Efficiency vs Effectiveness
According to Wikipedia, a good way to distinguish between effectiveness and efficiency is to understand that effectiveness relates to ‘getting the right things done or setting right targets to achieve an overall goal (the effect)’. Efficiency relates to ‘doing things in the most economical way (good input to output ratio)’.
Companies are always looking, especially in this economy, for ways to make their work more efficient. This means new projects need to be efficient and streamlined: no wasting a company’s time or money. There is a high demand from corporations for technology that increases staff efficiency while keeping business costs reasonable. Poor project management is often the cause of lost revenue and resources for many businesses. 
Billions are lost every year due to poor project management like when projects are handled inefficiently, dragged out beyond deadlines, or high costs beyond their means. Many different skill sets are necessary to ensure effective project management.
Effective project management eliminates any unnecessary costs associated with the project, making the work as cost-effective as possible. The project manager is responsible for keeping the project within the allotted budget. Keeping within budget can also keep the scope of the project in check; too often, both a project, and subsequently its budget, can grow out of control. Companies will pay for this mistake – a dual penalty of lost revenue and lost time.
Effective project management also guarantees efficient work by contractors for a task, matching the highest quality work to the best price. The responsibilities of project management are not limited to collecting bids from qualified individuals in order to complete the project, but also to determine if the company does in fact have the experience and knowledge to complete the work well. The project manager truly has to consider which company is best-suited for the task at hand.
A project manager must make sure that the project is meeting deadlines and keeping goals in sight. Effective project management will utilize software and other technology available to keep the project on target and meet scheduled goals. A company can lose a lot of money very quickly when one or more of its projects get off schedule.
Effective project managers ensure that all projects will be completed on time, within budget and with quality. They are responsible to control every aspect of the project, and regularly reporting its status back to company officials. An effective project management professional or firm can bring any project under control, no matter how unfocused or inefficient it was to begin with; their services can end up saving corporations millions in better-managed time and resources. It is commonplace now for companies to outsource their project management to consulting professionals or firms that will maximize efficiency and bring projects to completion within or even under budgets and deadlines, thus saving company resources.
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