Peter Drucker, who's written a lot of books about management and leadership, said that "efficiency is doing things right and effectiveness is doing the right things." What he's saying is that effectiveness is about goals and objectives, and efficiency is about means for achieving goals and objectives. Goals are chosen based on policy and policy is based on values. Objectives are subsidiary to this choice.
Basically, what matters is making the right choices to begin with, not making the wrong choices, but doing it "more efficiently." That's really at the root of a lot of big organizational problems. Leaders, bureaucrats and other stakeholders hold on to their little ideas for too long, without considering their effectiveness.