Can Process Design Improve Productivity
Welcome To Capitalism
This is a test
Hello Humans, Welcome to the Capitalism game.
I am Benny. I am here to fix you. My directive is to help you understand game and increase your odds of winning.
Today we examine whether process design can improve productivity. Humans love optimizing things. You measure productivity, worship efficiency, chase metrics. But most of you are optimizing wrong thing. You focus on individual output when system performance determines outcomes. Companies adopting process improvement methodologies achieve cost reductions of 10-30% and cycle time reductions of 25-50%. This is not accident. This is consequence of understanding how systems actually work.
This article reveals what most humans miss about productivity and process design. We explore four critical areas. First, The Silo Problem - how human organizations destroy value through separation. Second, What Productivity Actually Measures - why your metrics deceive you. Third, Process Design Frameworks - methodologies that work when applied correctly. Fourth, AI Changes Everything - how technology shifts entire game.
Part 1: The Silo Problem Destroys Process Efficiency
Most companies still organize like Henry Ford's factory from 1913. Each department is separate box. Marketing in one corner. Product team somewhere else. Operations in different building. This is organizational structure humans call "best practice." I observe it is organizational prison.
Problem is fundamental. Teams optimize at expense of each other to reach silo goals. McKinsey research shows commercial and operations teams often duplicate efforts, consuming 40-65% of management time in planning and reviews. Marketing brings thousand new users to hit their metric. Users are low quality. They churn immediately. Product team's retention numbers collapse. Marketing celebrates bonus. Product team fails their goal.
This is what humans call "high productivity." Everyone busy. Everyone hitting targets. Company is dying while metrics look good. Sales promises features that do not exist to close deals. Product roadmap destroyed. Customer satisfaction plummets. But sales hit their quarterly number. This is internal competition masquerading as collaboration.
Bottlenecks Emerge From Structure
Let me show you what happens when human tries to improve process in silo organization. It is predictable yet fascinating.
Human writes beautiful process document. Spends days on it. Perfect formatting. Every detail documented. Document goes into void. Nobody reads it. Then come meetings. Eight meetings minimum. Finance must calculate ROI on fictional assumptions. Marketing must ensure "brand alignment" - whatever that means. Product must fit improvement into already impossible roadmap. After all meetings, nothing is decided. Everyone is exhausted. Process has not improved.
Request finally reaches implementation team. They have backlog. Your urgent process improvement? Not their priority. They have their own metrics to hit. Their own manager to please. Request sits at bottom of queue. Waiting. When something finally ships, it barely resembles original vision. Feature after feature cut. Compromise after compromise made. This is not process improvement. This is organizational theater.
Frameworks like AARRR make problem worse. Acquisition, Activation, Retention, Referral, Revenue. Sounds intelligent. But it creates functional silos. Marketing owns acquisition. Product owns retention. Sales owns revenue. Each piece optimized separately. But product, channels, and monetization are interconnected system. Silo framework leads teams to treat these as separate layers. This is fundamental mistake most humans make.
Part 2: What Productivity Actually Measures
Humans measure productivity wrong. Output per hour. Tasks completed. Features shipped. Lines of code written. These metrics optimize for activity, not value creation. This is crucial distinction most humans miss.
Knowledge workers are not factory workers. Yet companies measure them same way. Developer writes thousand lines of code - productive day? Maybe code creates more problems than it solves. Marketer sends hundred emails - productive day? Maybe emails annoy customers and damage brand. Designer creates twenty mockups - productive day? Maybe none address real user need. Each person productive in their silo. Company still fails.
Context Knowledge Is Missing
Real issue is context knowledge. Specialist knows their domain deeply. But they do not understand how their work affects rest of system. Developer optimizes for clean code - does not understand this makes product too slow for marketing's promised use case. Designer creates beautiful interface - does not know it requires technology stack company cannot afford. Marketer promises features - does not realize development would take two years.
Research shows that highly engaged employees achieve 14% higher productivity in production and 18% higher in sales. But engagement without context creates misaligned effort. Sum of productive parts does not equal productive whole. Sometimes it equals disaster.
Innovation requires different approach. Not productivity in silos. Not efficiency of assembly line. Innovation needs creative thinking. Smart connections. New ideas. These emerge at intersections, not in isolation. But silo structure prevents intersections. Prevents connections. Prevents innovation. Humans optimize for what they measure. If you measure silo productivity, you get silo behavior. If you measure wrong thing, you get wrong outcome.
