Efficiency vs Effectiveness

‘The effective, vitalising work of the world is done between the

ages of twenty-five and forty.’

—Sir William Osler

The two terms ‘efficiency’ and ‘effectiveness’ have to be understood
correctly. It is very important to distinguish between these two
parameters. ‘Efficiency’ is about finding the best ways of doing an
assigned job. It is the methodology.

Then what is ‘effectiveness’? Analysing the word “effective” shows a
word within the word, namely “effect”. Effect means result. When you
say you are effective, you mean you produce a result. You may have
carried out some activity without any result, which is a waste of time.

This means you are not ‘effective’.

Your strategy should be to produce more effect or outcome with least
investment of effort and resources. This is ‘smart’ working. If you are
producing more outcome with more effort, you are working ‘hard’.
For example: Suppose you have currencies of various denominations
on your table amounting to Rs. 100. Imagine that a whirlwind blows
them all over your room. What would be your strategy for picking them
up?

If you are efficient, you will pick up the currency closest to you and
work towards the other end. If you are effective, you will pick the highest
denomination currency first and then the others!
Are you efficient or effective? In fact, you should be both effective and
efficient and combine them successfully.

(From my book 'The Gift of Time')

N C Sridharan
www.thetimefoundation.com