Insights

Efficiency, effectiveness, and effectivity

Frameworks · 4 min read

Three words that are often used interchangeably describe three very different organisational questions, and confusing them explains a great deal of wasted improvement effort.

Efficiency asks whether the organisation is doing things well. Effectiveness asks whether it is doing the right things. Effectivity asks whether it is consistently converting the right strategy, capability, leadership, resources, and actions into the results it wants.

An organisation can be highly efficient at work that should not be done, and highly effective in its choices while remaining unable to execute them. Effectivity is the discipline of creating the conditions in which good choices reliably become good outcomes.

This is why capability, leadership behaviour, and management discipline belong in a performance conversation, rather than being treated as a separate people agenda.