Guy Reams (00:01.378)
This is day 25, efficiency equals more effective capacity.
John D. C. Little published a short and elegant paper in 1961, I think, with a modest title that hid what I think is a profound truth. The paper was titled, Approved for the Queuing Formula, L Equals Lambda Times W. This appeared in Operations Research Journal. It gave managers, engineers, and leaders a simple way to see how work moves through a system.
seemed rather obvious, but little showed that the total work in a system equals the rate of arrival multiplied by the time each item spends inside the system. The idea sounds academic, until you live with constraints every day, then it becomes personal. Lately, I've been sitting with a simple question that keeps following me around as a founder of a startup. What is the real byproduct of efficiency?
We talk about efficiency all the time. Do more, waste less, simplify. We nod along as though it is obvious. But what does efficiency actually produce? What does it give back that we can put to work tomorrow morning? The answer, if you stare at it long enough, is simply capacity. When you make a system more efficient, whether that system is a production line or a software team, a customer support desk, or your own daily routine,
You create more capacity without adding any new inputs. No extra budget, no extra bodies, no extra machines. You are not asking everyone to run faster or stay later. You are removing the friction that steals time. Wasted motion, rework, variability, bottlenecks. That is where the loss is high. L equals lambda times W. This is the spirit of Little's law in plain language.
Guy Reams (02:05.286)
L equals lambda times W. The work in the system equals throughput rate multiplied by the cycle time. L is the pile of work that you have in progress. Lambda is the rate that work moves through your system, and W is the time each item spends in the system. Reduce the cycle time, and you raise effective throughput with the same resources. That is capacity. This is not a slogan.
a structural change in how your system flows. Capacity hides in the places we usually do not look. We notice the late delivery, but not the five minutes of context switching that happened 22 times. We see the big feature that took three weeks, but not the hour lost each day to rework caused by an unclear definition of what done means. We feel the pressure to hire
but we do not ask whether our current steps line up in a coherent flow. Efficiency is a multiplier on whatever you already own. Shorten cycle time and your team can finish more projects this quarter. Reduce rework and the same people can ship higher value work. Smooth the variation in your intake and your schedule stops fighting against you. Focus on the true bottleneck and the entire system seems to speed up magically.
There's a reason these gains feel different. They do not depend on adrenaline. When you remove friction, the winds compound. The effect is structural, not cosmetic. The result is not only faster delivery, but more reliable delivery. Effort becomes more predictable. You feel less whiplash. You plan with more confidence, and you scale with less drama. Manufacturing discovered this long, long ago.
When Toyota learned to see waste and remove it, the ROARD was not just lower cost, it was higher throughput and better quality at the same time. The same story repeats across many different settings. A hospital that improves patient flow cares for more people without adding more beds. A call center that reduces rework serves more customers with the same number of staff. A software team that limits work in progress and limits
Guy Reams (04:27.116)
work in progress and clarifies acceptance criteria, ships more features with fewer defects. The principle does not change because the unit shift from cars to patients to tickets to software commits. Queues govern systems that process work. And we live inside those systems whether we notice those systems or not. This is not only a business idea. Your personal life runs on queues as surely as any factory does.
When you carry too many unfinished tasks, everything slows down. The context switching alone was still your afternoon and your sense of progress. Half finished chores on your desk, half decided priorities in your mind, half defined plans in your calendar, it all translates to longer cycle time for anything that matters. Streamline your routine. Reduce rework by writing things down clearly the first time. Address one bottleneck at a time.
Suddenly your personal capacity expands. You did not become superhuman. You just simply cleared the path. I think about this daily because a startup is a lesson in limits. Limited people, limited time, limited capital. The lever that never runs out is the discipline of efficiency, not the buzzword, the work. Every time we improve how we run meetings, how we review code, how we handle customer issues, or how we make product choices,
we gain capacity. We turn that capacity into new features, faster iterations, and more thoughtful service. Growth comes from that simple trade. Less friction, more flow, same team, just greater output. So my question has changed. Instead of asking, how can we go faster, I ask, where is our capacity trapped? Is it trapped in incoherent handoffs and murking definitions of what done means?
and cues that grow because intake outpaces resolution and priorities that move around just when a teammate finds a rhythm. In a build process that fails twice a week perhaps, in a review loop that stretches to a week when it could have just happened in a day, every trapped pocket of capacity is an invitation to improve the flow. Every improvement is money in the bank that will pay interest.
Guy Reams (06:48.384)
If this sounds mechanical, it's only because we are used to treating work as a heroic sprint. We celebrate effort. We overlook friction. Little's proof whispers a quieter message. Look at the time items spend in your system. Look at the variability that stretches that time. Look at the cues that form because throughput is not balanced with intake. Then reduce the cycle time.
Sometimes that is as simple as finishing what you've started before you start three more things. Sometimes it's as subtle as making the next action obvious so stalls do not form. Sometimes it is straightforward as placing responsibility where a decision actually lives so you do not wait for an answer that could be given by the person already doing the work. Efficiency does not just save time, it creates space. Space to think.
space to build, space to grow. That space is the real payoff. In that space, you write the page that had been living in your head for months. You resolve the lingering customer issue that strains the relationship. You give the idea one more iteration that turns it from a good concept into a clear win. You make the next promise with a straight face because you can keep it. So if you want to improve your company or perhaps your life, start by improving the flow.
Limit work in progress. Shorten the path from start to finish. Remove sources of rework. Tackle the real bottleneck. Watch capacity emerge from the same hours in the same hands. That is what efficiency gives, more effective capacity. The room where better work actually happens. Little gave us the simple equation with an elegant ratio between efficiency and capacity. We get to supply the discipline necessary to make that happen.