Set your focus
Businesses often study themselves in terms of whether they are doing the right things and whether they are doing the right things well. Two terms are used to describe the two points.
First, effectiveness occurs when an organization makes the right decisions in deciding what products or services to offer customers or other users. Also included is making the right decisions in how to produce the products and deliver them to consumers.
Second, efficiency occurs when an organization produces needed goods or services quickly at low cost. Firms that provide products at the lowest cost while maintaining desired quality will succeed. Some firms are extremely efficient but very ineffective while others are effective but inefficient. Good managers focus on both effectiveness and efficiency at all times.
Tags: Business