The graph shows how pressure to pressure to adopt efficiency
leads to the adoption of efficiency measures which produces efficiency gains.
These gains create the impression that the measures have been successful and generate
the desire and drive to improve efficiency
even further. The application of efficiency measures produces only local (departmental)
changes and improvements irrespective of their effect on the gaols of the organisation
as a whole system. This in time leads to the deterioration of the system’s
overall functioning, unintended negative consequences appear, and this then
calls for more efficiency measure to improve the deteriorated situation – a vicious
circle has been established.