Why Efficiency Gap May Matter More Than Efficiency Itself

The efficiency gap measures the difference between current performance and future potential, revealing where redesign, automation, or smarter support can deliver the greatest gains.

Organizations are under constant pressure to prove they are efficient. Leaders  benchmark costs, track ratios, and design leaner processes. Yet efficiency as it is often  measured can be misleading. A process that looks efficient in its current form may not  reflect the real opportunity that exists if work were redesigned, automated, or supported  differently. This is why measuring efficiency gap, the difference between how an activity  is performed in the current-state and how it could be performed in a better future-state, is important. 

The Limits of Conventional Efficiency Measures 

Traditional efficiency metrics capture only what exists now. They show how much cost,  effort, or time an activity consumes relative to output. While this information is useful and  can identify obvious waste, it does not reveal what is possible. A process might appear  efficient compared to peers, but still carry steps that could be automated. A role might  appear lean but still performs manual tasks that technology could eliminate. In other  words, efficiency measures can reinforce the status quo rather than inspire change. 

What Efficiency Gap Reveals 

Efficiency gap reframes the conversation. Instead of asking whether current  performance is efficient, it asks how far today’s method of working is from a potential  future-state. For example, if an activity is still carried out manually but could be  automated with standard tools, the gap is large. If a process is already supported by  optimized workflows and minimal rework, the gap is small. By focusing on the delta  rather than the baseline, efficiency gap highlights where the biggest returns on  improvement can be found. This information is instrumental when prioritizing  improvement portfolios. 

This approach also changes the mindset of leaders. It encourages them to see efficiency  as a dynamic outcome, tied to the evolving potential of redesign and technology, rather  than as a fixed state. It surfaces hidden opportunities that traditional benchmarks fail to  capture and shows where innovation could create transformative gains. 

Why It Matters for Organizations 

Measuring efficiency gap helps leaders prioritize. Not every activity with high cost is a  priority to fix if its efficiency gap is small. Conversely, some activities that appear under  control may deserve attention if the gap between current and possible performance is  wide. This allows organizations to focus resources on changes that will deliver the  largest impact rather than chasing incremental gains in areas already close to optimal. 

Efficiency gap also highlights equity in workload. Positions loaded with high-gap  activities may be more frustrating, harder to staff, or less competitive in talent markets.  Addressing these gaps not only improves process outcomes but also reduces hidden  barriers impacting the workforce. 

Efficiency Gap in Orgsure

This is where Orgsure adds a unique type of rigor. The system measures efficiency gap  at the activity level by comparing the way work (activity execution) is currently performed  with how it could be performed following redesign or technology application. These  measurements are then rolled upward into positions, jobs, units, capabilities, value  streams, processes, and structures. The result is a clear picture of where inefficiencies  are embedded in the enterprise and, more importantly, where future-state opportunities  exist. By making efficiency gap visible, Orgsure turns abstract improvement potential into  hard data. Leaders can see not just whether they are efficient today, but how much  better they could be tomorrow, and where the greatest opportunities lie. 

The Core Insight 

Efficiency is not a fixed scorecard. It’s a moving target shaped by innovation, redesign,  and technology. Organizations that only measure current efficiency risk reinforcing  outdated practices. Those that measure efficiency gap gain a forward-looking view of  improvement potential and can allocate resources accordingly. Orgsure operationalizes  this shift, helping leaders move beyond the illusion of efficiency toward the reality of  transformative opportunity. 

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The Role of Pay Distribution in Value Analysis

Most organizations view pay purely as a cost, but Orgsure treats it as a signal of value. By analyzing where each position sits within its pay range, Orgsure adjusts value calculations to reflect real return on compensation.

The Case for Strain

Traditional capacity measures like utilization and productivity overlook how work is actually experienced. Orgsure introduces strain—a capacity-response measure that captures the tension between workload and the ability to absorb it.

The Gap Between Capabilities and Work

Many organizations map capabilities but stop short of linking them to the work that expresses them. As a result, capability models remain theoretical, disconnected from structure, cost, and value.