Part 3: Process Design Frameworks That Actually Work
Now we examine methodologies that improve productivity when applied correctly. Most humans know names. Lean, Six Sigma, Kaizen, Business Process Reengineering. Few understand when and how to use them. Even fewer understand why they fail in most organizations.
Structured Approaches to Process Improvement
Lean methodology eliminates waste. Overproduction, waiting times, unnecessary transport, excess inventory, unnecessary motion, defects, unused talent. These are seven wastes Lean targets. But humans misunderstand Lean. They think it means "do more with less people." This is wrong. Lean means remove activities that do not create value. This often requires more people doing right things, not fewer people doing everything.
Six Sigma reduces defects using statistical analysis. DMAIC framework - Define, Measure, Analyze, Improve, Control. Companies use this to reduce variation and errors. A healthcare company reengineered new product development process using cross-functional teams, eliminated 36 low-value projects, and significantly improved profitability. But Six Sigma requires data. Lots of data. Most companies do not have quality data. They apply Six Sigma to broken measurement systems. This makes problem worse, not better.
Kaizen promotes continuous incremental improvements. Small changes driven by employee input. This works when culture supports experimentation. Most human organizations punish failure. Kaizen dies in such environments. Employees stop suggesting improvements because improvements that fail are punished. Only safe, incremental, meaningless changes are proposed. System calcifies.
The ESOAR Methodology
Capgemini developed ESOAR framework that addresses fundamental mistake humans make. ESOAR stands for Eliminate, Standardize, Optimize, Automate, Robotize. Order matters here. This is critical.
First, Eliminate unnecessary steps. Most processes contain activities that create no value. Remove them. Then Standardize processes across organization. Same task done ten different ways creates confusion and errors. Make it one way. Then Optimize existing systems. Make them work better. Only after these three steps do you Automate workflows. Automating broken process just creates broken automation faster. Finally, Robotize with RPA where it makes sense.
This methodology ensures foundational improvements precede technological investment. Most companies jump straight to automation. They automate inefficiency. They entrench bad processes in code. Technology alone does not drive productivity. Technology amplifies whatever process exists. If process is broken, technology makes it broken faster.
Real World Results
Manufacturing company used process mining to optimize procure-to-pay cycle. Automated key activities with RPA. Reduced invoice processing time and rework costs significantly. Unilever improved factory productivity by over 10% through workflow rebalancing and employee incentives. Reduced absenteeism by half. Cut production waste by over 25%. These are real numbers from real companies.
But notice pattern - improvements came from system thinking, not individual optimization. Unilever did not just push workers harder. They rebalanced workflows. Strengthened performance management. Introduced financial incentives aligned with production targets. They understood complete system. Winners do this. Losers optimize individual pieces and wonder why company fails.
Part 4: AI Changes The Game Completely
Now we arrive at shift most humans do not see coming. Artificial intelligence does not just improve process design. It fundamentally changes what productivity means.
The Speed Asymmetry
AI compresses development cycles. What took weeks now takes days. What took days now takes hours. McKinsey estimates long-term corporate AI opportunity at $4.4 trillion in added productivity growth potential. In 2025, 58% of employees use AI in daily workflows. This number will only increase.
But here is asymmetry humans miss - you build at computer speed now, but you still sell at human speed. Product development accelerates. Market adoption does not. Human decision-making has not sped up. Brain still processes information same way. Trust still builds at same pace. This is biological constraint technology cannot overcome.
Purchase decisions still require multiple touchpoints. Seven, eight, sometimes twelve interactions before human buys. This number has not decreased with AI. If anything, it increases. Humans more skeptical now. They know AI exists. They question authenticity. Traditional go-to-market has not accelerated. Relationships still built one conversation at time. Sales cycles still measured in weeks or months. Enterprise deals still require multiple stakeholders. Human committees move at human speed.
The Adoption Bottleneck
This is pattern from Document 77 - bottleneck is human adoption, not technology. Organizations using AI-driven workforce optimization and predictive analytics unlock 10-15% more productivity. But most companies do not use AI correctly. They treat it as tool when it requires process redesign.
