Understanding the Difference: Productivity vs Efficiency and How to Improve Both

People often use productivity and efficiency as though they mean the same thing. However, while closely related, they focus on different aspects of performance. Understanding both allows you to not only do more, but to do better.

What Is Productivity?

Productivity measures how much you accomplish in a given period of time using your available resources. It asks the question: how many outputs or tasks are you completing relative to the inputs (time, effort, tools) you invest.

For example: if you have ten tasks due in a week and you complete all ten, you've been productive. If you get through fifteen, even better. However, simply increasing quantity doesn't always lead to value unless what you do aligns with what matters.

What Is Efficiency?

Efficiency, on the other hand, is about the relationship between your resources used and the outcome achieved. It's less about quantity and more about how well you use what you have. Efficiency asks: are you minimising waste (of time, energy, tools)? Are you organising your process so that the same or better result is possible with fewer inputs?

For instance, completing those same ten tasks but doing so in six hours instead of eight means you have increased your efficiency — you have used less time to achieve the same result.

Key Differences Between Productivity and Efficiency

Here are some ways to distinguish between the two:

Insights from business and productivity thinkers reinforce that while productivity gets you moving, efficiency sustains you (or the organisation) over time.

Why Both Matter

• Sustainability: Doing lots of work matters, but if you're wasting time, money or energy, it isn't sustainable.
• Quality: Producing fast or in volume is great, but if the output suffers, the cost may outweigh the benefit.
• Scalability: Efficient systems and workflows make scaling up (doing more) possible without exponentially increasing resources.
• Well-being: Higher efficiency often means less friction, less stress, and more time for rest, which helps maintain long-term productivity.

Ways to Improve Productivity

Here are some strategies to boost how much you get done:

1. Set SMART Goals

Specific, Measurable, Achievable, Relevant, Time-bound goals give clarity. Instead of "do more," try "finish report draft by Wednesday at 5pm," or "reach out to 10 new leads by end of week."

2. Prioritise Wisely

Use tools like the Eisenhower Matrix: urgent vs important, to decide what to act on now vs schedule vs delegate vs discard.

3. Break Tasks into Smaller Steps

Large projects can feel overwhelming. Splitting into smaller tasks makes progress easier to visualise, momentum easier to build.

4. Use a Task Management Tool

Tools such as Todoist, Microsoft To Do, or Trello help track what needs doing, when, and let you see progress. They reduce mental overhead: you don't have to remember everything.

5. Time-blocking or Batching

Block out chunks of time where you only focus on certain kinds of work (e.g. creative work, admin, deep thinking), instead of constantly switching context.

Ways to Improve Efficiency

Improving efficiency tends to deliver quick wins. Here are approaches:

1. Analyse and Remove Bottlenecks

Identify the slow steps in your workflows—maybe approvals take too long, or information isn't gathered properly before tasks begin. Fix those.

2. Reduce Distractions and Interruptions

Turn off unnecessary notifications, set "do not disturb" periods, reduce context switching. A focussed hour is often more efficient than two fragmented ones.

3. Leverage Automation & Tools

Automate repetitive tasks: email filtering, scheduling tools, standard templates. Use software or scripts to reduce manual steps. Efficiency gains often come here. Support from tools like Zapier, Make.com, or internal tools makes a difference.

4. Use the Two-Minute Rule

If something can be done in two minutes or less, do it immediately rather than deferring. This stops small tasks from piling up.

5. Continuous Review and Feedback Loops

Occasionally review what tasks are taking longer than expected. Ask: is there a better way? Adapt tools, processes, or habits accordingly.

Real-World Examples

• A sales team might aim to increase productivity by making more sales calls per day. However, they improve efficiency by using call-templates, scheduling tools, and automating follow-ups, so that each call is more effective and takes less preparatory work.
• An individual writer might try to write more articles (productivity). But they improve efficiency by creating a writing template, having an outline ready, using voice dictation, or using tools to proofread and format faster.
• A customer support team could resolve more tickets per day (productivity), but could be far more efficient by employing smart triage, canned responses, and routing high-volume queries so agents focus on what matters.

Balancing Productivity and Efficiency

Often, efforts to boost one can hurt the other if not managed carefully:

• Trying to maximize productivity by working long hours might reduce efficiency because fatigue undermines quality.
• Optimising for efficiency (e.g. over-planning) can slow down action and reduce overall output if taken too far.

To strike balance:

• Periodically measure both: how much you've done (productivity), and how well you used your time or resources (efficiency).
• Use metrics or KPIs that capture both sides: e.g. tasks completed vs time spent, or revenue achieved vs cost/time input.
• Build habits and lean processes that support fast delivery and low waste.

Tips to Implement Both at Once

Here are practical steps you can introduce:

• Start your day by deciding 3 "highest value" tasks. Do those first.
• Automate anything repetitive you do more than once a week.
• Set certain hours as deep work (no meetings, no distractions) to maximise efficiency.
• Reflect weekly: What took longer than expected? Where did resources get wasted? Then adjust.
• Use technology: dashboards to track your output, tools that show you where time goes, and alert you to waste.

Potential Pitfalls to Watch

• Measuring output only (productivity) can lead to burnout or cutting corners.
• Efficiency obsession without regard to result can lead to doing "busy work" neatly but missing what really matters.
• Over-automation can backfire if the tools are misconfigured or if maintenance overhead is hidden.
• Perfectionism can kill productivity—sometimes "good enough" is the best way to move forward.

If you begin to think of productivity and efficiency as complementary rather than competing, you find space not only to achieve more, but to enjoy better quality and sustainable performance.