Resilience and the Hidden Costs of Efficiency

Data & Technology
The topic explores why efficiency can be only apparent and why it is important to balance optimization with resilience to change.

Key questions and insights

How can you tell that optimizing one process is not creating hidden costs elsewhere?

Efficiency does not have a single universal definition and can be only apparent.

Why can excessive efficiency weaken the ability to respond to change?

Organizations function as complex adaptive systems and need a balance between efficiency and resilience.

What role do additional revenue streams play in strengthening resilience?

Excessive optimization of one process can create hidden costs elsewhere.

How can efficiency and resilience be balanced in practice?

Strategic resilience can also be strengthened by building additional revenue streams with higher margins.

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