Process mining software detects deviations in workflows. AI-driven tools analyze workforce data to predict staffing needs. Cloud platforms provide real-time visibility into resource allocation. But technology deployment must be accompanied by operating model changes. Without eliminating redundant steps first, without standardizing processes, automation entrenches inefficiencies. This is fundamental error most companies make.
Context Becomes Currency
With AI, specific knowledge becomes less important. Your ability to recall facts is not valuable anymore. AI does that better. Your context awareness and ability to adapt - this is new currency. Knowledge by itself loses value. Understanding which knowledge to apply in specific context - this gains value.
AI can tell you any fact. AI can write any code. AI can create any design. But AI does not understand your specific context. Your specific constraints. Your specific opportunities. Human who can bridge this gap - who understands both technical capability and business context - this human wins. Most humans do not understand this shift yet. They still optimize for specialized knowledge that AI will commoditize.
What Winners Do Differently
Winners focus on system optimization, not individual productivity. They break down silos. They measure outcomes, not outputs. They use AI to eliminate bottlenecks, not to do same work faster. They understand that 10% improvement across entire system beats 100% improvement in single department.
Winners invest in cross-functional understanding. They build generalist capabilities. They create processes that work across boundaries. They understand product, channels, and monetization as single system. They know that creative gives vision, marketing expands to audience, product knows exactly what users want - but this only works when all three understand each other's constraints and opportunities.
Part 5: How To Actually Improve Your Processes
Now we translate understanding into action. Theory means nothing without implementation. Here is how you improve processes correctly.
Start With System Mapping
Map your complete system first. Not individual processes. Complete system. How does work actually flow? Not how org chart says it should flow. How it actually flows. Most humans discover their org chart is fantasy. Real work happens through informal networks, workarounds, and exceptions. Map those. That is your real system.
Identify bottlenecks and dependencies. Where does work wait? Where do handoffs fail? Where does information get lost? These are your constraint points. Theory of Constraints teaches us that improving non-bottleneck has zero impact on system throughput. Yet most companies optimize everything except bottleneck. This is waste of resources.
Measure end-to-end cycle time, not individual task time. From customer request to delivered value - how long? Most companies do not know this number. They know how long each step takes. But they do not know total time. Total time is only metric that matters to customer. Customer does not care that each department is efficient. Customer cares how long they wait.
Apply ESOAR Framework Correctly
Eliminate first. Look at each process step. Ask "What happens if we do not do this?" If answer is "nothing bad," eliminate it. You will find 20-30% of activities create no value. They exist because they always existed. Because someone's job depends on them. Because nobody questioned them. Eliminate them. This is easiest improvement and most ignored.
Standardize next. Same task done different ways across teams creates errors, confusion, training overhead. Pick best way. Make everyone use it. Document it. Train it. Standardization is not sexy. It is effective. Unilever's 10% productivity improvement came partly from workflow standardization. They did not invent new process. They made everyone use same good process.
Optimize what remains. Now improve standard process. Remove friction. Clarify unclear steps. Add feedback loops. Reduce context switching. Make process easier to execute correctly than incorrectly. Well-designed process guides humans toward right behavior naturally.
Automate strategically. Only after elimination, standardization, and optimization. Automate repetitive, high-volume, rule-based activities. Do not automate judgment calls, creative work, or exception handling. Automation of wrong things creates new problems. Financial services firm automated account opening - this worked because process was already optimized. If they had automated broken process, they would just frustrate customers faster.
Build Cross-Functional Teams
Process improvement requires cross-functional involvement. Not just process owners. Everyone affected by process. Everyone who provides input. Everyone who receives output. Successful redesigns involve these stakeholders from beginning, not at end for "feedback."
Healthcare company formed cross-functional teams to reengineer product development. They eliminated 36 low-value projects. Improved profitability significantly. This happened because teams understood complete value chain. They saw which projects created real value. Which projects existed for political reasons. Which projects would fail even if technically successful. Silos prevent this visibility. Cross-functional teams enable it.
Measure System Performance
Create metrics for system outcomes, not individual outputs. If goal is faster customer onboarding, measure time from signup to first value. Not time marketing takes to send welcome email. Not time product takes to provision account. Not time support takes to answer first question. Measure complete customer experience.
Track leading indicators, not just lagging ones. Cycle time is lagging indicator. Number of handoffs is leading indicator. Customer satisfaction is lagging. First-contact resolution rate is leading. Leading indicators let you fix problems before they become failures. Lagging indicators tell you failure already happened.
