The Compression
We are in what we call The Great Compression. The S-curve that used to give organizations 3 to 5 years to plan, execute, and adapt now gives them months. And the companies responding by deploying more tools faster are making the problem worse, not better.
The 1.6x Penalty
59 percent of organizations are stuck in a tech-first approach. They are prioritizing tool deployment over work redesign. The result is a 1.6x higher likelihood of missing returns on AI investment entirely.
The fix is not more technology. It is better design.
Human x Machine Is a Decision Set
Human x Machine is not a metaphor. It is a specific set of decisions about role redesign, workflow modification, decision rights, and collaboration architecture. Organizations that get these right do not just avoid failure. They compound.
Two Sides of the Same Compression
We published a companion piece this week on the external side of this problem: the $7.9B regulatory burden stalling U.S. manufacturing. Two sides of the same compression. If you missed it, it is worth a read alongside this one.
The full breakdown is in the attached report.
Question for the Network
What is your organization's biggest friction point right now: external regulatory, internal technical debt, or something else entirely?
By Michael Lennard Gnaedinger. © 2026 Gnaedinger Consultancy. All rights reserved.
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