Change Management

If AI Is So Smart, Why Are We Struggling to Use It?

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The human-side barriers to AI adoption — and how to overcome them

In my previous newsletter, “Where AI is Already Making a Significant Impact on Business Process Execution – 15 Areas Explained,” we explored how AI is streamlining tasks from claims processing to customer segmentation. But despite these breakthroughs, one question keeps surfacing:

If AI is delivering so much value… why are so many organizations struggling to actually adopt it?

The answer isn’t technical — it’s human.

In this edition, I explore ten people-related reasons AI initiatives stall or underdeliver. Each barrier is followed by a practical example and suggestions for how to overcome it.

1. Fear of Job Loss and Role Redundancy

Employees fear AI will replace them, leading to resistance or disengagement. This is especially prevalent in operational roles and shared services.

Example: An EY survey found 75% of US workers worry about AI replacing their jobs. In several large organizations, process experts quietly slow-roll automation to protect their roles.

How to mitigate: Communicate early and often. Frame AI as augmentation, not replacement. Highlight opportunities for upskilling and create pathways for digitally enabled roles.

2. Loss of Meaning and Professional Identity

Even if employees accept AI won’t replace them, they may fear it will erode the craftsmanship and meaning of their work.

Example: In legal and editorial teams, professionals report reluctance to use generative AI tools because they feel it “cheapens” their contribution or downplays their expertise.

How to mitigate: Position AI as a creative partner, not a substitute. Focus on use cases that enhance quality and amplify human strengths.

3. Low AI Literacy and Confidence

Many knowledge workers don’t feel equipped to understand or apply AI tools. This leads to underutilization or misuse.

Example: I’ve seen this firsthand: employees hesitate to rely on AI tools and default to old ways of working out of discomfort or lack of clarity.

How to mitigate: Launch AI literacy programs tailored to roles. Give people space to experiment, and build a shared language for AI in the organization.

4. Skills Gap: Applying AI to Domain Work

Beyond literacy, many employees lack the applied skills needed to integrate AI into their actual workflows. They may know what AI can do — but not how to adapt it to their role.

Example: In a global supply chain function, team members were aware of AI’s capabilities but struggled to translate models into usable scenarios like demand sensing or inventory risk prediction.

How to mitigate: Invest in practical upskilling: scenario-based training, role-specific accelerators, and coaching. Empower cross-functional “AI translators” to bridge tech and business.

5. Trust and Explainability Concerns

Employees and managers hesitate to rely on AI if they don’t understand “how” it reached its output — especially in decision-making contexts.

Example: A global logistics firm paused the rollout of AI-based demand forecasting after regional leaders questioned unexplained fluctuations in output.

How to mitigate: Prioritize transparency for critical use cases. Use interpretable models where possible, and combine AI output with human judgment.

6. Middle Management Resistance

Mid-level managers may perceive AI as a threat to their control or relevance. They can become blockers, slowing momentum.

Example: In a consumer goods company, digital leaders struggled to scale AI pilots because local managers didn’t support or prioritize the initiatives.

How to mitigate: Involve middle managers in co-creation. Tie their success metrics to AI-enabled outcomes and make them champions of transformation.

7. Change Fatigue and Initiative Overload

Teams already dealing with hybrid work, restructurings, or system rollouts may see AI as just another corporate initiative on top of their daily work.

Example: A pharmaceutical company with multiple digital programs saw frontline disengagement with AI pilots due to burnout and lack of clear value.

How to mitigate: Embed AI within existing transformation goals. Focus on a few high-impact use cases, and consistently communicate their benefit to teams.

8. Lack of Inclusion in Design and Rollout

When AI tools are developed in technical silos, end users often feel the solutions don’t reflect their workflows or needs.

Example: A banking chatbot failed in deployment because call center staff hadn’t been involved in the design phase — leading to confusion and distrust.

How to mitigate: Involve users early and often. Use participatory design approaches and validate tools in real working environments.

9. Ethical Concerns and Mistrust

Some employees worry AI may reinforce bias, lack fairness, or be used inappropriately — especially in sensitive areas like HR, compliance, or performance assessment.

Example: An AI-based resume screener was withdrawn by a tech firm after internal concerns about gender and ethnicity bias, even before public rollout.

How to mitigate: Establish clear ethical guidelines for AI. Be transparent about data usage, and create safe channels for feedback and concerns.

10. Peer Friction: “They Let the AI Do Their Job”

Even when AI is used effectively, friction can arise when colleagues feel others are “outsourcing their thinking” or bypassing effort by relying on AI tools.

Example: In a shared services team, tension grew when some employees drafted client reports with AI in minutes — while others insisted on traditional methods, feeling their contributions were undervalued.

How to mitigate: Create shared norms around responsible AI use. Recognize outcomes, not effort alone, and encourage knowledge sharing across teams.

Final Thought: It’s Not the Tech — It’s the Trust

Successful AI adoption isn’t about algorithms or infrastructure — it’s about mindsets, motivation, and meaning.

If we want people to embrace AI, we must:

  • Empower them with knowledge, skills, and confidence
  • Engage them as co-creators in the journey
  • Ensure they see personal and professional value in change

Human-centered adoption isn’t the soft side of transformation — it’s the hard edge of success. Let’s create our transformation plans with that in mind.

Why Centres of Excellence Are the Backbone of Sustainable Transformation

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Real-world lessons from building CoEs across domains

In every transformation I’ve led—whether in supply chain, commercial, innovation, or enabling functions—one thing has remained constant: transformation only sticks when it becomes part of the organizational DNA. That’s where Centres of Excellence (CoEs) come in.

Over the years, I’ve built and led CoEs across foundational disciplines, transformation approaches, and specific capabilities. When set up well, they become more than just support groups—they build skill, drive continuous improvement, and scale success.

