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Are Efficiency And Productivity The Same?

Are Efficiency and Productivity the same?

Both could help Business Profits.

“ , ”

That was the title of an article in the Harvard Business Review by Michael Mankins in 2017.


is usual expressed as the amount of effort in man hours required to accomplish a given task, when compared with the standard in that industry for the task.

In company A, if it takes 15 hours effort compared to the industry standard of 10 hours – activity is 66% Efficient, whereas f Company B does it 8 hours effort they 125% Efficient.

is expressed as the ratio of Output to the Input required. These are typical measured in Pounds £.

For a company C, that generates an Output worth £100 and incurs a cost of £80 (Man power effort, raw materials, overheads, etc), the Productivity would be 1.25


The real difference comes when looking at the strategy to improve the numbers.

, (headcount, hours of effort) — in order to improve profitability.

. Increasing the value of the output for the same input.

It is this difference in emphasis that leads to “Great Companies Obsess over Productivity”.

One way to is with .

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Please see Productivity FAQ page for details on some of the terms / jargon used above.

Ether Solutions is a technology focused consultancy that provides services for RPA - Robotic Process Automation, this includes using Artificial Intelligence (AI) where appropriate to enhance the capability of solutions in areas such as Document Understanding and Email analysis. The technology solutions provide practical ways to improve Productivity.

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