If you don’t include some measure of employee satisfaction, retention, wellness, etc, then you will optimize the system at their expense. As awful as this sounds, it’s no different than operating a piece of machinery above its capacity, or without adequate maintenance, because doing so improves some short term measure. If you can absorb the cost of doing so, then you might happily burn through lots of machines and that might be acceptable. But people aren’t machines, and you will either find yourself having retention issues, hiring issues, or like Amazon, literally running out of people willing to work for you even as they literally kill their employees.

The most important thing I take from my reading of Deming, is that there comes a point when you have to put the charts aside and deal with people. If you push people over and over and over, eventually they’re going to snap. Even if they don’t, can you live with yourself at the end of the day?

You also have to consider more factors than just P&L. If you push sales people to the point they start breaking the law, or you push machinery and operators to the point of a massive oil spill, you could jeopardize the whole business, or worse. You need to know where the limits are, and that only comes from understanding the people, and the process, beyond just the charts.

Classic map v territory stuff.