Sub-optimization typically occurs when departments focus on...

Sub-optimization occurs when departments or teams prioritize their own individual goals over the broader objectives of the organization as a whole. This can lead to inefficiencies and a lack of coordination, as each department works in a way that may benefit itself but not necessarily the organization. For example, one department may optimize its performance indicators, achieving its targets while inadvertently creating bottlenecks or issues for other departments. This can hinder overall organizational performance because the collective performance is diminished when departments do not work collaboratively or consider the bigger picture.

In a successful organization, teamwork and inter-departmental collaboration are crucial for achieving strategic goals. Focusing solely on individual goals disregards how decisions in one area affect others, potentially leading to conflicts and misalignments. This concept is vital in Lean and Six Sigma methodologies, where the emphasis is on optimizing processes for the entire system rather than for individual parts.