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.
A test you can run
Do two people who do the same task list the same five steps?
Pick one task that frustrates your team. Ask two people who do it to write down, separately, the five steps they follow. Compare the lists. If they match, look at the tool: it is probably a software problem. If they do not, agree the process first, and only then decide whether you need new software at all.
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.
| Approach | Productivity gain reported |
|---|---|
| AI coding tools on their own | 10–15% |
| Tools plus a redesigned end-to-end process | 25–30% |
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.
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.
Where this is the wrong answer
If only one person does the task, there is no second description to compare. Sit with that person while they handle one real job, and note every point where they leave the official tool for a spreadsheet, an email or a notepad. Each of those exits is either a missing field or a missing step, and the difference tells you which kind of problem you have.
Sources
- 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
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.



