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In 2004 I found myself running a major news organization during the Orange Revolution in Ukraine. It was one of those moments when the universe opens up, reveals a bit of itself and you realize the world doesn’t work the way you thought it did. What struck me at the time was that nobody with any conventional form of power had any ability to shape events at all.
One of the myths that is constantly repeated is that change needs to start at the top. Clearly that is not true. It wasn’t true of the Color Revolutions that spread across Eastern Europe. Nor was it true of social movements like the fight for LGBT rights. Despite what you may have heard, it doesn’t hold true for organizations either.
What is true is that if you are going to bring about genuine change you need to influence institutions and that means you need, at some point, to involve senior leaders, but it rarely starts with them. The myth that change has to start at the top is a copout — a reason to do nothing when you can do something. Make no mistake. Change can come from anywhere.
Weaving Webs of Influence
Movements, as the name implies, are kinetic. They start somewhere and they end up somewhere else. That’s one reason why why so many successful change efforts become misunderstood. People look back at an event like the 1963 March on Washington and think that’s what made the civil rights movement successful. Nothing could be further from the truth. That wasn’t what built the movement, it was part of the end game.
Consider that the first “March on Washington,” the Woman Suffrage Procession of 1913, was a disaster. None of the others since 1963 did much either. The civil rights march came after nearly a decade of boycotts, sit-ins, Freedom Rides and other tactics that built the movement before it finally found its moment. Still, it’s the moment that people remember.
In much the same way, whenever we see a successful transformation we look to the actions of leaders. We see a CEO who gave a speech, a marketer who came up with a big product idea or an engineer who took a project in a new direction. These events are real, but they rarely, if ever, appear out of nowhere. They are products of webs of influence.
When we look more closely, we inevitably find that the CEO was inspired to give the pivotal speech from a conversation he had with his daughter. The marketer got the initial idea for the campaign from a junior team member. Or the engineer changed the direction of the project after a fateful encounter he had in the cafeteria.
Our decisions are the product of complex systems. Anything can start anywhere. Don’t let anyone tell you differently.
Going to Where the Energy Is
Transformations, in retrospect, often seem inevitable, even obvious. Yet they don’t start out that way. The truth is that it is small groups, loosely connected, but united by a common purpose that drives transformation. So the first thing you want to do is identify your apostles — people who are already excited about the possibilities for change.
For example, in his efforts to reform the Pentagon, Colonel John Boyd began every initiative by briefing a group of collaborators he called the “Acolytes,” who would help hone and sharpen the ideas. He then moved on to congressional staffers, elected officials and the media. By the time general officers were aware of what he was doing, he had too much support to ignore.
In a similar vein, a massive effort to implement lean manufacturing methods at Wyeth Pharmaceuticals began with one team at one factory, but grew to encompass 17,000 employees across 25 sites worldwide and cut manufacturing costs by 25%. The campaign that overthrew Serbian dictator Slobodan Milošević started with just 5 kids in a coffee shop.
One advantage to starting small is that you can identify your apostles informally, even through casual conversations. In skills-based transformations, change leaders often start with workshops and see who seems enthusiastic or comes up after the session. Your apostles don’t need to have senior positions or special skills, they just have to be passionate.
There’s something about human nature that, when we’re passionate about an idea, makes us want to go convince the skeptics. Don’t do that. Start with people who want your idea to succeed. If you feel the urge to convince or persuade, that’s a sign that you either have the wrong idea or the wrong people.
“You have to go where the energy is,” John Gadsby, who built a movement for process improvement inside Procter & Gamble that has grown to encompass 60,000 employees, told me. “We’ll choose energy and excitement and enthusiasm over the right position, or the person at the right leadership level, or the person whose job it is supposed to be to do that.”
Mobilizing People To Influence Institutions
In the early 1990s, writer and activist Jeffrey Ballinger published a series of investigations about Nike’s use of sweatshops in Asia. People were shocked by the horrible conditions that workers — many of them children — were subjected to. In most cases, the owners lived outside the countries where the factories were located and had little contact with their employees.
At first, Nike’s CEO, Phil Knight, was defiant. “I often reacted with self-righteousness, petulance, anger. On some level I knew my reaction was toxic, counterproductive, but I couldn’t stop myself,” he would later write in his memoir, Shoe Dog. He pointed out that his company didn’t own the factories, that he’d worked with the owners to improve conditions and that the stories, as gruesome as they were, were exceptions.
The simple truth is that change rarely, if ever, starts at the top because it is people with power that create the status quo. They are attached to what they’ve built and take pride in their accomplishments, just like the rest of us. That’s why, to bring about genuine change — change that lasts — you need to mobilize people to influence institutions (or those, like Knight, who yield institutional power).
Eventually, that’s what happened at Nike. The protests took their toll. “We had to admit,” Knight remembered, “We could do better.” Going beyond its own factories, the company established the Fair Trade Labor Association and published a comprehensive report of its own factories. Today, the company’s track record may not be perfect, but it’s become more a part of the solution than a part of the problem.
Change Is Never Top-Down Or Bottom-Up
At a pivotal moment during the height of the civil rights movement, Robert Kennedy, Attorney General of the United States and brother to the President, would turn to the activist John Lewis and say, “’John, the people, the young people of the SNCC, have educated me. You have changed me. Now I understand.”
