The Efficiency Gap

Why white-collar jobs are falling behind

Woman in front of laptop on desk frustrated
18.07.2025 | Articolo

In 2025, efficiency is not just an operational concern—it is the top agenda item in boardrooms worldwide. A Porsche Consulting leadership survey confirms this: Efficiency-related priorities now dominate corporate strategy discussions. The most frequently cited imperatives—digitalization, process optimization, cost reduction, and artificial intelligence—all converge on a single objective: doing more with less, and doing it smarter.

Top transformation topics among major companies in German-speaking countries in Europe
Digitalization and automation are by far the most prevalent strategic priorities among major companies in German-speaking countries in Europe.
Top transformation topics among major companies in German-speaking countries in Europe
Digitalization and automation are by far the most prevalent strategic priorities among major companies in German-speaking countries in Europe.

This focus is not just timely—it is essential. Many companies are falling short of their financial targets, and major strategic initiatives are stalling in execution. Meanwhile, intensifying global competition and persistent geopolitical uncertainties are making revenue growth less predictable. In this environment, efficiency is not an option—it is crucial to sustained profitability and strategic agility.

Despite decades of technological advancement, efficiency levels across industries have been declining. A look at value added per employee—a key efficiency metric—highlights this downward trend. In Germany, labor productivity growth has decelerated from over 2 percent annually in the 1990s to just 0.6 percent in recent years. Across the U.S. and Europe, corporate efficiency gains remain concentrated in factory automation and operational process improvements, while productivity in white-collar roles has stagnated or even declined.

The challenge is not that companies have failed to pursue efficiency. Rather, their efforts have been uneven. While manufacturing and logistics have seen measurable improvements, corporate functions, service roles, and knowledge-intensive work—where a growing share of economic value is created—continue to operate in suboptimal ways. Why do companies struggle to achieve broad-based efficiency improvements? The answer lies in five deeply embedded barriers that persist across industries.

 

Bureaucracy: complexity that slows execution

As organizations scale, they introduce layers of decision-making, redundant approval chains, and fragmented governance structures—all of which slow down execution. Leaders often believe these mechanisms ensure control, yet they frequently erode speed, clarity, and accountability. A multinational financial services firm, for example, required 12 different sign-offs to approve a new client onboarding process, resulting in excessive delays and a declining win rate.

 

Unenforced processes: when designed workflows are ignored

Many companies have well-structured processes on paper, yet in reality, employees frequently bypass, adapt, or disregard them. Instead of following optimized workflows, teams rely on workarounds, siloed decision-making, and outdated methods, leading to operational friction. A European insurance company, for example, invested in an automated claims processing system to reduce handling time and improve customer service. However, due to inconsistent system use and reliance on legacy manual workflows, nearly half of the claims still required manual processing, negating the expected efficiency gains.

 

Digital overload: more tools, less productivity

Paradoxically, the rapid expansion of digital tools has made work more complex, not simpler. Employees spend increasing amounts of time switching between email, chats, virtual groups, Customer Relationship Management tools, and knowledge portals, often struggling to locate the right information or align with colleagues. A European insurance company, for example, deployed five overlapping collaboration platforms. Instead of improving efficiency, it resulted in constant context-switching, misaligned workflows, and a 30 percent increase in time spent on internal coordination.

 

Endless meetings: when time becomes the biggest bottleneck 

Meetings have become one of the most underestimated efficiency killers in modern organizations. Executives and employees alike spend excessive time in discussions, status updates, and alignment calls, often with unclear objectives, redundant participants, or no tangible outcomes. This meeting culture not only drains productivity but also limits focus time for high-impact work. A global consumer goods company found that middle managers spend more than 60 percent of their workweek in meetings – many of which lacked a clear agenda or decision-making authority. By streamlining meeting structures, reducing attendance, and enforcing a strict outcome-based approach, they freed up 20 percent of working hours, significantly improving strategy and project execution speed. 

