Efficiency vs. Effectiveness

Beware of rules and procedures. With the intention of efficiency our first step many times is to create rules. In the book, Communicating Change, the authors tell the story of a bank teller who was observed breaking the rule that she must always use a customer's name when processing a transaction. She explained that she had learned which regular customers were prone to long conversations. She knew that during busy periods not using their names minimized their conversation and allowed the lines to move more quickly. She was aware that the main goal was to provide prompt service for all customers. Luckily, she knew when to break the rules. Today, organizations must find the balance between efficiency - the firm's ability to achieve goals with a minimum of resources, and effectiveness - the firm's ability to adapt its goals and innovate to meet the changing needs of the marketplace.

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