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Edition #20

That 68 Percent Will Not Transfer to You

Dan Toma·August 25, 2026·4 min read
Key Takeaway

A vendor productivity percentage measures the size of the bottleneck that got removed, not the power of the tool. Your bottleneck is somewhere else, which is why the number does not travel.


FAQ

Why do AI productivity gains not transfer between companies?

Because a reported percentage measures the size of the bottleneck that was removed, not the capability of the tool. If production work was 70% of a company's effort, automating it produces a dramatic number. If your constraint is legal review or approvals, the same tool produces almost nothing.

How should I measure AI ROI properly?

Measure three things on one named workflow: cycle time with a four week baseline taken before you introduce anything, rework rate as the share of output that comes back for a second pass, and cost per shipped unit rather than cost per generated unit. Generation costs fell, review and approval costs did not.

What makes a pilot different from a demo?

A pilot names the workflow, names an owner, states the pre-existing cycle time as a number, sets a measurement window, and defines in advance what result would cause you to stop. Without a stopping condition a pilot cannot fail, it can only be extended or rebranded.

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