When Effectiveness Trumps Efficiency

In my last blog post, I discussed a system for eliminating bottlenecks and making startups more efficient (i.e. doing more faster) across every area of the organization. I did not at all delve into the concept of “effectiveness”, as contrasted with that of “efficiency”.

To me, efficiency is all about how you go about getting things done, whereas effectiveness deals with a entirely different subject: what it is that you choose to do.

When I was in high school, I had an exceptional Physics tutor who would constantly tell his students to “work smart, not hard” and “be effective” with our learning methods. He showed us alternative methods of studying and problem solving that were dramatically faster than the popular methods being taught in most schools, as a result his students consistently outperformed others.

This simple truth applies to just about any endeavour- from learning a language, to losing weight, to running a startup. 

With resources usually being scarce in a fast growing startup company, one of the greatest risks that they face is doing the wrong things very well, without knowing that those activities are adding little value to the company.

Becoming effective requires a combination of trial and error, learning from others’ experiences, and most of all critical, often stomach wrenching thinking on the part of the individual or team involved.

Once a month, it would be useful for the founders and team to go through this Q&A exercise aimed at seeking greater effectiveness:

A. Elimination

  1. What activities can we stop doing immediately that will have little impact on our company goals?
  2. Do we need to change expectations of any customers, or fire any customers that are taking advantage of us?
  3. Is everybody working on something critical? If not, why not?
  4. Are we paying for any services that we don’t need?

B. Initiation

  1. Do we need to invest in any new software to help our business?
  2. Should we hire a new team member to fulfill a specific role?
  3. Are we missing a value-adding activity that our peers are doing? What?
  4. Does anybody need to go for training to learn a new skill that will be beneficial?

Every time, try to table a set of action items, starting with at least one, with a definitive deadline to implementation. Performing this exercise would be like taking a consultant’s view of your own organization. And who better to improve a company than those most familiar with it?

Often, improvement stems from reexamining our basic assumptions and turning them inside out to see what we end up with. It’s a well known fact that effective people (and teams) are highly capable of achieving greater results with fewer resources.

As I mentioned earlier on, this way of thinking applies as much to one’s personal life as it does to business. Periodically, we all need to stop and ask ourselves, “Why am I doing this?”.

Martial arts legend Bruce Lee epitomized a person seeking to be effective in everything he did. (His entire martial arts philosophy of Jeet Kun Do was premised on a fluid style that borrowed whatever worked from other disciplines and discarded the rest). Here are two of my favourite quote of his to drive the point home:

"It’s not the daily increase but daily decrease. Hack away at the unessential."

And:

"Defeat is a state of mind. No one is ever defeated until defeat has been accepted as reality. To me, defeat in anything is merely temporary, and its punishment is but an urge for me to greater effort to achieve my goal. Defeat simply tells me that something is wrong in my doing; it is a path leading to success and truth."

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