Effectiveness and efficiency
In the center of benefit, discussions are often about effectiveness and efficiency. Since the two terms are used repeatedly in a fuzzy way, the following specifications and examples facilitate the application.
Relevant benefit aspects ensure that the right (effectiveness) is done right (efficiency).
- Effectiveness
describes the hit ratio of activities, i.e., focusing on the essential and the achieved impact. The benefit evolves by omitting aspects that are not part of the task and the resulting availability of resources for the crucial tasks. The effectiveness appears in achieved customer and/or employee satisfaction, realized project focus, and reduced redundancy, as well as the degree of activity integration.
- Efficiency
describes the economical use of resources, i.e., the achievement of maximum benefit with minimum costs. Advantage evolves from defined requirements, suitable approaches, and frugal application of resources. Efficiency appears through the achieved quality and transparency, the profitability of the solutions, obtained brand value, and the sustainability of the results, i.e., the solutions' long-term impact.
The conscious discussion of effectiveness offers most of the benefit potentials since the avoidance of unnecessary work packages preserves on the one hand resources and keeps, on the other hand, the complexity of solutions as small as possible.