Hope you've been patient kiwi, or got this elsewhere, but efficiency is essentially the percentage of fermentables that you get out of your malt, based on a theoretical total. If a grain of malt was ground to a powder, there would be a given amount of starch present. If you were able to utilize all of this starch and convert it, it would give you 100% efficiency. One of the issues is that it would be hell to try to lauter dust and keep it out of the boil, so most of the time a brewer would try to crack a single grain into a bunch of smaller pieces without pulverizing it. This allows the enzymes to get at most of the starches, but there will still be some left behind. So if you have a 75% effiency, you are getting roughly 75% of the potential out of your malt.
There is a lot more that goes into it, where it can vary based on system and technique, but that's the basic idea.
