4 actions to improve workflows ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌   ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌   ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌   ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌   ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌   ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌   ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌   ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌   ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ 

DELIVERING ACTIONABLE INSIGHTS ON THE DAY’S NEWS Brought to you by Alex Panas, global leader of industries, & Axel Karlsson, global leader of functional practices and growth platforms Welcome to the latest edition of Only McKinsey Perspectives. We hope you find our insights useful. Let us know what you think at Alex_Panas@McKinsey.com and Axel_Karlsson@McKinsey.com. —Alex and Axel The power of better processes In the news • When workflows go wrong. When corporate processes regularly fail, they can create costly inefficiencies. As two MIT Sloan School of Management instructors posit in their new book, it’s important for managers to inspect how work actually happens to understand the why, The Economist notes. Leaders can be the biggest culprits of dysfunctional work-arounds—for example, reprioritizing tasks on a whim and overloading teams—that paradoxically reduce output. Streamlining can help: One bank slashed its time for IT project approvals to 20 days, from 120, by gathering decision-makers every week and focusing their attention on priorities. [Economist] • ‘Cross-examining’ AI. AI is transforming legal workflows by automating routine tasks—such as drafting and research—and freeing lawyers to focus on strategy and judgment, Fortune reports. One international law firm saved $200,000 and months of work by using an AI assistant to update attorney bios. However, the productivity gains that firms have seen are tempered by risks that require better oversight, stronger verification processes, and investments in governance. Hallucinated citations have already led to sanctions, and deepfakes threaten trust. [Fortune] According to McKinsey’s State of Organizations research, two-thirds of executives see their organizations as overly complex and inefficient. On McKinsey.com • The need for winning workflows. Leaders often attempt to boost productivity by redesigning structures or reporting lines. Yet these moves rarely produce lasting business impact if the organization’s workflows remain the same, say McKinsey Senior Partner Dana Maor and coauthors. Siloed data, overlapping responsibilities, and excessive meetings can hinder speed and efficiency. For example, one consumer-packaged-goods (CPG) company discovered that 35% of its decisions were duplicated across regions—and consumed more than 1,000 staff hours every month. • Beyond the org chart. Companies that redesign processes for value creation rather than hierarchy are seeing measurable results. Another CPG company accelerated its time to market by 1.5 times and improved its innovation pipeline’s net present value by 20 points after tackling silos. The lesson? Breakthroughs in efficiency and productivity require more than restructuring org charts—they demand a culture of scrutinizing everyday work and making bold changes. Explore four levers that can improve workflows and generate value. Break the productivity ceiling —Edited by Kanika Punwani, editor, Southern California Was this forwarded to you? Sign up here. Or send us feedback—we’d love to hear from you. Follow our thinking McKinsey Insights - Get our latest thinking on your iPhone, iPad, or Android. Copyright © 2025 | McKinsey & Company, 3 World Trade Center, 175 Greenwich Street, New York, NY 10007