How viable are you?

摘要

What is more important to your business, efficiency or effectiveness? Peter Klaas explains how management strategies in times of change can improve your chances of survival. What makes a nuiseiy viable? When a contingency theory was tested on a number of tomato nurseries the two detenninants of viability were found to be 'effectiveness' and 'efficiency'. However they are not equally important under all circumstances. So it is important to get the priorities right. The study showed that, depending onthe competition the business faces, it was possible for a nursery to be viable even if it was not efficient. However this was not possible if it was not effective, irrespective of the type or level of competition. If effectiveness and efficiency conflict - for instance when demand for and prices of tomatoes come under downwards pressure - restoring effectiveness is more important than concentrating on efficiency. Saving costs will not save the company if it is ineffective.