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Archive for February 27th, 2011

One of my customers asked me to explain the difference between efficiency and effectiveness. And indeed – I’ve found it to be true that a lot of people find it hard to distinguish one from the other. The next mornin at my hotel in Gothenburg I found a metaphor:

When looking over the breakfast room:

Efficiency is about having just the correct number of tables to serve your customers

Effectiveness is about serving food at the pace as it is consumed

Notes:
Efficiency is not far away from the Swedish word “Lagom”- “just about enough”
Pace is often called “takt” in Lean Production

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