This diagram looks weird to me, looks like being lazy counteracts the effects of being cheap, so that being both is less dangerous than just trying to save money or effort alone.
"Being cheap" is a pressure from management to increase production in order to avoid economic failure. "Being lazy" is an effort from frontline workers to improve efficiency and avoid being swamped by production demand. One of the points of the diagram is that these partially cancel each other out, but the net effect of the addition of these two "vectors" is to push the system towards the failure boundary.
Efficiency should be in the hands of the clever but lazy employees. They will find the real efficiencies. Said some German general that gets quoted a lot.