 

Lack of ownership: the hidden barrier to change

Perhaps the most fundamental barrier is a lack of individual accountability. Many employees feel disempowered to drive change, believing inefficiencies are systemic and beyond their influence. Instead of proactively addressing bottlenecks, teams default to work around them, creating additional friction and wasted effort. For example, in a multinational technology company, teams routinely flagged inefficiencies in cross-department workflows—but without clear ownership or executive sponsorship, these insights never translated into action. When leadership restructured accountability, assigning specific individuals to drive efficiency initiatives, implementation speed and engagement increased dramatically. 

obstacles to the efficiency of office jobs
Lack of ownership, endless meetings, digital overload, unenforced processes, and excessive bureaucracy are the main causes of inefficiency in office jobs.
obstacles to the efficiency of office jobs
Lack of ownership, endless meetings, digital overload, unenforced processes, and excessive bureaucracy are the main causes of inefficiency in office jobs.

How leaders can drive efficiency at scale

The mistake many organizations make is tackling these issues in silos—with culture initiatives from Human Resources, organizational redesigns from strategy teams, or technology rollouts from IT. However, true efficiency gains require a fundamentally different approach. First of all, a team-centric view is needed. Efficiency is not improved by broad, organization-wide mandates. Instead, companies must work team by team, identifying how each group creates value and streamlining the specific workflows that drive impact.

Secondly, employees need a clear understanding of what efficiency looks like, where friction exists today, and what needs to change—whether in process adherence, collaboration behaviors, or technology adoption. Moreover, the teams must be enabled to take action. High-performing organizations don’t rely on abstract principles—they deploy a Team Efficiency Toolbox that provides clear, practical methods to eliminate inefficiencies and optimize workflows. 

The capability to improve should be strengthened at every level. Efficiency transformation succeeds when organizations invest in three key roles: Executives are there to set the direction and remove barriers to change. Team leaders should coach their teams in structured efficiency improvements. Embedded enablers, known as efficiency champions, can drive execution and act as trusted advisors to leadership. And last but not least, companies must embed efficiency in KPIs and incentives: What gets measured gets done. Companies must hardwire efficiency into their performance systems—tracking results in areas like process cycle times, digital adoption, and value-added work per employee.

 

Win-win for companies and employees

All of this is not easy. The good news? Efficiency gains of 10–20 percent are possible within just three months—but only if companies approach the challenge with urgency and rigor. The most successful organizations recognize that efficiency is not about working harder; it’s about working smarter. For organizations, this means lower costs, improved execution speed, and a renewed ability to reinvest in growth. By systematically reducing complexity, streamlining processes, optimizing digital collaboration, and fostering real ownership, companies can not only protect margins but also regain momentum on their strategic agenda.

For employees, this shift brings tangible benefits: less administrative overhead, fewer inefficiencies, and more time to focus on meaningful, high-value work. When individuals can see the direct impact of their efforts, eliminate unnecessary tasks, and experience a greater sense of achievement, engagement and motivation increase. In a high-performance environment, people don’t just work more efficiently—they work with greater purpose and satisfaction.

Efficiency, when executed correctly, is a win-win: It enables companies to reduce costs and accelerate growth, while empowering employees to focus on impactful work and achieve better outcomes with less frustration. The opportunity is clear. The real question is: Who will take the lead?

 

Key Takeaways

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Efficiency levels across industries have been declining—especially in corporate functions, service roles, and knowledge-intensive work, where a growing share of economic value is created.
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Bureaucracy, unenforced processes, an overload of digital tools, endless meetings, and a lack of ownership are the main drivers for inefficiency in white-collar jobs.
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With a structured and holistic approach companies can see efficiency gains of 10–20 percent within just three months. Employees can focus on meaningful, high-value work.

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Pschemyslaw Pustelniak, Senior Partner Strategy & Organisation Porsche Consulting
Pschemyslaw Pustelniak
Practice Lead Strategy & Organization

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