Efficiency vs. Effectiveness


It is said that the difference between efficiency and effectiveness is the difference between’ doing things right’ and ‘doing right things.’ It should encompass both efficiency and effectiveness. That is ‘doing right things right.’

Imagine that you visit your friend. As you are chatting, your friend asks his wife to bring coffee. A little later a tray with milk, sugar, coffee powder and cup is placed before you to prepare coffee of your taste, light or strong, with or without sugar, etc. and you prepare coffee and drink it.

On some other occasion, you visit another friend. As you are chatting, your friend’s wife brings coffee in a cup (before being asked by your friend). Coffee is already prepared. As you take the first sip, she enquires if the sugar is enough. As you say, ‘its ok’ and drink coffee, she stands there. After you finish, she takes the cup and goes off.

In these two cases of serving coffee, it could be seen, that the purpose was served. In the first case it was done in a ‘5-star’ style. No one can find fault with it. But in the second case, there is an additional component attached to it, namely the personal touch. This definitely had its role in creating an ‘impact.’

The first can be said to be an efficient way of serving coffee and the second an effective way. Efficiency is all about how the ‘producer’ has felt and effectiveness is all about how the ‘user’ has felt.

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, and my Lectures.

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Organization’s Specific Capabilities


Successful projects are associated with quality performance (proficiency) by one or more key players in the new products operation. A firm’s key players will vary some, depending on strategy, but we usually see the same bunch. First on most lists is technology. But technology does not mean just in research labs. A technology is a system or set of people and things that permit work. A soft drink bottling system is a technology.

In a virtual tie with technology is a bundle of skills in marketing. The needs and desires of the marketplace are an essential input to product innovation. And the end product must be presented to the end user in a way that stimulates trial and adoption. Just as some marketing firms have lacked technical skills, some technical firms have lacked marketing skills.

A new member of the triad is operations/manufacturing—maybe a factory, a laboratory, a set of carpet cleaning franchisees, an actuarial department in an insurance company, or even the legislature in a government. It is where the good or service is prepared or offered. It could be the classroom where this subject is discussed tomorrow. No matter how well designed or marketed, if the organization cannot deliver on the promised product, success cannot be assured. In the best firms today, manufacturing capability begins its development at the very start of the project, and may even be decided in the strategy if that is where the technology strength is located.

There are some other capabilities needed today, though the list is industry dependent. Two skills are moving up the list—human resource management (HRM) and technology (IT). They both relate to how new product projects are being managed today. HRM people are apparently critical in building the inventory of potential team leaders, and in training those selected for this most difficult task. IT people hold the answer to collocation, the physical grouping of teams that contribute so much to a new product project. Their answer: digital collocation, or the virtual collocated team. On a slightly broader plain, IT also permits effective networking, something we will see actually makes the “company within a company: that new products projects become.

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, and my Lectures.