Lewis, just a young kid in his twenties at the time, was himself the product of webs of influence. He was shaped by mentors like Jim Lawson and Keller Miller Smith, as well as by peers such as Diane Nash, Bernard Lafayette and James Bevel. They, in turn, influenced others to get out, protest and shape the minds of people like Robert Kennedy.
As I explain in Cascades, transformation isn’t top-down or bottom-up, but happens from side-to-side. You can find the entire spectrum — from active support to active resistance — at every level. The answer doesn’t lie in any specific strategy or initiative, but in how people are able to internalize the need for change and transfer ideas through social bonds.
Change never happens all at once and can’t simply be willed into existence. The best way to do that is to empower those who already believe in change to bring in those around them. That’s what’s key to successful transformations. A leader’s role is not to plan and direct action, but to inspire and empower belief.
— Article courtesy of the Digital Tonto blog
— Image credit: Unsplash
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In my work with global enterprises, I often observe a recurring struggle: The Stability Paradox. Legacy organizations often possess the “fixedness” required for massive scale but lack the fluidity to respond to market shifts. Conversely, startups possess “flexibility” in spades but often collapse under their own weight due to a lack of foundational structure.
Defining True Agility
Many leaders mistake speed for agility. Speed is simply high-velocity movement in a single direction. True Agility is the architectural capability to change direction at speed without destroying the engine. It is the move from “reactive maneuvering” — constantly putting out fires — to “proactive orchestration,” where the organization anticipates the flame and adjusts its posture before the heat is even felt.
Thesis: Organizational agility is not about being liquid or formless; it is about strategic architecture. It requires knowing exactly which parts of your foundation must remain fixed to provide a stable spine, so that the rest of the enterprise can remain infinitely flexible.
II. The Human Side of Agility (Human-Centered Change)
Fueling the Adaptive Machine with Mindset and Culture
Psychological Safety as a Fuel
An agile architecture is useless if the people within it are too terrified to move. Psychological safety is the essential fuel for change. If employees fear that a “failed” experiment or a missed pivot will result in professional retribution, they will default to the status quo every time. To be truly agile, the organization must celebrate the learning gained from failure as much as the success of a win.
Shifting the Mindset: Adaptability Over Efficiency
For decades, management science focused on “Efficiency-First” — doing things right through rigid optimization. In a volatile world, we must pivot to “Adaptability-First” — ensuring we are doing the right things as the market shifts. This requires a cultural “unlearning” where we value the ability to pivot just as highly as the ability to execute.
Radical Transparency and Communication Loops
Agility requires that the “edges” of the organization — the people talking to customers and witnessing market friction — have a direct line to the “center.” By creating radical transparency and shortened communication loops, we ensure that institutional knowledge flows at the speed of the internet, allowing for collective intelligence rather than top-down bottlenecks.
The Human Truth: You cannot mandate agility; you can only design an environment where it is safe to be agile. Change doesn’t happen in the boardroom; it happens in the hearts and minds of the people on the front lines.
III. The Braden Kelley Organizational Agility Framework™
Navigating the Strategic Tension Between Flexibility and Fixedness
Introduction to the Framework
In my research and consulting, I developed the Organizational Agility Framework™ as a diagnostic tool for the modern enterprise. It moves away from the idea that everything in a business should be “fluid.” Instead, it focuses on identifying the necessary friction and structural integrity required to support rapid movement.
The Core Tension: Flexibility vs. Fixedness
The secret to sustained agility lies in the deliberate management of two opposing states:
The Fixed: These are your non-negotiables. They include your core values, organizational purpose, and essential guardrails. These elements provide the “stable spine” and the psychological certainty employees need to take risks.
The Flexible: These are your “modular” components. They include business processes, resource allocation models, and team structures. These must be designed to be disassembled and reconfigured in real-time as market conditions evolve.
Managing the Equilibrium
The framework teaches leaders how to prevent “Fixedness” from decaying into Rigidity (where you become a dinosaur) and how to prevent “Flexibility” from dissolving into Chaos (where you lose your brand identity). Agility is the active, daily management of this equilibrium.
Insight: If you try to make everything flexible, you create an organization with no memory and no identity. If you keep everything fixed, you create a monument to the past. Agility is the art of knowing what to hold onto and what to let go.
IV. Designing for Modular Change
Architecting the Reconfigurable Enterprise
Loose Coupling and Micro-Structures
In a truly agile organization, we must abandon monolithic, deeply intertwined departmental silos. Instead, we move toward “Loose Coupling.” By organizing into small, cross-functional squads with clear interfaces, we ensure that one part of the business can pivot or fail without bringing down the entire system. This modularity allows for “plug-and-play” innovation.
Resource Fluidity: Escaping the Annual Budget Trap
You cannot have an agile strategy if your capital is locked in a 12-month fixed cycle. Resource Fluidity is the ability to shift talent and funding dynamically as opportunities arise. Agile organizations treat budgets as “living documents,” allowing leadership to pull resources from declining initiatives and inject them into high-growth “breakthrough” experiments in real-time.
Rapid Prototyping for Organizational Structure
We often prototype products, but we rarely prototype structure. Before committing to a company-wide reorganization, agile leaders run small-scale organizational experiments. By testing a new reporting line or a new collaborative workflow within a single “pilot” team, we can validate the human impact of the change before scaling it.
The Design Rule: Complexity is the enemy of agility. If your organizational chart requires a map and a legend to navigate, you aren’t built for speed — you’re built for bureaucracy. Simplify to amplify.
