.png)
Have you considered the hidden cost of friction in your organization? While it’s impossible to eliminate it entirely, choosing to do nothing about it comes with its own price tag. In fact, Harvard Business Review reports that organizational friction costs the economy more than $3 trillion each year in lost productivity.
What Is Organizational Friction?
Friction in the workplace refers to those small and large obstacles that slow down processes, drain energy, and impact overall performance. Here’s why it matters and how it could be costing your organization more than you realize.
The Human Experience: Energy, Morale, and Engagement
It’s tough being human. Organizational friction can create anxiety, drain energy, and leave employees feeling exhausted by the end of the week. If you’ve ever come home on a Friday, too tired to do anything over the weekend, only to start the same cycle again on Monday, that’s friction at work. The effect isn’t just on an individual level; low morale and disengagement can ripple through teams, reducing overall productivity and success.
The Customer Experience: Higher Costs, Lower Satisfaction
Friction doesn't just affect employees—it also impacts customers. When more friction exists in your processes, it takes more resources and time to deliver results. This often leads to less desirable customer experiences and higher costs that are eventually passed on to clients, affecting your profitability.
The Company’s Health and Well-being: Financial and Cultural Costs
Friction affects company health in multiple ways, including lower profitability, higher operating costs, and increased employee turnover. When employees feel overwhelmed or undervalued, it disrupts team dynamics and leads to the loss of valuable talent. Did you know that businesses with low employee engagement experience 21% lower profitability and 17% lower productivity? Organizations that tolerate friction often struggle with these critical aspects of success.
The Hidden Cost of Friction
According to a 2023 study by Fount, friction in the workplace is perceived to stifle personal productivity and quality customer service, with 68% of employees reporting that it negatively impacts their work. Additionally, Fount found a staggering gap in perception, where nearly half of employees felt that workplace friction had worsened, while three-quarters of business leaders believed the opposite.
Similarly, a study by Crucial Learning (formerly VitalSmarts) revealed that organizations lose an average of 8 hours per week per employee due to friction. In a company of fewer than 1,000 people, this hidden cost can be immense. Another study found a more conservative estimate of 1 hour per week per person, but even at that rate, for a small company of 350 people, friction could result in a loss of $4-6 million annually. The price of friction, therefore, is not only high but often overlooked.
What Does Friction Look Like?
Forced Decisions: Forcing decisions upward or downward creates delays and frustration. Teams feel disempowered when they need approval for every action.
Abdicating Responsibility: Giving someone accountability without authority or resources creates a cycle of frustration and stagnation.
Lack of Shared Vision: Misaligned incentives lead to confusion about who to follow and where to focus efforts.
Mind Reading: Assuming or presuming someone’s intentions can lead to misunderstandings and tension.
“Personality Conflicts”: These arise when individuals shut down (silence) or lash out (verbal violence) during interactions, creating a toxic work environment.
The Ripple Effect of Friction
Friction doesn’t just stay within a moment or interaction—it spreads. Imagine a frustrating encounter with a co-worker that leaves you annoyed. You vent to another person at lunch, who then shares the story with someone else. Before you know it, the negative experience has reverberated throughout the organization, amplifying the friction.
There’s a Better Way to Handle Friction. Are You Curious?
The good news is that it doesn’t have to be this way. With the right strategies, you can manage friction in a way that not only reduces stress but also enhances performance and job satisfaction.
Ready to explore how to handle workplace friction more effectively?