Trends & Emerging Technology

The Hidden Cost of a 20% Efficiency Gain: Operational Efficiency May Displace Innovation

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Robin’s commentary (as of September 2022)

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Collected in Robin Shen’s Field Notes · Content type and attribution are shown above

English translation of the Chinese post originally published 2022-09-12. Translated 2026-10-30 with AI assistance. Historical figures and claims have not been updated or independently verified. 中文原文

Reading guide

Robin sees a hidden risk in a company’s promise to improve efficiency by 20%: placing greater emphasis on operational efficiency may displace its capacity to innovate. He cites Google’s former innovation mechanism, which allowed employees to spend 20% of their working week on projects that interested them and helped generate creative products capable of changing the world. A Google that loses its capacity to innovate, he argues, may remain an excellent company but may no longer be a great one. This is his personal, speculative commentary from September 2022.

Key points

  • Pursuing operational efficiency may sacrifice the capacity to innovate.
  • Example: Google once allowed employees to spend 20% of their working week on projects that interested them.
  • A company that loses its innovative capacity may remain excellent but cease to be great.
  • Personal speculation from September 2022.
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Full text — English translation

A 20% efficiency gain gives me another reason for concern. When you begin emphasizing operational efficiency, what gets displaced may be Google’s capacity to innovate. The innovation secret Google used to be most proud of Google allowed employees to spend 20% of their working week on projects that interested them, helping it uncover many creative products capable of changing the world. A Google that loses its capacity to innovate may well remain an excellent company, but it is even more likely to be one that is no longer great.

These articles are personal notes, book excerpts, and collected reprints. Figures and events reflect the time of the original publication, are not current information, and do not constitute investment advice.

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