This newsletter shares how I’ve approached CoEs in three distinct forms, and what I’ve learned about setting them up for lasting impact.

What is a CoE? (From Theory to Practice)

In theory, a CoE is a group of people with expertise in a specific area, brought together to drive consistency, capability, and performance. In practice, I’ve seen them evolve into vibrant communities of practitioners where people connect to:

  • Share business challenges and solutions
  • Scale learnings and continuously evolve best practices
  • Facilitate exchange between experts and users
  • Build a knowledge base and provide education

The most successful CoEs I’ve led were about enabling people to learn from each other, work smarter, and operate more consistently.

Three Types of CoEs I’ve built and led

1. Foundational CoEs – Building Core Capabilities

These are the bedrock. Without them, transformation initiatives often lack structure and miss out on leveraging proven approaches. Examples from my experience include:

  • Program & Project Management CoE
    Built on PMI (PMBoK) and Prince2 standards, this CoE offered training, templates, mentoring, and coaching. It became the go-to place for planning and executing complex programs and projects.
  • Process Management CoE
    Using industry frameworks (e.g., APQC), platforms (ARIS, Signavio), and process mining tools (Celonis, UiPath, Signavio), this CoE helped standardize processes and enabled teams to speak a shared process language and identify improvement opportunities through data.
  • Change Management CoE
    Drawing from Kotter’s principles and other industry best practices, we developed a change playbook and toolkit. This CoE played a critical role in stakeholder alignment and adoption across transformation efforts.
  • Performance Management CoE
    Perhaps less commonly named, but highly impactful. We developed strategy-linked KPI frameworks and supported teams in embedding performance reviews into regular business rhythms.
  • Emerging: AI Enablement CoE
    Looking ahead, I believe the next foundational capability for many organizations will be the smart and responsible use of AI. I’ve begun shaping my thinking around how a CoE can support this journey—governance, tooling, education, and internal use case sharing.

2. Transformation-Focused CoEs – Orchestrating Change Across the Enterprise

Unlike foundational CoEs, these focus on embedding transformation methodologies and driving continuous improvement across functions. In my experience, they’re essential for changing both mindsets and behaviors.

  • Continuous Improvement | Lean CoE
    Anchored in Toyota’s principles, our Lean CoE supported everything from strategic Hoshin Kanri deployment to local Kaizens. It equipped teams with the tools and mindset to solve problems systemically, and offered structured learning paths for Lean certification.
  • Agile CoE
    Created during our shift from traditional project models to Agile, this CoE helped scale Agile practices—first within IT, then into business areas like marketing and product development.
  • End-to-End Transformation CoE
    One of the most impactful setups I was part of. At Philips, in collaboration with McKinsey, we created a CoE to lead 6–9 month E2E value stream transformations. It brought together Lean, Agile, and advanced analytics in a structured, cross-functional method.

3. Capability & Process CoEs – Scaling New Ways of Working

These CoEs are typically created during the scaling phase of transformation to sustain newly introduced systems and processes.

  • Supply Chain CoEs
    I’ve helped build several, covering Integrated Planning, Procurement (e.g., SRM using Coupa/Ariba), and Manufacturing Execution Systems (e.g., SAP ME). These CoEs ensured continuity and ownership post-rollout.
  • Innovation CoE
    Focused on design thinking, ideation frameworks, and Product Lifecycle Management (e.g., Windchill). It enabled structured creativity, process adoption, and skill development.
  • Commercial CoEs
    Anchored new ways of working in e-Commerce, CRM (e.g., Salesforce), and commercial AI tools—helping frontline teams continuously evolve their practices.
  • Finance CoEs
    Supported ERP deployment and harmonized finance processes across regions and business units. These CoEs were key in driving standardization, transparency, and scalability.

Lessons Learned – How to Build an Effective CoE

Having built CoEs in global organizations, here’s what I’ve found to be essential:

  • Start with a Clear Purpose
    Don’t set up a CoE just because it sounds good. Be explicit about what the CoE is solving or enabling. Clarify scope—and just as importantly, what it doesn’t cover (e.g., handling IT tickets).
  • Design the Right Engagement Model
    Successful CoEs balance push (structured knowledge and solutions) with pull (responsiveness to business needs). Two-way communication is critical.
  • Build the Community
    Experts are crucial, but practitioners keep the CoE alive. Foster interaction, feedback, and peer-to-peer learning—not just top-down communication.
  • Leverage the Right Tools
    Teams, SharePoint, Slack, Yammer, newsletters, and webcasts all support collaboration. Establish clear principles for how these tools are used.
  • Measure What Matters
    Track adoption, usage, and impact—not just activity. Set CoE-specific KPIs and regularly celebrate visible value creation.

Closing Thought

CoEs aren’t a magic fix—but they are one of the most effective ways I’ve found to institutionalize change. They help scale capabilities, sustain momentum, and embed transformation into the organization’s ways of working.

If you’re designing or refreshing your CoE strategy, I hope these reflections spark new ideas. I’m always open to exchanging thoughts.

Scaling Digital Transformation: From MVP Success to Enterprise-Wide Impact

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In many organizations, digital transformation starts strong but struggles to scale. Initial pilots show promise, yet momentum often stalls when leaders attempt to replicate success across the broader enterprise. Based on my own experience leading global transformations, I’ve found that the key to scaling lies in a phased, learning-driven approach—one that combines fast wins, co-creation, and structured rollout methodology with rigorous focus on adoption and impact.

I’ve applied this phased scaling approach in multiple global transformations—ranging from a Lean-based, end-to-end value chain transformation developed with McKinsey, to process standardization and operating model redesign in Innovation, Commercial, and Supply Chain domains. It also proved highly effective during large-scale ERP implementation programs, where structured rollout and local ownership were critical to success. These experiences shaped the approach outlined below.

