Effectiveness and Efficiency
The terms effectiveness and efficiency are often used in a similar way. However, they have different meanings to each other in business sciences.
Effectiveness and Efficiency come from the latin word efficientia -> usefulness
Effectiveness -> Measuring point for the usefulness: How close did the output of the work came to the previously defined goal
Efficiency -> Measures the ratio between current output and current input. Sets guideline for short-term-planning.
Are we doing right things that help us reach our goal?
Effective = Doing the right things -> strategic focus
Are we saving the most money and/or time while doing the things to reach our goal?
Efficient = Doing things the right way -> economic focus
Effectiveness = Result/Goal
Efficiency = Result/Effort
The efficiency focusses on the economical side, the effectiveness on the operational side.