Efficiency or effectiveness

Volcanic material thrust high into the atmosph...
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A single volcano can paralyze the European air traffic, and cut international commerce, however, we follow thinking that we can always control all process of our company.

We are dedicating a lot of funds to improve the efficiency of our company but sometimes we forget the need of assuring the effectiveness of its critical process. A company is a complex system; there are many relationships among different parts, and it is not easy to visualize them. Our previous knowledge can help us to make decisions to control known situations, but when an unexpected, uncontrolled and uncertain event arise it cannot guarantee that some critical tasks will not be stopped.

Unfortunately, we have seen several examples recently. A bad search for efficiency can steer our company to an ineffective state when an unexpected event arise. CEOs know this point very well, that is the reason because they do not trust in some efficiency experts. The main objective of the senior manager is to maintain his company alive, to increase the benefit of the company is only a secondary one. In a turbulent state of the environment, thinking in terms of efficiency only could become a suicide. Complexity science can help us to manage our company when it and the environment become more complex. It is analyzing aspects related to effectiveness that is the reason because it is well suited for CEO’s support.

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