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Last Updated on June 11, 2020

Productivity vs Efficiency: Which One Matters More and Why?

Productivity vs Efficiency: Which One Matters More and Why?

In this article you will discover the key difference between productivity and efficiency, and which one will help you achieve your goals.

Productivity vs efficiency is a discussion between quantity and quality. A productive person is known as someone who gets things done. Although their accomplishments may be short-lived if they did not build their strategy for the long-haul. In most of our lives, productivity and efficiency are at odds with each other.

When you are focusing on productivity, your efficiency is the first thing to suffer. Likewise, when you are confirming your plans are thoughtful and well-crafted, you run the risk of burying your goal in months of red tape.

How to Measure Productivity In Life?

Measuring productivity tends to be straightforward, so it is usually where people place their focus. People usually calculate productivity by measuring a person’s output during two similar time periods. For example, if you read two books in January and four books in February, you were more productive in February.

Businesses will calculate productivity by comparing employees, departments, and locations. For instance, the California office of a firm generated $60,000 in March, while the Florida office generated $50,000 in the same month, making the California office more productive.

Productivity’s Blind Spot

Because most people measure productivity by calculating output, you have probably felt at least once in your life that productivity was capturing the complete picture.

If your supervisor asks you for a report by end of day, they are thinking it is a reasonable request. While it is true the report only takes 30 minutes to create, that is not the only thing you are working on today.

If the report was your only task, you agree you should have it completed by the end of the day. However, your department added a new employee and you agreed to train them on all the processes.

Depending on the complexity of your role and the engagement of the trainee, it could take you an entire day to walk step-by-step through your work. You also have a few additional time sensitive matters that you accepted last week and they have the same deadline.

As you are starting to see, when you only capture someone’s output to determine if they are being productive, you are lacking key information.

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You open yourself up to the possibility of thinking someone had a less productive week, when they were more productive than last week.

Efficiency, the Other Half of the Productivity Coin

If productivity focuses on your output, then efficiency emphasizes the quality of your work, which usually focuses on saving time or conserving resources.

Think of your productivity as the revenue you generated from a sale, and think of your efficiency as the money you get to take home after you pay your expenses.

Using the business example from before, while the California office generated $60,000 in sales, they spent $20,000 in related seminar and travel expenses. The Florida office generated their sales by using an inexpensive online-webinar platform, so the Florida office was more efficient and generated larger profits.

Efficiency also accounts for quality in relation to time.

For example, Autumn and Alek work in a call-center where their job was to survey 100 customers per day. Autumn reached her number after she called 150 customers and Alek reached her number after calling 300 customers.

While they both achieved their productivity milestone, Autumn was more efficient because she only had to call an extra 50 people, while Alek had to call an additional 200 people.

Is There Such a Thing as Being Too Efficient?

Like productivity, focusing solely on efficiency can lead to unintended consequences. You do not want to complete your work hastily, but you also do not want to set the unreasonable expectation that you can achieve perfection.

Challenges, missteps, and failure are a part of growth and achieving results.

Whenever you focus too much on quality, you will find yourself coping with self-doubt, anxiety, and procrastination. If you are in a leadership position, your team may be too scared to produce anything because they are so worried about making a mistake.

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Out of fear, everyone remains in the analysis phase as they continue to plan for every possible outcome. Even though it is tempting to celebrate successful perfectionists like Steve Jobs and others, there are studies that confirm most successful people in any given field are less likely to be perfectionist.

Perfectionism keeps most people from making decisions because the anxiety about making mistakes holds them back.[1]

Striking a Balance Between Productivity and Efficiency

When trying to decide whether productivity or efficiency is more important, it is important to understand you need both. Accomplishing your goals and keeping your resolutions provide a great feeling, but you are going to want to measure the cost.

You need to monitor the amount of time and resources you invested into achieving your goal. There is a point of diminishing returns where you are producing at such a high output, your work is full of errors and requires additional attention.

