The Efficiency Paradox | Niklas Modig | TEDxUmeå

During this lecture I will talk about something that I think is extremely interesting: What is efficiency? It is a term that everyone uses, but very few understand. I would argue that 98% of all organizations have an incorrect understanding of what “true” efficiency really is. We tend to over focus on individual and functional performance. We think that efficient “islands" is a good thing. The more we deliver the better! The problem is that research shows the exact opposite! The more we try to squeeze out from the different islands within our organization, the more inefficient the organization will be! So what is the conclusion? Being “busy” is BAD! We call this the efficiency paradox! During this lecture I will describe why this phenomena occurs and how we have to redefine our view on efficiency in order to deliver true customer satisfaction!

I am an inspirational speaker, researcher and author. Since I was a kid I have always been striving to understand what excellence really is. What is the key behind high-performing individuals, teams or organizations? In 2006, I got an opportunity that no other researcher had been given before. I got full access to study the most efficient and productive organization in the world. I spent more than 2,000 hours inside the company studying their work patterns, routines and attitudes. Since then I have been travelling around the world speaking about my findings. I have been invited to speak in 29 different counties, and all in total I have given more than 800 lectures. My first book – This is Lean - just passed 200,000 copies sold, making it one of the most sold Lean books of all time.

[Mz]

Sjukt bra!
Vilken inspiration Niklas, och du är från umeå dessutom! Björkarna tackar dig!
Vilken ögonöppnare att tänka i dina banor, så kul att sånt är mer aktuellt i Sverige,
där vi verkligen har den vanan att jobbar på olika öar. Guld värd! Tack.

[OrangeBlossom-iymw]

Interesting take. Most organizations struggle with technologies like Gen AI that tends to alter the flow.

[gabriellabruselll]

Rough commentsection.. I got alot of value out of this. This helped me to put words on cycles I have repeated both professionally but also in my private life and now I have an alternative to repeating them again. Great explanation, thanks! :)

[janefromcanada]

Excellent points made. I totally agree. The intangibles never get measured even though they are what organizations say is their mission statement

[felixsegebrecht]

one of the best talks if it becomes to the in-efficency of waterfall processes. but one of the worst, if it becomes to the question of how to deal with extra-ordinary-intelligent kids. In this case you have to cange the environemt, or better said, the eduction system. Not trying to "heal" them. Maybe they find a way to "heal" us., or our system.
But beside of that... one of the most important talks ever! 🙏🏼

[manjoocooperative]

ANTHONY OBO-CLAUDIUS OGOSU, NIGERIA.This is Awesome and Acknowledged.

[Johnfind]

Note for later: Go for flow efficiency, resource efficiency makes islands and makes king and queen over there who says don't interfere in my domain as we are performing way good!
Put the camera on customer's shoulder!

[bradelhart]

This is literally the fundamental concept of value stream mapping, which has been used effectively in manufacturing and supply chains for decades. Typically it is a product or an order (for a customer) moving through the value stream. The example of an ADHD patient does a nice job of humanizing the customer.

[rml]

Like the approach! It is wonderful for those children that started the process.
But how about the other 15 kids? I think there's inevitable longer waiting time for them to start the process, given that 5 kids are handled at a time..

[sharelius]

There is also a queue before you get here. Also a huge challenge to even get to the queue.

[henrygleditschkleive]

Very good! Thanks for your inspiration :)

[richardhp]

Isn't making maximal use of resources the opposite of efficiency though. Being able to get more done with less resources is efficiency.

[doyoureallycare]

Zara the clothing line company is text book example of flow efficiency. the customer in this video I.e patient and hospital(the org) has agreed to change the process and adopted for a strategic drift. and it's described here - how to reach for star. but it doesn't mean only flow efficiency works.( I am not able to understand 😶 ) how can flow efficiency works for low cost production or servicing industry. I still can not develop this thought

[jamesbrown]

So.. 2880 hours in a month. That's why my company is so inefficient; the employees just need to work 24 hours each day, including weekends.

[vespirian]

Simple counter argument: Example making a Lasagna. A camp I volunteer for has a dinner time on Saturday evening. The cooks arrive at 2:00 and begin to fix lasagna. Exactly at 5: 30 they serve the lasagna. Great- seems efficient - workers come in a tight timing - chief resource and reduce cost. Food was already there. Only problem, the lasagna sucked horribly. It was a porridge of grease. The cooks trying to be hyper efficient costs and serve the flow efficiency well - forgot one important thing in the cooking process. Lasagna needs to rest to 20 to 30 minutes to "set up". I would argue that in the analysis of efficiency - one needs to be mindful of a time frame for maximum success. In the example of the video - why not do one case and complete it in a day. Flow efficiency is maximized - the the parents have the answer. Because the mis-diagnosis would dramatically increase as testing shock set in. It would be more relevant for the individual who is the actual target of the case have time to rest and return to normal to avoid testing syndrome.

[PetulaGuimaraes]

401 notes: true customer centricity = flows efficiency.

[johanfolkesson]

I'm not a fan of the angry tone. But overall a good message, if you keep in mind that it may be applicable at various degree depending on situation. And in a meta kind of way the problem is highlighted by making the presentation 10 times longer than it needs to be. During the long and seemingly personal rant I was like "Fantastic, I totally feel how awful it is to wait for someone to deliver".

[sophier]

The message is good, but it took like 12 minutes to get to the point. And also, being so excited does not make the message more powerful. I would have preferred more poise and composure along the talk. But it was still a good message !

[MetalDetectingNYC]

Psychoeducational analysis is an exhaustive process alone. Stamina? IMAGINE doing all the steps in ONE DAY! The poor child will get an inaccurate diagnosis.

[Ireneeov]

Much non-value added time for me in this video, because it takes forever before the approach is explained.