1. Start with a Strategic MVP

Every transformation needs a spark—a Minimum Viable Product (MVP) that proves value fast. This is not about testing technology in isolation but selecting a use case that matters to the business and can deliver tangible outcomes quickly.

In practice:
During a global ERP rollout, we launched the MVP in smaller countries in South America. These markets had limited existing system support, so the gains from automation and standardized processes were immediate and highly visible. It was the ideal environment to test the new design while delivering clear early value to the business.

The goal: build credibility and show that “this works.” More importantly, use this phase to create internal advocates who will help carry the message forward.

2. Expand to a Representative Deployment

Once momentum is created, the next step is critical: move beyond the pilot phase and test your approach in a part of the organization that reflects the broader complexity and scale.

In practice:
In the same ERP program, we selected North America as the next deployment—arguably the toughest environment due to its scale, criticality, and history of customized automation. If we could succeed there, we knew we could scale globally. Through co-creation with local business and functional teams, we built the assets, governance model, and deployment methodology that became the foundation for all subsequent rollouts.

3. Codify Learnings and Create the Scaling Roadmap

After two deployments, you’ll have rich insight into what works, what doesn’t, and what needs to adapt. This is the time to capture and codify those learnings into a repeatable transformation playbook.

In practice:
In the end-to-end Lean transformations, we developed a comprehensive playbook that included standard tools, templates, and real-world examples. We also created resource models and scaling scenarios to support portfolio-level roadmap planning. This gave the transformation program clarity on how to scale with confidence.

4. Industrialize the Rollout

With a clear roadmap in place, the focus shifts to scaling with speed and consistency. This requires an empowered central team that operates as an enabler, that works closely with the business, regional and functional teams.

In practice:
As we scaled our end-to-end transformations from 2 to more than 70 deployments in three years, we enhanced the playbook continuously and established an internal academy. This academy enabled employees to follow a structured learning journey and certify their transformation skills. At the same time, we implemented clear communication strategies and dashboards to track adoption, progress, and value realized—keeping everyone aligned and accountable.

5. Drive Momentum

Scaling isn’t just about delivery—it’s about sustaining energy and belief. Even the best plans will stall without a mechanism to drive momentum and reinforce impact.

In practice:
In the ERP program, we implemented regular health checks to assess deployment progress and identify adoption risks early. Senior leaders were actively involved in championing each phase, reinforcing the “why” and spotlighting success stories across regions. We knew that technical go-live was just the beginning—the real success comes from business adoption, continuous improvement and realized value.

Final Reflections

Many transformations fail at different phases of the journey. Some stumble at the very start by choosing a pilot that is too complex to succeed quickly. Others struggle to make the leap from isolated success to broader relevance. Some lose steam by over-engineering the scale-up, while others fail to sustain momentum once the initial excitement fades.

Next to the examples of what worked, I’ve also seen where things went wrong—or could have gone significantly better. These lessons are just as valuable, and they underscore the importance of staying pragmatic, agile, and focused on value throughout the scaling process.

A successful digital-enabled transformation moves from MVP to full scale through a deliberate series of learnings, adjustments, and investments—not just in technology, but in people, process, and governance.

By starting with fast, meaningful wins, expanding through co-creation, and scaling with discipline, organizations can move from isolated experiments to enterprise-wide impact—with clarity, confidence, and speed.

The Secret Sauce Behind Successful Transformation: Learning Journeys

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In the execution-to-integration phase of any transformation, the greatest challenge is rarely the strategy — it’s the sustainability of new ways of working. Systems are deployed, structures reconfigured, and operating models redesigned. Yet months later, familiar patterns resurface, and old behaviors creep back in.

Why? Because true change doesn’t happen in workshops or at go-live milestones. It happens in the daily decisions, habits, and interactions of people across the organization.

This is where learning journeys come in.

Unlike traditional training events — often one-off, content-heavy, and disconnected from real work — learning journeys are spaced, orchestrated experiences designed to embed new skills, mindsets, and behaviors over time. They are:

  • Sequenced over weeks or months to allow for reflection, practice, and reinforcement.
  • Multi-modal, blending digital modules, live sessions, coaching, peer learning, and on-the-job application.
  • Contextualized to individual roles, workflows, and transformation objectives.
  • Integrated into governance and feedback loops to drive ongoing alignment and improvement.

Well-designed learning journeys do more than teach — they transform. They make change tangible, repeatable, and sticky by equipping people to not only understand the new way, but live it every day.

1. Adult Learning Theory: How Adults Learn Best

Research by Malcolm Knowles and successors highlights that adults:

  • Are self-directed.
  • Bring prior experience into the learning process.
  • Want immediate relevance and application.
  • Learn best through problem-solving.

Implication for transformation:
Traditional training sessions or slide decks won’t embed new behaviors. Instead, adults need learning that:

  • Is contextual (tied to their specific role).
  • Offers autonomy (flexibility to explore and apply).
  • Encourages reflection (linking new knowledge with real experiences).

This supports transformation by turning employees into co-creators of change, not just recipients of it.

2. Learning Experience Design : Make It Stick Through Design

Learning Experience Design blends cognitive science, user-centered design, and storytelling to create memorable and effective learning environments. Drawing from design thinking, it emphasizes:

  • Empathizing with learners’ day-to-day.
  • Designing around “moments that matter.”
  • Prototyping and iterating based on feedback.

Implication for transformation:
Learning Experience Design ensures that learning is not generic. For example:

  • Frontline employees might need immersive, task-based simulations.
  • Managers may benefit more from leadership labs and decision-making scenarios.
  • Learning pathways can be designed to mirror the actual rollout of new processes or systems.

This design-first approach increases relevance, reduces friction, and drives higher engagement—key enablers for sustainable transformation.

