Many people confuse the terms 'efficiency' vs. 'effectiveness', or they see them as the same thing. They are anything but. This presentation covers why focusing on a culture of Effectiveness is so much more productive, and why a focus on efficiency can actually hurt your organization. Whether its agility, adaptability, social connectedness, social business, or becoming a responsive organization is your objective. This seemingly subtle distinction will prove to be a useful tool in your toolbox.

1. Organizational Culture
Discussions
Effectiveness vs. Efficiency
Matt Ridings
@techguerilla

2. Text
Efficiency is an industrial age metaphor
It makes the assumption that we have built the correct machines/
services. Therefore by increasingly making them more efficient we
will achieve greater margins.

3. Efficiency
Is process oriented
Is effort oriented
Is time oriented
Is NOT goal oriented

4. Text
Effectiveness
Efficiency is a goal unto itself, whereas Effectiveness is oriented
on achieving the CORRECT goal. Therein lies the advantage of
maintaining a focus on effectiveness vs. efficiency.

5. For Example
Company A may be very
‘efficient’ at producing
bicycles without seats.
But they’ll never be as
‘effective’ as Company
B who is less efficient,
but puts seats on their
bicycles

6. The
Effectiveness
Advantage
Effectiveness requires a
focus on whether you are
doing the RIGHT things.
Efficiency requires a focus on
optimization, even if you’re
optimizing the WRONG
things.

7. The
Effectiveness
Advantage
Effectiveness requires
thinking about WHY you
are doing something.
Efficiency requires
thinking about WHAT
you are doing.

8. The
Effectiveness
Advantage
Effectiveness forces you to
focus on business objectives.
Efficiency is not a business
objective, no matter what
you’ve been told, it is a
process of OPTIMIZING
business objectives.

9. The
Effectiveness
Advantage
A laser focus on efficiency
can lead to a less effective
organization. Reducing the
paints available to an artist,
or insisting they paint faster,
does not create better art.

10. Symbiotic
Relationships
In an age with an everincreasing pace of
change a focus on
effectiveness is more
valuable.

11. Symbiotic
Relationships
Efficiency is still important,
but it comes after
effectiveness is reached.
In a down market we tend
to reach too quickly for
efficiency measures.

12. Symbiotic
Relationships
Efficiency is great at increasing
margins on existing revenues, but
horrible at creating new sources of
revenues. This is the age of evolving
business models, and a focus on
efficiency is a means to try and simply
survive whereas a focus on
effectiveness is a means to try and
thrive.

13. The
Company
Narrative
What type of culture is
being created by the
stories being told and the
actions that leadership is
undertaking?

14. The
Company
Narrative
Is it a culture of
effectiveness which
fosters a sense of
innovation, collaboration,
experimentation, and
hope….

15. The
Company
Narrative
…or is it a culture of
efficiency which fosters
a sense of fear and
stagnation?

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Still Confused?
Reach out and lets talk.

17. info@sideraworks.com
www.sideraworks.com