Efficiency is usually something businesses strive for, but is it possible to be too efficient?
Roger Martin is professor emeritus at the Rotman School of Management at the University of Toronto. He warns that an obsession with eliminating inefficiencies in U.S. companies has come with social and economic costs. He sees those downsides in everything from staffing to wages and even corporate debt levels. But he argues that it’s not too late for businesses to change their priorities.
In this episode, Martin helps leaders understand how to shift their thinking to connect excess resources in the shorter term with a positive outcome: long-term resilience. Martin also explains why it’s important to avoid the strategy trap of setting and meeting singular goals.
Key episode topics include: strategy, business and society, operations and supply chain management, efficiency, corporate debt, wages, staffing, inequality, goals.
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· Listen to the full HBR IdeaCast episode: When Efficiency Goes Too Far (2020)
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