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Assignment #3:

You are kindly requested to apply the 4 different cases on the


productivity dimensions on an organization and explain each
scenario.

Productivity and the dimensions of organizational


For a better idea of the difference between efficiency and effectiveness, the
following Example:
Efficient. Mona develops a generic sales email she can send to 100 potential
clients each day. 2% of her emails lead to a sale.
Effective. Ahmed researches potential clients and crafts a tailored email for
each. He sends ten emails a day. 40% of his emails lead to a sale.
Mona has found a way to maximize her working hours, as far as customer
contacts per hour go. She has the same resources as Ahmed (time, effort, list
of leads, etc.) but achieves more connections. In other words, Mona has
maximized her output, given the same input as Ahmed. She has streamlined
the process of reaching many clients quickly.
Ahmed, on the other hand, has a strategy for closing sales more regularly. He
spends more time and resources on each email, but that effort pays off with a
higher success rate. Ahmed has prioritized developing meaningful
connections over contacting a maximum number of clients in the shortest
time frame. He has focused on the goal of selling the company’s products
rather than performing that function quickly.
Efficiency and effectiveness are two terms widely used in operational
excellence and Lean. They are used indistinctly many times, but their meaning
is really different: Efficiency is doing the thing right. Effectiveness is doing the
right thing.
All combinations of effective/ineffective – efficient/inefficient are possible,
even the counter-intuitive “efficient & ineffective” (well, some people think
that effective is a prerequisite for efficient. This means that a process not
doing the right things - therefore, ineffective – cannot be considered efficient.
Let’s see an example. Imagine I want a portion of pizza for dinner. Four things
can happen:
 The taste and temperature of the pizza is perfect (effective) and I get it
very quick (efficient).
 The taste and temperature of the pizza is perfect (effective) but I have
to wait too long (inefficient).
 I get a cup of coffee instead of pizza (ineffective) but very quick
(efficient).
 I get cold pizza (ineffective) and I have to wait too long (inefficient).
While efficiency and effectiveness focus on different aspects of a well-
functioning business, they are not mutually exclusive.
Inefficient and ineffective. Mohamed crafts a generic sales email and sends it
to twenty potential clients a day. 1% of his emails lead to a sale.
Efficient and effective. Rania develops a partially generic sales email, then
incorporates client research to make each email somewhat personally
tailored. She sends it to twenty potential clients a day. 30% of her emails lead
to a sale.
Another way to differentiate efficiency vs. effectiveness is with the following
example.

By referring to this chart, CEOs and sales leaders can find an optimal balance
between effectiveness and efficiency.

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