HBR: monofocus and/or hyperfocus on efficiency weakens resiliency.
Eliminating waste sounds like a reasonable goal. Why would we not want managers to strive for an ever-more-efficient use of resources? Yet as I will argue, an excessive focus on efficiency can produce startlingly negative effects, to the extent that superefficient businesses create the potential for social disorder.
This happens because the rewards arising from efficiency get more and more unequal as that efficiency improves, creating a high degree of specialization and conferring an ever-growing market power on the most-efficient competitors.
The resulting business environment is extremely risky, with high returns going to an increasingly limited number of companies and people—an outcome that is clearly unsustainable.
The remedy, I believe, is for business, government, and education to focus more strongly on a less immediate source of competitive advantage: resilience.
This may reduce the short-term gains from efficiency but will produce a more stable and equitable business environment in the long run. I conclude by describing what a resilience agenda might involve.
https://hbr.org/2019/01/the-high-price-of-efficiency