In my example, some expenses might be considered capital expense or improvements. Perhaps I purchase a higher quality shingle, for example. Another measure of maintenance efficiency is corrective maintenance CM versus preventive maintenance PM. Evaluating total maintenance costs to RAV does not naturally give enough detail to identify where costs are applied.
Total man-hours spent on CM versus PM can help managers determine if maintenance practices are effective at preventing unscheduled downtime and reducing CM. The percentage of work planned as opposed to emergency or corrective repairs is also an effective measure. Remember that emergency work is typically three-four times more expensive than planned work.
PM ratios and a good measure for efficiency. The purpose of the PM is to schedule activities so technicians can spot deficiencies before they evolve into more costly problems. So it is important to complete these PMs and to do so them on time. CM includes maintenance done to return items to proper condition.
For example, if a company is not doing well it may decide to train its workforce to use a new technology. The training may go well, with employees learning the new technology in record time, but if overall productivity doesn't improve following the implementation of this new technology, the company's strategy was efficient but not effective. Share this comparison:. If you read this far, you should follow us:. Diffen LLC, n.
Bob has prioritized developing meaningful connections over contacting a maximum number of clients in the shortest time frame. Measurable using predefined metrics. Primarily concerned with internal mechanisms using minimal company resources for maximum payoff. While efficiency and effectiveness focus on different aspects of a well-functioning business, they are not mutually exclusive.
Inefficient and ineffective. Connor crafts a generic sales email and sends it to twenty potential clients a day. Efficient and effective. Denise develops a partially generic sales email, then incorporates client research to make each email somewhat personally tailored.
She sends it to twenty potential clients a day. As you can tell, every business wants an employee like Denise. Connor is the ultimate drag on business. His tactics are ineffective in leading to sales, and he employs those tactics inefficiently.
For those keeping track at home: Alice ineffective, efficient makes two sales per day, Bob effective, inefficient makes four, Connor ineffective, inefficient makes 0. Our AI resume builder helps you write a compelling and relevant resume for the jobs you want. Effectiveness should be the first priority of any business, followed by developing efficient practices. Clearly, delivering a tasty treat is more important than baking it efficiently.
In the same vein, businesses should strive only to perform tasks that effectively promote profits and growth. The biggest issue with prioritizing efficiency over effectiveness is that people may never actually perform their tasks because they become stuck trying to optimize how they complete it. It is essential first to learn how to perform a task, even if your methods are not optimal. Then, you can iterate and improve, making the completion of your effective task more efficient.
The first step in making a productive company is focusing on effectiveness, even at the cost of efficiency. Once a business puts effective practices in place, the company can begin making those practices more efficient. Build a professional resume in minutes. Browse through our resume examples to identify the best way to word your resume.
An effective leader looks outside the bounds of his or her company to the bigger picture. He or she sets expectations that individuals can easily align with their work practices. It takes discipline and long-term thinking to be an effective leader. Following these tips can make your leadership more effective:. Do the right things.
Your email address will not be published. In his book, The Effective Executive , Peter Drucker talks about effectiveness: Intelligence, imagination, and knowledge are essential resources, but only effectiveness converts them into results. Efficiency is doing things the right way in the best possible manner with the least resources, time and effort. Efficiency focuses on process.
Efficiency is about current work, what must improve now. Efficiency is easily measurable by analysing specific metrics. Efficiency is internal within the bounds of the organisation. Efficiency requires objective analysis. Effectiveness is doing the right things. Effectiveness aligns with objectives and goals. Effectiveness is future looking with the desire for a better future, encouraging innovation, laying down future strategy, adapting to changing environments, everything that leads to growing people and business.
Effectiveness is not easy to measure. Effectiveness in its true sense requires external view outside organisation , ability to understand competition, economy, market trends and customer insights. Effectiveness requires subjective visioning. What do effective leaders do? In particular, they commit to practicing these: Effective leaders value contribution Effective leaders execute from a place of trust, understanding, learning, contribution, courage and not from fear, ego, control, perfectionism.
Effective leaders do the right things Doing one thing right is more important than doing many things wrong. Third, engage in meetings that matter, making particular use of carefully constructed standing meetings that can be the heartbeat of dialogue, debate, and decision; and use some of your think time to prepare and follow up Effective leaders synergize An organisational strategy spans multiple teams and functions that must come together to define and embrace it.
Effective leaders hire and grow people A strategy without the right people to execute is of no use. Effective leaders make effective decisions Effective leaders make few decisions, but they make them well. Evolution to efficient management Once effectiveness is established, efficiency must take the front seat to win in the marketplace. The ultimate balance of effectiveness and efficiency Taking too long to ship, adding features that do not add value or pushing a half baked product can all lead to drop in the market share, dip in customer satisfaction and eventually lose the competitive edge.
Weld the two together to do the right things right: As you start, the first step is to have a solution. Do not seek a perfect solution from day one. Any solution is better than no solution Put it into action, execute it and learn from it With enough learning, utilise the knowledge gained during the process and put to best use — analyse and determine ways to do it efficiently Be a conscious leader and start from a place of self awareness.
Click Infographic to enlarge. Share if you care. Are You Ready for a Leadership Position? Samuel Abebe Mekuria says:. June 29, at pm.
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