best way to achieve that output? Guess what? It may not be the way you’ve been doing it. Sometimes, we can just optimize the existing process, but don’t be surprised if you need to create an entirely new process. Look at others within your industry and see how they are doing things. Then look at other industries that excel at that particular area. Whatever you learn from others, remember you cannot just copy the process. Each company has its own culture and a process that works in one will not produce the exact same results in another company. So learn from others, but be able to adapt.

Once you’ve identified the most effective process, make sure it is as efficient as possible. Look for any rework, complexity, or repetition and eliminate and simplify the process.

Now, test out your process. Did it work as you had planned or envisioned? Do you need to make any tweaks or adjustments? Once you have an efficient and effective process, you can implement it.

With that success under your belt, go out and tackle another part of your business so you can be just as effective as your new process!