What is the difference between efficiency and effectiveness?

Efficiency is about doing things right—minimizing waste, using resources well, and optimizing processes. Effectiveness is about doing the right things—achieving outcomes that truly matter. In Scrum, efficiency might mean running smooth events or maintaining a clean board, while effectiveness means delivering increments that create real value.

Quote

“Management is efficiency in climbing the ladder of success; leadership determines whether the ladder is leaning against the right wall.”

Stephen R. Covey (1)

This distinction is a first principle of Agile thinking — effectiveness (delivering value) over efficiency (just optimizing process).

Works Consulted

1.
Covey SR. The 7 Habits of Highly Effective People [Internet]. Free Press; 2004. Available from: https://www.goodreads.com/book/show/36072.The_7_Habits_of_Highly_Effective_People