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To tell a process problem from a software problem, ask two people to describe the same task

One question tells a process problem from a software problem: do the people doing the work agree on how to do it?

The fastest way to tell a process problem from a software problem is to ask two people who do the same task to describe it separately. If their descriptions differ, you have a process problem, and new software will automate the disagreement. If they agree but the tool cannot record what they do, you have a software problem, and the right tool or connection will fix it.

Disagreement between two people is the signal of a process problem

Owners reach for software first because software is easy to buy. The signs of a process problem are quieter. A step exists only because the previous step cannot be trusted. Someone keeps a spreadsheet beside the official tool. Two team leads run the same work in different ways, and both think theirs is the standard.

A software problem looks different. Everyone agrees on the steps, but the tool forces them to retype information, has no place for a field everyone needs, or cannot talk to the system that holds the record. Those problems are worth buying or building for.

The same tools did about twice as much inside a redesigned process

Bain’s Technology Report 2025 looked at AI coding tools. Teams that used them on their own saw productivity gains of 10–15%. Companies that paired the tools with a redesign of the end-to-end process reported 25–30%.1 The tools were the same. The process around them was what changed.

Exhibit 1The same AI coding tools delivered about twice the gain inside a redesigned process
ApproachProductivity gain reported
AI coding tools on their own10–15%
Tools plus a redesigned end-to-end process25–30%

Source: Bain & Company, Technology Report 20251

Ford cut accounts-payable staff by 75% only after redesigning the process

In 1990, Michael Hammer described how Ford set out to cut the headcount of its North American accounts-payable department, then more than 500 people, by about 20% with new computer systems. Only when it redesigned the process itself did it reach a 75% reduction.2 Clerks had matched 14 data items across three documents before paying a supplier. The new process matched three items, automatically.

Exhibit 2Redesign cut Ford's accounts-payable headcount by 75%; new systems alone were planned to cut 20%Reduction in accounts-payable headcount, %
Redesign cut Ford's accounts-payable headcount by 75%; new systems alone were planned to cut 20%
ApproachHeadcount reduction
New systems, as first planned20
Process redesigned75

Source: Hammer, Harvard Business Review, 19902

Hammer’s title for the article still works as advice: “Don’t Automate, Obliterate”. Remove the steps that should not exist, then automate what is left.

Sources

  1. 1

    From Pilots to Payoff: Generative AI in Software Development (Technology Report 2025). Bain & Company, 2025.

    Sample: Bain's industry experience with software teams; the report publishes no sample size for these ranges

    DirectionalA consultancy estimate about software development in large companies, not company operations. Trust the direction (redesign multiplies the gain from the same tools), not the exact ranges.

  2. 2

    Reengineering Work: Don't Automate, Obliterate. Michael Hammer, Harvard Business Review, 1990.

    Sample: One case, Ford's North American accounts-payable department of more than 500 people

    ModerateA documented case at a large manufacturer, reported by the method's leading advocate. It shows the size of the gap in one company; it cannot predict the gain in yours.

Moderate
Sound method, but a different population, a smaller sample or an older study. Good for direction and rough size.
Directional
Survey, vendor or expert estimate. Trust the direction; treat the exact number as soft.

Written by

Mihkel Sinikas

Mihkel Sinikas

Founder

Spent years in consulting and product development, and helped automate and streamline processes for logistics and professional services companies.

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