Arkaro Insights

AI & Strategy: Why implementation remains human (AI voices Arkaro content)

• Mark Blackwell • Episode 27

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Welcome to the Arkaro Insights podcast. This episode is based on original content developed by Arkaro. At Arkaro, we're committed to innovation in everything we do—including how we share our insights. We've utilised advanced AI technology to transform our written expertise into this conversational format, making our content more accessible and convenient for our busy B2B audience. What you'll hear is a two-person discussion generated through AI voice technology, designed to deliver our insights in a more engaging way than traditional reading. As we continue to evolve this approach, we genuinely value your feedback. Thank you for listening to Arkaro Insights, where professional expertise meets innovative delivery.

Full article: AI and Strategy: Why Implementation Remains Human

The growing sophistication of artificial intelligence presents a fascinating paradox for today's business leaders. While AI transforms strategy development with unprecedented analytical power, it simultaneously makes human-centered implementation more crucial than ever before.

We dive into this counterintuitive relationship, examining how AI excels at processing massive datasets, spotting invisible patterns, and generating strategic options at speeds unimaginable to human teams. Yet the very acceleration of strategic insights creates a more demanding implementation environment. When strategies evolve rapidly thanks to AI, organizations need stronger—not weaker—human systems to translate those shifts into coordinated action.

The statistics we explore are sobering: only 14% of employees understand their company's strategy, while 85% of leadership teams spend less than an hour monthly discussing it. The fundamental challenge isn't analytical rigor anymore, but engaging the human systems needed for execution. People don't resist change due to lack of data, but from deeper concerns about autonomy, purpose, and fairness.

This podcast unpacks an approach that works with you, not just for you—addressing the adaptive human elements AI can't touch. It starts with understanding organizational culture and stakeholder dynamics, then moves to co-creation where teams develop nested frameworks connecting corporate goals to their specific challenges. The process continues through hands-on enabling and finally sustaining change through embedded feedback loops.

What emerges is a powerful insight: AI creates the space for more sophisticated human collaboration. Success won't belong to organizations with the fanciest AI tools, but those that skillfully combine algorithmic insight with human translation, turning artificial intelligence into authentic organizational capability. How prepared is your organization to cascade AI-driven strategic changes effectively without fracturing the culture you rely on?

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Speaker 1:

Welcome everyone to the Arkaro Insights podcast. If you're a B2B executive looking for the latest ideas in change and innovation, well, you're in the right place. We're all about helping you deliver better results. Today, we're doing one of our deep dives. We're getting into some really fascinating source material, specifically an article called AI and Strategy why Implementation Remained Human. It's by Mark Blackwell of Arkaro, and our mission really for this session is to unpack this surprising paradox that the research highlights, which is that AI you know it's revolutionizing how we develop strategy, no question, but the more powerful it gets, the more it actually seems to demand a human-centered approach when it comes to implementation.

Speaker 2:

It is quite a twist, isn't it? Because I mean, let's be clear AI's ability to analyze data, to generate insights, it's genuinely revolutionary. We're talking about processing things at a scale and speed we couldn't have imagined before. But here's the kicker, the really surprising part the more absolutely critical human collaboration and really robust change management become, you know, for actually turning those insights into results that stick, Sustainable results, Exactly. And it makes you wonder, right, what if the biggest threat, the biggest hurdle to these amazing AI-powered strategies isn't the technology itself? What if it's actually our ability as humans to implement them effectively?

Speaker 1:

Okay. So let's really dig into that paradox, because you might think, okay, ai can chew through massive data sets, run endless scenarios, spot patterns humans would miss. Surely that solves a huge part of the strategy puzzle. And well, you'd be right. Partly. It absolutely changes the game for strategy development. Think about predicting market shifts, analyzing what competitors are doing, even generating completely new strategic options that, honestly, might take a human team months, maybe even years, to uncover.

Speaker 2:

Yeah, that's powerful stuff.

Speaker 1:

Imagine, like a hypothetical company, futuretech. Right, they're drowning in market data, their analysts are good, but they just can't keep up. Then they bring in AI and suddenly future tech is seeing opportunities identifying bottlenecks, even testing strategies and simulations Stuff that was totally invisible before. That ability to constantly scan and suggest adjustments that's a huge advantage today.

Speaker 2:

And, interestingly, that's precisely where the paradox gets even deeper today. And, interestingly, that's precisely where the paradox gets even deeper. That very capability, the fact that AI can churn out faster, more frequent strategic updates it doesn't actually solve the implementation challenge. If anything, it intensifies it. If our strategies are evolving more rapidly thanks to AI, well, organizations need stronger human capabilities, not weaker ones, to actually translate those shifts into action on the ground.

Speaker 1:

So it's not just about the top level plan.

Speaker 2:

Not at all. Ai is brilliant at that high level formulation, but it just can't bridge that really critical gap. Translating the big vision into practical decision, rules, rules that make sense for every team, every person throughout the entire organization, that layer we sometimes call it the translation layer breaking down the corporate vision into clear, actionable guidelines for everyone. That absolutely requires human facilitation, people figuring it out together.

