Efficient does not equal effectiveness. Efficiency refers to how well something is done while effectiveness refers to how useful something is. For example, a calculator is an effective tool to do calculations but it takes a human brain to direct it on what to calculate that makes it efficient.
These two words are often used by leaders specifically in sales in charting the course of their organization.
Here are some key differences between the two terms:
| Efficiency | Effectiveness |
| The ability to produce maximum output with limited resources | The level of the nearness of the actual result with the desired result. |
| To do ‘the things’ perfectly. | To do perfect things |
| Has a short-run perspective | Has a long-run point of view. |
| Yield-oriented | Result-oriented |
| Is to be maintained at the time of strategy implementation. | A requirement in strategy formulation. |
| It is the outcome of actual output upon given the number of inputs. | It has a relationship with means and ends. |
Technology makes us effective but not necessarily efficient. We are gifted with a brain that is more efficient than any developed technology. We should learn to use technology properly and not to depend on them entirely. They exist because of the power of our brains. It should help us to be better and not to be lazy.
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