3. Behavioral Science & Habit Formation: Anchor New Norms

Transformation success is often about small, repeatable behavior changes. Behavioral science — especially the work of James Clear (Atomic Habits) and Charles Duhigg (The Power of Habit) — shows that habits are formed when:

  • Behaviors are simple and easy to start.
  • Triggers and cues are present in the environment.
  • There is immediate reward or reinforcement.

Implication for transformation:
Learning journeys that incorporate behavior design principles:

  • Use nudges to prompt the right actions.
  • Reinforce micro-successes (e.g., feedback after using a new system).
  • Encourage habit stacking (e.g., “after daily team huddle, review dashboard insights”).

Embedding these principles turns learning from a one-off event into an ongoing cycle of behavior reinforcement, helping transformation stick at the individual and team levels.

4. Integration Best Practices: Close the Loop Between Learning and Doing

Many transformations fail in the post-implementation phase because of a disconnect between system rollout, new processes, and human capability. Integration-focused learning journeys:

  • Align with change governance (e.g., steerco and sponsor feedback loops).
  • Include just-in-time learning embedded into the workflow (performance support tools, coaching, etc.).
  • Monitor learning adoption KPIs (e.g., skill application, confidence, usage rates).

Three critical integration elements:

a) Learning must be embedded in the work, not adjacent to it

  • Learning and performance support tools within workflows.
  • Just-in-time content linked to system/process steps.

b) Learning should be part of governance and leadership rituals

  • Incorporating learning metrics into program dashboards.
  • Leaders modelling and discussing learning progress in townhalls and reviews.

c) Learning journeys need to be tracked and adapted over time

  • Use of learning analytics, feedback loops, and continuous improvement.
  • Mechanisms to sunset legacy habits and reinforce new ones.

Together, these principles ensure learning is not a support function but a core engine of transformation delivery.

5. Real-World Examples of Learning Journeys in Action

Microsoft – From Culture Reset to Growth Mindset

  • Journey led by Satya Nadella blending storytelling, role-modeling, and digital learning platforms.
  • Emphasis on curiosity, collaboration, and continuous learning.

Unilever – Scaling Digital Fluency Globally

  • Created a Digital Learning Framework aligned to business capabilities.
  • Personalized learning portals, regional academies, and gamification.

Siemens – MyLearning World as a Platform for Change

  • Centralized platform delivering self-paced, role-based learning.
  • Integration into performance management and project onboarding.

Each example reinforces a core principle: learning drives transformation when it is lived, not just launched.

6. Implementation Blueprint: How to Design and Launch a Learning Journey

Step 1: Define the learning objectives linked to transformation goals

  • What behaviors must change? In which roles?

Step 2: Map the journey — sequence, format, duration

  • Consider phases: Awareness → Enablement → Practice → Reinforcement
  • Blend formats: eLearning, workshops, peer sessions, toolkits, coaching

Step 3: Integrate with business cadence and systems

  • Embed in onboarding, performance reviews, and tool workflows.

Step 4: Mobilize champions and leadership sponsors

  • Leaders should learn with their teams — visibly and vocally.

Step 5: Monitor progress and adapt in real time

  • Use learning analytics, pulse surveys, feedback loops.

Tip: Treat learning like a product — continuously evolving with new features and feedback.

Conclusion: From Learning to Lasting Change

“Transformation sticks when people change how they work — and that only happens through intentional, immersive learning journeys.”

If your transformation includes a plan, a system, and a steering committee — it should also include a learning journey.

Embed Design Thinking in Digital Transformation

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What is Design Thinking?

Design Thinking is a human-centered, iterative problem-solving methodology that blends what is desirable from a human point of view with what is technologically feasible and economically viable. It emphasizes empathy, creativity, and experimentation — especially in the face of complex, ambiguous challenges.

This approach has been championed by several leading institutions:

  • IDEO, the design and innovation consultancy that helped formalize and popularize the methodology in the 1990s, defines Design Thinking as “a way to solve problems creatively and put the user at the heart of the process.”
  • Stanford d.school (Hasso Plattner Institute of Design) provides a widely adopted framework for teaching Design Thinking, focusing on empathy, rapid prototyping, and iteration.
  • Harvard Business Review and MIT Sloan Management Review have featured numerous case studies and research articles on the strategic value of Design Thinking in driving innovation and transformation.

Design Thinking is not just about aesthetics or UX — it’s about rethinking the business problem from the outside in. It works particularly well when the problems are not well defined, solutions are not obvious, and buy-in is essential.

When to Apply Design Thinking in a Transformation Journey

Design Thinking is particularly valuable in the following scenarios:

  1. Tackling Complex, Ill-Defined Problems
    Helps navigate ambiguity and uncover the real issues when the challenge is unclear or evolving.
  2. Creating User-Centric Solutions
    Ensures that products, services, or experiences truly meet user needs, boosting adoption and satisfaction.
  3. Driving Innovation
    Encourages breakthrough thinking and novel solutions beyond incremental improvements.
  4. Organizational Transformation
    Reframes complex change challenges and engages stakeholders in co-creating future ways of working.
  5. Cross-Functional Alignment
    Provides a shared process and language for collaboration across diverse teams and disciplines.

How to Apply Design Thinking: The 5 Key Steps

The five-step model used by the Stanford d.school and adopted globally is:

1. Empathize

The foundation of Design Thinking is developing a deep understanding of the users and stakeholders involved.

Key Activities:

  • Conduct user interviews and observations
  • Create empathy maps
  • Shadow users in their natural environment
  • Gather stories and experiences
  • Identify pain points and unmet needs

Tips for Success:

  • Suspend judgment and listen deeply
  • Look for contradictions between what people say and what they do
  • Pay attention to emotional responses and non-verbal cues
  • Seek diverse perspectives across your user base

2. Define

This phase involves synthesizing research insights to clearly articulate the problem you’re trying to solve.