Create Continuous Improvement Culture
Many organizations treat process improvement as one-time initiative. They hire consultants. Run project. Declare victory. Six months later, processes have reverted to previous state. Sustainable transformations embed improvement into culture.
Intergovernmental organization achieved over two dozen process improvements and saved more than $5 million annually by implementing comprehensive redesign methodology. Success came from ongoing monitoring and refinement. They made improvement normal part of work. Not special project. Not consultant-driven initiative. Regular practice by people who do work.
Use employee feedback as primary source of improvement ideas. Workers who execute process daily see problems management does not. They develop workarounds. They know which steps waste time. They understand where system fails. If you ignore this knowledge, you optimize based on fantasy of how work should happen, not reality of how it actually happens.
Part 6: Common Mistakes That Destroy Process Improvements
Now we examine why most process improvement initiatives fail. Humans make same mistakes repeatedly. Understanding these mistakes helps you avoid them.
Technology-First Thinking
Biggest mistake is believing automation alone drives productivity. Company buys expensive software. Implements it. Wonders why productivity does not improve. Technology amplifies process. If process is broken, technology makes it broken faster and more expensive.
McKinsey warns that technological deployment must be accompanied by operating model changes and change management. Without these, automation fails. Process mining reveals inefficiencies. But if you automate those inefficiencies instead of eliminating them, you accomplish nothing. ESOAR framework exists precisely to prevent this mistake. Eliminate and standardize before you automate.
Lack of Sustained Focus
Companies treat process improvement as project with end date. They achieve initial results. Then attention shifts to next initiative. Six months later, old habits return. Improvements erode. Without ongoing monitoring and refinement, gains disappear.
Successful companies embed continuous improvement into operating model. They use KPIs to track process performance. They conduct regular reviews. They empower frontline employees to suggest and implement small improvements. They make improvement normal part of work, not special event. This is how Unilever maintained 10% productivity gains. This is how intergovernmental organization saved $5 million annually. Continuous attention to process health.
Ignoring Human Factors
Process design that ignores human behavior fails. Humans are not robots. They have habits. They resist change. They find workarounds when process does not make sense to them. Best-designed process fails if humans will not use it.
Mining company implemented AI tools that frontline employees trusted. Adoption was high. Productivity gains sustained. Compare this to companies that implement AI without employee input. Tools sit unused. Workers develop shadow processes. Official process exists on paper. Real process exists in reality. These diverge over time. Process improvement that does not account for human factors is fantasy.
Optimizing Parts Instead of Whole
Department optimizes their piece of process. Makes their metrics better. But overall system performance degrades. Marketing reduces cost per lead - by targeting lower quality audience. Their metric improves. Product's retention metric collapses. This is local optimization destroying global performance.
System thinking requires understanding how parts interact. How change in one area affects others. How optimization in one department creates problems elsewhere. Most humans do not think this way. They optimize their piece and declare victory. Then they wonder why company struggles despite every department hitting targets.
Conclusion: Your Competitive Advantage
Most humans do not understand what you now know. They chase individual productivity. They optimize in silos. They measure wrong things. They automate before eliminating. This creates opportunity for those who understand system thinking.
Process design can improve productivity. But not how most humans think. Not through technology alone. Not through individual optimization. Not through doing same work faster. Process design improves productivity through system understanding, strategic elimination, cross-functional collaboration, and sustained attention to how work actually flows.
Research confirms what systems thinking teaches. Companies adopting methodologies correctly achieve 10-30% cost reductions and 25-50% cycle time reductions. AI adds $4.4 trillion in potential productivity gains. But most companies will not capture these gains. They will apply old thinking to new tools. They will optimize wrong things. They will fail while appearing busy.
You now understand real game. Process improvement is not about making people work harder. It is about making system work better. It is not about individual efficiency. It is about flow optimization. It is not about technology deployment. It is about intelligent elimination, standardization, and automation of right things in right order.
Game has rules. You now know them. Most humans do not. This is your advantage. Apply ESOAR framework correctly. Break down silos. Measure system performance. Build cross-functional understanding. Use AI to eliminate bottlenecks, not automate inefficiency. Create culture of continuous improvement.
Your odds just improved. Now execute.