Bob Lewis
Columnist

An exercise for the reader

analysis
Feb 6, 20041 min

A recurring theme here and in Keep the Joint Running is that you often must suboptimize the parts to optimize the whole. So here's a question: How much of popular business theory and practice are rooted in the opposite assumption - that optimizing each part will optimize the whole? I'm thinking of two right now - the use of benchmarks and the notion of outsourcing non-core business functions. After all, when you

A recurring theme here and in Keep the Joint Running is that you often must suboptimize the parts to optimize the whole.

So here’s a question: How much of popular business theory and practice are rooted in the opposite assumption – that optimizing each part will optimize the whole?

I’m thinking of two right now – the use of benchmarks and the notion of outsourcing non-core business functions. After all, when you compare your own operation to industry “best practices benchmarks,” aren’t you assuming you want to optimize the function you’re benchmarking?

As for outsourcing, might there be a hidden assumption that when it comes to a non-core function a company that specializes in the area can optimize it better than you can?

Just asking.

– Bob

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