"More Out Of Less For More"

In this blog, I would be bringing in quantitative and qualitative approach to management. I would be talking about famous 3 E's of management. The whole management revolves around these 3 E's:

• Efficiency
• Effectiveness
• Excellence

Efficiency by literal meaning is the extent to which money, efforts or time is used for a purpose or a task. It's a very objective term. It's so because a measurable output is associated with it. It is the ratio of Output to Input.

Effectiveness is more of a subjective term. It is  simply a capability to produce desired results. It's more of a qualitative element.

Efficiency and Effectiveness are very common business terms.However,most of must mix their meaning and usage. "Being Effective is doing the right things,being efficient is doing things right".

This reminds me of very good example I read about Efficiency and Effectiveness.

There were two persons,A and B trying to replace  flat Tyre of their cars.Person A starts by taking out a jack and placing it under the car. He did not now where to position the jack.After some hard work,he was somehow able to replace the flat Tyre. He wasted around 20 min in the process.

As A was doing right thing,but he was doing it poorly  he was effective but not efficient.

B,on the other hand,starts by cleaning the replaceable Tyre with a towel.He wants to make the Tyre as clean and shiny as possible before pacing them on. He was very good at this cleaning.He cleaned the Tyre and then went on to replace the flat Tyre.

B was very efficient in his work but his work was not effective.Its not effective because cleaning is not a important step when changing the Tyre.

This example explains Efficiency and Effectiveness very clearly.

So what is Excellence then? Excellence is defined as:

Excellence =  Efficiency * Effectiveness

In case of above example, had there been another person C, who could have replaced the flat Tyre by following right steps and doing it quickly, he could have been "Effective as well as Efficient" i.e. Excellent in his work.

Excellence in organizations is all about achieving "More out of Less for More" where "More out of Less" is Efficiency and "for More" is Effectiveness. The world has seen many organizations which have followed brilliant business strategies and made world say "Wow!". Excellence is combined effort of Efficiency and Effectiveness and is highly interrelated.

Well I leave you to think on this with this beautiful quote -

The leader must discover the "Doing things right is not as important as doing the right things." A comparison between the Effective leader and the Efficient one is helpful.