Key Activities:

  • Analyze patterns in your research data
  • Create user personas
  • Develop problem statements or “How Might We” questions
  • Map user journeys to identify opportunities
  • Prioritize which challenges to address

Tips for Success:

  • Frame problems as opportunities
  • Ensure your problem statement is neither too broad nor too narrow
  • Focus on user needs rather than organizational constraints
  • Use the format: “[User] needs a way to [user’s need] because [insight]”

3. Ideate

With a clear problem definition, teams generate a wide range of potential solutions.

Key Activities:

  • Brainstorming sessions
  • Mind mapping
  • Sketch sessions (like Crazy 8s)
  • Analogical thinking exercises
  • Creative provocations and constraints

Tips for Success:

  • Defer judgment—aim for quantity over quality initially
  • Build on others’ ideas
  • Encourage wild ideas to stretch thinking
  • Stay focused on the problem statement
  • Combine and refine ideas before moving to prototyping

4. Prototype

This phase transforms ideas into tangible forms that can be experienced and tested.

Key Activities:

  • Create low-fidelity prototypes (paper, cardboard)
  • Develop digital mockups or wireframes
  • Role-play service experiences
  • Storyboard user journeys
  • Build functional models

Tips for Success:

  • Start simple and rough—prototypes should be quick and inexpensive
  • Focus on the critical aspects you need to test
  • Create just enough detail to get meaningful feedback
  • Remember that prototypes are disposable learning tools, not final products
  • Consider multiple prototype variations when possible

5. Test

The testing phase involves gathering feedback from users interacting with your prototypes.

Key Activities:

  • User testing sessions
  • A/B testing
  • Feedback collection and analysis
  • Observation of prototype interactions
  • Iteration based on learnings

Tips for Success:

  • Test with real users, not just team members
  • Ask open-ended questions
  • Watch what users do, not just what they say
  • Be prepared to return to earlier phases based on feedback
  • Document both successes and failures

Positioning Design Thinking Within the Transformation Toolkit

Design Thinking plays a distinct role within the broader transformation toolkit. It complements analytical, strategic, and operational tools by introducing human-centered exploration.

Phase of TransformationKey ObjectiveRelevant ToolsDesign Thinking’s Role
Direction SettingDefine purpose and ambitionVision Canvas, Portfolio AssessmentReframe strategic challenges through user lenses
Problem FramingUnderstand root causesRoot Cause Tree, Current State MappingUncover unmet needs, redefine the real problem
Solution DesignDevelop future-state solutionsJourney Mapping, Value Stream DesignGenerate, test, and refine ideas based on user feedback
ImplementationDeliver and scale changeAgile Delivery, Roadmap PlanningAlign design with adoption and feedback
Continuous ImprovementOptimize and evolvePDCA Cycle, VOC, KPIsRapidly test and iterate small changes that matter to users

Connections to Other Tools:

  • Agile: Design Thinking fuels the Agile backlog with user-validated insights.
  • Journey Mapping: Design Thinking is the mindset powering journey development.
  • Root Cause Analysis: Ensures you’re solving the right problem, not just the obvious one.
  • Business Case Development: Early prototypes validate assumptions before large investments.

Conclusion

Design Thinking brings the voice of the user into the heart of digital transformation. In a landscape driven by technology, data, and speed, it serves as a vital reminder that people are at the core of every transformation.

For transformation leaders, it offers a structured yet creative way to navigate ambiguity, build stakeholder alignment, and reduce the risk of building solutions no one wants. Combined with complementary tools, it can shift the trajectory of change programs from compliance-driven to truly innovation-led.

“Design Thinking is not a process for designers, it’s a process for creators, innovators, and leaders.” — Tim Brown, IDEO

Key Insights from Digital Forum Amsterdam: AI’s Global Impact

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Last week, I had the opportunity to present at the Digital Forum in Amsterdam, where over 100 executives and transformation leaders gathered to explore the future of leadership in the digital era. My keynote, titled “AI Without Borders – Harnessing Artificial Intelligence for Global Impact”, was met with great engagement and sparked many thoughtful discussions afterward.

In this article, I’d like to share the highlights and insights from the session—with the slides embedded between paragraphs for context.

AI is Reshaping Work—Across All Roles and Industries

My opening message was simple: no matter where you work or what your role is, AI will impact your processes, job content, and organization over the next 5 to 10 years. The only uncertainty is the scale and speed of this change.

To reinforce this, I brought in research findings from the WEF, MIT, PwC, McKinsey, Gartner, IBM, and Goldman Sachs. These sources highlight both the immense economic potential of AI (up to $15.7 trillion by 2030) and its disruptive impact on the workforce—millions of jobs created, transformed, or displaced, and a pressing need for upskilling on a global scale.

Staying Ahead: Why AI Fluency Matters

One statement particularly resonated with the audience: “It’s not that your job will be replaced by AI—but it might be replaced by someone who uses AI better than you.”

This is a wake-up call for continuous learning. The pace of development is breathtaking. I shared a snapshot of Q1 2025 breakthroughs and hinted at Google’s recent launch of AgentSpace, which I’ll cover in a future edition.

The Real Impact: AI in Marketing, Supply Chain, and Innovation

We then looked deeper into three core business areas—Marketing & Sales, Supply Chain, and Innovation—to see how AI is already creating tangible value.

In Marketing & Sales, AI is now embedded across the funnel—from awareness to retention. At Brenntag, for example, we successfully used AI to predict customer churn and recommend next-best actions, helping our commercial teams serve customers more effectively.

I also highlighted how large brands are already using AI to generate marketing content at scale. But the exciting shift is that these same capabilities are now accessible to smaller companies too—lowering the barriers to entry and leveling the playing field.

