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I think of efficiency as one example where naive economic thinking has poisoned common sense. Economists view inefficiency as a problem. Because a healthy econo
by kzz102 2y ago
I think of efficiency as one example where naive economic thinking has poisoned common sense. Economists view inefficiency as a problem. Because a healthy economy is efficient, therefore inefficiency is unhealthy. Any inefficient market is a "market failure". Efficiency is also the primary way a manager can add value. But the problem is, efficiency assumes existence of metrics, and indeed is counter productive if your metrics are wrong.
- marcosdumay 2y ago> Efficiency is also the primary way a manager can add value. That's not right. The primary task of management is alignment.
- kzz102 2y ago> That's not right. The primary task of management is alignment. Fair enough.. at least they think they can add value by improving efficiency.
- marcosdumay 2y agoIt's a way they can add value. It's far from their primary way, and it's a task that is not primary done by management. But yes, there are plenty of managers that focus on it.