Skip to main content
Home > Practice Networks > Efficiency > What is efficiency?

What is efficiency?


Not everything that claims to be efficient is efficient.  Efficiency is about turning inputs into outputs for maximum impact.

Inputs turned into outputs via efficiency

  • Inputs are people as well as money and assets like offices
  • Outputs are goods and services

 

An organisation can be more efficient if it produces:

 

  • the same outputs with fewer inputs
  • more or better outputs for the same inputs

 

Efficiency is not about reducing costs if it compromises the quality or quantity of outputs.