In Supply Chain, we see a dual reality: some companies still struggle with visibility and fragmented data, while others are unlocking efficiency gains with advanced AI tools. My message here: building end-to-end supply chain visibility is foundational. Only then can AI deliver its full potential.

As an example, I shared how, more than a decade ago at Philips, we began using IoT and early predictive maintenance for MRI machines. Today, this has evolved into a sophisticated system combining sensors, analytics, and AI—ensuring optimal equipment uptime and smooth patient flow in diagnostic imaging.

AI Accelerates the Innovation Cycle

AI is also supercharging innovation, reducing the time and cost of development across all phases—from identifying unmet needs to prototyping and testing.

I used the breakthrough example of AlphaFold by DeepMind, which dramatically accelerates drug discovery and the design of new materials. And at Brenntag, we’ve experimented with AI to accelerate lab innovation in the chemical sector—demonstrating that even smaller-scale applications can yield significant gains.

Data: The Essential Fuel for AI

Of course, none of this works without data. But many organizations face persistent challenges: fragmented systems, inconsistent standards, unclear data ownership, and poor governance.

I emphasized that improving data quality, accessibility, and trust is a prerequisite for AI success. Only when teams believe in the data and the systems built on top of it will adoption and results follow.

People and Culture Make the Difference

Finally, I addressed the cultural and organizational shifts required for AI to succeed. This includes:

  • Building trust and transparency into AI solutions
  • Empowering people to work ethically and responsibly with AI
  • Driving change management and adoption
  • And most importantly: ensuring consistent leadership support, with a clear vision and shared purpose

My Closing Message

I wrapped up with four key takeaways for leaders steering AI transformations:

  • AI will change processes, jobs, and businesses – only the speed is unknown
  • Data is the fuel for AI – make it fit for purpose and ready to use
  • The future is Human + AI – a cultural transformation is essential
  • Embed AI in your Operating Model – start small, scale fast, and learn continuously

Harnessing Curiosity for Digital Transformation Success

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In a world shaped by accelerating change, new technologies, and shifting customer expectations, digital transformation is no longer optional—it’s a strategic imperative. But technology alone doesn’t drive transformation. The real differentiator lies in human capabilities—and among these, curiosity stands out as a key enabler of successful change.

Curiosity: The Human Advantage in a Digital World

Curiosity isn’t just about asking questions. It’s the active pursuit of new knowledge, perspectives, and possibilities. It fuels learning, drives innovation, and enables people to adapt quickly in fast-moving environments.

As Deloitte puts it in their research on digital fluency, “Curiosity is the catalyst that allows people to keep pace with technology—and lead with it.”

For transformation leaders, this has direct implications:

  • Curious individuals are more likely to experiment, learn, and improve.
  • Curious teams are better at breaking silos, seeking input, and iterating solutions.
  • Curious cultures are more resilient, adaptive, and open to what’s next.

Research That Connects Curiosity to Transformation Success

The Business Case for Curiosity – Harvard Business Review (Francesca Gino, 2018)

  • Curious employees are more engaged, collaborative, and better at decision-making.
  • Organizations that foster curiosity experience higher innovation and reduced groupthink.
  • Read the article →

The Mindsets of Transformation Leaders – McKinsey & Company

  • Highlights intellectual curiosity as a hallmark of successful transformation leaders.
  • Curious leaders are more willing to challenge assumptions, adapt strategy, and engage stakeholders.
  • Read the article →

Human + Machine: Reimagining Work in the Age of AI – IBM Institute for Business Value

  • Emphasizes that in the AI era, human skills like curiosity are vital complements to automation.
  • Curious individuals are better at interpreting data, asking better questions, and guiding AI to impactful outcomes.
  • Explore Human + Machine →

The Curiosity Gap: What Holds Teams Back

Despite its value, many organisations unintentionally stifle curiosity:

  • Rigid hierarchies discourage questioning.
  • Execution pressure leaves no room for reflection.
  • Fear of failure shuts down experimentation.
  • Overreliance on expertise limits fresh thinking.

These are culture issues, not people issues. Leaders play a pivotal role in changing this dynamic.

How Leaders Can Foster Curiosity

Transformation leaders can amplify curiosity in practical, powerful ways:

  • Ask more than tell: Use open-ended questions to spark exploration.
  • Normalize experimentation: Frame pilots and prototypes as learning opportunities.
  • Listen actively: Signal that new ideas and diverse perspectives are valued.
  • Reward growth: Recognize not just performance, but how people learn and adapt.
  • Lead with humility: Show you’re learning too—and invite others on the journey.

Final Word

Digital transformation is ultimately a human transformation. And curiosity is the mindset that keeps humans relevant, engaged, and future-ready.

It’s what helps a data analyst spot an emerging trend, a product manager test a radical new idea, and a CEO rethink a decades-old business model. It’s also what allows us to partner more effectively with AI—asking the right questions, interpreting signals, and imagining better solutions.

As you lead your organisation through transformation, don’t just invest in platforms and capabilities. Invest in curiosity. It’s the spark that turns potential into progress.

Master Impactful Communication in Digital Transformation

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Why Communication Is the Lifeblood of Transformation Communication is more than a soft skill—it’s a strategic lever. Miscommunication or a lack of timely information can erode trust, stall progress, and sow confusion. According to McKinsey, 70% of transformation programs fail, and poor communication is often a silent contributor. Impactful communication aligns stakeholders, drives engagement, mitigates resistance, and reinforces progress. It is how leadership earns trust, how teams stay focused, and how change becomes real.

