To draw new economic opportunities, it is essential for an organization to question the way it uses its resources with regard to its objectives.
Organisations today would gain more looking becoming more efficient rather than effective. Common language often uses effectiveness and efficiency as synonyms when they have both their own clear definitions and meanings.
Effectiveness is the capacity to reach a specific goal given without any consideration to the means of actions used. A medicine against fever for example will be effective if it manages to drop the fever, regardless of side effects.
Efficiency is reaching the expected results in an optimal manner using both tangible and intangible resources while reducing negative impacts induced. The base is the quality with which results is reached and invite us to in a compare other objects, tools, plans or people serving as reference (“Be more or less efficient than”).
Therefore the medicine A will be more efficient that medicine B if it shows less secondary effects (Efficiency in the therapeutic action) or if it uses less resources to be produced (Efficiency in its production).
First, every organization should question its purpose from the point of view of its beneficiaries. Secondly, It should evaluate the efficiency with which it implements it.
More specifically, economical efficiency consists in pursuing the organization’s or a territory’s purpose and in developing practices and usages with optimization of use of tangible and intangible resources (use efficiency).
While at the same time, it requires:
- Contributing to the preservation or the regeneration of natural resources (environmental efficiency)
- Generating individual and collective well-being (social efficiency)
- Ensuring the organization’s sustainability and viability without prejudice to third parties (monetary efficiency).
Innovation and the conquest of new markets involve reflecting on the fundamentals of a company and distinguishing between “being” and “doing”. A company’s purpose is the true cornerstone of its identity and of its scope of action towards economical efficiency. Often there is confusion between an organisation’s mission, vision and purpose.
- A mission statement is what we do in a very defined parameter and market place.
- A vision is the aspiration of the top of the organisation looking to the future. However in reality who knows what will happen tomorrow.
- A purpose is a compass; it is a meaningful expression of the organisation in which all stakeholders recognize themselves. It inspires and gives a direction. It creates an incredible source of meaningful motivation as it speaks to the brain and the heart.
The first step towards moving to economical efficiency is to rethink and design the purpose of the organisation to understand “for what do we do what we do?” from the beneficiaries’ perspective. And then, to question the economic efficiency of its implementation. For those who dare to engage in such a path, the innovation is endless.
Developing together tomorrow’s economical efficiency. Active member & expert of ImmaTerra, a community of companies that creates synergies between them to enable them to move towards economical efficiencies. It has been created to promote and support the development of sustainable business models with companies, collectivities and territorities. Their means of actions are: awareness, training, individual or collective support, sharing experiences, modeling the invisible, research, development and expertise.
More information on www.immaterra.com