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Productivity vs. Efficiency: How to Balance Both at Work?

Finding the time to complete your apparently never-ending to-do list is one of the hardest problems facing any entrepreneur. Establishing a new business involves constant efficiency and production.

 "While you may hear some people use the terms “productivity” and “efficiency” interchangeably, they’re different — and understanding the differences between the two can be the key to maximizing both.

What productivity and efficiency mean
Production rates are measured by productivity. It speaks to the quantity of products (or output) you are able to create in a specific amount of time.Efficiency quantifies the amount of resources required to finish a specific task. Time is a common topic of conversation while talking about efficiency since you want to know how long a task takes to finish.

The distinction between productivity and efficiency

While efficiency gauges how well you use your resources—such as time—to complete a task, productivity refers to the quantity of work you can do in a given length of time.You track productivity by keeping time constant and examining the overall output level. By holding the task or output constant, efficiency measurement, on the other hand, allows you to compare resource utilization. By increasing productivity, you can complete more tasks in the same amount of time and produce more goods. When efficiency rises, less resources (or overall input) are needed to do the same amount of labor."  Assume you have two team members in your sales department. When comparing the productivity of two employees, let's say that one hour is held constant, and we compare the production differences. John makes ten cold calls at this time, compared to Mary's eight. Given that he completed more work in the same amount of time as Mary, John is more productive in this instance.You offer the two the identical amount of work and time each of them to finish it in order to compare how efficient they are. Let's say you give a call sheet with 50 names to every sales representative. Mary takes six hours and fifteen minutes to complete her list, whilst John finishes in five hours. The fact that John finished the identical activity in less time indicates that he is more efficient, according to these data. Although efficiency and productivity are distinct concepts, they are related. One strategy to guarantee high productivity is to raise your level of efficiency.
Regarding effectiveness, though, what say you?
Being effective is carrying out the tasks that are most pertinent to attaining the desired outcomes. Using the earlier example, you might conclude that John was more effective because he was more productive and efficient. However, that's not always the case.

Mary may be a more profitable employee than John because of her higher income. What may have caused that to occur?

"Mary could have been more productive by taking these actions. She could have:

  • Devoted more time to customizing the calls and investigating her leads.
  • She ranked her list in order of likelihood of conversion.
  • Suggested  adding services or raising pricing tiers in order to boost income per sale.  


In the end, effectiveness isn't always guaranteed by productivity and efficiency. They may indicate that you're adept at keeping yourself occupied. Focus on increasing the amount of work while upholding quality standards to achieve the greatest results." 

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