What is Project Efficiency and Effectiveness?

Abstract

The concepts of efficiency and effectiveness are commonly used when evaluating different processes. As project management can be described by different kinds of processes, the aim with this research is to explore the concepts within project management through the lens of quality management. Since project-based organisations are often struggling with the balance between time, cost and quality, they are interested in doing this as efficient and effective as possible. However, there are a wide variety of views on efficiency and effectiveness among professionals and research scholars, which makes it difficult to apply these concepts in project-based settings. The study is based on a literature review and includes interviews with project office managers from Swedish construction and engineering companies. Findings from the study indicate that the terms efficiency and effectiveness are used without clear definitions, where measurements are executed and results interpreted in various ways. Clarifying the interpretation of project efficiency and effectiveness would help and support project- based organisations in their improvement work. Clarity implies improved preconditions to measure efficiency and effectiveness, and the possibility to develop indicators that can be used to help guide the organization in the desired direction. A clearer view on project efficiency and effectiveness can also be a basis for internal improvements in terms of time, cost and quality, as well as external improvements in terms of customer satisfaction.

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