We Need More Forms, Hoops & Procedures; How to Kill Your Business the Bittersweet Way

July 1st, 2010 § 0 comments § permalink

A simple theory of input-output in economics states that as more resources are added (the input) such as staff, raw material, time and technology, then productivity (the output) will increase as well.

There does come a tipping point when the production curve makes a downward dash. As input is increased beyond the tipping point, it will begin have an adverse effect on productivity, causing production to decrease quantitatively and qualitatively.

If 5 workers are assigned to lay shingles on a roof of a single-family home, they will get the job done much quicker than with 2 workers. If 20 workers were assigned to the same project, productivity would decrease as communication becomes more complex, task assignment is unaccounted for, worker mobility is limited, etc.

The same holds true in any other system and context.

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