Organizations often incentivize high resource utilization, believing busyness equals productivity. However, queueing theory shows that as utilization nears 100%, wait times for new tasks explode exponentially. This focus on local efficiency kills system-level flow, creating massive, costly delays in critical processes like drug discovery.
Work expands to fill time, and organizations expand to fill available work. People instinctively want to hire direct reports to increase their status, creating a supply of labor that then invents low-value tasks to justify its existence, leading to bloat and inefficiency.
There's often a massive gap between a company's strategic goals and where development teams actually spend time. In one case, only 2% of capacity was spent on the top strategic goal because teams are "magnets for requests" that derail progress on the big picture.
As companies scale, the supply of obvious, valuable work dwindles. To stay busy, employees engage in "hyper-realistic work-like activities"—tasks that mimic real work (e.g., meetings to review decks for other meetings) but generate no value. It's a leader's job to create a sufficient supply of *known valuable work*.
A restaurant's 'off night' isn't about being too busy, but about every customer arriving at once. This simultaneous demand overwhelms production lines (bar, kitchen), forcing rushed work and leading to a drop in quality. It's a peak throughput problem, not a total throughput one.
True effectiveness comes from focusing on outcomes—real-world results. Many people get trapped measuring inputs (e.g., hours worked) or outputs (e.g., emails sent), which creates a feeling of productivity without guaranteeing actual progress toward goals.
According to the 'dark side' of Metcalfe's Law, each new team member exponentially increases the number of communication channels. This hidden cost of complexity often outweighs the added capacity, leading to more miscommunication and lost information. Improving operational efficiency is often a better first step than hiring.
In high-stakes projects like clinical trials, waiting for a scheduled weekly meeting can be an absurdly expensive convenience. Calculating and constantly referencing the 'cost of delay'—which can be millions per day—reframes the problem, creating the urgency needed to get an immediate decision instead of waiting.
Parkinson's Law suggests bureaucracy naturally grows 5-7% annually. To combat this, leaders can measure a "Bureaucracy Mass Index" by tracking wait times and useless activities. This metric turns the fight against bloat into a manageable, health-like goal.
Many teams fall into a "busyness trap," engaging in activities that don't advance core objectives. This creates a hidden tax on productivity, as effort is spent on work that doesn't move the needle. The key is shifting focus from simply being busy to working on the right, high-impact tasks.
As you scale a team or delegate more, communication overhead and misalignments will inherently reduce efficiency. This is a fundamental trade-off. The goal isn't perfect efficiency; it's greater total output, which requires a higher tolerance for these diseconomies of scale.