Speaker 1:

And when you look at the numbers around strategy implementation generally, even before advanced AI, they paint a pretty stark picture, don't they? Oh, they do. It's almost like businesses often set themselves up for failure on the implementation side. I mean, our sources point out that a shocking what 14% of employees actually understand their company's strategy 14%. Yeah, which means like 86% don't really get it. And it gets worse 71% can't even recognize their strategy in a multiple choice test.

Speaker 1:

That's incredible and only 22% feel their leaders even have a clear direction and look at leadership. Less than a third of executives can list just three of their company's strategic priorities. And maybe the most telling, 85% of leadership teams spend less than one hour per month discussing strategy.

Speaker 2:

Less than an hour.

Speaker 1:

So is it any wonder that something like 70% of big transformation efforts failed to deliver what they promised? It kind of reminds me of those company all-hands meetings where everyone nods along and then walks out thinking OK, but what do I actually do differently on Monday morning?

Speaker 2:

Exactly. And those numbers, they're not just stats right, they really reflect a fundamental truth that you know, leadership experts have been talking about for decades the biggest trap is treating a people problem like it's just a technical problem you can fix with a tool Strategy formulation, the analysis, the frameworks, the planning. That often feels like a technical challenge. You hire consultants, you use AI fine. But strategy implementation that's what we call an adaptive challenge. It requires cultural shifts, changes in individual behavior, actual organizational learning and in today's really complex world, just doing technical analysis only gets you so far.

Speaker 1:

So you need more than just analysis.

Speaker 2:

You need an approach where you try small things, you see what happens and you adapt quickly, sort of a probe sense respond way of working. Not just sense, analyze, respond. Ai is fantastic at the analyze part, but that adaptive work, building awareness, creating the desire for change, developing the actual skill sustaining it, that remains fundamentally human work.

Speaker 1:

So, okay, if AI is so good at finding the insights, what's the most surprising roadblock companies hit when they actually try to put these AI-driven strategies into practice? Is it really the tech or is it something else? Yeah, well, Because the source material is really clear Implementation stays human. Think about any big change you've tried to make right Personally or at work. It doesn't just happen because you understand the logic or the data.

Speaker 2:

No, absolutely not.

Speaker 1:

It starts with do I even get why we're doing this? That's awareness. Then do I actually want to be part of this change? That's desire. Then, okay, do I understand how I need to change that's desire, Then okay, do I understand how I need to change?

Speaker 1:

That's knowledge, followed by do I actually have the skills, the capability to do it? That's ability. And finally, maybe the hardest part, how do we make sure this new way actually sticks? That's reinforcement. And every single one of those steps. Well, it needs human understanding, real collaboration, ongoing support. Ai just can't provide that on its own.

Speaker 2:

Absolutely. Spot on the hurdle isn't computational power. It's profoundly adaptive, deeply human. There's what we call the translation challenge. Your big corporate strategy says what the goal is, but often gives very little guidance on how individual teams should contribute.

Speaker 1:

Like the how.

Speaker 2:

Exactly. Different parts of the organization have different bottlenecks, different constraints. Each level needs its own strategy framework that takes those big corporate goals, identifies their specific bottlenecks and creates clear decision rules for their world. That makes sense. Then there's individual change at scale. Ai can't build emotional commitment that desire you mentioned. It can't foster the nuanced cultural understanding you need for effective reinforcement. And something often missed is cultural navigation and resistance as insight. Implementation success really hinges on understanding your organization's culture, the competing values, the hidden assumptions. These things resist algorithms.

Speaker 2:

So when people push back, when people resist, it's often not just them being difficult. It's usually because they perceive a threat to something important their sense of significance, predictability, independence, belonging, fairness you name it. If you look at resistance that way, as potential insight, it can actually reveal legitimate concerns. Address those, and you often end up with a much stronger, more lasting solution. Address those, and you often end up with a much stronger, more lasting solution. But that takes cultural intelligence, empathy, real collaboration, things AI just can't replicate.

Speaker 1:

So wrapping some of this together, then, what does it mean for leaders, for organizations? The core problem isn't necessarily that our strategies lack analytical rigor anymore no, especially not with AI Right. It's more that they often fail to genuinely engage the human systems needed to actually execute them. You know, people don't resist change just because they lack data. It's often more about lacking motivation or maybe a sense of autonomy, mastery, purpose, precise. And this seems to be exactly where those traditional do-it-for-you consulting models can fall short. Whether it's human consultants or sophisticated AI doing the analysis. Yes, as our source material puts it, they might analyze, interview and deliver an impressive strategy deck. Everyone nods. Six months later, the recommendations are gathering dust. Nothing's really changed.

Speaker 2:

That disconnect is painfully common, isn't it? Ai can definitely boost the corporate strategy development side, no doubt, but it can't create those crucial nested strategy frameworks that teams need on the ground, frameworks that translate the big objectives into practical decision rules adapted for their specific context. This is exactly why an approach that worked with you, not just for you, becomes even more important in an AI-driven world.

