In the high-pressure project environment common in so many businesses, ‘productivity’ and ‘efficiency’ are terms that are often seen as interchangeable. Whilst they may be closely related, they do represent performance metrics that are fundamentally different. It is possible for a project to be very productive without actually being efficient and vice versa. It is critical for project managers to understand this distinction when they are trying to optimise the performance of their team and deliver a successful project outcome.
Defining the terms
Productivity at its very heart is a measure of the quantity of the output per unit of input. In project management, we look at the quality of the deliverables in terms of how many tasks have been completed. Plus, the hours of work or resources that were used to complete them.
A team might be considered productive if they are completing a high volume of work, no matter what the quality of the work was or how many resources they used to achieve this.
Efficiency on the other hand is a measure of quality and optimal resource utilisation. Optimal output should be the focus. For example, did the team produce the outcome that was desired and did they do this using the least amount of money, time and resources? There should be a clear focus on the process being used and not just the end result.
If a team delivers the right outcome with minimal waste, then they are considered to be efficient.
The “productive but inefficient” scenario
In project management this is a common paradox. A team could be working around the clock, logging long hours, and completing a huge number of tasks. On the surface they might appear to be highly productive. However, a closer look may reveal a completely different story.
Rework and Defects
A high volume of work in a time-pressured environment often results in a rushed process that can result in defects and errors. The team must then go back and fix their work, which results in wasted time and project resources. A software development team, for example, may release new features, but if they are full of bugs, then the team might be productive, but they are also highly inefficient.
Wasted Effort
It’s also worth thinking about whether effort is justified. That same software development team might be producing plenty of output, but it might not be the right output. Is it what users want? They may be building features that nobody wants, or creating reports that nobody will read. Their high level of activity is then sadly a wasted effort.
Burnout
When there is a focus solely on productivity, this can also result in burnout. Team members might be working hard, but they are not always working smart. The pressure that comes with trying to deliver a high volume of work can often lead to a drop in morale, a decrease in the quality, and an increase in staff turnover. These are all symptoms of inefficiency.
The “efficient but unproductive” scenario
Whilst this scenario is less common is can nonetheless still be problematic. A team might very well be following the ‘perfect’ process; however, they are not delivering enough output.
Over-engineering
A project team could be spending too much time on an individual task. This could include obsessing over every individual detail in order to achieve a level of quality that the project simply doesn’t need.
Paralysis by analysis
It may be that the team is stuck in the planning phase. They could be spending too much time on risk analysis or stakeholder engagement, and this means that there is not enough time for actual delivery.
This approach might minimise risk and waste, however it can also result in deadlines that are missed and a failure to deliver the project’s key objectives.
Finding the balance: how to be both productive and efficient
For any project manager the ultimate goal is to nurture a team that is both efficient and productive. This means being able to get the right work done to a high standard, in the right time frame and with as little waste as possible.
Remember, balancing efficiency and productivity means getting the right work done to a high standard, in the right time frame and with minimum waste.
Lisa Regan
Prioritisation is key
A team who are highly efficient and productive know what they should focus on. Tools like the MoSCoW (Must Have, Should Have, Could Have, Won’t Have) method can be used to ruthlessly prioritise tasks and make sure that the team is continually working on those deliverables that are most valuable.
Standardise processes
Efficiency occurs when there are clear, repeatable processes. This means you should standardise project management documents, reporting formats, and communication channels. This can help to reduce confusion and also time spent on administrative tasks, thus allowing the team to focus on delivery.
Focus on quality from the start
Quality should not be treated as an afterthought. Quality should be built into the project plan, in order to provide the team with the appropriate training and tools so they can get it right the first time.
Measure the right things
It is important for a project manager to measure both productivity (e.g., tasks completed) and efficiency (e.g., rework rates, resource utilisation). This data provide a more complete picture of performance and will make it easier to identify any areas where improvement is needed.
Promote a ‘work smarter, not harder’ culture
The project team should be encouraged to find innovative ways that will help them to improve their processes. They should hold retrospectives so they can discuss what went well, what they might have done better, and how they might work more efficiently in the future.
My final thoughts
Productivity is all about the volume of output, whilst efficiency is about the quality of that output and the resources needed to create it. For a project to be truly successful both of these need to be achieved in tandem. This means that they must be the result of a clear strategy, a disciplined process, and a focus on the right metric.
