I think there is a problem defining what is effective when talking about creative work.. I did some contract work a few years ago and while I worked from home and tried to be on task during working hours I was not always at the keyboard during that time. Sometimes I sat on the couch with my eyes closed, and I went for a walk on the beach regularly but I was always thinking about the way in which the code I was writing was developing, the shape of the algorithms and how best to interface to other modules. I even thought about that stuff out of hours (which was unbilled time, though I got a hefty bonus..).

When you take this concept of effective working time to the statistician who sees only the time you spent actually at the keyboard and tells the MBA that your effective time was 2-4 hours out of an 8 hour shift, and that MBA wants you to increase this effectiveness by getting it to 100% of the time that he is paying you.. then thats not going to work.