Tony Hsieh of Zappos.com:
“We run our warehouses 24/7 which is actually not the most efficient way to run a warehouse, but it gets the shoes out to the customer as quickly as possible.”
Effective doesn’t necessarily mean efficient. Efficiency tries to use the momentum of the status quo, but make it faster or cheaper. Effective tries to produce an effect (a change or disruption) to the status quo to make it better.
That’s why Zappos.com runs their warehouse 24/7, Rackspace answers their telephone by a live person in one ring, and busy Seth Godin personally answers every e-mail sent to him (and in my experience, usually within a hour or two).
Are you being efficient or effective?
BTW, why do we say something is “cost effective” when what we really mean is that it’s efficient?
Filed under: Business |