Brian A. Holmes Weekly Blog

"Effective vs. Efficient"
July 26, 2009By Brian A. Holmes

Have you ever thought about the difference between efficiency and effectiveness? They both sound good, but I believe one is far better. Most businesses want to run an efficient operation, and spend a lot of time and energy trying to get there. But it is equally, if not more, important to make your business effective.

Efficiency means doing things with a minimum of effort - low input for high output. In other words, efficiency means doing things right. But what things? A very important question! You see, effectiveness is doing the right things right, and that is what you want to aim for. You can be as efficient as the dickens at doing the wrong things.

You can practice the wrong technique or the wrong moves until you have them down perfectly. Then, you are going to wonder and worry about why your business is failing, why your customers aren't coming back, why sales are down and profits are dropping, even though everything is working like a well-oiled machine.

When you visualize yourself or your business, don't just see yourself doing things right. See yourself doing the right things right. And remember that sometimes the right thing, even if done imperfectly, can beat the heck out of a flawless performance of the wrong thing. This holds true for everyone, not just those of you in business. It makes just as much sense for athletes, homemakers, teachers and students - anyone who really cares about excellence.

It's great to be efficient, but effectiveness is what you really want.

Lou Tice
The Pacific Institute

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