Rethinking Efficiency
Publication Date: January 01, 2019
Business thinkers have long viewed the elimination of waste as management’s holy grail. But what if the negative effects from the pursuit of efficiency eclipse the rewards? In “The High Price of Efficiency,” Roger Martin argues that ever-more-efficient businesses earn an increasing share of available profits and can begin to game the market–and in time, industries become consolidated around a single dominant business model. This outcome carries a high risk of catastrophic failure and exploitation and fuels inequality and social instability. Businesses should increase their emphasis on organizational resilience instead. They can do so by limiting scale, introducing productive friction, promoting patient capital, creating good jobs, and changing the way we teach. The package includes “Success Breeds Inequality: What the Data Shows,” a graphical depiction of the state of play since the Great Recession, and “The Costs of Complexity Are Hard to See,” an interview with Ford Motor Company CEO Jim Hackett.
Pages: 19
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Rethinking Efficiency
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