Efficiency vs. Effectiveness: Defining the Difference
Almost every organization, be it a corporation, non-profit or government strives to be more effective
and more efficient. Organizations often make important strategic and operational decisions based on
how different alternatives will increase or decrease efficiency or effectiveness. But many organizations
and managers struggle to understand the difference between efficiency and effectiveness and often get
“wrapped around the axle” debating semantics rather than actually evaluating the alternatives at hand.
These concepts are often used interchangeably and with little consistency, and in some cases
improvements to efficiency or effectiveness can appear to be interdependent.