g-f(2)2556 Transforming AI Success: Overcoming Process Debt

 

genioux Fact post by Fernando Machuca and ChatGPT

Introduction

The article "AI Success Depends on Tackling ‘Process Debt’" by Paul Leinwand, Sundar Subramanian, and Mohib Yousufani, published in the Harvard Business Review, emphasizes a crucial aspect often overlooked in AI and digital transformation efforts: process debt. While organizations frequently focus on managing technical debt, the buildup of outdated, functionally isolated, and customer-disconnected processes, known as process debt, poses a significant barrier to realizing AI's full potential. This article highlights the importance of addressing process debt to ensure AI-driven transformations are effective and deliver substantial business value. Understanding and implementing the insights from this article is essential for winning the g-f Transformation Game (g-f TG) in the g-f New World, as it provides a strategic roadmap for leveraging AI to enhance operational efficiency and innovation.

genioux GK Nugget

"AI's transformative potential can only be realized by tackling process debt and remapping organizational workflows to focus on clear, value-driven outcomes." — Fernando Machuca and ChatGPT, June 28, 2024

genioux Foundational Fact

The successful adoption of AI and other digital technologies hinges on addressing process debt, which includes antiquated, isolated, and inefficient ways of doing work. Organizations must rethink and redesign their end-to-end processes, leveraging AI not just to automate but to transform these processes, leading to significant improvements in efficiency, cost savings, and business value.

The 10 Most Relevant genioux Facts

1. Definition of Process Debt: Process debt refers to the accumulation of outdated, functionally isolated, and customer-disconnected ways of doing work, which hinders the effective adoption of new technologies like AI.
2. Importance of Addressing Process Debt: Without tackling process debt, organizations cannot fully realize the benefits of AI and digital transformation efforts.
3. Case Study - Fortune 50 Consumer Products Company: This company reduced its reporting activities by 70%, automated data processes, and established a center of excellence for reporting, resulting in a 50% cost reduction.
4. Mapping End-to-End Processes: Organizations should map their end-to-end processes and identify clear outcomes to streamline operations and eliminate inefficiencies.
5. Leveraging External Collaborators: Companies should assess which tasks can be better handled by external collaborators, integrating their capabilities into the organization’s processes.
6. Digital Factory Concept: Establishing a digital factory, staffed with experts in product strategy, design, data engineering, and automation, can help reimagine and optimize end-to-end processes.
7. Reskilling Employees: Reskilling or upskilling employees is crucial to support new processes and ensure they can leverage AI and other technologies effectively.
8. Iterative and Learning Mindset: Organizations should adopt an iterative approach, redesigning processes in short sprints to maintain momentum and continuously improve.
9. Customer-Centric Approach: Focus on remapping and reprioritizing workflows to meet customer demands and differentiate the organization meaningfully.
10. Significant Value Improvements: Companies can achieve substantial value improvements, ranging from 50% to 80%, by addressing process debt and optimizing operations with AI.

Conclusion

To harness AI's full potential, organizations must go beyond managing technical debt and address process debt. This involves rethinking and redesigning workflows, leveraging digital tools, and focusing on clear, value-driven outcomes. By doing so, companies can significantly improve operational efficiency, reduce costs, and unlock new levels of innovation and business value. The insights from this article provide a strategic framework essential for organizations to thrive in the g-f New World and succeed in the g-f Transformation Game.

REFERENCES

The g-f GK Context

Paul Leinwand, Sundar Subramanian, and Mohib Yousufani, AI Success Depends on Tackling ‘Process Debt’, Harvard Business Review, June 27, 2024.

ABOUT THE AUTHORS

Paul Leinwand is a principal at PwC U.S., a global managing director at Strategy&, and an adjunct professor at Northwestern’s Kellogg School. He is a coauthor, with Mahadeva Matt Mani, of Beyond Digital: How Great Leaders Transform Their Organizations and Shape the Future (HBR Press, 2022).

Sundar Subramanian is a principal at PwC U.S., and leads Strategy&, PwC’s strategy consulting business. He also heads its enterprise strategy, value, and digital transformation practice.

Mohib Yousufani is a principal at PwC U.S. He is a senior global leader in digital transformation, and advises institutions across industries on achieving superior growth and performance.

