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Yes, we're in agreement. A coworker of mine pointed me to the book Accelerate [1], which I admittedly still haven't read, which also mentions that organizations where management tries to make sure engineers are at 100% utilization end up being dysfunctional, partly for the reasons you pointed out.

[1] https://www.amazon.com/Accelerate-Software-Performing-Techno...

It's one of those things that works for a quarter or two, but then you start making your engineers hate their job and productivity drops quickly when morale is suffering.

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