It's the same kind of bullshit as teams being penalized for meeting 100% of their goals because it means that their goals weren't aggressive enough. I can't say whether the strategy is effective or not, but MBA types seem to love it.
MBAs I think see it as an indicator that they are not using g the resource at capacity.
mbas see whatever they see for whatever reasons they do. it’s usually posturing and signaling to other mba types, often with delusions of grandeur and napoleon complex, not height based.