June 14, 2016
Whether you are in the business of running a company or even running a country, the words efficiency and productivity are not only frequently used in policy and strategic rhetoric, they also appear to be largely interchangeable. This is frequently problematic. There is no denying the importance of both, but understanding their differences is vital to achieving real success when focusing on financial outcomes. The Merriam-Webster Dictionary defines efficiency and productivity in the following ways: Efficiency – the ability to do something or produce something without wasting materials, time, or energy. Productivity – the rate at which goods are produced or work is completed. Essentially, increasing efficiency means doing more with less, whereas increasing productivity means producing more with the same, for a business this typically means with the same amount of staff, space, time or materials.