Why AI Adoption Isn't Driving Productivity | Lazy Leverage #91

21 snips

Jan 13, 2026

Have you ever invested in technology only to see no improvement? Small businesses face this frustrating reality. The key isn’t just the tech itself, but how it’s implemented. Discover four crucial steps for technology rollout that many overlook, from identifying what tech can do to updating outdated policies. Learn why simply adopting AI won’t solve growth issues unless it addresses real constraints. The discussion also includes practical examples and creative tactics for maximizing operational efficiency.

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ANECDOTE

AI Won’t Fix Low-Cost Local Labor

Jon mocked venture-backed buyers who claim AI will fix local labor problems in pool cleaning.
He argues AI won’t solve managing $21/hour workers in wealthy homes without addressing the real constraint.

INSIGHT

Old Habits Hide New Gains

Companies keep legacy accommodations that were built around old limitations.
Those habits hide potential gains unless explicitly identified and changed.

ANECDOTE

E-Signatures Stayed, Scheduling Habit Didn’t

Peter switched from in-person to e-sign leases during COVID but left calendar scheduling habits in place.
He forced an immediate rule change to send leases within an hour and capture faster signings.

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Have you ever bought new tech, spent months implementing it, and seen zero throughput improvement? You’re not alone. It's an age-old problem plaguing small businesses.

Whether it's switching property management software or adopting ChatGPT company-wide, the result is the same. Lots of disruption yet no meaningful change.

The culprit isn't the technology itself. It's how we deploy it. In the audiobook 'Beyond the goal', Dr. Eliyahu Goldratt identified four critical steps for technology rollout in the Theory of Constraints work, and most businesses overlook at least a couple of them.

Step one is easy: identify what the technology can do (it's on the vendor's website). Step two is to ask, “Does this technology diminish your actual constraint?”.

Step three is to identify old accommodations. These are the rules your team created to cope with historic limitations.

Step four is to identify new rules.

Technology becomes a burden if you keep operating under old policies. Companies spend millions on ERPs without updating the implicit rules designed around previous limitations, then wonder why productivity stays flat.

Jon extends this to the AI hype cycle, in which venture-backed firms are buying pool cleaning companies claiming AI will revolutionize operations. But until someone explains how AI solves managing $21/hour workers in wealthy homeowners' houses, it's just expensive posturing.

The constraint isn't following up on leads but managing low-cost local labor. Writing emails faster doesn't address that!

KEY TOPICS:
(10:26) What to Do When A Lot of Work Nets Zero Results
(16:01) Step One: Identify the Power
(18:28) Step Two: How Does It Diminish the Constraint?
(21:10) Missing the Step Between Goals and Rocks
(28:17) Step Three: Identify Old Accommodations
(33:45) Step Four: Identify New Rules
(37:00) Why ChatGPT Adoption Isn't Driving Revenue Growth
(46:45) You Must Be Intimately Familiar With Both Your Constraint and the Available Tools