The percentage trap: Why your 2026 efficiency targets will fail.

TL;DR: Setting a target to "improve efficiency by 10%" without redesigning your Operating Model is a recipe for burnout, not growth. True efficiency comes from changing how work flows through your business, not just demanding more of it.

It’s that time of year. The strategy off-sites are wrapped, the coffee is stale, and the spreadsheets are out.

Somewhere in a boardroom, a target has been set: "We need to reduce costs by 10%" or "We need to increase output by 15%."

On paper, the math works. If everyone just pushes a little harder, stays a little later, and clears the backlog a little faster, you’ll hit the number.

But here is the reality I’ve seen time and again: "Do more with less" is not a strategy. It is a hope. And hope is a terrible way to run a business.

If you demand 10% more output but keep the same heavy processes, convoluted governance, and siloed teams, you won’t get efficiency. You will get a Q1 spike followed by a Q2 crash.

To actually hit those targets, you don't need a new number.

You need a new Operating Model.

The difference between a target and a system.

Most leaders look at the result they want (revenue, speed, savings) and try to manage toward it. But results are lagging indicators. They are the output of the machine you have built.

Your Operating Model is that machine. It is the blueprint for how your company runs, showing how strategy is turned into day-to-day action. It covers your structures, your processes, and the technology that underpins them.

If your machine is designed to produce X, no amount of shouting or "stretch goals" will make it produce Y. You have to open the hood and re-engineer the engine.

Why the "squeezing" strategy fails.

When you try to squeeze efficiency out of an old model, you usually trigger emergent properties you didn't see coming.

You might cut headcount to save money, but the remaining team is now swamped. Decision-making slows down because no one has the bandwidth to sign off. Quality drops. Rework increases. Suddenly, that "10% saving" has cost you 20% in lost momentum.

This violates the principle of Sustainable Pace. Teams do better work when they aren’t constantly red-lining. Performance collapses under stress, and when performance collapses, your strategy dissolves.

How to design for delivery?

So, how do you move from "doing more with less" to "doing better with structure"? You look at the system.

1. Stop optimising people, start optimising flow

Stop worrying about whether Dave in accounting is working 100% of the time. Worry about whether the work is moving. Supply chain optimisation isn't just for logistics; it applies to knowledge work too. Where does the value get stuck? Is it waiting for a steering committee? Is it trapped in a confusing handover? Fix the flow, and the speed takes care of itself.

2. Align resources to value

This is where Lean Portfolio Management comes in. Instead of rigid yearly budgets that trap money in projects that might not matter anymore, you need the flexibility to shift resources to the highest-value work in real time. If a project isn't delivering, kill it. Reinvest that energy where it counts.

3. Build governance that helps, not hinders

Governance should provide clarity, not chaos. If your teams need five signatures to change a font size, you aren't managing risk. You are manufacturing delay. Good operating models push authority down to the people doing the work, speeding up the cycle time.

Real talk: It takes courage

Redesigning an Operating Model is harder than changing a cell in a spreadsheet. It requires you to challenge the status quo and perhaps admit that the way you’ve always done things is now the bottleneck.

But the payoff is real. True transformation is a fundamental shift in leadership, culture, and ways of working.

Don't just set the number for 2026. Design the system that delivers it.

Key Takeaways

Efficiency isn't effort: Asking teams to work harder without changing the system leads to burnout, not results.

The Operating Model is the engine: You cannot change the output (results) without re-engineering the machine (processes, structure, technology).

Focus on flow: Identify where work gets stuck in your system and remove those blockers first.

Sustainability wins: A sustainable pace prevents the errors and rework that kill profitability.

Frequently Asked Questions

What is an Operating Model? An Operating Model is the blueprint for how a company runs. It bridges the gap between high-level strategy and day-to-day operations, covering structure, processes, and technology.

Why do efficiency targets often fail? They fail because they focus on the result (the number) rather than the method. Without changing the underlying system, teams are forced to work unsustainably, leading to burnout and quality issues.

How does Lean Portfolio Management help efficiency? It allows you to allocate resources flexibly rather than sticking to rigid annual budgets. This ensures money and time are always spent on the highest-priority work.

Reach out if you'd like to know more!