Speaker 1:

Ah, the do it with you idea.

Speaker 2:

Exactly because it specifically tackles those adaptive human elements AI can't touch. For instance, the first step is always to truly understand and that goes way beyond just data analysis it's about grasping the unique culture, the stakeholder dynamics. It involves actively listening to resistance, treating it as valuable feedback, building that two-way awareness. That's the absolute foundation for any successful change.

Speaker 1:

Okay, so understanding first, then what?

Speaker 2:

Then it's about moving to co-create. This is where you build that crucial desire for change through genuine collaborative ownership. Using tools like the strategy triad, for example, teams actually work together. They develop those nested strategy frameworks themselves, connecting the corporate goals to their specific bottlenecks and challenges. That process of real involvement creates a sense of ownership that is incredibly powerful for motivation.

Speaker 1:

Ownership right. That makes a huge difference.

Speaker 2:

Absolutely From there. It's about enable this directly bids the knowledge and ability you mentioned earlier. But it's not just standard training PowerPoint. It's hands-on coaching, side-by-side support as teams navigate the real messy challenges of implementation. This builds the capability for those probe sense response cycles we talked about. Try something small, pay attention, adjust. That becomes essential as AI allows for faster strategic shifts.

Speaker 1:

So it builds the muscle for continuous adaptation.

Speaker 2:

Precisely. And finally, it's about sustain, embedding that reinforcement piece right into the organizational fabric Through new norms, review processes, feedback loops. This transforms strategy execution from a one-off project into a living, breathing process. It builds the embedded capability to keep translating evolving AI insights into consistent action, without you know burning everyone out or fragmenting the culture every few months.

Speaker 1:

This really reframes the whole AI discussion, doesn't it? Instead of replacing human strategic thinking, AI actually creates the space, the opportunity for a much more sophisticated human collaboration.

Speaker 2:

Exactly.

Speaker 1:

If we connect this back to, say, complexity frameworks, ai excels in what might be called the complicated domain where good analysis leads to predictable solutions.

Speaker 2:

Right where there are knowable answers.

Speaker 1:

But strategy implementation that operates squarely in the complex domain when solutions aren't known in advance. They have to emerge through experimentation, through collective learning, using those probe-sense-respond approaches.

Speaker 2:

You've got it, so let AI handle the analytical heavy lifting crunching the market data, stress testing, strategic options, monitoring implementation metrics continuously. That frees up humans to focus on the truly irreplaceable adaptive work understanding the cultural nuances, building that collaborative ownership, developing the organization's capabilities and sustaining the transformation through ongoing learning and adaptation.

Speaker 1:

So in a world where AI enables strategies to shift more often, Organizations need stronger, not weaker, human systems for execution.

Speaker 2:

The ability to rapidly translate those AI-generated insights into real organizational action becomes a massive competitive advantage, but, crucially, only for organizations that have proactively built up these adaptive capabilities, the capacity for continuous learning and cultural evolution.

Speaker 1:

Okay, so let's try and boil this down. What does this all mean for you, our listener? I think the key insight really distilled from the research is pretty profound. Ai is set to make corporate strategy development faster, more data-driven, more sophisticated than we've ever seen before, no question, but and this is the critical but this very advancement increases the need for human-facilitated strategy, translation and implementation.

Speaker 2:

Right.

Speaker 1:

As strategies evolve more rapidly because of AI insights, organizations simply must get better at cascading these changes effectively.

Speaker 2:

Right.

Speaker 1:

You need robust frameworks to do that without losing coherence or completely exhausting your people.

Speaker 2:

The irony is really quite striking, isn't it? Or completely exhausting your people. The irony is really quite striking, isn't it? The more sophisticated our AI gets at developing strategy, the more we desperately need those distinctly human capabilities for implementing it. Success, ultimately, isn't just going to belong to the organizations with the fanciest AI tools. It'll belong to those that can skillfully combine algorithmic insight with collaborative human translation, turning artificial intelligence into well authentic organizational capability.

Speaker 1:

That's a powerful way to put it turning AI into authentic capability.

Speaker 2:

So here's something to maybe ponder after this discussion. In a world where AI genuinely allows your core strategies to evolve, perhaps even monthly, how prepared really is your organization to cascade those changes effectively? Can you do it without overwhelming your people or fracturing the very culture you rely on?

Speaker 1:

A really critical question for leaders today.

Speaker 2:

Indeed, and if you'd like to learn more about our cars, do it with you approach and how it specifically helps organizations bridge that gap between AI-enhanced strategy and human-centered execution. You can visit Arkaro. That's A-R-K-A-R-O dot arcarcom. You can also find Arkaro on LinkedIn for more insights, and if you're interested in exploring a free consultation to discuss your special challenges, feel free to email Mark Blackwell directly. His email is mark at Arkaro. com

Speaker 1:

Great resources there.

Speaker 2:

We hope this deep dive was helpful. Thank you so much for listening to Arkaro Insights.

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