Efficiency is a measure of how much sugar you have managed to extract from the grain compared to the maximum extraction that would be possible.
Tables of maximum extract potential are available to tell you what the maximum is for a particular grain - Pilsner, Pale, Crystal, etc. The information given is points per pound per gallon. Here is a link to one example:
http://beersmith.com/grain-list/
Using the table above you will see that Pilsner malt from Germany yields a maximum potential of 1.037. This means 1 pound of Pilsner malt mashed in 1 gallon of water will give you a maximum gravity reading of 1.037 (or 37 points) if you could achieve 100% conversion. Do remember though that these are US gallons.
The two efficiency measures most people are interested in are mash efficiency which just looks at how much sugar you get out from the mash and perhaps of far more interest, brew-house efficiency which looks at the efficiency of your whole system.
For BH Efficiency, using your recipe you have to work out for each grain what the maximum extract would be. So if you are brewing a Pilsner using 5Kg (11 lbs) of German Pilsner malt and want a 23 litre (6 US gallons) batch in your fermenter, the maximum points would be
11 x 37 / 6 = 67.8 so a gravity of 1.068
If when you measure your OG you read 1.048 your efficiency is
48 / 68 = 70.58%
If you had added other malts in your grain bill, to calculate the maximum potential gravity you would have to work out the maximum points for each grain and add them together. If, for example you had also added 200g (0.44 lbs) of Acid malt (max potential per pound per gallon of 1.027) the maximum gravity from this addition would have been
0.44 x 27 / 6 = 1.98
and the total maximum gravity for that grain bill would have been
67.8 + 1.98 = 69.78 so about 1.070