V. Measuring What Matters: Agility Metrics
Quantifying the Velocity and Resilience of Change
Time-to-Insight vs. Time-to-Action
In a traditional enterprise, the gap between identifying a market shift (Insight) and actually deploying a response (Action) can be months or even years. Agility is measured by the shrinkage of this gap. We must track our Latency of Decision — the speed at which data travels from the front lines to the decision-makers and back into the field as an executed strategy.
Learning Velocity
Success is a lagging indicator; Learning Velocity is a leading one. How quickly can your organization ingest new information, test it, and turn it into institutional knowledge? By measuring the number of validated experiments per quarter rather than just “project completions,” we shift the focus from output to outcomes.
The Resilience Score
Agility is as much about defense as it is offense. A Resilience Score assesses how much of a “shock” your organization can absorb — be it a supply chain disruption or a competitor’s surprise launch — without a significant drop in service levels or employee engagement. An agile organization doesn’t just bounce back; it “bounces forward” into a new, more relevant state.
The Measurement Shift: If you only measure efficiency, you will optimize yourself into extinction. You must measure your capacity to change, for that is where your future revenue lives.
VI. Conclusion: The Agile Organization as a Living System
Sustaining Competitive Advantage in a Volatile World
Beyond the Project Mindset
We must stop viewing “agility” as a transformation project with a start and end date. True organizational agility is a continuous practice — a state of being. It is the transition from seeing your company as a static machine to viewing it as a living system. Like any organism, your business must constantly sense, respond, and evolve to its environment to survive.
The Polymath Leader
The leaders of tomorrow must be comfortable with the “Whole-Brain” approach. They must be part scientist, using data and the Agility Framework to maintain the stable spine of the company, and part artist, using empathy and human-centered change to inspire the flexibility of the workforce. This balance is the only way to navigate the tension between what must remain fixed and what must remain fluid.
Your Sustainable Advantage
In an era where technology can be copied and capital is a commodity, your ability to change is your only sustainable competitive advantage. By architecting an enterprise that embraces both the comfort of fixed values and the excitement of flexible processes, you don’t just survive disruption — you become the disruptor.
Final Thought: Agility is the ultimate expression of confidence. It is the belief that no matter how the world changes, your organization has the structural integrity and the creative spirit to meet the moment. Let’s stop fearing the pivot and start building the platform that makes it possible.
Implementation Checklist: Activating the Agility Framework
Practical First Steps for the Human-Centered Leader
Moving from theory to practice requires a deliberate focus on the Fixed/Flexible balance. Use this checklist to audit your current state and begin the transition.
Identify Your “Stable Spine”:
Document the 3-5 core values and the overarching purpose that must remain Fixed. Do your teams know these are the non-negotiable guardrails?
Audit for “Rigid Decay”:
Locate one process that exists “because we’ve always done it that way” but no longer serves the customer. Mark it as Flexible and schedule a redesign.
Establish a “Safe-to-Fail” Zone:
Designate one small-scale project where the team is explicitly rewarded for Learning Velocity rather than just the final ROI.
Assess Communication Latency:
Track how many days it takes for a customer insight from the field to reach a decision-maker. Aim to reduce this Time-to-Insight by 20% this quarter.
Beta-Test a “Squad” Structure:
Select one departmental silo and “loosely couple” a cross-functional team (e.g., Marketing, Tech, and Customer Success) to solve a single specific friction point.
Braden’s Tip: Don’t try to change the whole organization at once. Agility is built through fractal change — successful small pivots that create a blueprint for the larger enterprise to follow.
What is a Stable Spine Audit?
In my Organizational Agility Framework, a Stable Spine Audit is a strategic exercise used to identify the permanent, non-negotiable elements of an organization that provide the structural integrity required to support rapid change elsewhere.
Think of it this way: for a human to move with agility — to sprint, jump, or pivot — the spine must remain strong and aligned. If the spine is “mushy,” the limbs have no leverage. In a business, if everything is up for grabs, you don’t have agility; you have chaos.
The Core Components of the Audit
When I lead an organization through this audit, we look for three specific types of “Fixedness”:
1. Core Purpose and North Star: Why does the organization exist beyond making a profit? This should be fixed. If your purpose pivots every six months, your employees will suffer from “change fatigue” and lose trust.
2. Values and Ethical Guardrails: These are the behavioral non-negotiables. They define how we work. These provide psychological safety because employees know that even in a crisis, the “rules of engagement” won’t shift.
3. Essential Architecture: This identifies the critical systems or data standards that must remain centralized and standardized to allow for “plug-and-play” flexibility in the branches or squads.
How to Conduct the Audit
The audit is essentially a filtering process for every major component of your business. You ask your leadership team: “Is this a Spine element or a Wing element?”
Category
The Stable Spine (Fixed)
The Flexible Wings (Fluid)
Strategy
Long-term Vision & Purpose
Quarterly Tactics & Experiments
Structure
Governance & Core Values
Cross-functional Squads & Roles
Process
Essential Compliance & Quality
Daily Workflows & Tools
People
Cultural DNA & Talent Standards
Specific Skills & Resource Allocation
Why It Matters for Innovation
I often see teams that are “frozen” because they don’t know what they are allowed to change. By conducting a Stable Spine Audit, you explicitly tell your team: “These five things are fixed. Everything else is a variable you can experiment with.”
This clarity actually increases the speed of innovation because it removes the “permission bottleneck.” When the spine is stable, the wings can flap as fast as they need to.
