Why operational excellence is the real productivity hack

The search for productivity can often feel like a race to adopt the next digital tool. AI, automation platforms, new dashboards, new tech stacks - they promise efficiency, clarity, and scale. 

But there’s a problem with this, from where we’re standing: most of them fall short. 

According to McKinsey, only 30% of organisations successfully scale their digital transformations. Even fewer sustain the improvements long term. Why? Because the tools are only ever part of the answer. 

The true differentiator - the factor that separates high-performing, resilient teams from the rest - is operational excellence. 

It’s not glamorous, and it doesn’t sound revolutionary, but when it comes to productivity gains that actually last, operational excellence beats shiny tools every time. 

The five levers that actually drive performance  

In a study by McKinsey last year, they identified five core components that consistently enable peak productivity. 

And not one of them is a piece of software. 

A clear purpose and strategy that everyone understands 

It sounds obvious, but many teams lack clarity on why they’re doing what they’re doing. McKinsey’s research shows that just 15% of frontline employees say they understand their organisation's strategy. When strategy doesn’t translate into day-to-day decisions, effort is scattered and momentum is lost. 

Defined behaviours and working principles 

These are the invisible guardrails of performance. Are leaders giving consistent feedback? Are expectations clear? Do teams know what good looks like - and what’s unacceptable? Operationally excellent organisations focus just as much on behaviour as on tasks. 

A solid management system 

That means more than a Monday stand-up. It’s the rhythm, visibility, and accountability structure that ensures progress is made, issues are escalated, and everyone knows where they stand. Without this, even good people get stuck in silos, duplicated effort or firefighting mode. 

Streamlined value delivery systems 

Operational excellence is about flow. Where are the blockers, delays, or dead ends in how work moves through the organisation? Reducing waste, clarifying handovers, and automating the right parts of the process - these steps matter more than anything tech offers alone. 

The right technology - used well 

Of course tech matters. But it needs to amplify what’s working, not compensate for what’s broken. Tools only create value when they sit on top of clarity, good process, and shared discipline. 

But isn’t AI the future?    Yes - but only when paired with operational maturity. It’s tempting to believe that a clever AI solution will solve productivity issues, but the evidence says otherwise. McKinsey’s research shows that even with heavy investment in gen AI, few organisations can attribute more than 5% of EBIT growth to it. That’s because many teams are layering AI onto disjointed systems, inconsistent processes, and unclear accountability. 

Until operational foundations are strong, tools will create noise and not impact. 

Our approach: humans first, tools second 

We focus on the stuff that actually drives performance: 

We help leaders spot friction in their operating model - where things get stuck, duplicated, delayed or misunderstood. 

We help rebuild rhythm and visibility, so teams can make confident, fast decisions. 

Then - and only then - do we bring in the right tech. 

Whether it’s our smart/services team helping you streamline your operations, or smart/sync giving you a real-time window into what’s working, our work is always grounded in outcomes. 

As Paul Dunlop, our Director of Delivery and Services, often says, “AI is a great tool to use alongside our human intelligence to make better decisions." 

If you’re serious about your business performance… 

Operational excellence isn’t a one-off fix, it’s a way of thinking. A way of running your business that rewards clarity, curiosity and continuous improvement. 

It’s what gives digital transformation the foundations to scale.