Managers Move from Resource-Efficiency to Flow-Efficiency Thinking

Too many managers were trained to think of “resources” as a term they can apply to people. They use terms such as “FTE,” which is a full-time equivalent. They think of productivity, as if knowledge-work productivity can be measured with any kind of certainty. They think of percent utilization, which doesn’t make sense for collaboration.

Great managers knew the words and measures were wrong. And they often saw no alternatives. Agile culture provides many alternatives.

When managers think of people as “resources,” managers think they or the teams can split work to make people more efficient. We split this work by work type, creating experts. The name for this is “resource efficiency,” ...

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