A team that reduces costs of other teams is not on anyone’s critical path

published on 2022/12/01

The mission of the Probability division was to create small teams that applied the latest academic research to real-world at-scale problems, in order to improve other groups’ decision-making and lower their costs. New sub-teams were constantly formed; if they didn’t show results quickly then they were failed-fast; if they did show results then they were reorganized into whatever division they could most effectively lower costs.

We were very successful at this. The PPL team in particular was at the point where we were regularly putting models into production that on net reduced costs by millions of dollars a year over the cost of the work. We were almost ready to be spun off.

We foolishly thought that we would naturally be protected from any layoffs, being a team that reduced costs of any team we partnered with. In retrospect, that was a little naive. A team that reduces costs of other teams is not on anyone’s critical path.

Eric Lipper

This is unfortunate. Anything that contribute to the bottom line positively (either via cost reduction, improved efficiency, prevention, etc) is absolutely a critical path.