Goals

In organizations there are two fundamental goals, efficiency and effectiveness.

Efficiency is a primary focus on inputs, use of resources, and costs. Effectiveness is a focus more on outputs, products or services, and revenues. These are competing priorities. Some organizations place a higher priority on efficiency, focusing on minimizing the costs of producing goods or services. Other organizations emphasize effectiveness, focusing on generating revenues or seizing leading-edge innovation in the marketplace. All organizations value both efficiency and effectiveness to some degree, but the question is: Which is the dominant priority?

Measures are:

• The Efficiency of the organization
• The Effectiveness of the organization