Finance - Efficiency vs Productivity vs Effectiveness.

HINT - They are NOT the same things.

1/ Efficiency is how well you are able to DO something

2/ Productivity is a measure of how much you PRODUCE

3/ Effectiveness is a measure of how well you’ve achieved a GOAL

You can be efficient without being productive and you can be productive without being effective.

- An efficient engine will run smoothly whilst burning as little fuel as possible.

- An efficient finance pro will complete month-end on time every time.

- A productive farmer will produce large crop yields with limited resources.

- A productive finance pro will produce a large amount of accurate work within a short space of time.

- An effective politician will build a campaign that wins votes that leads them to victory.

- An effective finance pro will leverage process and insight to achieve cost reduction initiatives or margin improvements.

When approaching anything, use these 3 questions:

1/ Can I carry out my work on-time without causing undue stress?

2/ Are the volume of results I'm producing representative of the time I've spent?

3/ Are the results moving me towards my goals and objectives?