The Efficiency Paradox

Flow Efficiency vs Resource Efficiency

flow efficiency vs resource efficiency

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Toyota, Lean Management

During this lecture I will talk about something that I think is extremely interesting: What is efficiency? It is a term that everyone uses, but very few understand. I would argue that 98% of all organizations have an incorrect understanding of what “true” efficiency really is. We tend to over focus on individual and functional performance. We think that efficient “islands” is a good thing. The more we deliver the better! The problem is that research shows the exact opposite! The more we try to squeeze out from the different islands within our organization, the more inefficient the organization will be! So what is the conclusion? Being “busy” is BAD! We call this the efficiency paradox! During this lecture I will describe why this phenomena occurs and how we have to redefine our view on efficiency in order to deliver true customer satisfaction!
 

This talk was given at a TEDx event using the TED conference format but independently organized by a local community. Learn more at

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To Understand LEAN better, I recommend these books because they were the ones who helped me understand it.

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