Final answer:
Sub optimization refers to improving a part of a system without considering its effect on the whole, often harming the system's overall performance.
Step-by-step explanation:
Suboptimization is the term that describes the optimization of a subelement of a system, perhaps to the detriment of the overall system. This concept can often be found in various business contexts where departments or individuals focus on improving their own performance metrics or objectives without considering the implications on the wider organization. For example, a manufacturing department may aim to maximize its output by running machinery at peak capacity, but this might lead to more frequent breakdowns and higher maintenance costs, ultimately harming company profits.
This behavior often arises from the presence of siloed incentives or performance metrics that do not adequately reflect the performance of the organization as a whole. It is important for businesses to align incentives and metrics across all sub elements to ensure that the system works cohesively towards the same overarching goals. Failure to do so can lead to efficiency trade offs where one area of the business is performing exceptionally well at the expense of others, which could undermine long-term success.