Effectiveness before efficiency

Efficiency is the measurement of the use of inputs to create an output. Often times, organizations are caught in the trap of monitoring efficiency, without considering the relevance or effectiveness of the output. Regardless of the efficiency with which you produce something that your customers don’t value, it is still irrelevant. Before and while you monitor efficiency, also consider the shifting relevance of the output.

This is where strategic thinking (questioning everyone’s unquestioned assumptions, demonstrating an unwillingness to expend resources, and looking for indirect and unexpected options rather than predictable and head-on) comes into play.

Efficiency? Yes. But first, focusing on things that are strategically relevant.

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