Business growth and AI

Are You Automating An Operating Model You Already Know is Broken?

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By Kinsugi Team

Are You Automating An Operating Model You Already Know is Broken?

Many UK organisations are investing heavily in automation and digital transformation, yet finding themselves trapped in an uncomfortable paradox: they are efficiently executing processes they know are fundamentally broken. The rush to modernise operations through technology has created a widespread pattern where companies automate their way deeper into inefficiency, rather than solving the root causes of operational dysfunction.

The Automation Trap

When operational friction becomes visible, the instinct is often to reach for technology solutions. Workflow automation, process management platforms, and enterprise software promise to streamline work and reduce manual labour. However, these tools amplify whatever logic already exists in your organisation. If your underlying process is inefficient, expensive, or misaligned with customer needs, automation simply makes the inefficiency faster and more expensive at scale.

A property management company, for example, might automate a tenant complaint system that takes 14 steps to log a single issue. The automated system now processes complaints in seconds instead of hours, but tenants still experience a 14-step resolution pathway. The technology has made the broken process slightly less painful—but it remains broken.

Why Operating Model Design Comes First

Effective digital transformation requires a different sequence: redesign your operating model first, then automate it. This means stepping back to ask foundational questions about how work flows through your organisation, where value is created, and what activities actually matter to your customers and your business.

Operating model design focuses on the structure of how your organisation creates, delivers, and captures value. It examines:
Process architecture—Which processes are essential? Which can be eliminated? Which depend on others?
Organisational structure—Do your teams align with value streams, or are they siloed by function?
Decision rights—Who decides, at what level, and with what information?
Customer experience—Does your operating model create the experience you intend to deliver?

Once you have redesigned your operating model to eliminate waste, reduce complexity, and align teams around customer value, automation becomes a powerful enabler. Technology then accelerates a process you have already proven works.

Common Costs of Automating Broken Systems

  • Sunk investment in legacy logic: Automating a flawed process embeds it into your systems, making it harder and more expensive to change later
  • Reduced employee engagement: Staff see their manual work replaced by automation of tasks they already knew were pointless, creating frustration rather than empowerment
  • Customer frustration: Faster delivery of a broken experience does not improve satisfaction; it often makes customers feel less heard
  • Missed ROI: Technology budgets are consumed maintaining automated inefficiency rather than funding genuine transformation
  • Competitive disadvantage: Competitors who redesign first will outpace you despite having less automation in place

A Practical Starting Point

Before your next automation project, conduct a brief operating model audit. Map your current state across three dimensions: How does work flow from initiation to completion? Where do handoffs occur, and what information is lost or duplicated? What are customers actually paying for, and how much of your process directly serves that value?

This audit does not require months of consulting. A cross-functional team can often identify the core issues in days. The goal is to separate symptoms (slowness, cost, errors) from root causes (unclear ownership, redundant approval steps, siloed data, misaligned incentives). Once you have that clarity, you can design a better operating model before automating it.

The Role of Technology

Technology remains essential to modern operations. But its role is to support a well-designed operating model, not to mask a broken one. Platforms like membership and property management systems work best when the underlying processes they support have been deliberately designed to create value. Teams adopting new systems should see them as enablers of redesigned ways of working, not simply faster ways to do what was already being done.

The question your organisation should be asking is not How can we automate this? but rather Should we be doing this at all, and if so, what is the simplest, most valuable way to do it? Answer that first, and automation becomes a strategic advantage. Skip that step, and automation becomes an expensive way to entrench mediocrity.

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