Diagnostic Questionnaire: Activating the Organizational Agility Framework
A Leadership Workshop Guide to the Stable Spine Audit
To help you activate the Organizational Agility Framework, here is a diagnostic questionnaire designed to be used in a leadership workshop. The goal is to reach a consensus on what belongs to the “Spine” (Fixed) and what belongs to the “Wings” (Flexible).
Phase 1: Identifying the Fixed (The Stable Spine)
Ask your leadership team to answer these questions individually, then compare notes. Discrepancies here usually indicate where organizational friction is coming from.
The “North Star” Test: If we changed our product line entirely tomorrow, what is the one reason for existing that would stay exactly the same?
The Value Constraint: What are the three behaviors that, if an employee violated them, would result in immediate dismissal regardless of their performance?
The Architectural Anchor: What is the single source of truth (data, brand guideline, or compliance rule) that every department must use to remain part of the collective whole?
The Non-Negotiable Promise: What is the one promise we make to our customers that we would never “pivot” away from, even for a massive short-term profit?
Phase 2: Identifying the Fluid (The Flexible Wings)
Now, look at the areas where the organization feels “slow.” These are likely things that are currently “Fixed” but should be “Flexible.”
The “Shadow” Processes: Which of our current “standard operating procedures” (SOPs) were created more than two years ago and haven’t been updated since?
The Permission Bottleneck: Who has the authority to spend $5,000 to test a new idea? If the answer is “The VP,” that process is too Fixed.
The Role Rigidity: Are our job descriptions based on tasks (Fixed) or outcomes (Flexible)? Can we move a person from Project A to Project B in 24 hours without a HR mountain to climb?
The Budgeting Cycle: If a massive market opportunity appeared tomorrow, how long would it take to reallocate 10% of our budget to pursue it?
The Audit Tally
Once you have these answers, map them out:
Green Zone: Elements everyone agrees are Fixed. These are your strengths.
Red Zone: Elements everyone agrees are Fixed but should be Flexible. These are your targets for immediate “unlearning.”
Grey Zone: Elements where the team disagrees. This is where your cultural friction lives.
Closing the Audit
As an innovation speaker, I always remind leaders: The Spine is for Support, not for Strangulation. The goal of this audit isn’t to create more rules, but to create the clarity that allows for more freedom.
1. What is the difference between organizational speed and organizational agility?
Speed is the velocity of movement in a single direction. Agility is the architectural capacity to change direction at speed without breaking the organization. While speed is about execution, agility is about reconfigurability.
2. Why does the “Stable Spine” actually help an organization move faster?
A “Stable Spine” (fixed core values, purpose, and guardrails) provides psychological safety and clarity. When employees know exactly what is non-negotiable, they no longer need to seek permission for everything else, effectively removing the “permission bottleneck” that slows down innovation.
3. How do you identify if a process should be ‘Fixed’ or ‘Flexible’?
Use the Stable Spine Audit. If a process protects your core DNA, ethical standards, or brand promise, it is “Fixed.” If a process is simply a method for delivery, resource allocation, or internal workflow, it should be “Flexible” and modular to allow for rapid adaptation to market shifts.
Content Authenticity Statement: The topic area, key elements to focus on, etc. were decisions made by Braden Kelley, with a little help from Google Gemini to clean up the article and add citations.
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In the hyper-competitive landscape of 2026, many organizations are drowning in data but starving for insight. They perform audits, yet the fundamental “why” of customer friction remains elusive.
The Diagnostic Gap
Most companies have more tools than ever to track clicks, bounce rates, and conversion funnels. Yet, there remains a persistent Diagnostic Gap: the distance between knowing what a customer did and understanding why they felt compelled to do it. Organizations often fail to see their own blind spots because they are looking into a mirror they’ve polished themselves.
The Core Thesis: Perspective over Procedure
A Customer Experience (CX) Audit (aka Customer Experience Risk and Revenue Leakage Diagnostic) is more than a technical inspection; it is an act of empathy. If the auditor lacks a human-centered innovation lens, the resulting report will be mathematically correct but strategically hollow. It might tell you that a button is in the wrong place, but it won’t tell you that your entire value proposition is losing its soul.
The Stakes in 2026
In today’s market, brand loyalty is fragile. A single friction point isn’t just an inconvenience — it’s a broadcast signal to your competitors that there is an opening to disrupt you. Who you choose to hold up the mirror determines whether you see a minor blemish or a structural crack that needs immediate innovation.
Key Takeaways: You cannot solve a problem using the same level of consciousness that created it. The value of an audit is not in the findings, but in the new perspective that allows your team to stop fearing the “How” of the present and start building the “Why” of the future.
II. Internal Audits: The Myth of Objectivity
While internal teams possess deep product knowledge, that very proximity often creates a “distortion field” that obscures the true customer experience.
The “Curse of Knowledge”
Internal teams are often too close to the project to see the friction. Because they know how the system is supposed to work, they subconsciously compensate for poor design. They skip over the confusing copy and ignore the lag because they have developed internal workarounds. A customer doesn’t have that luxury; they only see the barrier, not the intent behind it.
The Hidden Pressure of Internal Politics
An internal audit rarely exists in a vacuum. There is often an unspoken pressure to validate previous executive decisions or to protect the “babies” of influential departments. When the person auditing the experience reports to the person who designed it, the “truth” is often softened to avoid conflict, leading to incremental tweaks rather than the bold innovation required in 2026.