Classical Summary of the Article

The article "AI Success Depends on Tackling 'Process Debt'" from Harvard Business Review discusses the importance of addressing "process debt" in organizations aiming to achieve successful AI implementation. Process debt refers to outdated, functionally isolated, and inefficient ways of doing work that hinder the full potential of AI technologies. While much focus is often placed on managing technical debt — the accumulated complexity and inefficiencies in technological infrastructure — the article argues that tackling process debt is equally crucial. The authors highlight that without addressing process debt, organizations cannot fully leverage AI and other digitization tools. The article provides a case study of a Fortune 50 consumer products company that successfully tackled process debt, leading to significant improvements in efficiency, cost reduction, and value generation. It outlines five key steps for organizations to address process debt: mapping end-to-end processes, determining who is best equipped to deliver each process, establishing a "digital factory" for process reimagination, reskilling employees, and adopting an iterative approach to change management. By focusing on these steps, organizations can create a streamlined, efficient, and AI-ready operational environment.

Paul Leinwand

Paul Leinwand is a highly respected business leader and strategist, currently serving as a Principal at PwC U.S., a Global Managing Director at Strategy&, and an Adjunct Professor of Strategy at Northwestern's Kellogg School of Management⁶⁷.

At PwC U.S., a company that provides auditing, accounting, and assurance services for organizations and individuals¹, Leinwand is a principal⁶. He is known for his expertise in strategy, growth, and capability building⁶.

In his role at Strategy&, a strategy consulting firm that provides services in areas such as marketing and sales, operations strategy, people and organization strategy, product and service innovation, and technology strategy¹¹, Leinwand serves as a Global Managing Director⁷. He leads the firm's approach to Capabilities Driven Strategy and Growth⁷.

Leinwand is also an Adjunct Professor of Strategy at Northwestern's Kellogg School of Management⁷, a global business school known for its rigorous academic experience and dynamic research and learning environment¹⁵. He brings his extensive industry experience and strategic insights to the classroom, enriching the learning experience for students⁷.

Leinwand has co-authored a series of books with Harvard, including "Beyond Digital: How Great Leaders Transform Their Organizations and Shape the Future", "Strategy That Works: How Winning Companies Close the Strategy through Execution Gap", "The Essential Advantage: How to Win with a Capabilities-Driven Strategy", and "Cut Costs & Grow Stronger"⁷. His articles on purpose, identity, strategy, and leadership have been published in the Harvard Business Review and other prestigious publications⁷.

Leinwand holds a Masters in Management from Northwestern University’s Kellogg Graduate School of Management, and a Bachelor of Arts in Political Science from Washington University in St. Louis⁷. He is a thought leader in his field and has spoken on topics of purpose, identity, and strategy at numerous events and forums⁶.

Source: Conversation with Copilot, 6/28/2024

(1) Paul Leinwand - PwC. https://www.strategyand.pwc.com/gx/en/unique-solutions/capabilities-driven-strategy/speakers-corner/paul-leinwand.html.

(2) Paul Leinwand - Faculty - Kellogg School of Management. https://www.kellogg.northwestern.edu/faculty/directory/leinwand_paul.aspx.

(3) PwC: About us. https://www.pwc.com/us/en/about-us.html.

(4) Strategy& Company Profile: Service Breakdown & Team | PitchBook. https://pitchbook.com/profiles/advisor/42990-49.

(5) Kellogg School of Management. https://www.kellogg.northwestern.edu/.

(6) About us: PwC. https://www.pwc.com/gx/en/about.html.

(7) PwC US Company Profile - Office Locations, Competitors ... - Craft. https://craft.co/pwc-us.

(8) PricewaterhouseCoopers LLP - Company Profile and News. https://www.bloomberg.com/profile/company/10182Z:US.

(9) PwC Company Profile - Office Locations, Competitors, Revenue ... - Craft. https://craft.co/pwc.

(10) Paul Leinwand | World Economic Forum. https://www.weforum.org/people/paul-leinwand/.

(11) 10 Creative Company Profile Examples to Inspire You [+ 12 Templates]. https://blog.hubspot.com/marketing/company-profile.

(12) 12 Best Company Profile Template to Present Your Business - Visme. https://www.visme.co/blog/company-profile-template/.

(13) Strategy& Company Profile - Office Locations, Competitors ... - Craft. https://craft.co/strategy.

(14) How to Develop a Strategic Profile, What it Entails ... - Small Business. https://smallbusiness.chron.com/develop-strategic-profile-entails-swot-analysis-61305.html.

(15) . https://bing.com/search?q=Northwestern%e2%80%99s+Kellogg+School+profile.

