Growth that adds volume without improving productivity is fat. Growth that diminishes productivity is cancer

Growth that adds volume without improving productivity is fat. Growth that diminishes productivity is cancer

Peter Drucker, often referred to as the father of modern management, was a renowned management consultant, educator, and author who made significant contributions to the field of management theory. One of his most famous quotes is, “Growth that adds volume without improving productivity is fat. Growth that diminishes productivity is cancer.” This quote encapsulates Drucker’s belief that sustainable growth is dependent on increasing productivity rather than simply expanding in size.

Drucker’s emphasis on productivity as a key driver of growth is rooted in his belief that organizations must constantly strive to improve efficiency and effectiveness in order to remain competitive in a rapidly changing business environment. He argued that growth for the sake of growth is unsustainable and can actually be detrimental to an organization’s long-term success if it does not lead to increased productivity.

When Drucker refers to growth that adds volume without improving productivity as “fat,” he is highlighting the inefficiencies that can arise when organizations focus solely on expanding their operations without considering how to make those operations more efficient. This type of growth can lead to bloated, inefficient organizations that are unable to adapt to changing market conditions or deliver value to customers.

On the other hand, Drucker’s characterization of growth that diminishes productivity as “cancer” underscores the destructive nature of growth that comes at the expense of efficiency. When organizations grow in a way that actually reduces their ability to produce goods or services effectively, they risk undermining their long-term viability and sustainability.