The Squawk Point

Organisational Mechanics

  • Home
  • Blog
    • People
    • Data
    • Process
    • Wild Cards
    • Index
  • Podcast
  • Book

Efficiency versus Effectiveness

15 June, 2022 by James Lawther Leave a Comment

Quality Problems

How do you define efficiency versus effectiveness? If you google “Tesla build quality“, you will uncover a mountain of complaints and dissatisfaction.

  • [There] are problems with the rear-view mirrors, trim pieces, uneven panel gaps, sun visors, top halves, and rubber seals. ~ autoevolution.com
  • Tesla has long been known to have issues with quality control, especially when new models are launched. ~ businessinsider.com
  • Tesla’s public image has been plagued by build-quality issues in recent years ~ Autocar.co.uk

People are right to complain. The cheapest new Tesla costs £45k, and a fancy one will set you back three times that. I want the panels to fit if I ever spend £130k on a car.

Continuous Improvement

The other motor manufacturers, Volkswagen, Ford, Toyota, and you name them, have their arms firmly around their quality problems. Their continuous improvement programmes have long since nailed them.

Missing the Point

Ford, Volkswagen, and Toyota will happily sell you a gas-guzzler, a vehicle that makes life in the Pacific Island States untenable.

Provided you buy the correct type of electricity (which I suspect Tesla buyers do), you can have a wind-powered Cybertruck. All the machismo and non of the CO2.

Doing the Wrong Thing Righter

Here is a quote about efficiency versus effectiveness that will make your head hurt:

Peter Drucker said, “There’s a difference between doing things right and doing the right thing.”

Doing the right thing is wisdom and effectiveness.

Doing things right is efficiency.

The curious thing is the righter you do the wrong thing, the wronger you become. If you’re doing the wrong thing and you make a mistake and correct it, you become wronger.

So, it’s better to do the right thing wrong than the wrong thing right.

Russel Ackoff

Efficiency versus Effectiveness

The quote needs a little thinking about. Let me simplify it with this question. Is it better to produce a good car badly or a bad car well?

Therein lies the difference between efficiency and effectiveness.

Of course, if Mr Musk could get Tesla’s body panels to fit and do the right thing well, it might make him richer.

If you enjoyed this post, click here to receive the next

Is the cybertruck efficient or effective?

Read another opinion

Photo by Tesla

Filed Under: Blog, Wild Cards Tagged With: continuous improvement, cost of poor quality, efficiency versus effectiveness, Peter Drucker, Russel L. Ackoff

About the Author

James Lawther
James Lawther

James Lawther is a middle-aged, middle manager.

To reach this highly elevated position he has worked in numerous industries, from supermarket retailing to tax collecting.  He has had several operational roles, including running the night shift in a frozen pea packing factory and carrying out operational research for a credit card company.

As you can see from his C.V. he has either a wealth of experience or is incapable of holding down a job.  If the latter is true this post isn’t worth a minute of your attention.

Unfortunately, the only way to find out is to read it and decide for yourself.

www.squawkpoint.com/

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Explore

accountability assumptions beliefs best practice blame bureaucracy capability clarity command and control communication complexity continuous improvement cost saving culture customer focus data is not information decisions employee performance measures empowerment error proofing fessing up gemba human nature incentives information technology innovation key performance indicators learning management style measurement motivation performance management poor service process control purpose reinforcing behaviour service design silo management systems thinking targets teamwork test and learn trust video waste

Receive Posts by e-Mail

Get the next post delivered straight to your inbox

Creative Commons

This information from The Squawk Point is licensed under a Creative Commons Attribution-ShareAlike 3.0 Unported License.
Creative Commons Licence
Customer Experience Update

Try This:

  • Regression to The Mean

  • Glory Lasts Forever

  • Fish Bone Diagrams – Helpful or Not?

  • Brilliance Alone Won’t Take You Far

Connect

  • E-mail
  • LinkedIn
  • RSS
  • YouTube
  • Cookies
  • Contact Me

Copyright © 2025 · Enterprise Pro on Genesis Framework · WordPress · Log in