1. Why Communicate: Purpose, Alignment, and Momentum At every stage of a transformation, communication serves a purpose:

  • Clarify Purpose: Explain the “why” of the transformation—the vision, strategic drivers, and burning platform.
  • Create Alignment: Ensure all stakeholders understand their role in the broader narrative.
  • Build Momentum: Regular communication reinforces progress and sustains engagement.

Example: Continuously link messages to how the topic supports the overall strategy and purpose of the transformation.

2. What to Communicate: The Three Strategic Narratives

  • Purpose: Why are we doing this? Lay out the rationale, desired future state, and expected benefits.
  • Progress: What’s happening now? Share timelines, milestones, and any course corrections.
  • Proof: What’s working? Highlight quick wins, user stories, and lessons learned. Success stories inspire belief.

Example: A transformation dashboard updated monthly with progress visuals and a rotating spotlight on team success stories creates transparency and boosts morale.

3. How to Communicate: Channels, Formats, and Tone

  • Stakeholder-Focused: Tailor content to audience needs. Executives need strategic updates, while frontline teams need clarity on operational impacts.
  • Formats: Mix videos, infographics, text updates, and live events. Use storytelling, visuals, and humor where appropriate.
  • Tools: Combine traditional (emails, town halls) with digital (Yammer, Teams, digital signage).

Example: A short animated video used to explain a new agile model across the company generates more engagement than a 10-page slide deck.

4. Where to Communicate: Choosing the Right Channels

  • Channels: Leverage both formal (newsletters, intranet) and informal (team meetings, social platforms).
  • Internal and External: Don’t forget partners, customers, and external stakeholders when relevant.
  • Beyond Standard: Use unconventional methods like pop-up booths, floor ambassadors, or interactive kiosks.

Example: Place screens in break rooms with FAQs and video testimonials from users. Often, employees read external communication (e.g. LinkedIn) more attentively than internal channels.

5. Who Should Communicate: Roles and Responsibilities

  • Leadership: Sets the tone and provides credibility.
  • Program Teams: Share updates and own the transformation story.
  • End Users: Involve them in co-creation and let their stories become advocacy.
  • Champions/Change Agents: Act as trusted messengers within the organization.

Example: (Team) Leaders deliver tailored talking points to their teams after town halls to reinforce key messages locally.

6. When to Communicate: Cadence with Purpose

  • Routine Rhythm: Weekly newsletters, monthly video messages, quarterly town halls.
  • Event-Driven: Go-live updates, milestone achievements, leadership transitions.
  • Embedded Moments: Integrate into standups, one-on-ones, and performance reviews.

Example: A transformation team sends a short Friday note every week with “Top 3 things to know” – brief, consistent, and effective.

7. Making Communication Two-Way

  • Feedback Loops: Open Q&A forums, feedback forms, sentiment pulse checks.
  • Listening Mechanisms: Focus groups, digital suggestion boxes, skip-level meetings.
  • Empower Managers: Train and support them to act as translators and listeners.

Example: Run quarterly listening sessions where employees can anonymously submit and vote on questions.

8. Measuring Communication Effectiveness

  • Quantitative Metrics: Email open rates, intranet views, video play completion, attendance.
  • Qualitative Feedback: Employee surveys, pulse checks, sentiment analysis.
  • Behavioral Indicators: Are stakeholders taking desired actions (e.g., using a new tool, adopting a new process)?

Example: Use employee surveys to check communication effectiveness. Include questions on whether the why, who, what, where, and when of the transformation are well understood.

Conclusion: From Messaging to Meaning

Impactful communication is not just about delivering information—it’s about shaping perception, building trust, and enabling action. It’s a leadership discipline that requires intent, empathy, and agility. In digital transformations, where uncertainty is the norm, communication becomes the connective tissue that keeps strategy and execution aligned. For senior leaders, investing in communication is not optional—it’s foundational to transformation success.

How Continuous Improvement (PDCA and Kaizen) drives Adoption and Value in Digital Transformation

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Why Continuous Improvement Matters in Digital Transformation

Many digital transformations falter after implementation. Technologies go live, but the full value often remains unrealized. One key reason? A lack of embedded, ongoing improvement practices.

Continuous Improvement Cycles—specifically PDCA (Plan–Do–Check–Act) and Kaizen—provide the discipline required to keep improving after deployment. They shift the mindset from “project completion” to continuous value optimization, embedding a culture that learns, adapts, and evolves.

The impact is well-documented:

💡 According to McKinsey & Company (2021), organizations that embed continuous improvement into their digital transformations are 2.5 times more likely to report successful outcomes than those focused solely on implementation.

📊 A Deloitte study (2022) found that 78% of organizations that sustained their digital transformation benefits had formalized continuous improvement processes, compared to just 31% of those that didn’t.

Real transformation success isn’t just about launching change—it’s about sustaining and evolving it continuously.

PDCA: A Structured Learning Loop for the Digital Age

The PDCA cycle, originally developed by W. Edwards Deming, remains foundational in continuous improvement. In today’s digital environment, it has been enhanced with real-time data, agile delivery, and user-centered design.

1. Plan

Define the opportunity and craft a value-aligned, testable intervention.

  • Traditional: Diagnose the current state, set improvement goals, design the change.
  • Digital Evolution: Use analytics to identify friction points, apply design thinking to understand user needs, and define digital KPIs aligned with business outcomes. Prioritize minimal viable changes over complex upfront plans.

2. Do

Test the change in a low-risk environment and gather real-world feedback.

  • Traditional: Pilot changes, document execution, and support implementation.
  • Digital Evolution: Use feature flags for controlled rollouts, run A/B tests, automate behavioral data capture, and deploy rapidly to shorten time-to-feedback.

3. Check

Assess impact and extract learnings.

  • Traditional: Compare actual results to expectations, conduct retrospectives, identify lessons.
  • Digital Evolution: Monitor via real-time dashboards, use automated testing, apply UX research, and leverage predictive analytics to detect patterns.

