- Work at a hedge fund
- Every evening, the whole firm "cycles" to start the next trading day
- Step 7 of 18 fails
- I document Step 7 and then show it to a bunch of folks
- I end up having a meeting where I say: "Two things are true: 1. You all agree that Step 7 is incorrectly documented. 2. You all DISAGREE on what Step 7 should be doing"
I love this story as it highlights that JUST WRITING DOWN what's happening can be a giant leap forward in terms of getting people to agree on what the process actually IS. If you don't write it down, everyone may go on basing decisions on an incorrect understanding of the system.
A related story:
"As I was writing the documentation on our market data system, multiple people told me 'You don't need to do that, it's not that complicated'. Then they read the final document and said 'Oh, I guess it is pretty complicated' "
In the world of Business IT, we get seduced by the shiny new toy. Right now, that toy is Artificial Intelligence. Boardrooms are buzzing with buzzwords like LLMs, agentic workflows, and generative reasoning. Executives are frantically asking, "What is our AI strategy?"
But here is the hard truth:
There is no such thing as an AI strategy. There is only Business Process Optimization (BPO).
This is well-expressed, and almost certainly true for an overwhelming majority of companies.
There are some people who insist on spamming out splog posts in that style, some of them think they are blogging, not splogging, and maybe they have good intentions but that style screams "SPAM!" and unfortunately people who are writing that don't understand how it comes across.
The processes suck because of decades of corner cutting and "fat" trimming while the executives congratulate themselves for only making the product a biiiit worse in exchange for a 0.0005% cost reduction, before then offsetting any gains by giving themselves all the money that would've gone to whatever is now dead.
Repeat this process for 30 years and you have companies like Microsoft that can barely ship anything that works anymore, and our 4 Big Websites frequently just fail to load pages for no explicable reason, Amazon goes down and takes 1/3 of the internet with it, and AI companies are now going to devour the carcass of our internet and shit it back to us in LLM waffle while charging us money for the privilege to eat it.
I do agree on execs congratulating themselves afterwards though. It was obscene last year. This year it was mildly muted.
Not sure what you mean here. "Fighting" as in "seeking to prevent", or "putting up with", or what exactly? Is this supposed to be bad because it's exploitative, or because it's a poor use of the smart person's time, or what exactly?
In fact, if an AI strategy becomes business process optimization, I'd say that AI strategy for that company is successful.
There are too many AI strategy today that isn't even business process optimization and detached from bottom line, and just being pure FOMO from the C suite. Those probably won't end well.
On the other hand, I have seen process stifle above average people or so called “rockstars”. The thing is, the bigger your reliance on process, the more you need these people to swoop in and fill in the cracks, save the day when things go horribly wrong, and otherwise be the glue that keeps things running (or perhaps oil for the machine is more apt).
I know it’s not “fair”, and certainly not without risk, but the best way I have (personally) seen it work is where the above average people get special permissions such as global admin or exception from the change management process (as examples) to remove some of the friction process brings. These people like to move fast and stay focused, and don’t like being bogged down by petty paperwork, or sitting on a bridge asking permission to do this or that. Even as a manger, I don’t blame them at all, and all things being equal so long as they are not causing problems I think the business would prefer them to operate as they do.
In light of those observations, I have been wrestling a lot with what it says about process itself. Still undecided.
Like, we recently had an incident where someone just pasted "401 - URL" into the description and sent it off. We recently asked someone to open the incident through the correct channels. We got a service request "Fix" with the mail thread attached to it in a format we couldn't open. We get incidents "System is slow, infrastructure is problem" from random "DevOps" people.
Sadly, that is the crap you need to deal with. This is the crap that grinds away cooperative culture by pure abuse. Before a certain dysfunctional project was dumped on us as "Make it Saas", people were happy to support ad-hoc, ambitious and strange things.
We are now forced by this project to enforce procedure and if this kills great ideas and adventures, so be it. The crappy, out-of-process things cost too much time.
>Processes that rely on unstructured data are usually unstructured processes.
I appreciate someone succinctly summing up this idea.
"Ask the vendor this set of 10 compliance questions. We can only buy if they check every box." is a structured process based on structured data.
Both kinds of processes have always existed, long before modern technology. Though only the second kind can be reliably automated.
Leaders think <buzzy-technique> is a good way to save money, but <buzzy-technique> actually is a thing that requires deeper investment to realize more returns, not a money saver.
Example, one of many things, in our SDLC process, now we have test cases and documentation which never existed before (coming from a startup).
But I don't blame them. Process optimization is hard. If a new tool promises more speed, without changing the process, they are ready to pour money at that.
I recently did a pilot project where we reduced the time for a high friction IT Request process from 4 day fulfillment to about 6 business hours. By “handing text and unstructured data”, the process was able to determine user intent, identify key areas of ambiguity that would delay the request, and eliminate the ambiguity based on data we have (90%) or by asking a yes/no question to someone.
All using GCP tools integrating with a service platform, our ERP and other data sources. Total time ~3 weeks, although we cheated because we understood both the problem and process.
For many processes that have just suddenly changed, somewhat subjective evaluations can be made reliably by an AI. At least as reliably as was being done before by relatively junior or outsourced staff.
Replacing low-level employees relying on a decision matrix playbook-type document with AI has a LOT of applications.
What's the prompt for that one? ;)
What does it bring?
AI won't take a shoddy process (say, your process for reviewing and accepting forms from patients) and magically make it better if you don't have an idea of what "better" actually entails.
"Improving a system requires knowing what you would do if you could do exactly what you wanted to. Because if you don't know what you would do if you could do exactly what you wanted to, how on earth are you going to know what you can do under constraints?"
- Russ Ackoff
Did you read the example? The business process of human bias is gone in the cancer detective phase. AI eliminated it.
My name isn't Russ. Russ Ackoff was a business process optimization leader from the last century -- a contemporary of Deming and the Toyota school etc.