Efficiency or Effectiveness

Most people try to improve the work flow to get better results. They try to optimise time, to make a perfect developing/manufacturing procedure, to automatise processes, etc.

But think a little bit about it, is this the best attitude to have? Is this the first thing to do?
If you lived in in Rio de Janiero, doest it matter if you have the most efficient procedure to manufacture skis? - you will get 0 client.

Be efficient is important, but its not the first step. don't waste your energy and time optimising something that will not make your customer happier or your business stronger. first focus on what is effective to your business. you have to analyse your market and your internal structure to understand what to do to get more customers; to improve the product that will make your customers happy; to to optimise time for the procedures will give you results.

Efficiency is a good thing BUT effectiveness comes FIRST.

E.B.

Classical economics theory - Nuggets of knowledge

The Wealth of Nations - Adam Smith 1776
Productivity

A.Smith thought that, just as the market coordinate goods and services exchanges in the society. The companies can coordinate the work within the factories.

Contrary to a craftsman. who work alone has to be able to manage many duties to manufacture its products (usually few). workers of a factory can be specialised on a tiny amount of activities. this duties could perfectly fit with the characteristic of each worker thus the productivity of a company will increase.
A team can produce more than people working by themselves.


This principle could seem now obvious, but we have to think that this mental process was held in 18th century. Smith laid down the foundations the classic and neoclassic economical theories.

What do you think about it? let me know

E.B

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