Effectiveness: is doing the things that get you closer to your goals.
Key performance indicator(KPI): Completion of an expected task or a goal.
Efficiency: is performing the given task (whether important or not) in the most economical manner possible.
Key performance indicator(KPI): Cost and time-saving.
According to management author Peter Drucker:
Efficiency is doing the things right; effectiveness is doing the right things.
When will be a person be called effective as well as efficient?
A person will be called effective and efficient when he can achieve the expected goal with minimum cost and time.
Keep these two things in my mind:
(Source: 4-Hour Work Week by Tim Ferris)
- Doing something unimportant does not make it important.
- Requiring a lot of time does not make a task important.
Suppose, Ram has a target of writing 2 articles every day but he takes almost 16 hours to complete both the articles with comprehensive and detailed information. Then, he is just effective. Because he took a lot of time to accomplish his goal.
If he writes both the articles within six hours but the information is not comprehensive and lacks quality then he is just efficient. Because he took less time but didn’t produce the desired result
But, on the other hand, if he writes both the articles within six hours with comprehensive and detailed information then he is both effective as well as efficient.