Effectiveness vs Efficiency

Measure effectiveness not efficiency… everyone has been checking efficiency during recession and they’ve got us in wrong direction… They’ve saved cost on lot of things, but lost effectiveness hence losing business…

Efficiency and effectiveness are different.

Total Quality Management questions:

Are you doing the right thing?” = effectiveness

Are you doing the thing right?” = efficiency

First an entity must do the right things (effectiveness), as soon as you have the correct goals and a process to achieve them, you can optimize the process having in mind the possible trade-offs and possible risks. So, to be efficient, effectiveness should be a prerequisite, otherwise you risk optimizing the way leading to total failure.

However, I disagree that efficiency and cost cutting are the same thing. I know that those doing cost cutting often say it is an efficiency process but it isn’t if it adversely changes quality, that’s just plain old cutting back.


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