Efficiency vs Effectiveness: Why Being Effective Comes First

The business world is obsessed with efficiency. We must be faster. We must do more with less. We must optimise everything.

I once worked with an “efficiency” manager whose entire role was to make the organisation more efficient. This article first appeared in the Meeting Notes newsletter.

His work ranged from spotting obvious waste in processes to removing entire departments from spreadsheets. Yes, entire teams were made redundant—but the numbers on the spreadsheet looked better. He chased costs, implemented control plans, and chased new costs as they appeared elsewhere. It was an endless cycle. And he was rewarded handsomely for it.

The problem? The organisation’s ability to achieve its purpose—the reason it existed—was declining. Random efficiency programmes, combined with staff cuts, meant costs spiralled, people struggled to deliver value to customers, profits dropped, customer satisfaction plummeted, and staff morale tanked. Yet, by measuring only time and costs, he had “made the organisation more efficient.”

The reality: the organisation was no longer effective.

This is the key point: making ineffective processes, teams, or structures more efficient doesn’t make sense. Efficiency without effectiveness is wasted effort.


Effective First, Efficient Second

My approach is different. I advocate for being effective first—even if it takes more time, requires navigating cumbersome rules, or initially costs more. Focus on delivering value and achieving your purpose. Once you are effective, then look for ways to be efficient.

People are generally effective; computers, automation, and tools can help make them efficient. But stapling yourself to work purely to optimise it only works if what you’re improving is effective in the first place.


The Same Applies to Communication

I once attended a meeting where executives running a change transformation were obsessed with communicating efficiently. They were starting from the wrong point. Communication must first be effective.

Effective communication takes time, thought, care, creativity, and purpose. Efficient communication often misses the mark. Sending a single email to 2,000 people may be efficient, but it’s unlikely to be effective. Clarity and alignment require multiple messages, delivered across different channels, tailored for the audience and context.

In short: effective communication rarely comes quickly or cheaply.


The Takeaway

The principle is simple: deliver value effectively first, then optimise for efficiency. There is little point in making something ineffective more efficiently ineffective.

Whether it’s delivering business results, leading a team, or communicating change, focus on effectiveness. Efficiency is the icing on the cake—not the cake itself.


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