An example to explain the difference between efficiency and effectiveness

A man was asked to paint a boat.

He brought with him paint and brushes and began to paint the boat a bright red, as the owner asked him.

While painting, he noticed that there was a small hole in the hull, and quietly repaired it.

When finished painting, he received his money and left.

The next day, the owner of the boat came to the painter and presented him with a nice cheque, much higher than the payment for painting.

The painter was surprised and said, "You've already paid me for painting the boat, Sir!" 

"But this is not for the paint job. It's for having repaired the hole in the boat."

"Ah! But it was such a small service... certainly, it's not worth paying me such a high amount for something so insignificant."

"My dear friend, you do not understand. Let me tell you what happened.

When I asked you to paint the boat, I forgot to mention about the hole.

When the boat dried, my kids took the boat and went on a fishing trip.

They did not know that there was a hole. I was not at home at that time.

When I returned and noticed they had taken the boat, I was desperate because I remembered that the boat had a hole.

Imagine my relief and joy when I saw them returning from fishing.

Then, I examined the boat and found that you had repaired the hole! You see, now, what you did? You saved the life of my children! I do not have enough money to pay your 'small' good deed."

Just painting well without flaw is efficiency

Doing more than expected keeping in mind the purpose and fulfilling it is 'Effectiveness'

Efficiency is process focussed

Effectiveness is purpose focussed