Stop doing the wrong things well

Know when to choose effectiveness over efficiency.

“I don’t really know what makes us different.”

The phone went silent. I paused to let it sink in.

When someone tells me this about their business, I get nervous. How can you effectively communicate the value of your business when you’re not sure what that value is?

“But we have to launch this new digital presence in a month.” There’s the knockout blow. That almost ensures this isn’t going to work well.

Business has a bias towards efficiency in everything.

Why wouldn’t you? Waste is never helpful.

Until it is.

There’s plenty of scenarios in business where efficiency should be the number one priority. But a select few instances where effectiveness should be sought out at nearly any cost.

Take the startup world, for instance. Silicon Valley is teeming with entrepreneurial-spirited groups with a vision to change the world. All they need to have is a product-market fit. They’re searching for a business model. Many times they’re met with failure. The popular “pivot” was a concept invented to describe changing your product and business model mid-stream in search of…wait for it…an effective model that you could then scale—for efficiency. When startups are forming their model—essentially their value proposition—they can’t possibly operate with efficiency as the number one priority. Only effective solutions matter.

Now picture the flip side. You have something that works and you mature the model. You lean it out as much as possible. With more efficiency comes a higher profit margin and a fat IPO. Now Wall Street has its hooks in you but competition is growing. Time to go back to the drawing board, right? Wrong. Many companies can’t stomach the inefficiencies—and failure—induced by rethinking their model. They need to put themselves out of business with what’s next. But Kodak, Blockbuster, and Borders Books all made that costly decision. It’s the classic innovator’s dilemma.

The process is fraught with failed attempts and much introspection. It’s a process built for effectiveness, not efficiency. Only results matter here.

I talk with many people who are looking to grow their business. The usual focus is on a digital communication strategy. I steer the conversation to what makes them different.

“How is your business hard to imitate?” Sometimes I get blank stares.

Here’s where efficiency and effectiveness collide.

Clearly articulating your businesses’ value proposition takes time and thought. It’s a process of whittling your entire business down to the most honest, bold, and transparent story you can tell. And it’s the most important type of strategic planning you’ll do for your business—ever.

Tim Williams, long time business consultant, puts it this way: “Imagine that you have a condition that requires surgery. Would you rather have an efficient surgeon or an effective one?”

Most people would say they don’t care how long it takes or how much it costs. “I want the most effective surgeon. My life is on the line!”

Williams levels this with, “It’s effectiveness—not efficiency—that creates value. After all, one can be extremely efficient doing the wrong things.”