When I was running my pizza business before, I was always strapped for cash. Not in a “keeping it safe” kind of way, though.
More of a “how do I make payroll” kind of way.
Because of that, I always went for the cheapest option, the one that was the most efficient use of resources.
Big mistake that was, in hindsight.
I wasn’t making a lot of sales, but I was confident I could turn it around.
Because of my limited resources, I had to resort to really cheap methods of marketing. Methods that were not labor-intensive, time-intensive, and money-intensive. Small boards, banners, discount flyers and letters, were what I thought.
There were other options that I thought up of and were available, but cost more. I was doubting whether they would be effective, but I reasoned: If I worked on marketing hard enough, I would be able to get results.
So I ran with my plan, and three months later, my crew and I found ourselves doing more and more work, but with very little increase in sales.
And what little money I had that I was trying to save, got even smaller and smaller.
What happened?
What is Efficiency?
I’d like to define efficiency as making the most out of what you’ve got. Making the most out of the resources at hand, and spending them wisely.
Bang for the buck.
It can also mean not wasting any resources. Making sure that every effort, every bit of fuel you can use is used.
Think of a car. The less gas it takes for a car to travel a set distance, means that the car is more fuel-efficient.
No doubt, I felt I was efficient. I made the most out of what I chose to do and spend on those efforts.
What is Effective?
Being effective, or effectiveness, on the other hand, is getting the results you want, and making the impact you set out to do.
As defined by the dictionary, being effective is:
the degree to which something is successful in producing a desired result; success.
Looking back, I believe I was terribly efficient, yet terrible at being effective. I didn’t get the results I was looking for, and after around 6 months of effort and investment, I decided to close the shop.
Effective vs. Efficient. What’s the difference?
Being efficient is about the process. It’s about how you manage to get from point A to point B.
Being effective is about the result. It’s figuring out the ways to determine if point B is where you want to go, and how to consistently get there.
Think about it. What makes a car efficient? If it uses less gas, requires less maintenance, heck, if it runs on renewable energy, then that’s one really efficient car!
But what is the use of a car? Why do we have cars in the first place? If we have a car that’s meant to carry four people and take us places, but can only seat one, uncomfortably, and be able to travel only a mile away, is that an effective car?
It’s Better To Be Effective.
So in the marketing efforts and plans I had for my pizza shop, I put the utmost importance on value for money, and on the efficient use of my resources.
What I didn’t take into careful consideration, was whether those efforts and plans would realistically bring about the results I wanted, when I wanted them.
What happened was, I was just spinning my wheels, hoping that what I was doing would take me to my destination, where in reality, it would take a very long time to get there. Maybe not at all.
I didn’t even stop and think about how much increase in sales I was targeting. All I said was that I hoped it would be worth my while.
So I went for the most efficient solution, which turned out to be ineffective for the results I truly wanted.
Being Effective Comes First, Then You Can Be Efficient.
What if I had first gotten clear on what impact on my sales I had wanted in the first place? What meaningful target would be worth my while to pour in effort, investment, and keep the shop afloat?
It’s better to be effective, then to be efficient. Getting clear and making sure that you’re going to do something that matters and will change things for the better, will help ensure that you get there.
Rather than ensuring first you are efficient, making great use of resources, but with no clear end in mind, and no clear impact.
Focus on making change, focus on making an impact, focus on getting the results you want. Then, it will be easier to become more efficient. What you need to succeed becomes clearer, as well as what you can do without.
If I had done all of these before, then maybe I would have sold more pizza. And I’d be eating pizza now while writing this to all of you.
I hope you won’t make the same mistakes I did.
Here’s a quote I want to leave you with:
“Be passionately effective, yet brutally efficient”
That’s the best of both worlds.
Have you ever been efficient but not effective? Please share in the comments below!
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