![]() That’s where activity efficiency ratios come in. But what if those dials are producing few connects and even fewer deals? Some might even go above and beyond and make 80 or 90 calls each day. If your reps are tasked with making 70 calls each day, and they easily hit their numbers, they are effective at their jobs. Other companies are tightly run ships, with all employees working together, humming along and all singularly focused on the task at hand…but what if the task at hand is the wrong goal?įor a practical example, consider the differences between activity effectiveness and activity efficiency among your sales reps., every sales team has daily, weekly, monthly and quarterly goals that, when achieved, are representative of the effectiveness of their roles. Many companies have their hearts in the right place – they know what goals they want to achieve, but are inefficient in achieving those goals. The best situation for every company is to always pursue the top right box – pursuing the right goals and being efficient, by making use of technological advances, not wasting time, and having better alignment and collaboration between employees. However, by pursuing efficiency at all costs (irony intended), some of these companies are missing a valuable chance to take a step back and look at their overall effectiveness from a big picture perspective. After all, when working with limited resources, they would prefer to maximize the use of each of these resources, from budget and technology to time and sales reps. By referring to this chart, CEOs and sales leaders can find an optimal balance between effectiveness and efficiency:Ĭompanies usually seek to increase and improve the efficiency of their operations and sales processes. effectiveness is with the 2×2 grid below. ![]() Learn How To Measure The Effectiveness And Efficiency Of Your Sales PROCESSĪnother way to illustrate efficiency vs. The difference between effectiveness and efficiency can be summed up shortly, sweetly and succinctly – Being effective is about doing the right things, while being efficient is about doing things right. Let us begin by defining efficiency and effectiveness in general terms, borrowing from :Įffective (adj.) – Adequate to accomplish a purpose producing the intended or expected result.Įfficient (adj.) – Performing or functioning in the best possible manner with the least waste of time and effort. Yet, they are also commonly misused and misinterpreted, not just in the lexicon of business-speak but also in daily use. What is the difference between effectiveness and efficiency? They are two buzzwords that are popularly used by CEOs and Sales VPs in charting the course of their organizations. ![]()
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