Suboptimization

Suboptimization is a reduced level of output that results from an inefficient or ineffective process or system. Suboptimization can also arise from a focus on optimizing a unit of a business rather than the results of the entire business. For example, a company's controller locks down the office supplies cabinet in order to eliminate the theft of supplies. However, it takes so long for employees to have the cabinet unlocked whenever they need supplies that the overall effect on the firm is that employee resources are being wasted.