Submission to the Australian Government’s Economic Reform Roundtable
Thanks to Professor Samson and Diana Bevington
Addressing Australia’s Productivity Challenge
Australia’s productivity growth has plateaued, with recent efforts yielding diminishing returns. Traditional macroeconomic levers, such as tax reform, infrastructure investment, and educational improvements, while important, are no longer sufficient to unlock the deep-rooted inefficiencies holding back our economic potential. Likewise, piecemeal initiatives like cost-cutting or isolated technology deployments have delivered limited value and, in some cases, have exacerbated the issue. In addition, the time lag between recognising issues and enacting effective solutions continues to impede meaningful productivity gains.
The real problem lies deeper. A major, often overlooked, contributor is “Noise” (waste) — non-value-adding work that permeates organisational processes. This inefficiency has become deeply embedded, consuming resources, damaging productivity, and eroding both staff satisfaction and overall effectiveness. These inefficiencies are “hidden in plain sight”, and research shows they account for an average of 38% of activity in most organisations, equivalent to nearly two days of unproductive work per person per week[1]. The median rate of “Noise” observed by industry varies from 28% to 50%. This operational burden, observed across all sectors, affects not only economic performance, inefficient processes and substandard service but also employee wellbeing and engagement.
A Digitised, Data-Driven, Evidence Based Solution
Innovative solutions are now required to complement policy settings and unlock Australia’s potential at the operational level. An actual existing, evidence-based solution is XeP3, a digitised platform designed to systematically identify and reduce operational Noise.
The methodology behind XeP3, establishes a rigorous baseline of current activity by mapping the end-to-end processes pinpointing the location and activities causing the Noise within any organisation. It quantifies the level of non-value-adding activity, the work around costs of specific noise and location of the consequences of each identified Noise. The result is the provision of an actionable roadmap encompassing behavioural change and lasting improvement.
The XeP3 digitised approach:
Engages staff at all levels to capture workflow and pinpoint bottlenecks.
Provides real-time, quantitative diagnostics on the proportion of value-adding versus non-value-adding work.
Facilitates targeted process redesign, appropriate behavioural changes, ensuring the structural removal, not just temporary suppression, of inefficiencies.
Enabling internal capability building, providing the means for organisations to become self-sufficient in sustaining improvements. Designed to empower internal staff through targeted training, thereby building in-house capability without reliance on external consultants
Offers a scalable and sector-agnostic approach, suitable for application within government, public sector, and private enterprises.
Empirical Results and Peer-Reviewed Validation
Deployment of XeP3 has consistently led to measurable improvements. Independent academic research, including work by Professor Danny Samson[1] published in the Australian Journal of Management February 2025, validates the XeP3 methodology. In his paper “Solving the paradox of Lean Management’s low success rate”, Samson et al. highlights the challenges with traditional productivity tools and notes how the XeP3 digitised approach has yielded significant improvements in operational capacity, employee engagement, and process reliability.
Professor Samson’s review of 268 projects utilising the XeP3 methodology highlights its powerful impact on organisational performance. Among these, 198 projects (nearly 74%) implemented the recommended changes, and every one of them reported measurable process improvements. All 198 experienced a reduction in Noise, while over half (56%) realised tangible financial benefits through increased revenue or cost reductions. Additionally, almost half (49%) succeeded in cutting lead times. These outcomes clearly demonstrate that adopting the XeP3 model delivers significant and consistent benefits, strengthening the case for its broader uptake.
Sites employing the XeP3 digitised method have reported:
50% reduction in “Noise”.
Ease in implementation with actionable results within six weeks.
Capacity gains and cost reductions resulting in return on investment within 12 months or sooner.
Marked improvements in staff satisfaction and engagement, as routine frustrations are addressed at the source.
Strengthened stakeholder engagement driven by demonstrable, enduring adoption of efficient processes.
Freeing up of human capital, redeploying talent towards value-generating activities.
The Peter MacCallum Cancer Centre's XeP3 transformation case study delivered extraordinary results: CT scan delays eliminated from 29 days to same-day service, saving $1 million annually in urgent imaging costs demonstrating exceptional value creation and operational efficiency gains.
Professor Samson’s research confirms that this approach can achieve in a few months what it took Toyota 50 years!
What Government Can Do to Drive Process-Level Productivity Reform
To address entrenched productivity barriers and unlock sustainable gains, the Australian Government can play a pivotal role by embedding policies that drive process-level improvement across all sectors. Government must take a more active role in encouraging, incentivising and promoting scalable, evidence-based operational solutions.
Supporting the adoption of proven methodologies like XeP3 across public and private sectors will drive measurable gains in productivity, reduce waste, and boost workforce capability.
By embedding such tools within government operations, agencies can lead by example — achieving efficiencies, improving service delivery, and enhancing employee engagement.
Broader application will strengthen economic resilience by increasing organisational agility and responsiveness to future shocks. Importantly, reduced inefficiency translates into better budget outcomes through cost savings and redeployment of resources to high-value activities. This approach aligns with the 5-Pillar Productivity Agenda by empowering a more skilled workforce, strengthening institutions, and enabling innovation in service delivery.
Government has the opportunity to champion process-level reform that delivers enduring, system-wide benefits for the economy, the budget, and the Australian people.
Diana Bevington & Professor Danny Samson
[1] Samson, D., et al. ‘Solving the Paradox of Lean Management’s Low Success Rate’. Australian Journal of Management, 2025, https://doi.org/10.1177/03128962241312725
[2] Professor Danny Samson, a distinguished Professor of Management at the University of Melbourne, serving since 1988 in the Department of Management and Marketing. He has authored over 100 research papers and more than a dozen books covering operations management, innovation, and decision theory. His research expertise spans total quality management, supply chain management, innovation capability, and sustainable development