Doing Things Right - Efficiency Vs. Doing the Right Things - Effectiveness: Why Both Matter

Hey Friend,

I’m starting today’s post with the quote that shows up everywhere when this topic comes up:

“Efficiency is doing things right; effectiveness is doing the right things.” — Peter Drucker

You’ve seen it before. You’ve probably even used it in a PowerPoint slide or training session. But let’s be honest with one another, how many of us have truly paused to separate the two in real-world improvement work?

In Continuous Improvement, these terms are often used like “ibeji”, but they’re not identical. Not knowing when to focus on one or how to balance both is a silent killer. In real life, very little is said about effectiveness. In many organisations, there’s a strong drive for efficiency savings, and rightly so; however, if we’re not also checking the compass, we might be improving speed at the expense of direction.

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First, What’s the Actual Difference?

• Efficiency is about how well you use your resources. It means getting more done with fewer resources, time, money, people, e.t.c. It’s about minimising waste and maximising output.

  You automate tasks. You cut out steps. You speed things up. That’s great ONLY IF the work you’re doing actually matters.

  The risk is that you might be doing the wrong thing, just faster.

• Effectiveness is about what you’re achieving. It is about making sure the work you’re doing moves you toward the right goal, right output and right impact.

  You might spend more time upfront clarifying direction. You may even be slower at first. But you’re clear on purpose. You’re solving the right problems.

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So Why Does This Matter in CI Work?

You can be the fastest Uber driver in Lagos, dodging potholes, traffic and danfo buses (efficiency), but if you’re heading to the wrong destination (ineffectiveness), you can’t get five stars at the end of the trip.

Here are three reasons:

1. It Prevents the “False Win”:
   A team can reduce costs or increase speed, and still be failing to deliver value to the customer. When we celebrate gains that don’t drive value, we risk turning Continuous Improvement into “Continuous Busyness”. We need to ensure that improvement efforts are targeted at the right things.
   

2. It Improves Strategic Alignment between teams.
   Effectiveness ensures we’re working on things that support the organisation’s bigger goals. Efficiency ensures we’re doing those things well. When people see the bigger picture of where they are headed, they’re more likely to support the changes that will get them there faster.

3. It Shapes the Right Culture
   Teams don’t get inspired by shaving 30 seconds off a task if the task itself is pointless. But when people see their efforts making real impact and becoming easier or faster, that’s when buy-in happens. That’s when people say, “…this improvement thing is working”.

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Which Should Come First?

If you have to choose one to prioritise, start with effectiveness.

Why?

It makes no sense to optimise a process that doesn’t matter. First, make sure you’re focused on solving the right problem, creating the right product, and serving the right customer. Then go after efficiency.

Trying to be efficient before being effective is like learning how to drive fast before you know the destination. You’ll get there faster, yes, but where exactly is “there”?

This matrix below might help you understand Effectiveness and Efficiency better.

The perfect place to be is in that bottom-right box: efficient and effective.
That’s the lean Utopia.

Wrapping Up

Efficiency and effectiveness are not rivals. They are dance partners. And Lean? Lean is the dance instructor who helps them move in sync.

So before your next improvement work, ask:

• Are we doing the right thing?

• Are we doing it in the right way?

Until next time,
Tomiwa Femi-Philips
Lean Process Improvement Enthusiast