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‘Productivity isn’t everything,’ wrote economist Paul Krugman, ‘but, in the long run, it is almost everything. A country’s ability to improve its standard of living over time depends almost entirely on its ability to raise its output per worker.’
Productivity is simply a ratio of outputs to inputs. We would all like to learn how to get the maximum output for the least amount of input. Productivity improvement is not merely cutting costs, as some corporate toe-cutters would have you believe. There is both a numerator and a denominator in the equation. You can increase the numerator, decrease the denominator or do some combination of the two.
[Listen to audio version, read by David Hodes]
Usually, the impact of increasing the numerator will far outweigh a reduction in the denominator. But in a world where we have finite planetary resources, does it make sense to recklessly pursue ever more GDP without paying attention to the need to be frugal with our use of the resources required to create it? What is our response when those resources contribute so massively to greenhouse gas emissions which turn the metaphor of rising tides lifting all ships from a paean to productivity into an environmental alarm signal?
Thus, even with the wicked problem of climate change, improvements in productivity are going to be how we make progress and give ourselves at least a fighting chance to continue to prosper on all this good earth. How else would we be able to go from the current global renewable energy consumption of around 5% of the total (80% fossil fuels, 10% biofuels and 5% nuclear making up the balance) to ultimately replacing fossil fuels? How will we be able to square the circle of an increasingly prosperous developing world demanding access to the kind of life we in the OECD take for granted, tied as it is to ever increasing energy requirements? The record shows that over the last fifty years we have indeed been getting more productive in terms of the carbon intensity per dollar of GDP. But we have also produced more GDP and therefore more greenhouse gases.
“Systemically improving productivity is a necessary condition of our species’ ability to continue to make progress on the planet we call home”
I am not like the misanthropists who suggest that the way out is to depopulate the planet. I often wonder if those who advocate such a solution would be willing to go first? As for those who exploit every convenience of our modern age to rage against the machine and then call for an extinction rebellion to avoid a climate Armageddon, I wonder what their response would be to an hours-long power failure on the way home from a rally, halting their trains and silencing their phones.
At heart, I am a practical man, and whether the measures we need to take are about mitigation or innovation, I believe that systemically improving productivity is a necessary condition of our species’ ability to continue to make progress on the planet we call home.
My epiphany about the power of productivity occurred when I first took the Theory of Constraints (TOC) out for a drive. I was the Managing Director of a national commercial refrigeration company and, through the use of Critical Chain Project Management, my team took 26 days out of a 71-day project. I was astounded that I then had 26 days of virtually free labour available, as I had already costed their full recovery, and some profit, into the winning bid on that contract. My immediate thought was that I could sell a job that used 26 days of the whole crew’s labour at their standard rate and the only cost would be the materials. The rest would be pure profit. Productivity improvement had already paid for the workers.
My mind searched for an analogy to explain to people what I had discovered. I told them it was as if the general public was used to taking twenty-four hours to fly from Johannesburg to London (I was living in Jo’burg at the time), and someone had come up with an invention that would replace a turboprop with a jet engine, the effect of which would be to halve the travel time between the two cities. Why would anyone ever want to travel in a slow turboprop again?
More than twenty years later, there has been no dimming of my enthusiasm for the power of innovations in productivity to change the world for good. Much of this year, I have been working in the aluminium industry. It is an energy-intensive business and also fundamental to the wellbeing of the region to which it belongs. Every day, over 3,000 people go to work at one of the operations of a global player in the aluminium market. Many more than those 3,000 have an indirect dependency on the business through the provision of goods and services to the company and its employees. The corporation of which it is a part has committed to being carbon neutral by 2050. Even then, the investment community marks down their shares because of the centrality of energy to the viability of the business and the environmental challenges this brings.
There can be no doubt that the more productive the business, the more profitable it will be. But what are the dimensions of productivity? How might we measure it? I like to look at productivity in two fundamental ways, using the basic building blocks of the constraint accounting framework.
