Is Efficiency all that Important?
11/10/2023
Everyone talks about efficiency – the efficiency of the NHS, an efficient car manufacturer, the efficiency of an individual. But how important is this really? Why do people tend to talk about efficiency rather than effectiveness? What is the difference?
Management Guru, Peter Drucker is quoted as saying: “Efficiency is doing things right. Effectiveness is doing the right things.” If what matters is doing the right things, why do we tend to talk so much about doing things right?
The truth is, that it is easier to measure efficiency, that we are doing things right. It tends to be more tangible – hours taken, money spent, milestones achieved. It is also more immediate than effectiveness. It is easier to report and to show progress. We like the certainty of it. Effectiveness tends to be realised in the longer term when the benefits of an activity start to emerge. It is less certain, especially with long term projects which are conceived in the context of one set of circumstances and are completed when the world has moved on.
The point to make is that both are important. But, before you launch into deciding how to be efficient you need to be as sure as you can that you are embarking on the most appropriate approach, product or solution. Is the action you are contemplating the best way of improving a situation? Building a road in a place where people are unlikely to use it is a waste of money even if it is delivered on time and on budget. But being inefficient and putting too much resource into building a road, even if it is in the right place, means other activities will have less resource.
Recent research into major projects showed that once the business case had been agreed, far less effort was put into whether the ultimate aims were still likely to be achieved. It is important to be efficient, but you should always keep the end in mind.
Mike and Pippa Bourne’s new book Concise Introduction to Performance Management is available at https://www.e-elgar.com/shop/gbp/concise-introduction-to-performance-management-9781803922300.html
Categories & Tags:
Leave a comment on this post:
You might also like…
Changes to FitchConnect…
Those of you who have been using FitchConnect may have noticed that things are changing. The BMI content we subscribe to being migrated to its own platform. In the meantime, when you login to Fitch, ...
Love in the first degree – Management MSc students plan to get married!
After meeting at Cranfield whilst studying Management MSc, Isabel and Vatsal share their fond memories of Cranfield and what the future holds. Tell us about yourself Isabel: My name is Isabel Hamm and I'm originally ...
Our Cardiff study tour – an incredible experience that goes beyond academic learning
My name is Hyelni David Malgwi, originally from Nigeria. I am currently pursuing a master’s in Logistics and Supply Chain Management. I recently had the fantastic opportunity to participate in a study tour to Cardiff, ...
Air Transport Management MSc student Quentin Lacoste on studying at Cranfield and his exciting new job role
Quentin Lacoste is studying for an MSc in Air Transport Management (ATM). Here, he talks about his journey to Cranfield, his experience on the course, and his exciting new job offer. ...
Advancing Uncrewed Aerial Systems: My Journey at Cranfield University
Cranfield University has offered me countless opportunities in the short time I have been here, and I am committed to making the most of them. As an expert in drones and ...
How we’re helping the UK take back control of time
Our lives run on the supply of an invisible utility: accurate time. Starting with the morning alarm on our smartphone, it’s the basis of the everyday information we rely on for travel schedules, journey ...