What’s more important: Productivity or Efficiency?

People believe that companies that deliver results are focused on keeping their customers at the heart of their operation. This impression might be true, however, delivering productive results and being efficient might not always deliver a customer centric approach. Let’s have a look at the difference between Productivity and Efficiency in any organisation.

What is productivity?

Productivity very much depends on what type of business one runs. If the business provides products, productivity will be measured with the sales that the organisation is able to reach. On the other hand if the company provides services than productivity will be based on the number of clients that the company is able to serve.

What is efficiency?

Efficiency is all about quality and about achieving maximum productivity with minimum surplus. Companies who focus on efficiency look beyond achieving the numbers, but also how and why those numbers were achieved or not.

Here are our tips on how companies can improve performance by maintaining a balance between productivity and efficiency and still retaining a customer centric approach.

Management:

Management plays a big role in determining productivity therefore good management often leads to good performance, and good performance leads to happy staff, which ultimately result in happy customers.

Evaluations:

Regular evaluations of performance, both internally with the staff, but also externally with the customers will both benefit the employees, the management and the company. When companies accept and communicate feedback with both their employees and their customers, they are not only generating new ideas, but also getting input on how to improve areas that require development.

Vision:

Having a clear vision and strategy that is clear cut for employees and customers alike will make the company be productive (internally) and successful (externally). Employees that know what to achieve at the end of the day will most likely achieve their goal more than an employee who does not his/her targets. Moreover, achievable targets not only allows for high productivity, but for efficient results, which ultimately equate to satisfied customers.

No matter what industry you work in, any organisation will generate more customer satisfaction when focus is equally on efficiency and productivity. Businesses have to gauge and understand the importance of their customer for the business, and be motivated to evaluate and find ways to improve efficiency and productivity to succeed. Are you ready to gauge your productivity vs efficiency aspects and build a customer centric yet result-oriented approach? Ready to talk? Get in touch:

info@centrecom.eu

+356 2364 4011