I start with the assumption that all investors are fundamentally interested in maximising the return on their investment, and we formulate that in TOC in the following way:

ROI = return on investment
T = throughput, or sales less truly variable costs (referred to by cost accountants as contribution margin)
OE = operating expense, defined as labour plus overheads
I = investment, defined as equipment, fixtures, buildings, etc, that the system owns as well as inventory in the forms of raw materials, work-in-process and finished goods
Since Throughput less Operating Expense is a measure of the profit of a business, I call the ratio of Throughput to Operating Expense (T:OE) the operating productivity. It provides the answer to the question: what margin am I making for every dollar it costs me to open the door? The ratio of Throughput to Investment (T:I) is the capital productivity and answers the question: what margin am I making for every dollar I have invested in the business?
Given these formulations, what levers do we have to increase productivity?
More revenue: There’s an old saying that sales are vanity, profit is sanity and cash is reality. More income can produce more profit if the combination of margin and operating expense stay the same. In some cases, more revenue could mean knocking out or weakening a competitor by taking sales away from them. And, of course, we must also think about the effect of pricing decisions on volume and margins.
Faster speed to market: The faster you can get a product to market, the more likely you will spend less doing so. You will also generate a first-mover advantage, and have a head start in being able to iterate the next improvement to stay ahead of your competitors.
Shorter turn-times: the shorter your turn-times, from order through to fulfilment, the less inventory there is in the supply chain, the more responsive you are to actual demand and the more willing your customers will be to pay a pricing premium. Your capital productivity will also improve as a result of having less inventory in the system.
Dependable due dates: The more reliable you are as a provider of goods and services, the less your customers have to make ‘just-in-case’ contingencies and the more likely they would be open to paying a price premium.
Higher margins: Being able to sell at higher prices, because you have a demonstrable value benefit for your customers, means you will achieve higher margins, all else being equal. Furthermore, if your processes are increasingly predictable, your suppliers can more readily find ways to reduce their costs and pass the savings into your margins.
Lower OPEX: The more productive your workforce, the fewer people required to produce your product or service offering.
Lower unit cost: The more volume you have running through your organisation—assuming you can keep your operating expense either the same or increasing at a rate that is slower than the increase in volume—the lower the unit cost of your sales.
Less inventory: The faster your speed to market and turnaround times, the less inventory you have in your pipeline. The less inventory, the lower the working capital, the better the return on shareholder funds.
Less work in process: If you’re completing your work ever faster, there will be less work in process, and more of your labour and other inputs will become cash sooner.
Effective CAPEX: The quicker you are in planning and executing your projects, the less cash they burn and the quicker they deliver the value contained in their business case. Also, you can redeploy your resources sooner to realise the value of the next big idea. Getting the most from your existing assets means deferring CAPEX until it is unarguably necessary.
Better quality: Better understanding of just-on-quality requirements means less gold-plating on the one hand and fewer rejects on the other. Thus, besides reducing operating expense through wasted effort, your reputation is enhanced. Your customer has the chance of delight with every encounter with your product or service.
Less rework: Doing rework for a product or service that should have been right the first time is costly and unproductive. Reduce your rework and you improve ROI.
Higher engagement: If the organisation is scoring goals, and the work you do to get there follows the principles of Just Work, your people will naturally feel more engaged. You will likely be making more money and will be better placed to invest in their potential and willingness to learn and grow.
More innovation: More engaged people have more energy and are more willing to give of themselves and their capacity for discretionary effort. Furthermore, high engagement is an indicator of a healthy culture, where competition and collaboration find an energising balance, acting as a propellant of innovation.
Competitive ROI: Not every industry can produce a player whose ROI outperforms all other players in all other industries. There are structural reasons why specific industries produce lower returns than others. Thus one mustn’t look to demonstrate the highest ROI overall, but one that is competitive to the discerning portfolio manager. Productivity that is higher than your sectoral competitors will deliver a higher ROI, and thus a premium share price.
Applying TOC across the four core capabilities of Asset Constraint Management gives you the opportunity to design business outcomes that you would otherwise think were neither reasonable or possible. Every one of the attributes of productivity improvement listed above is improved by learning how to know the whole but focus on the constraint. Theory of Constraints is the tide that can lift all ships.
