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Efficiency vs Effectiveness

Efficiency vs Effectiveness

Don’t these two words mean the same thing?

A common debate, indeed! How about ‘Leadership’ and ‘Management’ – do they mean the same thing? We would suggest not. Peter Drucker – perhaps one of the best known business authors and educators of the 20th century – defines Leadership as ‘doing the right things’, versus Management as ‘doing things right’. Every organizations needs both Leadership and Management, but they are completely different things; you can do the ‘wrong things’ correctly, and you can do the ‘right things’ incorrectly – if you are not both leading and managing your organization properly, you will not ultimately be successful.

The same goes for Efficiency and Effectiveness. Here are our definitions:

  • Efficiency is all about reducing waste
  • Effectiveness¬†is all about adding value

Again, both are important, but we believe there is only so much Efficiency to be gained, where as there is always a new way to be come more Effective.

Oxygen’s business model is based on driving Efficiency within a technology environment to redeploy ‘wasted’ costs and efforts toward driving organizational effectiveness, creating new value in the form of productivity and profitability for an organization.

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