In project management the concepts of efficiency and effectiveness are used for evaluating different processes. Today project-based organizations are struggling to balance between the triple constraint time, cost and scope (plus quality), and thus are focusing in doing it both efficiently and effectively. However, there are a wide variety of views on efficiency and effectiveness among project managers and senior project members, which makes it difficult to apply these concepts in project-based settings.
As per the thought leader Drucker “if efficiency is “Doing things correctly or right,” then effectiveness is “Doing the correct or right Things”. Basis this distinction it is important that both the two practices must be managed in the correct proportion by each and every individual.
In case either effectiveness or efficiency is lacking
As quoted by a great Thought Scholar Tim Williams – “It’s effectiveness—not efficiency—that creates value. After all, one can be extremely efficient doing the wrong things.” This results in a large amount of productive hours gone in vain. We are aware of the truth that everybody pays lip service to and forgets. Its human nature to follow others and stick to a formula that is running smoothly and appears to be working. Thus it is recommended that people should change an efficient system when survival is at stake.
To ensure that any “solution” was meeting the requirements in the first place, is the primary responsibility of a business analyst. This can be done by checking against the original requirements and compare what they were achieving with what was set out to do. And further by checking with the user / stakeholder that the development team is doing the right things (business process wise).
The definition of efficiency involves minimizing any deviation in the product or any business change which is the actual purpose of projects in the first place. And it is a better option than creating a failing project. It is always recommended to cancel a failing project effectively and efficiently early. Yet many project managers and their sponsors are fearful of doing that.
Where Quality Fits
Quality drives both efficiency and effectiveness. The difference is that process quality, testing of inputs, and defect measures comes under efficiency. Whereas output/results that are fit for purpose, that meet stakeholder satisfaction and business needs, comes under effectiveness. To achieve effectiveness in your end results, it is necessary to have efficiency in your processes.
Quality improvements come about as a result of the quality audits. During the course of the audit, the team discover ways of improving the efficiency and/or effectiveness of the project, thereby increasing the value of the project and meeting or exceeding the customer’s expectations. In Quality management, Perform Quality Assurance process involves performing systematic quality activities and uses quality audits to determine which processes should be used to achieve the project requirements and to assure that they are performed efficiently and effectively. As per PMBOK 5.0 – Effective communication refers to providing the information in the correct format for the right set of people, at the right time. Efficient communication refers to providing the appropriate information at the right time, that is, only the information that’s needed at that time. Therefore both efficient and effective communication are equally important.
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