The means do exist to create a step-change in productivity and hence maximise the net present value of your assets. Imagine what good would come of this innovation in productivity if you became the dynamo, energising your team and generating outsized results. What hard problems could you solve? What benefits could you bring to the world and the community you serve?
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What’s next?
The change from standard thinking to Theory of Constraints (TOC) is both profound and exhilarating. To make it both fun and memorable, we use a business simulation we call The Right Stuff Workshop.
We’d love to run it with you. To learn more:
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[Background photo: Low tide by Robin Spielmann on Unsplash]
“Know the whole, focus on the constraint.”
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A patient may ask for a smaller device, a clearer display or an easier app. Those requests matter, but they leave a deeper question unanswered: what is the person trying to accomplish, and why does the current approach make it difficult?
Someone using a monitoring device may want to understand whether their condition is changing, decide when to seek help or manage daily activities with greater confidence. The device is one means of achieving that outcome.
A powerful question asks how well your organization understands the jobs patients are trying to get done. A strong answer connects patient research with clearly defined outcome statements that become the formal user needs your teams use to build the design history file. Outcome-based user needs are easier to validate, flow more easily into design requirements, and result in faster time to market.
“A feature request describes a possible answer. Understanding the patient’s job to be done sets your design team up to deliver a better solution faster.”
A useful job statement describes an activity the patient needs to accomplish in a relevant context. It should remain understandable without naming your product or preferred technology.
“Use our app every day” describes behavior your organization wants. “Provide a way to recognize when a change in my condition requires professional advice” describes the outcome a patient actually desires.
The distinction affects research. If the team starts with the app, it will ask how to improve screens and interactions. Starting with the job opens questions about information, confidence, timing and support. The best solution may involve changes beyond the app.
Define a scope the team can investigate. “Live a healthier life” expresses an aspiration but is too broad to guide detailed engineering decisions on its own. “Minimize the time it takes to find a solution to my health concern without needing to talk to a doctor or call someone” gives a team a direction, a measure, an object of control and contextual clarifier(s).
Journey mapping shows how people move through a particular care pathway. Job mapping examines what they must accomplish to achieve their purpose, including the work surrounding the interaction with your solution.
The two perspectives complement each other. A journey may show that a patient waits for follow-up. The job perspective asks what they are trying to understand or decide while waiting.
This matters because current processes can become embedded in the team’s assumptions. Patients may need a reliable way to recognize an important change; they do not necessarily need the exact sequence of activities currently provided.
Use the journey to understand context and dependencies. Use the job to examine whether a different approach could help the patient achieve the desired outcome more effectively.
Patient research begins with observation and empathy interviews at the Gemba, the place where the activity actually occurs.
For patients, that place includes the home and the settings in which they manage health alongside ordinary responsibilities. Ask people to demonstrate routines, explain decisions and describe recent experiences.
Observe what they do. Immerse yourself in the circumstances surrounding the activity. Engage through questions that let them explain their purpose in their own language.
A person may say that managing treatment is straightforward while observation reveals multiple reminders, improvised storage or reliance on a partner. Those arrangements can reveal effort and uncertainty that have become familiar enough to go unreported.
The aim is to understand the why your solution will win before making any decisions about what your solution will do. Customers will want your solution because of the outcomes it gives them, not because of what you made.
Patients with the same diagnosis may struggle with different parts of an activity. Differences in confidence, experience, resources and support can change how they define success.
Recruit participants whose circumstances reflect the population you intend to serve. Include relevant variations in health literacy, technology familiarity, physical ability and access to care. Are you targeting the tech savvy millennial, a busy parent trying to run a family with four kids or a retiree living in a managed healthcare facility?
Research should also examine emotional and social needs. A patient may want reassurance about managing a task alone or worry about drawing attention to a condition. Keep these needs visible alongside functional outcomes without assuming one design choice resolves them all.
The job mapping framework divides a job into eight recurring steps. These steps prompt investigation beyond the most visible interaction.
