SKIP TO SITE NAVIGATION  |  SWITCH TO GRAPHICAL VERSION

Effectiveness vs. Efficiency

By Ken Blanchard

People have been arguing about this for years. Peter Drucker offers a helpful distinction. He says managers typically either "Do things right" or "Do the right things." Doing things right means efficiency - getting the most from your resources, whether they're people or products. Doing the right things means effectiveness - setting the right goals and objectives and then making sure they're accomplished.

Social scientist Rensis Likert, who had a booth called The Human Organization at an expo, added an important perspective when he pointed out that it takes a combination of organizational efficiency and enlightened leadership to produce effectiveness.

Don't concentrate too much on the distinctions between the two words however. What's important is to determine what your own needs (or your company's needs) are, create categories for them, work to accomplish them, and then set up systems to measure your progress.

It's true that effectiveness and efficiency should be measured in this process, but we believe there are other, equally important things that need to be valued and, therefore, evaluated. They are:

So, to answer your question, efficiency and effectiveness are both important, but they're just two of the things on which you should be focusing.

Email this article

Access Accounts
Small Business Login

Apply Now
Contact Us to Apply

Contact Us
(800) 566-3862
8:00am - 9:00pm ET
Monday - Friday
Email

Small Business Customer Service

Small Business Contacts
Locations
Small Business FAQs
Site Map
Glossary
Search


Navigation

Small Business Section Navigation

Main Sections of the Site

Search