Organizational Efficiency and Effectiveness: A pipe dream or a reality?

Have you redefined what organizational effectiveness and efficiency means for your business in times when our resources are not necessarily physically accessible and controllable?

Organizational Efficiency

Organizational efficiency measures the relationship between inputs and outputs.  That is, it means that the better the output (products or services) achieved with the inputs (resources) used, the more efficient the business is.  Efficiency does not mean that an organisation is automatically productive, effective and successful. 

If the efforts of business are not aligned to the goals of the organisation, efficiency is inconsequential.

Organizational Effectiveness

A simplistic description of organizational effectiveness is that it relates to the ability of a business to attain its goals by utilising its resources effectively.  Similarly, it does not necessarily mean that resources were used efficiently. Thus, strategy planning, goal setting and performance measurement is critical to set standards and obtain organizational effectiveness. 

“Efficiency is doing things right; effectiveness is doing the right things.” – Peter Drucker

Due to COVID restrictions we mainly manage our resources remotely.  Managing human resources remotely and keeping them engaged is challenging us to think differently.  Strategic planning, goal setting, key performance indicators and empowerment of resources is critical to organization efficiency and effectiveness.  Now more than ever before, it has become especially important to have daily interaction with your team on a personal level, to remove obstacles to performance and to track progress.

Consider collaborating with your team and others to define what efficiency and effectiveness mean for you.  A collaborative mindset will build a great team culture, develop team cohesiveness and encourage innovation.