Productivity vs. efficiency – roadmap to success

Productivity vs. efficiency – roadmap to success

August 30, 2022

Productivity and efficiency are usually used as synonyms, but they are not. There is a slight difference.

Productivity is measured using this formula:

The goal of productivity is to maximize production in a given time. To maximize the results of your work for a given period of time. To produce as many goods as possible for a day, a week, a month. To write as much software code as possible for a given period, to write as many articles as possible, etc.

However, productivity is a raw measure. It does not take the quality of work into account. You may produce many goods, but they may be made poorly. That can lead to additional expenses down to the road and you may lose money. That is not efficient.

What is efficiency? Efficiency is about doing things the right way, i.e. producing the maximum level of output with the lowest level of resources (time, expenses, etc.). Productivity is about the amount of work done. Efficiency is about the quality of that work.

Only when you produce much work of high quality, you can expect success. That is true productivity, or as a formula:


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