When I was writing one day on <How to track a habit? Is tracking habit necessary or useful?> (being the basis of improvement for greater efficiency. I stopped and hesitated when I typed the word efficiency and asked myself “should it be for greater effectiveness?”
Then I realised and noticed that I have confused between efficiency and effectiveness — I have a vague idea about what these two words mean, but if I am asked to explain it to a 6 year old kid (referring to <How to Learn Faster with The Feynman Technique>), it could be a challenge.
Hence this article.
Test yourself: if you can explain with clarity in simple language to a 6 year old in one sentence the difference between efficiency and effectiveness. If you can, then this article is not for you.
Based on research:
Efficiency refers to the act of performing activities with minimum wastage of time and optimum usage of resources, so that the work done is faster and in an error free manner. In other words, Efficiency means doing more with less (or the same) resources — be it financial, physical, time and human resources. It’s maximizing output.
Efficiency is how well a process turns inputs into outputs.
Effectiveness is the extent to which someone or something is successful towards meeting the desired outcome. In other words, Effectiveness is the quality that the resources deliver.
Effectiveness is how well a process accomplishes its objective.
My understanding:
Efficiency is about the use and allocation of resources:
Good use and allocation of resources = Little resources needed = High efficiency
Bad use and allocation of resources = More resources needed = Low efficiency
Effectiveness is about the result and outcome:
Achievement of the result and outcome = High effectiveness
Non-achievement of the result and outcome = Low effectiveness
The relationship between Efficiency and Effectiveness:
(1) Good use and allocation of resources + achievement of result and outcome = High Efficiency High Effectiveness
(2) Good use and allocation of resources + Non-achievement of the result and outcome = High Efficiency Low Effectiveness
(3) Bad use and allocation of resources + achievement of result and outcome = Low Efficiency High Effectiveness
(4) Bad use and allocation of resources + Non-achievement of the result and outcome = Low Efficiency Low Effectiveness
That’s the end of my sharing this time, hope you benefit from it. See you in the next article!
Connie is an Active Reader, Creator to 1 framework “Sustainable Simplified Soulful”, 3 programs “Rich Brain Installation, Knowledge to Cash, Easy Passive Investing”, Author to 1 book “Design your Day: How to Achieve More in a Day than Most Do in a Year”, Host at “Simplified Business Show” podcast. She shares about book recommendations, new learnings, and principles that she learned and practised in business and life.
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