9 Types of Inefficiency

Inefficiency is a failure to make productive use of resources. It is synonymous with waste. The following are common types of inefficiency.

Strategy

Doing the wrong thing. For example, a product or service that fails on the market due to a flawed product strategy.

Processes

Doing things in an unnecessarily complicated, wasteful or ineffective way. For example, a slow machine that represents a bottleneck on a production line.

Tools

Ineffective tools such as software with an unusable user interface or automation with a defective design.

Structure

An inefficient structure such as a firm with too many middle managers and too few hands-on workers.

Energy

Machines, devices, vehicles and buildings are bad at converting input energy into something useful.

Knowledge

Failing to use available knowledge. For example, a software designer who repeats well known design mistakes.

Culture

A culture of negative politics, petty authority or malicious compliance.

Time Management

Inefficient use of time such as long meetings that don't go anywhere.

Economics

Inefficient economics such as cronyism and perverse incentives.

Overview: Inefficiency
Type	Efficiency
Definition	A failure to make productive use of resources
Related Concepts	Efficiency » Strategy » Product Strategy » Business Processes » Bottleneck » Production Line »