The Efficiency Paradox

This article aims to challenge the long-held belief that maximising resource utilisation helps in achieving ‘efficiency’. Albeit counter-intuitive at first, the fixation on maximising resource efficiency is not only counter productive but also leads to delayed value delivery. Further, we will explore the concept of Flow Efficiency and how it helps resolve the efficiency paradox.

Before taking a deep dive into Flow Efficiency, let’s first observe the journey that two patients — Kayla and Rachel go through to meet their medical needs (adopted from the book, This is Lean by Modig & Ahlstrom).

Kayla is worried she might have a serious health condition and is seeking medical diagnosis. Upon contacting the medical centre she learns that there are no appointments available with her regular GP for the next couple of days. Luckily, she is able to book an appointment with another GP at the clinic. Upon examination, GP advises Kayla that before her medical diagnosis can be delivered she will need to go through an ultrasound with a radiologist and refers her to a specialist.

The nurse from radiologist’s office advises Kayla that the earliest available appointment is a week away. Although disappointed, Kayla knows no better alternative and spends the week filled with anxiety and worry. On the day of ultrasound, Kayla discovers that the procedure while unpleasant is…