What is the Difference between Being Effective and Efficient?

I recently ran Business Mastery Advisory Boards for small business owners (www.rpfgroupinc.com) and this problem came up time and time again: owners not doing something because it takes to long.

You want an example? One business owner did not do billing because it took over one hour to create an invoice and he did 10 invoices a month. His total process should take 10 minutes per month.

The problem: he tried to force fit a tool that he used every day to do a task it was not designed for. He was using Outlook to do time and billing functions. He was over thinking it by trying to save money. As a result he did not do his billing until the end of the year and he let his clients use thousands of dollars of his money for free for almost a year. When we looked at his existing process, he came to the conclusion he could make this change in just a few hours.

If he focused on being effective, the right amount of efficiency would have been introduced. Since he focused on efficiency, his effectiveness was being compromised. Effective in this case was producing an invoice monthly in the fastest, more effective time frame possible.

Time is short. It is the only thing was have. Focus on the best use of your time, not the more efficient use of your time.

Ron Finklestein


%d bloggers like this: