Productivity vs Efficiency

10 Mar 2017 4:57 PM | John Heap (Administrator)

These two terms are often used interchangeably - but they are different.  Here I am not concerned with technical differences - but with philosophical or attitudinal differences.


Organisations that pride themselves on being efficient usually strive to achieve the same performance with fewer resources - doing the same with less.


Conversely, organisations that aim to be highly productive usually strive to do more with the same resources -doing more with the same.  They concentrate on the 'top line' (of the productivity ratio) - and the 'bottom line' takes care of itself.


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