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Tuesday, March 31, 2009

Effectiveness and Efficiency

(Refer our High Quality Management Encyclopedia at:

For everything you wanted to know on building leadership and management, refer Shyam Bhatawdekar’s website:

Effectiveness and Efficiency

Though Similar in Looks, They Are Different
  • A good number of people, at times, feel confused between the exact difference between the two terms "effectiveness" and "efficiency".
  • Everyone wants to achieve success (and thus happiness) by accomplishing one's goals in a short period of time with minimum resources and therefore, he must know exactly what effectiveness means and what efficiency means.
  • One must do both- effectiveness as well as efficiency. Yet, effectiveness comes first, always.
Compare the Two
  • In organizational terms, minimization of extent of expenditure of resources (including money, time and information) in a process to get an output (result) in called "efficiency". "Effectiveness" is how well the process achieves its desired output and the desired output is what its user or customer requires- are the chosen output and process the right ones?
  • So how fast I did a job is "efficiency" using the given process (selection of process or the job itself may be a question mark- either one of them or even both may be non-value adding). But when I carry out a job that is value adding and when I select a better process, that is "effectiveness".
  • In every day language, thus, efficiency is doing things right whereas effectiveness is doing right things.
  • Effectiveness is answer to "what" and efficiency is answer to "how well".
  • "Effectiveness" is all about finding the right destination and right direction and right path to reach the chosen destination. "Efficiency" is reaching the destination on this chosen path with the usage of optimized resources. For example, how soon will I cross mile stones after mile stones and how fast will I reach the destination and so how fast can I walk?
  • So do effectiveness first and then efficiency.
  • If you do efficiency first, you may start walking fast on any path, in any direction, in the over zealousness of walking faster (efficiency) but with this higher speed of walking, you may end up proceeding in wrong direction, on wrong path and away from the desired destination, faster. What's the use? It's waste of resources though you have been efficient in walking.
First Decide The Goal, Your Product/Output and Process
  • Very first thing, decide what is your product/services? Are they the ones that your customers need? There is no point in making the mechanical watches when the customers want quartz technology watches. Applying greater efficiency in making mechanical watches is being utterly ineffective.
  • Then choose the right processes: management, business and technical processes.
  • Processes consist of both, value adding activities and non-value adding activities.
  • There is no point in automating a process having too many non-value adding activities by using any technology. Automation is like having greater efficiency. All you will end up doing is: doing the non-value adding activities of the process faster, which is no improvement. Rather, it will be detrimental to the organization.
  • Therefore, think of the processes without any non-value adding activities before automating them by using technologies or by employing efficiency.
  • This would necessitate giving a fresh look to how you design your processes (management technical, business and technical processes etc) and substituting the exiting processes (non-effective process) with brand new effective processes.
Measurement Units
  • Effectiveness can be measured in terms of how well the products or services meet customers' requirements. Are my chosen destinations/goals correct ones?
  • Efficiency can be measured in terms of ratio of output to inputs, utilization percentage of various resources, unit cost of product, cycle time or lead time, extent of wastage etc
Latest Book on Fundamentals of Effectiveness: "HSoftware"

Show us a human being who does not wish for success and happiness in his life. Yet, the desired
success and happiness are very illusive; they are like mirage to a large majority of people. The reason is that most of the people fall short of the required levels of effectiveness that may lead them
to achieve their life time objectives. They just don't have the clue on what can give them the higher degrees of effectiveness. This ignorance proves very expensive. They keep struggling throughout their lives and keep consuming themselves and their resources without any satisfactory results.

So, what should they do to acquire the required effectiveness? This book presents the answer to this question. It presents the "most effective model of effectiveness" called "HSoftware". The book
unravels the "HSoftware" model in a very lucid manner.

Our eminent authors Shyam Bhatawdekar and Dr Kalpana Bhatawdekar that though each human being is unique and that uniqueness may be worthy of appreciation, yet, it does not guarantee effectiveness in each one of them. Only the acquisition of more correct and appropriate "HSoftware" and its strict practice alone can make one more effective. The
book uncovers the most fundamental constituent elements of "HSoftware" in an interesting way.

Shyam Bhatawdekar is the creator of this word “HSoftware” and its associated concepts. Both the authors (Shyam Bhatawdekar and Dr Kalpana Bhatawdekar) of this book started using this
phrase “HSoftware” and its related concepts in their numerous speaking assignments, seminars and
workshops since 1993 or even earlier. Subsequently they started using it in the written form through their various published articles.

And now they present this all encompassing effectiveness model "HSoftware" in the form of this book to help the entire humanity.

Books Authored by Shyam Bhatawdekar and Dr Kalpana Bhatawdekar (available online from Nuubuu and Amazon)
  1. HSoftware (Human Software) (The Only Key to Higher Effectiveness) 
  2. Sensitive Stories of Corporate World (Management Case Studies) 
  3. Classic Management Games, Exercises, Energizers and Icebreakers (Volume 1) 
  4. Classic Management Games, Exercises, Energizers and Icebreakers (Volume 2) 
  5. Desert Survival: Complete Treatise (Complete Guide with Expert Solution for Trainers to Conduct the Game) 
  6. Landing on Moon: Complete Treatise (Complete Guide with Expert Solution for Trainers to Conduct the Game) 
  7. Stress? No Way!! (Handbook on Stress Management) 
  8. HSoftware (Shyam Bhatawdekar’s Effectiveness Model) 
  9. Competencies and Competency Matrix 
  10. Essentials of Work Study (Method Study and Work 
  11. Essentials of Time Management (Taking Control of Your 
  12. Essentials of 5S Housekeeping 
  13. Essentials of Quality Circles 
  14. Essentials of Goal Setting 
  15. Essentials of Anger Management 
  16. Essentials of Assertive Behavior 
  17. The Romance of Intimacy (How to Enhance Intimacy in a 
  18. Good People (Dream of a Boundary Less World) Novel, a 
    refreshingly different love story 
  19. Funny (and Not So Funny) Short Stories 
  20. Stories Children Will Love (Volume 1: Bhanu-Shanu-Kaju- 
    Biju and Dholu Ram Gadbad Singh) 
  21. Travelogue: Scandinavia, Russia 
For More Guidance, Assistance, Training and Consultation


Also refer: (Prodcons Group), (Training Programs by Prodcons Group), (Productivity Consultants)

Other Topics of Interest

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(Human Software- HSoftware)
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(Zero Based Budgeting)

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(Anger Management)
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(LifeManagement: Competencies)
(Life Management: Effectiveness Management: HSoftware)
(Life management: I Am Liberated)
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About All the Products
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