The Efficiency Trap vs. Customer Delight
Internal audits tend to focus on operational efficiency — how can we make this process faster or cheaper for us? While important, this lens often misses the emotional resonance of the journey. You might have a process that is 100% efficient but 0% engaging. Internal teams often solve for “Done,” while customers are looking for “Delight.”
Key Takeaways: You cannot read the label from inside the bottle. Internal audits are great for maintenance, but they are rarely the catalyst for breakthrough change. To find the “Why” of the future, you need a lens that isn’t colored by the “How” of your internal legacy.
III. Independent Audits: The Power of the Outsider
The greatest value an independent auditor brings isn’t just a new set of eyes — it’s a different set of experiences and the freedom to be radically honest.
Fresh Eyes and Cross-Industry Intelligence
An independent auditor lives outside your corporate “echo chamber.” They bring insights from diverse sectors — retail, healthcare, tech, and hospitality — to identify “unobvious” friction points you’ve grown accustomed to. In 2026, your customers don’t just compare you to your direct competitors; they compare you to the best experience they had earlier that morning. An outsider helps you measure up to that global standard.
Closing the “Accountability Gap”
Truth is the primary currency of a successful audit. An independent voice can speak truth to power without the fear of internal repercussions or career friction. This objectivity allows for a “radical transparency” that internal teams often find impossible. By closing the accountability gap, the independent auditor ensures that the real barriers to innovation are named, faced, and eventually dismantled.
Bridging the ‘Why’ and the ‘How’
While internal audits often provide a checklist of “How” to fix specific bugs, an independent auditor investigates the “Why” behind the customer’s emotional journey. They look at the narrative, not just the nodes. This perspective shift allows an organization to move beyond mere troubleshooting and into the realm of strategic experience design.
Key Takeaways: An independent auditor is the customer’s ultimate advocate. When you bring in an outside perspective, you aren’t just buying a report; you are investing in the clarity required to see your organization as the world sees it. Only then can you begin to change it.
IV. The Braden Kelley Edge: Beyond the Checklist
A standard audit tells you where the leaks are; my audit tells you how to change the flow. My approach integrates human-centered change directly into the diagnostic process.
Human-Centered Change as a Methodology
I don’t view Customer Experience as a series of static touchpoints on a map. I view it as a living ecosystem of human interactions. My “Edge” comes from treating the audit as an organizational change exercise. We don’t just look for technical errors; we look for where your internal culture and external experience have lost alignment. By centering the human — both employee and customer — we identify the psychological barriers to a seamless journey.
The Innovation Integration
Most auditors stop at “What is broken?” I start at “Where is the opportunity?” My lens is uniquely calibrated to find where your next innovation is hiding within your current customer friction. If a customer is struggling with a specific step, that isn’t just a bug — it’s a signal of unmet need. I help you translate that struggle into a roadmap for a new product, service, or business model that your competitors haven’t even imagined yet.
Strategic Alignment and Brand Soul
A “good” experience isn’t enough in 2026; it must be your experience. I ensure that every touchpoint is strategically aligned with your unique brand soul and ethical guardrails. An audit under my guidance ensures that efficiency never comes at the cost of authenticity. We solve for the “How” of the present while keeping a relentless focus on your “Why” for the future.
Key Takeaways: An audit shouldn’t just result in a list of repairs; it should result in a vision for renewal. When I audit your experience, I am looking for the spark of innovation that turns a satisfied customer into a lifelong advocate.
V. Why Braden Kelley is the Perfect Partner for Your CX Audit
Selecting an auditor is about trust, legacy, and the ability to translate observation into transformation.
A Legacy of Innovation Leadership
With years of experience as a globally recognized innovation thought leader, I don’t just see a customer journey; I see a competitive battlefield. My background in human-centered design ensures that every recommendation is grounded in the reality of human behavior. I have spent my career helping organizations navigate the complexities of change, making me uniquely qualified to identify the structural hurdles that prevent your team from delivering excellence.
The “Resilient Auditor” Framework
I apply the same resilience routines I advocate for in my speaking and writing to the audit process. This ensures a level of focus, objectivity, and deep synthesis that standard consulting firms often miss. I don’t provide “off-the-shelf” solutions; I provide a custom diagnostic that accounts for the psychological and operational resilience of your specific organization.
Actionable Velocity
The biggest failure of most CX audits is that they sit on a shelf. My goal is Actionable Velocity. I deliver a roadmap that doesn’t just list what’s wrong, but prioritizes fixes based on their potential for ROI and innovation impact. I provide your team with the “Why” they need to stay motivated and the “How” they need to execute immediately.
The Braden Kelley Promise: When I conduct your audit, you aren’t just getting a consultant; you are getting a partner dedicated to making your organization smart enough to solve its own most complex problems. We will bridge the gap between where you are and where the future demands you to be.
VI. Conclusion: Choosing Your Mirror
Ultimately, a Customer Experience Audit is an investment in clarity. In an era where disruption is the only constant, you cannot afford to look through a distorted lens. Whether you choose an internal review for maintenance or an independent audit for transformation, remember that the quality of the insight is entirely dependent on the perspective of the auditor.
Don’t Just Audit the Past — Design the Future
The goal of a world-class audit isn’t just to find out where you’ve been, but to illuminate where you are capable of going. By choosing an auditor who understands human-centered change and innovation strategy, you ensure that your organization doesn’t just fix the “How” of today, but masters the “Why” of tomorrow.
