HBR IdeaCast / Episode 760

When Efficiency Goes Too Far

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A conversation with Rotman professor emeritus Roger Martin on why leaders should stop treating companies like machines.

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September 29, 2020

Roger Martin, professor emeritus at the University of Toronto’s Rotman School of Management, says that for decades the U.S. corporate system has been obsessed with eliminating inefficiencies. There’s a point, his research shows, when these efficiency gains come with even greater social and economic costs. And he believes that the Covid-19 pandemic is increasingly exposing those weaknesses. He argues that leaders and CEOs should reassess and, in some ways, reverse course in their perpetual drive for efficiency. Martin is the author of the new book When More Is Not Better: Overcoming America’s Obsession with Economic Efficiency.

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