The success metrics for the knowledge economy are less about output and more about outcome and impact. To measure such intangible qualities and how they are produced requires distinguishing efficiency from effectiveness. A team’s climate reflects the organizational culture, and it is an indicator of that culture’s levels of efficiency and effectiveness. From an Agile perspective, the combination of efficiency and effectiveness speaks to a team’s confidence that it is free to experiment, take risks, and learn from failure. In this Advisor, we assert two fundamental value-creation metrics for Agile organizations.
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