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In this episode I discuss the widespread prevalence (but low recognition) of ‘efficiencyism’ in organizations, that is, a belief in the tenets of efficiency without questioning its assumptions and consequences in specific circumstances. ‘Efficiencyism’ often holds organizations back from realizing their true potential for three reasons: 1) systems theory tells us that an efficiency improvement in one part of an organization does not necessarily provide an improvement in the performance of the organization as a whole; 2) elevating efficiency to a sacred value (to be pursued at all costs) often leads to counterproductive actions at the first sign of financial trouble, such as layoffs, downsizing, and general efforts to do “more with less”; and 3) ‘efficiencyism’ seldom works, because organizations are complex human systems that can react in unpredictable ways when disturbed.

The stories offered by this episode illustrate that organizational dysfunction may be a common emergent phenomenon under ‘efficiencyism’. To overcome ‘efficiencyism’, organizations need to understand and monitor their effectiveness in real time before undertaking efficiency improvement efforts.  See episode 009 for an introduction to the concept of effectiveness.

Charles G. Chandler, Ph.D.
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