Efficiency and Effectiveness - What is the Difference?

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Many of us have said something like, “I am an efficient and effective leader, capable of leading teams to extraordinary achievements…”  For some, these are just buzzwords used in an attempt to sound intelligent but often come across as, well, something else.  For others, these “buzzwords” are true definitions of who they are and how they lead, but they cannot explain what it truly means.  What does it mean to be an efficient leader?  What does it mean to be an effective leader?
 
Efficiency and effectiveness are often used synonymously but are in reality a bit different.  Efficiency can be attributed to the time or rate which something is accomplished, whereas, effectiveness is the accuracy or quality of the accomplishment.  Which is more important?
 
Here is an example to illustrate the difference between the two.  
 
It is appraisal time, you have 8 team members to evaluate, and you only have 8 hours to do them all, among your other tasks.  So, you spend an hour developing a quality appraisal and you copy and paste your information into each of the remaining 7 appraisals.  You are able to deliver all 8 appraisals, including your face-to-face discussions, in less than 5 hours.  Each team member receives an appraisal, and you have 3 extra hours to do what you want.  This is efficiency.
 
Alternatively, you spend more time developing an honest appraisal for each team member and deliver the face-to-face discussion, all in 8 hours.  You conduct your appraisals in this way as each team member performed a different function, had different goals and tasks, and performed to a higher or lesser degree of quality.  Each team member understands his or her successes and areas to improve for next year, thus, a more accurate assessment.  This is effectiveness.
 
Which appraisal method is better?  Is it more important to be efficient or effective in this case?  In reality, as the leader, you should be constantly evaluating your team and the final appraisal should be a relatively easy wrap-up, but that is a topic for another day.
 
A leader that accomplishes a task quickly is efficient.  A leader that accomplishes a task accurately is effective.  A leader that can do both is efficient and effective.  Are you an efficient and effective leader, capable of leading teams to extraordinary achievements?
 
Next week I will add to this discussion by addressing expectations and quality as they affect what is perceived as efficient and effective.

Jared W. Snow