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The Lean Mindset: Ask the Right Questions by Tom Poppendieck, Mary Poppendieck

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4. Genuine Efficiency

What Is Efficiency?

The most efficient retail stores—the stores that can afford to offer customers the lowest prices and best values—are the stores that pay the highest wages, offer the best benefits, and provide stable, full-time employment.1

1. See Chapter 1 for further discussion and also Ton, “Why ‘Good Jobs’ Are Good for Retailers.”

The most efficient U.S. airline—the one that has the lowest labor costs per passenger mile—is the one that pays employees the highest salaries and has never had an involuntary layoff.2

2. See Jeffrey Pfeffer, “Lay Off the Layoffs,” Newsweek, February 5, 2010; and Greg J. Bamber, Jody Hoffer Gittell, Thomas A. Kochan, and Andrew von Norden-flycht, “Up in the Air: How Airlines Can Improve ...

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