More than Efficiency

        Ideas of efficiency and productivity were at the front of my mind when I started Operate Well Consulting in 2021. These are essential concepts in the manufacturing and Industrial Engineering fields from which I came. However, while I knew that these concepts are critical for an organization’s improvement, I still had questions vital for my work as a consultant if I was to help clients truly “operate well.”  

•        What are we overlooking when we focus just on producing at maximum efficiency? 
•        Worse, are we harming organizations, people, society, and the environment when we focus too much on productivity and efficiency? 

        I entered the Fielding Graduate University Organizational Development and Leadership program with these questions in mind. Without putting efficiency and effectiveness by the wayside, I wanted to know what other important factors and values leaders must hold in order to guide their organization in doing work that is sustainable, impactful, and beneficial to the world in which they exist. A third of the way into my program, I would like to now share some thoughts that have begun to answer my questions in new and meaningful ways. 

Employee engagement and motivation

At the heart of organizations are not just the processes and systems in place but also the people doing the work. As such, any efficiency expert needs to recognize that organizations will fail without engaged and motivated employees, even with the most streamlined processes and optimally designed systems. According to a 2020 Gallup study, “Across companies, business/work units scoring in the top half on employee engagement more than double their odds of success compared with those in the bottom half. Those at the 99th percentile have nearly five times the success rate of those at the first percentile.” In addition to how employee engagement impacts the bottom line (in the case of for-profit organizations), we must also consider our organizations’ impact on the world. Do we want to burn out employees the way Uber did, leaving a toxic workplace and unhealthy people in the world? How does packing more stops into an Amazon delivery driver’s route impact their engagement? What about putting more students in a teacher’s classroom? These are examples of questions that could have been made based on productivity but without taking employee engagement into account, not to mention safety, accuracy, and quality. Further, while a decision may have been made for the sake of efficiency, it may not be sustainable in the long run for both the organization and the people that make up that organization. 

Teamwork and Psychological Safety 

I remember a recent experience I had at a cafe, where it was apparent that teamwork drives their operational success. It was apparent that the staff enjoyed their jobs and communicated seamlessly. During my visit, my order was misheard and processed incorrectly. I went to the counter and told a server about the incorrect item, and a bit later, a different server had the correct order for me. It was apparent that a strong line of communication woven between whomever I spoke to, the kitchen, and the person at the cash register, enabling the team to deliver the correct item to me without further questions or delays. 

Undoubtedly, the way that groups work together impacts the timeliness and quality of delivery. Cohesive and collaborative teams that deal well with conflict and communicate well do the best work. Further, psychological safety contributes to a company’s ability to effectively deliver, learn, and ensure that team members doing the work are engaged. It’s essential to ask, where is the idea of efficiency creating a culture of urgency, which causes these things to be pushed to the back burner, ultimately undercutting the business’s long-term success? 
Where is the tendency toward efficiency undercutting values and goals such as innovation, competitiveness, and impact? Where can we ease off on a sense of efficiency to accomplish valuable cultural transformations? 

In short, while efficiency is an important idea, it must be balanced with other important factors, including employee engagement, teamwork, psychological safety, culture, and leadership. Business owners and organizational leaders need to be aware of their tendency to prioritize efficiency at the cost of these vital concepts. Further, if efficiency is essential for the success of their organization, they must approach the topic with realistic and responsible expectations of what is possible, ethical, and possible. We, especially leaders, must reflect on how efficiency and productivity show up in our lives to understand how we bring it to the workplace. 

•       Where is the value of efficiency causing us to have a harmful sense of urgency instead of finding a sustainable flow that ensures quality and, I argue more importantly, respect and care for ourselves and our coworkers?   
•        How will becoming more efficient in operations benefit your organization’s long-term vision?  
•        Are there any unintended consequences of trying to do more with less? How can we solve problems without creating new ones? 
•         How will decisions impact members of the organization, society, and the environment?  

In 2024, I know I will reflect on these questions more deeply, for myself and for the organizations I work with. In sharing these questions with you, I invite you to join me on this journey of discovering what priorities and decisions will yield the most meaningful long-term results for people, organizations, society and our natural environment.