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perdoo.com · newsletter
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Henrik van der Pol
CEO at Perdoo
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Most companies are too busy running the machine to ever improve it
Key Takeaway: Organizations spend almost all their time running operations and almost none improving them. That imbalance kills strategy execution. OKRs, KPIs, and a dedicated platform like Perdoo can fix it by making improvement visible, owned, and measurable.
Every company operates in 2 modes at the same time.
There's running the machine: processing orders, closing deals, shipping features, handling tickets. The day-to-day work that keeps the business alive. And then there's improving the machine: redesigning how that work gets done, fixing broken processes, building better systems, removing friction.
In theory, organizations do both. In practice, almost all the time goes to running the machine. Improving it gets pushed to "next quarter" indefinitely.
James March, a Stanford professor, described this dynamic back in 1991 as the tension between exploitation and exploration. His argument was precise: exploitation returns are faster and more certain, so rational actors consistently choose them over exploration. Not because they're lazy, but because incentive structures reward delivery over improvement. He called the long-term consequence the "success trap." Organizations get very good at doing what they've always done, right up until that capability is no longer what the market needs.
I think most companies I've worked with live in this trap without realizing it. They're not bad at their jobs. They're just never given the time to make their jobs better.
The 95/5 problem
If you asked your team leads how they spent their time last month, my guess is the split would be something like 95% running operations and 5% (at best) improving them. And that 5% probably wasn't planned. It was a frustrated employee who stayed late to fix something that had been broken for months.
Toyota understood this problem decades ago and built a structural escape. Their production system separates improvement time (kaizen) from production time, with its own allocation, its own metrics, its own reporting. Workers at Toyota submit on average 15 improvement suggestions per employee per year. Most are tiny. Shaving 3 seconds off a process, moving a tool 6 inches closer. But those tiny changes compound into the most efficient manufacturing operation in history.
The lesson isn't about manufacturing. It's about structure. Toyota didn't improve faster because their people were more creative. They improved faster because improvement was built into how the company operates. It wasn't optional. It wasn't "when things calm down." It was scheduled, measured, and protected.
Most companies do the opposite. They treat improvement as something that happens in the margins, during hackathons, or after a crisis forces their hand.
What this has to do with strategy execution
Here's where this connects to what we do at Perdoo.
Most organizations have a strategy. They've defined where they want to go. But the work of getting there, the actual execution, gets swallowed by running the machine. Teams are so busy processing the day-to-day that strategic priorities quietly slide off the agenda. Not because anyone decided to abandon them, but because urgency always beats importance when there's no structure protecting the important stuff.
In my experience, this is the single biggest reason strategies fail. Not bad strategy. Not incompetent teams. Just an organization that's too consumed by running operations to ever improve them.
OKRs are designed to fix exactly this. They create a structure where improving the machine isn't something you do in the margins. It's explicit, owned, and measurable.
Your KPIs tell you how well the machine is running right now. Revenue, churn, NPS, conversion rates. These are your "run the machine" metrics. They keep the lights on.
Your Objectives and Key Results tell you how you're improving the machine. "Reduce customer onboarding time from 14 days to 5" isn't running the machine. It's making the machine better. "Increase the percentage of deals closed within 30 days from 40% to 65%" isn't business as usual. It's a deliberate improvement.
When both live in the same system, side by side, leadership can actually see the balance. Are we only running the machine? Or are we also investing in making it better?
AI is about to force the issue
There's another reason this matters right now. AI is rapidly changing what "running the machine" looks like, and companies that haven't been investing in improving their operations are about to feel it.
McKinsey's 2025 State of AI report found that AI high performers are 2.8x more likely to have fundamentally redesigned their workflows than everyone else. That's the key finding. The companies getting the most value from AI aren't just bolting it onto existing processes. They're rethinking how the work gets done.
Deloitte's 2025 research reinforces this. 59% of organizations take a tech-focused approach to AI (buy the tool, plug it in), and those companies are 1.6x more likely to report that their AI investments aren't meeting expectations. Only 16% have actually redesigned their roles, processes, and operating models to integrate AI. The rest are automating broken processes, which just gives you faster broken processes.
BCG reports that 50-55% of US jobs will be reshaped by AI in the next 2 to 3 years. Not eliminated. Reshaped. Which means how the work gets done is changing whether you plan for it or not.
This is why improving the machine can't wait. AI gives you the opportunity to fundamentally rethink your operations, but only if you have the habit, the structure, and the discipline to do so. Companies that have been running the machine at 95/5 for years are going to struggle. They have no muscle for process improvement. No rhythm for it. No system to make it happen.
How Perdoo makes improving the machine a habit
The reason improvement keeps losing to operations is that improvement is invisible. Nobody gets credit for a process they redesigned. Nobody sees the meeting that didn't happen because someone streamlined a workflow. Running the machine produces visible output. Improving it produces invisible leverage.
Perdoo makes the invisible visible.
Your strategy, OKRs, and KPIs all live in 1 place. Leadership can see, at any moment, the balance between running the machine (KPIs tracking operational health) and improving it (Objectives and Key Results driving strategic change). When that balance skews too far toward operations, it's obvious. You can course correct before the quarter is gone.
Beyond visibility, Perdoo also helps protect improvement time in practice. Run your 1-on-1s in Perdoo, and the conversation naturally covers both: how are your KPIs trending, and where are you on your Objectives? Use your team meetings to check in on Key Results, and improvement stops being "that thing we'll get to later." Progress reporting flows automatically as people update their goals, so nobody has to spend Friday afternoon compiling slides for leadership.
Stop running. Start improving.
Every company talks about wanting to improve. Almost none of them build the structure to make it happen. They rely on individual initiative, which gets outcompeted by organizational urgency every single time.
If you want to shift from 95/5 to something healthier, you need 3 things: a way to define what improving the machine looks like (Objectives and Key Results), a way to track whether the machine is running well (KPIs), and a system that makes both visible, owned, and part of how the company operates every day.
That's what Perdoo does. Not as an extra layer of work, but as the operating system that connects your strategy to what your teams are actually doing, and that makes sure improving the machine gets the same attention as running it.
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