“efficiency v effectiveness – most businesses get it wrong  ”

 MARKETING TIPS

by Ken Mitchell

3 may 2002

Most of Canberra businesses are owner operator “Mum and Dad” businesses where they work hard to create a living from the business.   In most instances they are so involved with working “in the business” to keep the business going that they do not make time to work “on the business”.   The difference is one of efficiency v effectiveness and most businesses get it wrong .

Most businesses become very good and very lean at doing the traditional things – this is a matter of efficiency.   However they very often are to close to the business and do not see what the real/current issues are nor do they have the knowledge and skills (know how) to change the business in the right manner to make it grow.   In this regard they usually suffer from not doing the right things – this is a matter of effectiveness – and although they are busy they are nevertheless wasting time, effort and profits.

Business can usually change and be both efficient and effective by receiving feedback.   Feedback can be obtained by “outsiders” - eg by appointing a consultant and most larger businesses do this even if they feel they the business is traveling well.   Smaller businesses often rely on customer feedback – this includes everything from what items to stock, the level of service, prices, etc.

Your role as a customer is therefore vital to small businesses in particular to help them by giving constructive feedback.   If you are happy let them know.   If you are not happy then let them know so they can do something about it.  

Ken Mitchell is the CEO of Australian Marketing & Research Services and can be contacted on 62576677w, or kenmitch@austarmetro.com.au