The mirror you choose today will determine the reflection your customers see tomorrow. Make sure it is a mirror that shows the full potential of your brand’s soul.
Ready to Transform Your Customer Journey?
Stop guessing and start innovating. Let’s work together to find the “unobvious” opportunities hidden within your customer experience.
— Braden Kelley
Ready to find your Customer Experience innovation opportunities?
1. Why is an independent CX audit better than an internal one?
Internal teams often suffer from the “Curse of Knowledge” — they are so familiar with how things should work that they miss how they actually work for the customer. An independent auditor brings unbiased clarity and the courage to name the structural issues that internal politics might keep hidden.
2. How does Braden Kelley’s approach differ from others?
Most audits look for bugs; Braden Kelley looks for breakthroughs. By applying a human-centered innovation lens, Braden identifies not just where you are failing the customer, but where the customer is signaling a need for a new solution you haven’t built yet.
3. What is the main outcome of this audit?
The primary outcome is Actionable Velocity. You won’t receive a static report; you’ll get a prioritized roadmap that balances immediate experience “quick wins” with long-term strategic innovation goals, ensuring your CX is a driver of growth, not just a line item.
Image credits: ChatGPT
Content Authenticity Statement: The topic area, key elements to focus on, etc. were decisions made by Braden Kelley, with a little help from Google Gemini to clean up the article and add citations.
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At the beginning of each month, we will profile the ten articles from the previous month that generated the most traffic to Human-Centered Change & Innovation. Did your favorite make the cut?
But enough delay, here are January’s ten most popular innovation posts:
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The social psychologist Jonathan Haidt developed the metaphor of the Elephant and the Rider to describe the relationship between our emotional and cognitive brains. While the rider (representing our cognitive brain) may feel in control, it is the elephant (our emotions) that is more likely to determine which direction we will go.
That’s why it feels so good to act on our emotions. Rather than struggling with the reins to get the elephant to go where we want it to, we can just give in and race with abandon towards our destination. It’s usually not until we’ve run off a cliff that we realize that we should have exercised more restraint. By that time, it’s often too late to undo the damage.
The truth is that our brains are wired for survival, not to make rational decisions for a modern, industrialized economy. That’s why we shouldn’t blindly trust our feelings. We should see them as warning signs to proceed with caution because, while they can alert us to unseen dangers, they can also be triggers that others use to manipulate us.
The Thrill Of The Shift & Pivot
As Eric Ries explained in The Startup Way, when General Electric CEO Jeffrey Immelt wanted to implement a more entrepreneurial approach he asked Ries to help him implement “Lean Startup” methods at the company. The resulting program, called Fastworks, trained 80 coaches and launched a hundred projects in its first year. Pretty soon, Immelt was calling his company a 124 year-old startup.
A key ambition was the development of Predix, an industrial software platform. No longer would GE be a boring old manufacturing company, but would make a “pivot” to the digital age. It did not go well. During Immelt’s tenure, the company’s value would fall by 30%, while the broader maker more than doubled. Eventually the firm would collapse altogether.
Pundits love to tout the change gospel, but there’s little evidence that “pivots” are necessarily a good idea. Look at the world’s most valuable companies, Apple still makes most of its money on iPhones, Microsoft’s success is still rooted in business software, Alphabet’s profits come from search and so on. There are exceptions, of course, but most organizations become and stay successful by deepening their capabilities in a few key areas.
But that’s boring. Journalists rarely write cover stories about it. Business school professors don’t get tenure for writing case studies about how Procter & Gamble stuck with soap for more than a century or how Coke continues to make money off of sugary water. “Pivots,” on the other hand, are thrilling and fun. They get people talking. They feel good. That’s why they’re so popular.
The Eden Myth
Watch pundits on cable news or on stage at conferences and you may begin to notice a familiar pattern. They tell us that once there was a period when everything was pure and good, but then we—or the organization we work for—were corrupted in some way and cast out. So to return to the good times, we need to eliminate that corrupting influence.
This Eden myth is as old as history itself and it continues to thrive because it works so well.. We’re constantly inundated with scapegoats— the government, big business, tech giants, the “billionaire” class, immigrants, “woke” society—to blame for our fall from grace. The story feeds our anger and, much like the “thrill of the pivot,” makes us want to act.
Perhaps most importantly, the Eden myth makes us feel good. The outrage it triggers stimulates the release of the neurotransmitter dopamine which affects the pleasure centers in our brain. Our adrenal glands then begin to produce cortisol, which initiates a “fight or flight” response. Our senses get heightened. We feel motivated and alive.
Who wouldn’t want to feel like that? That’s why we can become addicted to the outrage-dopamine response machine and continually look for new opportunities to get our fix. We begin to need it and tune in every night, doom scroll on social media and seek out social connections that promote it. Ultimately, we’re going to want to act on it.
People who seek to manipulate us know all about this and design their approach to trigger an emotional response.
Creating An Echo Chamber
Once our neurons are primed and our senses are tuned to respond to specific stimuli, we will begin to frame what we experience in terms that reinforce those biases. Psychologists have found that we tend to overweight information that is most easily accessible and then look for information to confirm those early impressions and ignore evidence to the contrary.
These effects are multiplied by tribal tendencies. We form group identities easily, and groups tend to develop into echo chambers, which amplify common beliefs and minimize contrary information. We also tend to share more actively with people who agree with us and, without fear of questioning or rebuke, we are less likely to check that information for accuracy.
