It depends on who is doing the workout and what kind of workout you are doing. However, decreasing the recovery while maintaining the intensity is always a good sign that you are in good shape. Here is a rule of thumb I use with my athletes.
For Race Specific workouts (Ex: a 5k running running a workout at 5k pace) I always try to reduce the recovery before uping the intensity. I like continuous running workouts like fartleks, or time trials at a set pace (like 3k @ your 5k pace + 5x400 @ goal 5k pace w/60 sec rest). Or over/underdistance time trial.
For workouts that are faster than your specific event I always keep the recovery time the same and try to increase the intensity. For example: a 5k running who is running 8x300 at 1500 pace w/2 min rest. I always keep the 2 min rest, but the goal is to up the intensity of running.
I've found this works pretty good for all runners from 800 to 10k.