What is the difference between efficiency and effectiveness?

While efficiency is making sure your processes are running smoothly to maximize your resources, effectiveness is ensuring your business is pursuing the right goals and objectives. Efficient strategies lead to effectively accomplishing your goals. But what efficient strategies should you use to get there?

How do you measure organizational effectiveness?

The goal approach gauges effectiveness by measuring to what degree the organization reaches the goals it set out to achieve. This is the most traditional way of measuring organizational effectiveness. Goals can include product or service quality and quantity, financial goals, shareholder value, societal impact, or all of these.

What is organizational effectiveness?

It can revolve around the degree to which an organization accomplishes its goals, satisfies its stakeholders, has the resources it needs to operate, or creates societal or environmental impact. This brings us to our definition. We define organizational effectiveness as the degree to which an organization achieves the goals it set out to achieve.