4. Act

Scale what works—or iterate again.

  • Traditional: Standardize successful practices, communicate changes, revisit unresolved issues.
  • Digital Evolution: Automate through CI/CD pipelines, codify learnings into playbooks, build communities of practice, and use retrospectives to institutionalize learning.

✅ When PDCA is adapted with digital enablers, it becomes a strategic engine for transformation value realization—not just an operational tool.

Kaizen: Creating a Culture of Relentless Improvement

Where PDCA offers structure, Kaizen—meaning “change for better”—injects continuous improvement with energy, ownership, and culture. Originating from Japanese manufacturing excellence, it is a philosophy that emphasizes daily, incremental progress driven by everyone in the organization.

Core Principles of Kaizen

  1. Continuous, Incremental Improvement
    • Small, low-cost changes compound into significant long-term impact.
    • Especially valuable in digital contexts, where feedback loops are fast and ongoing.
  2. Process Focus
    • Kaizen targets flawed processes, not people.
    • Teams are encouraged to map and improve end-to-end workflows—not just surface-level symptoms.

💡 Insight: In many digital failures, technology isn’t the issue—process design is. Kaizen helps uncover complexity and inefficiencies that digital tools alone can’t solve.

  1. Elimination of Waste (Muda)
    • Waste is any activity that doesn’t add customer value. Kaizen uses the TIMWOODS framework to identify eight key forms of waste:
TypeDigital Example
TransportRedundant data transfers between systems
InventoryUnused data, reports, or stored digital assets
MotionExcessive navigation in systems or interfaces
WaitingDelayed approvals, system lags
OverproductionFeatures or reports no one uses
OverprocessingManual re-checks due to low trust in automation
DefectsRework from bugs, data errors
Skills (Underuse)Not tapping into employee creativity and insight
  1. 🧭 Transformation Tip: Process mining and automation can help eliminate waste—but without a Kaizen mindset, digital solutions may just replicate analog inefficiencies.
  2. Employee Involvement and Ownership
    • Those closest to the work are best positioned to improve it.
    • Kaizen encourages bottom-up contributions, while leaders provide the tools, time, and recognition.

🟢 Example: A logistics firm equipped teams with tablets to log small improvement ideas. In six months, they implemented over 200 enhancements—resulting in a 12% productivity lift.

  1. Standardization of Improvements
    • Once something works better, it becomes the new standard.
    • This locks in gains while setting the stage for the next cycle of improvements.

“Without standards, there can be no improvement. For improvement to happen, changes must be made.”
— Masaaki Imai, father of Kaizen

Making It Stick: Enablers of Success

To embed continuous improvement in your transformation:

  • Leadership Commitment – Role-model curiosity and support learning-by-doing.
  • Digital Enablers – Use analytics, process mining, and feedback loops to identify what to improve.
  • Training & Empowerment – Equip teams to run their own improvement cycles.
  • Recognition – Celebrate both the small wins and the mindset behind them.

From One-Off to Ongoing

Transformation is not a finish line—it’s a journey of continuous alignment and adaptation. PDCA and Kaizen offer practical, proven ways to embed improvement into the DNA of your organization, ensuring digital capabilities evolve with business needs.

Organizations that adopt these cycles at scale don’t just implement change—they sustain it, extend it, and accelerate its value.

Balancing between Balcony and Dance Floor – Tip for Leadership in Digital Transformation

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The “Balcony and Dance Floor” metaphor, introduced by Ronald Heifetz and Marty Linsky, offers a powerful framework for balancing hands-on leadership with strategic oversight. Leaders must be immersed in execution (the dance floor) while also stepping back to gain a broader perspective (the balcony). Striking this balance is crucial for digital transformation success.

Understanding the Metaphor in a Digital Transformation Context

  • The Dance Floor: This represents the daily execution of digital initiatives—overseeing system rollouts, engaging with teams, managing stakeholder concerns, and addressing immediate roadblocks. Leaders who remain solely on the dance floor risk being overwhelmed by operational challenges, losing sight of strategic priorities.
  • The Balcony: This vantage point provides the necessary space to assess overall progress, identify patterns, and anticipate challenges. A balcony perspective allows leaders to ensure that digital initiatives align with long-term business goals, rather than being reactive to short-term operational issues.

Applying the Concept to Digital Transformation Leadership

  1. Maintaining Strategic Alignment: Leaders must continuously step onto the balcony to ensure digital transformation initiatives align with broader business objectives. Without this, transformation efforts may become disjointed or lose executive sponsorship.
  2. Balancing Execution with Reflection: While hands-on engagement is necessary to drive momentum, leaders should also create time for reflection, whether through strategic reviews, executive meetings, or external benchmarking.
  3. Empowering Teams While Providing Vision: Leaders should guide digital transformation by setting a clear vision from the balcony but allow teams to execute with autonomy on the dance floor. This approach fosters innovation while maintaining alignment with the strategic roadmap.
  4. Leveraging Data and Insights: Digital transformation generates vast amounts of data. Leaders must use this data to inform their balcony perspective, identifying trends and adjusting strategies as necessary.
  5. Ensuring Adaptability: Transformation initiatives rarely go as planned. A leader’s ability to move between the dance floor and balcony ensures they can adjust strategies dynamically, responding to challenges without losing sight of the ultimate goal.

The Leadership Imperative

Effective digital transformation leaders seamlessly transition between execution and strategic reflection. Those who remain only on the dance floor risk micromanagement and burnout, while those who stay only on the balcony may become disconnected from execution realities. By mastering this balance, leaders can guide their organizations through digital transformation with clarity, resilience, and adaptability.

In an era of rapid technological evolution, adopting the “Balcony and Dance Floor” approach is more than a leadership technique—it is a necessity for driving sustainable digital change.