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Index/Leadership/Enterprise Excellence Podcast with Brad Jeavons
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Effectiveness vs Efficiency: What Most Leaders Get Wrong with Gary Stewart - Ep 219

Enterprise Excellence Podcast with Brad Jeavons · 2026-06-01 · 1h 4m

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Episode notes

What if the reason your business isn't growing has nothing to do with efficiency - and everything to do with whether you are solving the right problems at all? In Episode 219 of the Enterprise Excellence Podcast, Brad Jeavons sits down with Gary Stewart - a former CEO of a Toyota Group company and one of Australia's most experienced systems thinkers - to explore one of the most important and misunderstood distinctions in organisational performance: effectiveness versus efficiency. Gary brings decades of experience inside the Toyota system to this conversation, and he pulls no punches. While efficiency focuses on the producer - doing things with less waste - effectiveness focuses on the customer: solving the right problems, creating the right outcomes. Both matter, but most organisations are so obsessed with efficiency metrics that they are inadvertently destroying their own effectiveness - and often don't know it, because the metrics they are using are being gamed. Gary shares two powerful case studies. The first involves a production manager claiming 103% efficiency - a mathematical impossibility that turned out to mask a true gross efficiency of just 50%.

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