There are no Silver Bullets: Productivity, AI, and Sustainable Growth
NZ Manufacturer, November issue Ian Walsh, Partner, Argon & Co Over the last 30 years, the productivity landscape has undergone a dramatic transformation. Like many revolutions, its roots stretch back decades—indeed, to the 1900’s. The publication of “The Machine That Changed The World” in the late 1980s marked a turning point, crystallising the profound impact and untapped potential of innovative methodologies in manufacturing and, more broadly, organisational transformation. What followed was a period I call “buzzword bingo,” as terms such as TQC, TQM, Zero Defects, SQC, TPM, TOC, SPC, Lean, Six Sigma, and Lean Six Sigma emerged in rapid succession over 20 years. Each brought unique insights and some overlapping “nuggets,” yet amidst the flurry, the core principles of continuous improvement began to take root. Over the last 10–15 years, this wave of methodologies has stabilised, with businesses refining their approaches. However, the reality remains that few have unlocked the full promise of integrated continuous improvement. While many have seen notable performance gains, in New Zealand the adoption rate lags significantly behind other countries—a primary contributor to our national productivity deficit. As we step into 2025, we find ourselves on the cusp of the AI age. The dawn of Industry 5.0 promises a seamless partnership between humans and technology, delivering smarter systems, streamlined processes, real-time insights, comprehensive end-to-end visibility, and dramatic improvements in efficiency and capability. The vision is enticing, but it is crucial to remember: there are no silver bullets. As Deming wisely put it, “if you can’t describe what you are doing as a process, you don’t know what you are doing.” Mastery begins with clarity—being able to define and articulate your processes. But it goes deeper: everyone in your organisation who touches a process must understand it for true mastery to occur. This demands more than […]
