Organizational Friction
"Unnecessary meetings, micromanagement, overly complex procedures — these are a few common examples of the phenomenon that Organizational Psychologist and Professor, Bob Sutton, calls "organizational friction.”
And while friction can feel inevitable, regularly slowing us down and causing frustration, he argues that it doesn’t have to be that way. By eliminating pointless barriers, we can streamline work, sharpen decision-making, and fuel creativity."
Organizational friction refers to the resistance or drag within an organization's processes, systems, and culture that hinders efficiency and effectiveness. It's often characterized by unnecessary steps, redundancy, conflicting goals, siloed departments, bureaucratic procedures, or outdated technologies.
This concept is not limited to operational aspects; it can also include elements like communication barriers, lack of alignment in vision, or resistance to change.
When there's organizational friction, several unmeasured costs may arise:
- Time and Productivity Loss: Friction leads to wasted time as employees navigate complex processes, solve problems that shouldn't exist, or spend unnecessary effort on redundant tasks. This directly impacts productivity.
- Employee Dissatisfaction and Turnover: Constantly dealing with inefficient systems or unclear communication can lead to frustration among employees, potentially increasing turnover rates. Replacing staff members due to high turnover is costly, involving recruitment, training, and onboarding expenses.
- Missed Opportunities: Friction might prevent quick decision-making or implementation of new ideas, causing the organization to miss out on potential benefits, partnerships, or market opportunities.
- Quality Issues: Inefficient processes may lead to errors and compromised quality, which can result in customer dissatisfaction, damage to reputation, and additional costs associated with rectifying mistakes.
- Innovation Stifling: A highly frictional environment might discourage creativity and risk-taking, as employees may fear being blamed for failures or going against established, possibly outdated, procedures. This can hinder innovation and long-term growth.
- Hidden Costs of Compliance: Overly complex systems or processes might require additional resources to ensure compliance with regulations, increasing administrative costs.
While some forms of friction are visible (like long approval times or siloed departments), much of it is hidden and can be difficult to quantify directly. However, their impact on an organization's bottom line can be significant if not addressed.