Apply these prompts to actual patient work. Some steps may recur or overlap. The map should help the team discover needs, rather than force experience into an artificial sequence.
“The most useful innovation may help a patient prepare, recognize an exception or recover confidence before it changes the device itself.”
Interviews generate verbatims: patients’ own descriptions of experiences, difficulties and expectations. Preserve that evidence, then interpret what each statement reveals about the job.
An illustrative verbatim might be, “I keep checking because I don’t know whether the reading matters.” The desired outcome may concern recognizing a meaningful change or understanding what action is appropriate.
A structured outcome statement identifies the direction of improvement, a measure, the object being controlled and relevant context. For example: “Minimize the time required to determine whether a change in a reading requires contacting my care team.”
Ask the team if there are uncovered outcomes that can set your solution apart related to how it is purchased, installed, received, set up, learned with training support, transported, maintained, upgraded, replaced or disposed.
This formulation gives research and design a clearer target. It does not establish a clinical threshold or promise that a device can safely make the decision independently, but often the features that will make your solution “easy to use” or set you apart will come from these outcome statements.
Several comments may describe the same need. One comment may contain multiple needs. Review the evidence carefully before combining it into a set of outcomes.
Remove duplication, separate distinct outcomes and retain links to the original accounts. Use plain language that patients can understand. Avoid embedding a particular feature in the statement.
Check the interpretation with participants or other appropriate reviewers. “I want fewer notifications” might mean reducing irrelevant interruptions while preserving important information. Treating it as a demand to suppress all alerts would misrepresent the need.
The output should be a coherent set of outcomes organized by job step. Completeness and clarity matter but typically it is ideal to have at least 100 and no more than 200 outcome statements for the team.
Qualitative research discovers needs and explains them. Quantitative research helps determine how widely they matter and how well existing approaches satisfy them.
Ask patients to rate the importance of each outcome and their satisfaction with their current ability to achieve it. Make the reference situation clear so respondents evaluate comparable experiences.
A high scoring importance outcome with low satisfaction deserves investigation. High satisfaction may indicate that the need is already well served so the team can use what already exists and put more time in creating innovative solutions to high importance low satisfaction outcomes. Low importance can reduce its priority, although clinical safety requirements cannot be dismissed through a popularity score.
Use a research design appropriate to the intended population. The outcome statements are easy to rate on a five point Likert scale. Choose population quantitative research in alignment with your target persona groups.
The Outcome Driven Innovation approach uses importance and satisfaction to identify underserved outcomes. Its opportunity calculation adds importance to the positive gap between importance and satisfaction.
Use compatible scales and a clearly defined calculation. Interpret the result alongside the underlying responses, research quality and the clinical context.
Examine differences between groups. An outcome that appears adequately served overall may remain difficult for patients with less support or a different level of experience.
These differences can reveal meaningful segments based on unmet needs. They help the organization avoid treating demographic similarity as evidence that patients need the same solution. Prioritization should retain enough detail to explain whose outcome the proposed improvement will change.
A target product profile brings the priority outcomes together with business goals, available technology and other relevant requirements. It helps the team agree what success should look like before committing to a concept.
Translate patient outcomes into design inputs and measurable requirements while preserving traceability to the evidence. Define which questions remain uncertain and what research or testing will resolve them.
Evaluate concepts against the outcomes they are intended to improve. Ask whether the proposed approach reduces effort, uncertainty or difficulty for the relevant patients and results in higher satisfaction scores than the baseline solution. A favorable reaction to an attractive prototype provides limited evidence unless the team can connect it with better execution of the job.
A priority patient need may involve work performed by a clinician, caregiver or service provider. Investigate those dependencies before deciding that a product change will solve the problem.
The Theory of Constraints helps identify where improvement can change the performance of the wider pathway. A better patient interaction can have limited effect if access to essential support remains constrained.
A Value Management Office can coordinate the initiatives needed to address these connected issues and keep investment aligned with patient outcomes.
“Patient insight becomes useful design evidence when the team can show which outcome matters, who struggles with it and how the solution improves it.”