We are highly affected by what those around us think. In fact, a series of famous experiments first performed in the 1950’s, and confirmed many times since then, showed that we will conform to the opinions of those around us even if they are obviously wrong. More recent research has found that the effect extends to three degrees of social distance.
It’s likely that some version of this is what doomed Jeffrey Immelt at General Electric. When he took over as CEO in 2001, Silicon Valley was in a process of renewal after the dotcom crash. As the startup boom gathered steam, it captured the imagination of business journalists. He brought in Ries to “cast out” the old ways of plodding, industrial firms and surrounded himself with people who believed similar things. Everything must have felt right.
The elephant was in full control and the rider just went along—all the way off the cliff.
Don’t Believe Everything You Feel
The neuroscientist Antonio Damasio believes we encode experiences in our bodies as somatic markers and that our emotions often alert us to things that our brains aren’t aware of. Another researcher, Joseph Ledoux, had similar findings. He pointed out that our body reacts much faster than our mind, such as when we jump out of the way of an oncoming object and only seconds later realize what happened.
Nobel Laureate Daniel Kahneman suggests that we have two modes of thinking. The first is emotive, intuitive and fast. The second is rational, deliberative and slow. Our bodies evolved to make decisions quickly in life or death situations. Our rational minds came much later and don’t automatically engage. It takes effort to bring in the second system.
There are some contexts in which we should favor system one over system two. Certain professions, such as surgeons and pilots, train for years to hone their instincts so that they will be able to react quickly and appropriately in an emergency. When we have a bad feeling about a situation, we should take it seriously and proceed with caution.
However, our feelings need to be interrogated, especially in areas for which we do not have specific training or relevant expertise. We need to gain insight into what exactly our feelings are alerting us to and that requires us to engage our rational brain.
Yes, feelings should be taken seriously. They are often telling us that something is amiss. But they are much more reliable when they are alerting us to danger than when they are pushing us to overlook pertinent facts and proceed with a course of action. When we go with our gut, we need to make sure it’s not just because we had a bad lunch.
— Article courtesy of the Digital Tonto blog
— Image credit: Pixabay
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In 1975, more than 80% of US corporate assets were tangible assets, things like factories, equipment and real estate. When leaders in an organization made decisions about change, they tended to involve tangible, strategic assets, such as building a new factory, entering a new market or launching a new line of products.
So when the modern practice of change management arose in the 1980s, that’s what it was designed to address. Managers began to recognize the need to communicate changes to the rank and file, so that they could better understand it and contribute to its success. An entire cottage industry of consultants arose to fill that need.
But now that situation has flipped and more than 80% of corporate assets are intangible. When we talk about change today we are usually talking about changes in people themselves, in how they think and how they act. Clearly, that’s a very different type of thing and we need to approach change differently. Unfortunately, too many people are mired in the past.
Myth #1: If People Understand Change, They Will Embrace It
Leaders like to be seen at the cutting edge and, to be effective, they need to believe in themselves. That’s what makes transformational initiatives so attractive. They’re much more fun than the more mundane aspects of managing an enterprise, like improving operations or cutting costs. Change gives leaders a chance to dream.
That’s what the practice of change management was designed to support. Someone high up in an organization would get an idea to, say, launch a new product line for a new market and the consultants would be brought in to help communicate the idea so that everyone could understand just how brilliant the idea was.
Of course, even if employees thought the idea was stupid there wasn’t much they could do about it. If a CEO wants to launch a new product line, invest in new factories and equipment and hire new people, there’s nothing the rank and file can do about it. Leadership has full control over tangible, strategic assets.
But today, when the vast majority of corporate assets are intangible, transformation initiatives involve changes in how people think and what they do, which leadership does not control. People have the power to resist and you can be sure they will. That’s why change fails, not because people don’t understand it, but because they don’t like it and actively sabotage it.
The truth is that humans form attachments to other people, ideas and things. When they feel those attachments are threatened, they will often lash out. That’s why when you ask people to change how they think or what they do, you will invariably offend some people’s identity, dignity and sense of self and they will act out in ways that are dishonest, underhanded and deceptive. That doesn’t make them bad people—we all do it—it just makes them human.
Myth #2: You Have To Convince The Skeptics
There is something baffling about human nature. Whenever we have an idea we are passionately about we feel intense desire to convince skeptics. Our inner marketers want to identify specific objections and then devise airtight arguments to counter them. We envision ourselves being dazzlingly persuasive and making our case.
Change management consultants encourage this type of thinking. They advise us to “provide simple, clear choices and consequences” and “show the benefits in a real and tangible way.” They also suggest that we have “open and honest conversations” and “even make a personal appeal” in order to “convert the strongest dissenters.”
This may make sense if the objections are rational, but often they are not. In fact, the most visceral dissent almost invariably has more to do with how people see themselves. That’s why change so often offends people’s dignity, because their identity is so often wrapped up in what they think and what they do. You can’t ask people to stop being who they think they are.
The good news is that you don’t have to. Consider the scientific evidence:
Sociologist Everett Rogers‘ “S-curve” research estimated that it takes only 10%-20% of a system to adopt an innovation for rapid acceptance by the majority to follow.
Professor Erica Chenoweth’s analysis of over 300 political revolutions in the past century finds that it only took 3.5% of active participation in a society to succeed, and many campaigns prevailed with less.