The same diminishing returns exist if you are concerned about quality to the point you are teetering on perfectionism — as perfectionists have an unhealthy fear of failure that keeps them from producing anywhere near optimum levels.

3 Strategies to Maximize Your Results

1. Be Intentional with Your Time and Resources

Start by attempting to maintain your current level of production while lowering the resources you use.

This strategy requires you to be intentional with your goals. For example, if you oversaw the marketing budget for a multi-billion-dollar company, you may be reaching your results, but only because of you are flooding the market with ads.

If you wanted to increase your efficiency without impacting your productivity, what would you do?

One simple strategy is to conduct a review of all your marketing campaigns. Once you have completed the review, you can rank your campaigns based on their return on investment.

You can then increase your productivity and efficiency by reallocating the money you spent on the bottom 10% of ads and moving them to your top 10% of ads.

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2. Reduce Waste

Another strategy that will provide an immediate impact is for you to focus on reducing your waste. Again, we are going to implement techniques that will positively impact your efficiency and productivity.

Start reducing waste by finding less expensive alternatives that will accomplish the same tasks you are currently producing.

As was the case with our business example where the California office spent significantly more money that the Florida office. Are there more cost effective, but reputable options that you have not explored yet?

It is a great idea to review your expenses annually to see if there are places you can improve. If you are not sure, shop around to see if your prices are in line with the market.

You can even employ this technique with your own personal finances.

Have you ever wondered why every car insurance commercial promises they can help you save 40%+ on car insurance? It is because most people do not update their auto coverage on a regular basis. Since automobiles are a depreciating asset, your car is losing value every year.

If you bought your vehicle for $20,000, then it may only be worth $15,000 after the first year. However, if you are still paying insurance based on a $20,000 value, you are naturally going to be paying more if you received insurance based on a $15,000 value.

Therefore, when you call the new insurance company, they are going to offer you insurance based on the vehicle’s current value of $15,000.

The reason car insurance companies are so confident they can save you money is because they know you are paying for insurance on a $20,000 car when your car may be worth half or a third of that.

3. Prioritize Your Goals

The third approach to help you balance productivity and efficiency is to prioritize your goals. If you want to avoid falling into the perfectionism trap, you are going to have to admit you cannot have everything exactly the way you want.

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You are going to need to decide what matters to you most and be willing to sacrifice other less important goals to ensure you achieve your top priority.

For instance, the truck driving industry is extremely competitive and as a result, truck drivers must focus on keeping costs down and operating higher efficiency. To manage their costs, truck drivers like to make sure they are never driving an empty truck. If they have a delivery in Miami, they want to make sure they have a pickup in Miami to cover the drive back.

Anytime a truck driver is unable to find cargo for their drive back, they are wasting time and resources. Imagine if your next pickup was in Atlanta. Without cargo, that entire drive would be an uncovered expense and those can add up quickly.

To ensure they have their costs under control, truck drivers will prioritize ensuring they are not driving empty over all other goals and objectives.

Sometimes the driver is unable to find a pickup at their drop-off location at the same rate they hauled the cargo down. However, since they have prioritized “not driving empty,” they do not have an issue offering reduced pricing when they find themselves in this situation.

If they did not prioritize their goals, they would be waiting in Miami for a back-haul that would cover their drive to Atlanta. Perfectionism tells you that you must accomplish all your goals or none of them.

When You Cannot Have It All

When you find yourself faced with difficult decisions, take a moment, and determine what matters to you most. If you can only accomplish one or two goals, which one will provide the greatest impact?

Then, take the time to understand and account for the necessary shift you will need to make to your productivity or efficiency levels. In the case of the truck driver, they sacrificed their productivity by taking a lower rate for their back-haul. Yet, they increased their efficiency because they covered their costs and made a small profit with their lowered rate.

What it ultimately means is the truck driver increased his productivity because the choice was not between their normal rate or a reduced rate, it was between an empty haul and a reduced rate haul.