Use patient jobs to be done to review one priority patient job. Can your team state it clearly, map its steps and demonstrate which outcomes are highly important and poorly satisfied?
Start with observation and patient conversations. Build and validate the outcome statements, measure priorities and test concepts against them. That discipline gives Patient Centered Design a practical foundation for better products and more lives changed for good.

A healthcare professional can recognize the value of a medical device and still struggle to incorporate it into care. The referral may be incomplete. Diagnostic evidence may arrive late. Preparation may require extra staff. Follow-up may introduce work that nobody has agreed to own. Managing the patients before and after may require additional staff which adds risk to the business side of the practice.
Those difficulties affect the clinician’s ability to help patients reach and benefit from your solution. They deserve attention during development and throughout deployment.
The purpose is to understand how professionals encounter, assess, recommend and use a solution, and what constraints they encounter in using your solution.
A useful map connects the professional’s experience with patient flow. It helps the organization identify where support, coordination or design changes can improve the delivery of care.
“Clinical enthusiasm cannot create the time, information or supporting capacity needed to deliver a therapy.”
Healthcare professionals perform different jobs at different stages. A referring practitioner, diagnostic specialist, interventional physician, nurse and educator may all influence whether the same patient receives successful care.
Define which groups participate in your pathway and what each contributes. Who recognizes the need? Who establishes eligibility? Who performs the procedure? Who trains the patient? Who monitors outcomes and manages exceptions? Who manages insurance?
Include people whose work makes these actions possible. Coordinators, technicians and administrative staff may arrange appointments, prepare equipment or assemble records. Their contribution can govern whether clinical time is used effectively.
The map should make dependencies visible across roles. It should also clarify which actions fall within your organization’s influence and which require collaboration with care providers or other affected parties.
A professional title tells you part of the story. Experience, setting, case volume, access to support, business acumen and familiarity with the therapy can change the work considerably.
An experienced specialist in a well-supported center may encounter different difficulties from a clinician who sees the condition infrequently or works in a rural area. A nurse coordinating a dedicated service may have options unavailable to someone balancing that responsibility with other duties.
Develop personas around these differences. Examine confidence in interpreting evidence, decision authority, available time, training needs and exposure to clinical or organizational risk.
Use research to test the distinctions. Personas should explain variations in behavior and requirements. They should help the team understand why an approach that works in one setting may fail to support another.
The professional’s journey may begin with awareness of an unmet clinical need or information about a potential solution. It continues through evaluating evidence, discussing alternatives and deciding whether the therapy belongs in their practice.
Adoption can involve local approvals, purchasing, training, changes to referral patterns and coordination with other teams. Clinical use then includes preparation, treatment, documentation, handover and follow-up.
Map these activities without assuming a single linear sequence. Professionals may return to evidence review after a difficult case or revise their approach when colleagues raise concerns.
Distinguish the journey of adopting the therapy from the recurring journey of delivering it to each patient. Both matter, but the barriers and improvement measures can differ.
At each stage, ask what the professional is trying to accomplish and what must be available before the work can proceed.
A decision may depend on diagnostic results, a complete patient history, clear eligibility criteria or advice from another specialty. A procedure may depend on staff, equipment and an appropriate location. Follow-up may depend on information that must be captured earlier.
Show the handovers between roles, including who supplies information and who receives it. Record where uncertainty is resolved and where work is repeated.
This reveals how a product can add burden beyond its immediate interaction. A useful output may still consume scarce clinical time if the professional must retrieve, interpret, reformat and document it through separate systems.
The time required for a clinical activity can differ greatly from the time a patient waits to receive it. Both belong on the map.
Measure preparation, clinical work, documentation and recovery from problems where relevant. Record queues, appointment delays and time lost waiting for missing information.
Distinguish professional effort from elapsed time. Some delays consume little active attention but prevent patients progressing. Others require repeated chasing, rescheduling or explanation, drawing capacity away from care.
Define a common unit of work so comparisons remain meaningful. Cases with different complexity may require different analysis. Averages alone can hide the patients or professionals who face the greatest difficulty.
