Dave West sits down with Mik Kersten, author of Project to Product and the upcoming Output to Outcome, to explore why AI amplification is exposing the real bottlenecks in how organizations work. Mik shares data from over 3,600 value streams showing that development teams account for just 8% of end-to-end delivery time which means making those teams faster with AI doesn't move the needle if the constraints are upstream and downstream.
The conversation digs into why most organizations are measuring the wrong things (hint: token consumption is not a productivity metric), why overlay agile structures have largely failed, and why the answer isn't fewer teams it's more empowered ones. Mik introduces the core models from his new book: the outcome loop, the outcome tree, and seven organizational shifts that together make up a new operating model designed for the age of AI.
Key Takeaways:
The bottleneck has moved from software delivery to planning, governance, and innovation and most organizations haven't caught up
Making development teams faster with AI delivers little value if the surrounding system isn't designed around outcomes
Agile as an overlay structure doesn't work it has to become the primary operating model and the actual org chart
Empowered, autonomous teams are not optional in an AI-driven world the speed of feedback loops makes half-measures unsustainable
Leadership roles need to be redefined and incentive structures realigned to match the way teams are actually working
The theory of constraints still applies in the age of AI the constraint just keeps moving, and finding it is now the critical management skill
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