Each entrepreneur who is currently in the process of creating his own company, must take into account, among many other things, that the concepts of efficiency and effectiveness are central in the day-to-day running of an organization.
Those who have already had the opportunity to be members of a company or have studied this topic, know that a large part of the success of the company is due precisely to the fact that both efficiency and effectiveness have optimal levels within it.
But what do we mean by efficiency and effectiveness?
We speak of efficiency when the different processes that occur in the company are carried out optimally. It also refers to the optimal use of the resources available to the company.
On the other hand, effectiveness refers rather to the successful fulfillment of the ultimate goals or ends of the company. A business is effective when it achieves the initial desired results.
In simple words, we can say that a company is being efficient and effective when it achieves the results it seeks and achieves its objectives, using the least possible resources, through the optimization and streamlining of the different organizational processes.
As we mentioned, the most appropriate for a company to achieve success, the most appropriate would be to maintain both efficiency and effectiveness at the same time. However, it could also be the case that the company is effective but not efficient, or efficient but not effective.
For example, if a company sets the goal of increasing its profits the following year, and achieves it successfully, but there was also an increase in the expenditure of resources used throughout the process, in this case it was possible to be effective but not efficient.
Knowing this, it is essential that you as an entrepreneur and future businessperson understand these concepts very well and their implications for the success that your organization or business may or may not have. If you can keep these concepts present in your daily practice, success will soon greet you.