The purpose is to understand usable capacity and patient progress in the actual working environment.
A pathway may depend on a small amount of specialist attention surrounded by many competing demands. Headcount alone will not show how much of that attention is available.
Examine what professionals spend their time on, including avoidable administration, repeated assessments and interruptions. Determine whether the relevant constraint is clinical expertise, supporting staff, diagnostic access, equipment or a policy governing work.
The Theory of Constraints helps focus improvement on the factor limiting the whole pathway. Increasing referrals to a service already unable to process them can lengthen waiting without increasing treatment.
Investigate the apparent bottleneck before choosing a response. Better preparation or coordination may release capacity. In other cases, additional resources or changes to the operating model will be necessary.
“The measure of a design improvement is its effect on clinical work and patient progress, including the work it creates elsewhere.”
The Gemba is where the work actually happens. Direct observation helps teams understand how professionals use information, equipment and judgment under real conditions.
Observe preparation, interruptions, handovers and the work following the visible procedure. Ask what the professional expected to receive and what they had to obtain independently. Capture workarounds and job “cheat sheets” that are homemade to make working with your solution easier.
Workarounds deserve particular attention. A clinician may keep a private checklist because the formal process omits an important step. A coordinator may repeatedly contact another service because information arrives inconsistently.
These practices reveal requirements that interviews alone may miss. Discuss observations with the people involved so the team does not mistake an isolated event for a routine pattern. Include different settings and experience levels in the research.
Gather organizational knowledge and assess technology and business perspectives before moving toward a solution. Apply that discipline to the professional journey.
Use existing clinical insight, training questions, support records and prior implementation experience to draft the map. Identify assumptions and gaps.
Assess the technologies already supporting the work. Consider compatibility with the environment, availability, maintenance, reliability and the practical resources needed for use.
Clarify the business conditions surrounding adoption. Purchasing arrangements, competing initiatives, staffing decisions and local policies may determine whether a clinically attractive solution can be implemented.
This baseline makes research more focused. It also prevents the development team from proposing changes that depend on unavailable capability or unacknowledged commitments from others.
Voice of Business research asks leaders about desired outcomes, frustrations, risks and obstacles. It also identifies decision makers and influencers who should participate early.
For a healthcare professional pathway, this means understanding who can authorize changes to responsibilities, processes, resources and technology.
Ask which other initiatives could affect implementation. Identify the independent reviewers who can challenge the team’s assumptions. Agree what success will look like from the perspective of clinical work and patient outcomes.
Make the findings visible to the team members and relevant leaders. A professional may welcome a new approach while lacking the authority to secure the resources it requires. The project needs a realistic route from individual support to organizational adoption.
Apply the five-step FOCUS process to the evidence gathered through mapping.
Find the constraint. Identify the activity or resource currently governing the flow of suitable patients through care.
Optimize for it. Protect scarce capacity from incomplete information, unnecessary preparation, avoidable interruptions and repeat work.
Collaborate around it. Coordinate upstream and downstream roles so patients, information and resources arrive when needed.
Uplift it. Add capability or change responsibilities, processes and technology when existing capacity cannot meet the need.
Start Again. Review the pathway after improvement and identify its new limiting factor.
Automation can help when the task is understood and the proposed change supports clinical work. Evaluate its consequences, including review effort, exception handling and any burden transferred to another professional.
The map should lead to a manageable set of changes with clear owners and measures. Test those changes in relevant settings and examine their effect on both professional effort and patient progress.
A Value Management Office can connect the initiatives with priorities, resources and project decisions. Clinical teams and other participants must remain involved in judging whether the changes improve work in practice.
“An effective professional journey supports a clinician through the complete job, from readiness to follow-up.”
Use the healthcare professional journey to examine one priority pathway. Can your team explain who performs the work, where capacity is lost and what currently limits patient progress?
Build the map with the professionals involved. Establish the baseline, test an improvement at the constraint and review the result. Patient Centered Design advances when the solution and the surrounding system make beneficial care easier to deliver reliably.
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