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The efficiency and effectiveness matrix is a useful technique which can be employed to help achieve both organizational and individual goals. This article describes the key parts of the efficiency and effectiveness matrix, and how to use it.
About Effectiveness and Efficiency
Although they may seem very similar, effectiveness and efficiency are in fact two distinct things. A good way to distinguish between the two is to use the following definitions:
- Efficiency: doing things right. In other words, getting things done by producing satisfactory results with the least amount of waste and effort.
- Effectiveness: doing the right things. In other words, getting things done well, no matter what it takes.
Efficiency and effectiveness are necessary for successful organizational and individual performance; however, balancing the two can be challenging. The efficiency and effectiveness matrix can help you do just that. Let’s take a look at the matrix in more detail.
The Efficiency and Effectiveness Matrix
The matrix has four quadrants:
- Effective and efficient (‘thrive’): this is the optimum part of the matrix, and therefore is the one you should ideally be operating in. It delivers a highly productive outcome because the right things are being done in the right way.
- Effective and inefficient (‘survive’): this means valuable work is being done but not in an effective manner – for example, although you may be concentrating on the right activities, you may not be making the best use of your resources, such as time and staff.
- Ineffective and efficient (‘die quickly): this means you are spending time doing the wrong things but you are actually going about them in the right manner. For example, you may be selling the wrong products but you might be using the right channels for doing so.
- Ineffective and inefficient (‘die slowly’): this part of the quadrant means that the wrong things are being done in the wrong way. For example, you may be choosing the wrong products to sell and also selling them in the wrong way.
Using the Matrix
To start using the matrix yourself, download a copy of the blank matrix using the button at the top of this page.
- Begin by thinking about your current team/departmental/organizational objectives. Select one of these and list the activities you are currently undertaking that should be helping you achieve that objective.
- For each activity ask yourself honestly:
- Is this the right thing to do?
- Am I doing it the right way?
- Could it be done better?
- Once you have answered these questions, decide where on the matrix each activity should sit and place it accordingly.
- Look at each item that is not in the ‘thrive’ area and consider carefully what action you could take to ensure that it moves into this quadrant. It may even be that you need to completely eliminate certain activities or ways of working.
- Repeat the process on a regular basis to ensure you are being as effective and efficient as possible.
You can also apply this process to help you analyze how effectively and efficiently you are working towards your own personal goals.
