Effectiveness and Efficiency: Cousins, but Not Blood Brothers
“An efficient businessman who found a machine that would do half his work bought two."
Franchising is a proven business method. Efficiency is one important reason for its substantial success. As a business strategy, it is highly productive, operable, and functional. It eliminates the need to reinvent the wheel for every start-up. It reduces the stumbling in the early stages. It produces quicker results with reduced movement. Clearly, it's an efficient system of doing business. But it's not effective.
We often think the two words are interchangeable. They're not. People are effective. Systems, such as franchising, are efficient. The efficiency of franchising helps the franchisee be effective.
Think of franchising as a form of priority management which requires concentration of effort on doing the right thing. Someone who manages priorities effectively manages time effectively. People are effective. Systems are efficient.