Conclusion

By being intentional with your time and resources, reducing waste, and prioritizing your goals, you can increase your overall efficiency and productivity.

No matter the goal you have set for yourself in your life, there will always be a benefit to working more efficiently and balancing that with increased productivity.

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Featured photo credit: rawpixel via unsplash.com

Reference

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Last Updated on November 9, 2020

10 Good Habits to Have in Life to Be More Successful

10 Good Habits to Have in Life to Be More Successful

Habits are behaviors and patterns that you showcase by default. Many good habits to have will enable you to carry out crucial activities like taking a shower, brushing your teeth, and getting ready for work. 

Interestingly, you follow this routine every day without thinking twice. Your unconscious daily habits create room for your brain to perform more advanced activities like problem-solving and choosing what book to read.

Everyone has habits, and several of those habits are activated every day. I would classify them into three groups:

  • Habits that you hardly notice as they have become a major part of your life, such as brushing teeth or getting dressed.
  • Good habits to have to be more successful, like eating healthy, exercising, and reading books.
  • Habits that are harmful, like procrastinating, smoking, or overeating.

Good habits are fundamental to becoming successful in life. Yet, as significant as habits are, some lack the knowledge of their capabilities.

While much of the emphasis falls on bad habits to break, it’s just as important to focus on good habits to have and cultivate in your daily routine.

Here, we’ll talk about 10 good habits to have to be more successful in life.

1. Begin Your Day with Meditation

I recommend mindful meditation early in the morning. This practice helps you to place yourself in the present moment. Consequently, it enables you to be mindful of challenging situations during the day.

Different stressors may trigger as you go through the day; meditation helps you to remain calm before taking on the challenges.

Personally, it helps me to devise strategies and think about ideas. Meditation is a good habit to have if you want to be connected to what’s significant in your life.

2. Be Grateful for What You Have

It’s not uncommon to waste time thinking of what’s not enough. You become immersed in those daunting challenges. However, challenges justify the presence of hope. The only strategy you have to stop focusing on your problems is to focus on what you have.

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Gratitude is a time-tested pathway to success, health, and happiness. It redirects your focus to what you have from what you lack. Try writing a list of things you’re grateful for each day in a gratitude journal, or make it a habit to say one thing you’re grateful for when you sit down to dinner with your family.

3. Smile

Can you pause and smile before you continue reading this?

Now, here is what just happened based on research conducted by the Association for Psychological Science; you set a pace for living a happier life when you smile. A genuine smile, or what’s called a Duchenne smile, is a good habit to have if you want to find spiritual, emotional, and mental peace of mind.[1]

Smiling induces the release of molecules that function towards fighting stress. The physiological state of your body determines the state of your mind. When you slouch or frown, your mind takes cues relating to unhappiness and depression. However, once you adjust yourself by putting on a smile, you begin to feel a new level of excitement and vibrancy.

4. Start Your Day With a Healthy Breakfast

Starting your day with a healthy breakfast is a good habit to have and forms a crucial part of your life. Nevertheless, about 31 million Americans skip their breakfast each day.[2]

If you are fed up hearing that breakfast is a crucial component of your day, you are only fighting the truth. If you want to become more successful, you need to “break your fast” with healthy foods every morning.

This habit is not difficult to form if you usually rush out the door every single morning. You can wake up earlier to fix yourself a meal so you don’t break down during the day.

Get inspired by these 20 Healthy Breakfast Choices That Will Save You Time.

5. Exercise Daily

One of the good habits to have is to exercise your body and muscles on a daily basis. You don’t have to run a marathon or lift tons of weights. You only need to engage in activities that oxygenate your blood and inject endorphins in your body, trying to squeeze in at least 15 minutes every day.

Jack Dorsey, the CEO of Twitter, classified exercise as a good habit to maximize his already jam-packed schedule.[3] He said:

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“I wake up by 5, meditate for 30 minutes, seven-minute workout times three, make coffee, and check-in.”

