Revision as of 13:08, 21 February 2021

Abstract

Projects, programs and portfolios are driven by or aligned with organizational strategies and each have their own purpose to achieve strategic goals. Organizational goals are achieved with project management.^[1] One of the keys to success when it comes to the achievement of project objectives or making a personal change, is the goal setting. ^[2] When setting a goal, there are two important concepts that one needs to have in mind; efficiency and effectiveness.

Efficiency shows how productively resources are used to achieve a goal and effectiveness is a measure of the relevance of the goal.^[3] Efficiency is about doing things right and effectiveness is about doing the right thing.^[4]

When working on or managing a project, it is important to be aware of these to concepts in order for the project to be successful. Projects have five levels of success, one of them being project management success, which implies the project’s efficiency. The other four levels; process, product, business and strategic success, will be referred as the project success. The project success implies the project’s effectiveness.^[5]

The purpose of this article is to emphasize the importance of the awareness of efficiency and effectiveness when working on, or managing a project. It will dive deeper into the concepts and explain at what stage projects can thrive, at what stage they can survive or whether they are unlikely to survive. The importance of the two concepts will be explained further and what can be done if a project is lacking one of them or both.

Efficiency vs. Effectiveness

1^[6] 2^[7]

Is the project efficient and/or effective?

Application

Improve effectiveness

Improve efficiency

Annotated bibliography

References

1. ↑ Project Management Institute, Inc.. (2017). Guide to the Project Management Body of Knowledge (PMBOK® Guide) (6th Edition). (pp. 16,17). Project Management Institute, Inc. (PMI).
2. ↑ Dye, L. D. (2010). Goal setting and achievement thinking—the key to project and professional success. Paper presented at PMI® Global Congress 2010—North America, Washington, DC. Newtown Square, PA: Project Management Institute. https://www.pmi.org/learning/library/goal-setting-achievement-thinking-success-6535
3. ↑ G. R. Jones and J. M. George. (2019). Essentials of Contemporary Management, eight edition. McGraw-Hill Education.
4. ↑ Banister-Hazama, D., Moreci, J., & England, K. (2012). Increase project team effectiveness: step-by-step. Paper presented at PMI® Global Congress 2012—North America, Vancouver, British Columbia, Canada. Newtown Square, PA: Project Management Institute. https://www.pmi.org/learning/library/increase-project-team-effectiveness-steps-6070
5. ↑ Bannerman, P. L. (2008). Defining project success: a multilevel framework. Paper presented at PMI® Research Conference: Defining the Future of Project Management, Warsaw, Poland. Newtown Square, PA: Project Management Institute. https://www.pmi.org/learning/library/defining-project-success-multilevel-framework-7096
6. ↑ Mildred Golden Pryor. (n.d.). Effectiveness and Efficiency. Reference for business. https://www.referenceforbusiness.com/management/De-Ele/Effectiveness-and-Efficiency.html
7. ↑ Linenberg, Y. & Rynn, D. (2005). Improving project success through effective project selection: the efficient frontier technique. Paper presented at PMI® Global Congress 2005—EMEA, Edinburgh, Scotland. Newtown Square, PA: Project Management Institute.