Finance - Efficiency vs Productivity vs Effectiveness
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?
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Originally Posted on LinkedIn by Adam Shilton - 03/01/2023