He said on Product Hunt that he follows this routine every day as it gives him a steady-state that empowers him to be more productive.

6. Manage Your Time

Another good habit is the act of managing your time effectively. This goes a long way toward impacting your achievement.

Time management is what separates the successful from the rest of the world as we all possess the same amount of time. How you leverage time determines your potential to succeed in life[4].

Good habits to have: Time management tips

    So how do you manage your time effectively?

    Here’s Jack Dorsey’s recommendation in one of the Techonomy events:

    “I accomplish effective time management by theming my days and practicing self-discipline. These themes help me handle distractions and interactions. If a request or task does not align with the theme for that day, I don’t do it. This sets a cadence for everyone in the company to deliver and evaluate their progress”.

    And this is Dorsey’s weekly theme layout:[5]

    • Monday – Management
    • Tuesday – Product
    • Wednesday – Marketing and growth
    • Thursdays – Developers and partnerships
    • Fridays – Culture and recruiting
    • Saturdays – Taking off
    • Sundays – Reflection, feedback, strategy, and preparing for Monday

    No wonder he was able to run two companies when others were struggling with one job.

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    Check out more time management tips here: 7 Effective Time Management Tips To Maximize Your Productivity

    7. Set Daily Goals With Intentions

    Everyone has goals, whether they relate to business or personal life. The truth is, we’re all tending towards a particular direction. Nevertheless, while long-term goals can offer you direction, it’s your daily goals that help you develop short-term goals that are essential for your success.

    Long-term goals may not give you the motivation you need to keep on, but when you implement your short-term milestones daily, you become fired up, and you can overcome the challenges that come with taking on bigger tasks.

    Here’s the main truth: Successful people don’t set goals without establishing their intentions. According to Jennifer Cohen of Forbes,[6]

    “What helps you to achieve your desired expectation is ensuring intentions accompany your daily goals.”

    8. Seek Inspiration

    It is usually difficult to be inspired for a considerable length of time. Sometimes, you become discouraged and feel like giving up on your goals when things are not working out as intended.

    A practical approach to stay on top of the situation is to inspire yourself each day. When you wake up in the morning (after meditation), watch some motivational videos, and let the story of great leaders inspire you.

    Establish what Anthony Robbins called the “hour of power.” Determine how many minutes you spend, but make it count. Inspiration is the fuel for achievement because when you can conceive it in your mind, you can accomplish it.

    Michal Solowow, an investor and the founder of Mitex, puts it this way[7]:

    “The problems I encounter in everyday life motivate me to find solutions. This is a self-propelling mechanism. Becoming a billionaire was never a motivating factor.”

    9. Save Steadily, Invest With All Prudence

    I can’t exhaust the good habits to have without talking about saving and investing. Most times, you overlook the significance of saving for the future when you are living in your present moment. According to CNBC, a $1000 emergency will propel several Americans into debt.[8]

    However, it is not enough to save, and you must invest your funds and be wise with them. If you pay attention to this now, you will set yourself up for a life of success in the future. Ensure you save at least six months in your emergency account so you can be prepared for any future emergency.

    If you’re looking for a simple way to save money, check out the following video:

    10. Budget and Track Your Spending

    Benjamin Franklin warned of taking the precaution of little expenses. He said:

    “A small leak sinks a great ship.”

    It is easy to discard little expenses, but the truth is they always add up. This happens when you fail to budget.

    Budgeting is a good habit to have, and it can impact your financial life significantly. The money you spend on extravagant lifestyles can be saved and invested in your future instead.

    The Bottom Line

    Endeavor to start developing good habits to have to become more successful as you journey through life. The quicker you cultivate them, the faster you will achieve your goals.

    More About Cultivating Good Habits

    Featured photo credit: Andrijana Bozic via unsplash.com

    Reference

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