From Productivity to Prosperity: The Role of Lean Thinking in an AI Age


1. The Productivity Paradox Is Back (and Bigger)

Set the scene:

  • AI adoption is accelerating faster than any previous technology wave
  • Investment is high, expectations are huge
  • Yet many organisations are not seeing productivity gains

Introduce the paradox:

“We have more tools, more data, and more automation than ever before — yet productivity growth is flat, and work feels harder, not easier.”

Position the problem:

  • This is not a technology failure
  • It is a leadership and system design failure

2. Why AI Alone Does Not Create Productivity

Key argument:

  • AI increases activity, not automatically value

Explore common traps:

  • Automating broken processes
  • Optimising local tasks while degrading end-to-end flow
  • Measuring AI success by adoption rather than outcomes

Lean lens:

  • Productivity is an emergent property of the system
  • If the system is poorly designed, AI simply helps you fail faster

Short, punchy insight:

“AI doesn’t fix waste — it accelerates it.”


3. Redefining Productivity for the AI Era

Challenge traditional definitions:

  • Output per hour is no longer sufficient
  • Knowledge work behaves differently from manufacturing work

Propose a broader view:

  • Flow of value
  • Quality of decisions
  • Speed of learning
  • Reduction of failure demand

Introduce Lean AI concept:

  • Lean provides the thinking discipline
  • AI provides the execution leverage

4. From Productivity to Prosperity

Make the step-change:

  • Productivity gains that do not translate into prosperity create risk

Explore prosperity at three levels:

  1. Organisational – sustainable performance, resilience, adaptability
  2. People – meaningful work, capability uplift, reduced cognitive load
  3. National (NZ/Australia) – competitiveness, inclusion, future-ready skills

Provocation:

“If AI-driven productivity only benefits shareholders and software vendors, we shouldn’t be surprised by resistance and burnout.”


5. The Leadership Shift Required

Outline the leadership challenge:

  • Leaders are being asked to govern systems they don’t fully understand

Key leadership shifts:

  • From efficiency to flow
  • From control to learning
  • From technology-first to problem-first

Lean leadership behaviours:

  • Going to where work happens
  • Asking better questions
  • Designing systems that make good work easier

6. Why This Matters Now for NZ

Localise the argument:

  • NZ productivity challenges are well documented
  • SMEs dominate the economy
  • AI presents a rare chance to leapfrog — if approached wisely

Risk statement:

  • Copying overseas AI playbooks without system thinking will deepen gaps

Opportunity statement:

  • NZ can model human-centred, system-led AI adoption

Lean AI for NZ: This is where my work comes in — helping organisations in New Zealand apply Lean thinking with AI to deliver real productivity gains, meaningful work for people, and sustainable prosperity.


7. A Conversation, Not a Conclusion

  • These questions are not settled
  • Leaders need spaces to think, not just tools to deploy

Call to action:

  • Reflect before you automate
  • Redesign before you digitise
  • Lead before you scale

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About me

Hi. I’m Richard Steel – an independent Lean and operational excellence consultant.

I was fortunate to complete my initial Lean experiences from 1994 – 1997 with Professor Dan Jones, Toyota, Nissan and Shin-jujitsu consulting.

Over the past 30 years I’ve helped businesses and organisations across industries streamline what they do, cur out waste and build a culture of continuous Improvement.

Let’s connect