Efficiency - Effectiveness and outcome thinking
For maximum understanding, it is recommended to read and hear together.
What is the difference between outcome thinking and outcome-oriented thinking?
And what is the connection between the difference between efficiency and effectiveness?
Although many managers use these terms on a daily basis, I find that some do not fully understand the difference between them. Sharpening the meaning of the concepts we use creates management insights and improves communication between different people.
In this post, I'll briefly describe the differences.
Efficiency = Do things right.
Effectiveness = Do the right things.
Efficiency is expressed in the execution of tasks while optimizing the use of resources, budget and time.
An effective manager is a manager who manages to achieve a result defined with minimal resources.
On the other hand, at times efficiency is linked to efficiency and cutbacks. Try to do everything we've done so far, but fewer people and less money.
But, an effective manager is not necessarily an effective manager.
Is the outcome that the effective manager achieves is the right thing for the organization?
Perhaps we should invest more resources to achieve a result that advances the organization more significantly?
Is the amount of tasks that the manager is able to complete more important than the quality of the contribution of the tasks to the goals of the organization?
The effective manager succeeds in bringing the desired results to the organization.
In the blog, you will find many examples of how to increase day-to-day management effectiveness.
And what is the connection between the difference between outcome thinking and results-oriented:
For managers who are not result-oriented at all, it is very difficult to motivate others. Therefore, every average manager I know is aiming for results. In other words, the manager has some kind of specific result that he wants to achieve and to which he plans and directs his steps.
Result-oriented managers can be very effective on their way to achieving the result.
Outcome thinking is the systematic pattern for defining effective results.
The director directing the result will ask himself "how to get the result?" (efficiency)
The outcome-oriented manager will first ask himself, "What kind of outcome is it worth getting?" (Effectiveness), and only then will continue to plan the way.
Additional Principles of Regulatory Thinking *
2. The ability to measure the outcome is a necessary condition for success.
3. The result is a dynamic factor. In other words, even after defining a result, we must continue to examine its validity and change its definition as necessary.
4. The result is a driving factor in the activity that will lead to its achievement. The result creates motivation among employees.
5. To achieve a better result, higher results ("higher") should be identified. Identifying such a result will help in finding additional and varied ways to increase the chances of achieving the result.
Efficient manager
Doing things the right way, Performs his job description, Fulfilling obligations, Meets the defined goals, Gives emphasis to the process, Gives emphasis to inputs, Reduces costs, Asking: How to get the result? Thought-oriented results.
Effective Manager
Doing the right things, Creates new standards, Achieves results, Identifying new destinations, Gives emphasis to the result, Gives emphasis to outputs, Raising profits, He asks: What outcome should be achieved? Resulting thinking.
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