I've always used the "ball of foot" method and found it to work for me. On my current shoes the cleats are as far forward as the shoe holes will allow.
Some readings like from this recent Q&A on cyclingnews might call for a radical re-thinking of the installation method though. In my mind the foot/lever was more efficient because the cleat was at its outermost end.
Where do you have your cleats?
[quote]I think some explanation is necessary. The foot is a lever, but on a bike it is an inefficient lever because the fulcrum is way back at the ankle. That means that the longer the lever length, the harder the lower limb has to work to allow force to be exerted by that lever. As the lever length is shortened, the work done by the lower limb is lessened because lever length is lessened. ( ... )
What I have found to date is this: modified rear of forefoot cleat position is much better than the usual ball of foot over pedal axle recommendations which to my mind have never made any sense or had any credibility BUT moving your cleat as far back on a normal shoe to achieve modified rear of forefoot position is no substitute for TMT joint over pedal axle positioning. It is just better than 1st MTP positioning. ( ... )
From my limited but growing torque analysis experience it is clear that less peak muscular contraction (lower torque graph peak) is needed to produce a given wattage. Translation - perform longer at the same speed.
1. That torque is applied to the pedals for more degrees of crank arc (higher torque graph trough)
2. That ability to pedal at high rpm improves.
3. That ability to push a large gear in a sprint improves.
4. That ability to stay off the seat up hills without blowing up improves.
5. That recovery improves.
I know this sounds too good to be true so to offer a balanced appraisal, there are negatives. They are:
1. Lessened ability to jump in a sprint. But in my case at least this is made up for by improved ability to ride a bigger gear faster once up to speed.
2. The need to relearn your approach to low speed riding and track stands because of substantial toe overlap.
3. Inability to achieve TMT joint cleat position on most shoes without substantial modification that is beyond the skills of many people.
4. Some combinations of frame and rider can mean that they may not be able to lower their bars enough to match the substantial drop in seat height required.