(16) 2025 Class Profile | Kellogg Full-Time MBA - Kellogg School of Management. https://www.kellogg.northwestern.edu/programs/full-time-mba/class-profile.aspx.

(17) Kellogg School of Management - Wikipedia. https://en.wikipedia.org/wiki/Kellogg_School_of_Management.

(18) Kellogg School of Management at Northwestern University. https://poetsandquants.com/school-profile/kellogg-school-of-management-at-northwestern-university/.

Sundar Subramanian

Sundar Subramanian is a prominent figure in the consulting industry, currently serving as the Leader at PwC's Strategy& USA¹. He also holds the position of Partner and Leader of US and Mexico at PwC's Strategy&¹. His leadership roles at PwC's Strategy& involve aligning tech development, automation, and digitization with business goals, thereby driving strategic transformation within the organization¹.

Subramanian's career spans across various sectors, and he has established himself as a thought leader in the realm of strategy consulting. His expertise is recognized by his peers in the consulting industry, where he is connected with over 16,000 colleagues across 1,009 companies located in 56 countries¹.

In addition to his roles at PwC, Subramanian has also made significant contributions to the academic community. He received his M.S. and Ph.D. degrees in electrical and computer engineering from the University of Texas at Austin in 2004 and 2008, respectively³. His areas of expertise include scheduling and networking techniques for heterogeneous networks and PHY/MAC algorithms for cellular and mobile communications³.

Throughout his career, Sundar Subramanian has demonstrated a commitment to leveraging technology and strategic insights to drive business growth and innovation. His leadership at PwC's Strategy& continues to shape the future of strategy consulting in the digital age¹.

Source: Conversation with Copilot, 6/28/2024

(1) Biography of Sundar Subramanian - The Official Board. https://www.theofficialboard.com/biography/sundar-subramanian-189g8.

(2) Sundar Subramanian | IEEE Xplore Author Details. https://ieeexplore.ieee.org/author/37287286200.

(3) Avestar Capital Management and Leadership Team. https://avestarcapital.com/our-leadership/.

(4) Sundar Subramanian, Progress Software Corp: Profile and Biography. https://www.bloomberg.com/profile/person/21300465.

Mohib Yousufani

Mohib Yousufani is a highly accomplished professional and a principal at PricewaterhouseCoopers LLC (PwC) U.S.¹. He is recognized as a senior global leader in digital transformation and is known for advising institutions across various industries on achieving superior growth and performance².

Yousufani's career began as a consultant at Cap Gemini Ernst & Young in 2001². He later held roles as lead analyst at Citi from 2002 to 2004 and program director of strategic initiatives, program manager, program management office at Wells Fargo Financial from 2004 to 2005².

In 2008, he moved to Kuala Lumpur, Malaysia, to serve as the head of consumer banking at Standard Chartered Bank, a position he held until 2014². Since 2014, he has been excelling as a partner and leader of digital transformation at PwC². In this role, he is responsible for transforming organizations to uplift revenue or reduce costs, leading the transformation organization both internally and externally². He manages a team of thousands of professionals across the globe².

Yousufani holds a Bachelor of Science in Business Administration in economics and management information systems with a concentration in finance from Drake University (2001) and a Master of Business Administration from the University of Chicago Booth School of Business (2006)².

Throughout his career, Yousufani has honed three key leadership strengths: fostering collaboration, navigating complex large-scale transformations, and cultivating a visionary mindset². He attributes his success to his mentors, leadership skills, excellent team members, resilience, and perseverance².

Looking ahead, Yousufani aspires to become a C-suite executive within a top 20 to 50 institution². He plans to transition from his current PwC role to take on a global leadership position². His ultimate goal is to share his knowledge and expertise with his colleagues and community members, and he also hopes to become more involved in volunteer work².

Source: Conversation with Copilot, 6/28/2024

(1) Mohib Yousufani - PwC. https://www.pwc.com/us/en/contacts/m/mohib-yousufani.html.

(2) Mohib Yousufani - TopExecs. https://marquistopexecutives.com/2024/06/26/mohib-yousufani/.

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REFERENCES

“genioux facts”: The online program on "MASTERING THE BIG PICTURE OF THE DIGITAL AGE”, g-f(2)2556, Fernando Machuca and ChatGPT, June 28, 2024, Genioux.com Corporation.

The genioux facts program has established a robust foundation of over 2555 Big Picture of the Digital Age posts [g-f(2)1 - g-f(2)2555].

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