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Bonus 12 — Innovation & Organisational Improvement

Senior leaders improve the system that produces the output: continuous improvement, AI adoption, automation, process redesign, experimentation.

12 min read
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60-Second Summary
  • Bonus module 12 of the Manager-of-Managers program. Theme: Improve the system, not just the output.
  • Improvement backlog + first experiment — the real artefact you produce.
  • Same shape as core 12: 90-min pre-read, 4-hr monthly intensive, falsifiable artefact.
  • Reviewed by CHRO, VP/Director, sitting CEO, and OB faculty lenses.

Most directors out-execute the system they inherit. The leaders who scale redesign it. The discipline isn't transformation theatre — it's a continuous improvement cadence: hypothesise, run a small experiment, measure, scale or kill. This module installs that cadence and the specific 2026 lens of AI as a system-redesign tool, not a productivity bolt-on.

What the evidence says

  • Toyota Production System (Womack, Jones — Lean Thinking): continuous improvement compounds; one-shot transformations rarely outperform sustained kaizen.
  • Edmondson — The Right Kind of Wrong: organisations that run more small experiments out-learn those that run fewer big ones, regardless of strategy quality.
  • MIT Sloan / BCG 2024 AI adoption research: the value gap is not the tool — it's the workflow redesign. Functions that redesign earn 2–4× the productivity gain.

Pre-read (90 minutes)

  • Read: Lean kaizen — small daily improvements at the team layer (20 min).
  • Read: Edmondson on intelligent failure and the right kind of wrong (20 min).
  • Read: workflow redesign with AI — the 4 task classes (judgement / context / pattern / volume) and which AI changes (20 min).
  • Reflect (30 min): list 5 things in your function that haven't been redesigned in 2 years. Why not?

Monthly intensive (4 hours)

Cohort flow with a senior practitioner coach
  1. 1
    Improvement backlog (45 min)
    Each leader writes 10 candidate system improvements (process, tool, workflow, automation). Coach scores them on impact × effort.
  2. 2
    Experiment design (60 min)
    Pick one. Design as an experiment: hypothesis, metric, sample, duration, scale-or-kill criteria. Coach pressure-tests — most experiments are too big and too long.
  3. 3
    AI redesign drill (60 min)
    Take one team workflow. Classify each step (judgement / context / pattern / volume). Identify which steps AI changes and how. Design the redesigned workflow.
  4. 4
    Improvement cadence (30 min)
    Design the cadence: monthly improvement review, quarterly experiment readout. Coach demonstrates how to make this lightweight enough to survive a busy quarter.
  5. 5
    Wrap (45 min)
    Public commitment: one experiment running by end of month; one AI-redesigned workflow shipped this quarter.

The artefact you produce

Improvement backlog + first experiment

A live backlog of system improvements (impact × effort scored) and one running experiment with hypothesis, metric, and scale-or-kill date. Reviewed monthly.

Tools at this layer

LayerExamples (2026)Use
Improvement methodologyLean kaizen, PDCA cycles, A3 problem-solving, retro-derived improvementsFrameworks for small, repeated change
ExperimentationOptimizely / GrowthBook for product; experiment templates for ops; pre-registered hypothesesMake experimentation cheap and visible
AI toolingClaude / ChatGPT / Gemini / Copilot for general; Notion AI, Linear AI, Lattice AI for workflowTool selection follows workflow redesign, not the other way around
AutomationZapier, Make, n8n, Workato, internal scriptsEliminate volume work that doesn't need humans
Copy-paste AI prompt

Here's a workflow in my function [paste the steps with time/effort estimates]. Help me: (1) classify each step as judgement / context / pattern / volume, (2) identify which steps AI changes most, (3) design a redesigned workflow with AI in the loop and human checkpoints, (4) suggest a 4-week experiment to test the new workflow with success criteria.

Between-session homework

  • Improvement backlog with 10+ scored candidates.
  • One experiment designed and running with named hypothesis and metric.
  • One workflow redesigned with AI in the loop and shipped to one team.
  • Monthly improvement review on calendar.

Success signal

By end of this module, your function has a live improvement backlog, you have at least one experiment running with scale-or-kill criteria, and you've redesigned at least one workflow around AI rather than bolting AI onto an unchanged workflow.

Reviewer notes

CHRO (20+ yrs)

The leaders who improve the system create capacity that no headcount request can match. Improvement is the highest-leverage capacity investment most directors never make.

VP / Director (15+ yrs, 3+ scaled orgs)

I spent my first year as VP improving processes I'd complained about as a director. The compound effect on my team's output was larger than any hire I made.

Sitting CEO

I look for the senior leader who tells me 'we shipped 20% more this quarter with the same team because we redesigned X'. That leader gets the next role.

OB / HR Professor (25+ yrs)

The Toyota and Deming evidence base on continuous improvement is 70 years deep and still under-applied in knowledge work. The newer AI-redesign literature simply extends it: workflow change is the moat, tool adoption is not.

Written by Pawan Joshi.Sources cited inline.
First published 30 Jun 2026See site changelog →