Recent research by sociologist Damon Centola at the University of Pennsylvania suggests that the tipping point for change is getting 25% of people in an organization on board.
There’s no need to waste time trying to convince people who hate your idea and want to undermine it in any way they can. Any engagement is very unlikely to be successful and very likely to frustrate and exhaust you. You are much better off focusing your energies on empowering those who are enthusiastic about change to succeed, so that they can bring in others who can bring in others still. That’s how you build traction.
Myth #3: Things Will Get Easier After A “Quick & Easy” Win
Change management pioneer John Kotter, who first started writing books about organizational transformation in the 1970s, has long advised to establish short-term wins. He stressed that these must be unambiguously successful, visible throughout the organization and clearly related to the change effort.
The concept is problematic for a number of reasons. First, and this isn’t really Kotter’s fault, but the idea of a “short-term win” is often understood to be a “quick and easy win,” which can backfire. If a change isn’t meaningful and relevant, then touting it can make a leader seem out of touch, discrediting the transformation effort.
More problematic is the idea that we should be shooting for projects that are unambiguously successful. That level of success is exceedingly rare. If we are going to wait for perfect projects, we may be waiting a long time. What we want to do is start with a Keystone Change and then learn from whatever successes and failures we encounter on the way.
Perhaps most dangerous of all is the notion that early projects should be visible to large numbers of people. Remember, if a change is significant and has the potential for impact, there will always be people who want to undermine it in ways that are dishonest, underhanded and deceptive. Why would we want to broadcast early efforts so they can knock them down?
The truth is that things don’t get easier after initial successes. They often get harder because those who oppose change now see it is really possible. That’s why you need to build a plan to anticipate resistance and Survive Victory from the start.
Change for the World We Live In
In the early 20th century, the great sociologist Max Weber noted that the sweeping industrialization taking place would lead to a change in organization. As cottage industries were replaced by large enterprises, leadership would have to become less traditional and charismatic and more organized and rational.
He also foresaw that jobs would need to be broken down into small, specific tasks and be governed by a system of hierarchy, authority and responsibility. This would require a more formal mode of organization—a bureaucracy—in which roles and responsibilities were clearly defined. Weber’s model reigned for a full century.
Over the past few decades we’ve undergone a similar shift from bureaucratic hierarchies to connected ecosystems and that affects how we need to approach transformation. The changes we need to implement today have less to do with decisions made about strategic, tangible assets and more to do with how people think and act. That presents a very different set of challenges and we need to adapt.
What we can’t do is pretend that the world is the same as it was 30 or 40 years ago and continue with practices that are so obviously failing. Just as Weber dispelled myths about infallible leaders a century ago, we need to break free of outdated concepts that have led to unacceptably poor results.
It’s time to leave myths behind and take a more clear-eyed approach to leading change.
— Article courtesy of the Digital Tonto blog
— Image credit: Pixabay
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Mehdi Hasan’s brutal takedown of Matt Taibbi was almost painful to watch. Taibbi, a longtime muckraking journalist of some renown, was invited by Elon Musk to review internal communications that came to be known as the Twitter Files and made big headlines with accusations regarding government censorship of social media.
Yet as Hasan quickly revealed, Taibbi got basic facts wrong, either not understanding what he was looking at, doing sloppy work or just plainly being disingenuous. What Taibbi was reporting as censorship was, in fact, a normal, deliberative process for flagging problematic content, most of which was not taken down.
He looked foolish, but I could feel his pain. In both of my books, I had similarly foolish errors. The difference was that I sent out sections to be fact-checked by experts and people with first-hand knowledge of events before I published. The truth is that it’s not easy to get facts straight. It takes hard work and humility to get things right. We need to be careful.
A Stupid Mistake
Some of the most famous business stories we hear are simply not accurate. Gurus and pundits love to tell you that after inventing digital photography Kodak ignored the market. Nothing could be further from the truth. In fact, its EasyShare line of cameras were top sellers. It also made big investments in quality printing for digital photos. The problem was that it made most of its money on developing film, a business that completely disappeared.
Another popular fable is that Xerox failed to commercialize the technology developed at its Palo Alto Research Center (PARC), when in fact the laser printer developed there saved the company. What also conveniently gets left out is that Steve Jobs was able to get access to the company’s technology to build the Macintosh because Xerox had invested in Apple and then profited handsomely from that investment.
But my favorite mistold myth is that of Blockbuster, which supposedly ignored Netflix until it was too late. As Gina Keating, who covered the story for years at Reuters, explains in her book Netflixed, the video giant moved relatively quickly and came up with a successful strategy, but the CEO, John Antioco, left after a fight with investor Carl Icahn and the strategy was reversed.
Yet that’s not exactly how I told the story. For years I reported that Antioco was fired. I even wrote it up that way in my book Cascades until I contacted the former CEO to fact-check it. He was incredibly generous with his time, corrected me and then gave me additional insights that improved the book.
To this day, I don’t know exactly why I made the mistake. In fact, as soon as he pointed it out I knew I was wrong. Somehow the notion that he was fired got stuck in my head and, with no one to correct me, it just stayed there. We like to think that we remember things as they happened, but unfortunately our brains don’t work that way.
Why We Get Fooled
We tend to imagine that our minds are some sort of machines, recording what we see and hear, then storing those experiences away to be retrieved at a later time, but that’s not how our brains work at all. Humans have a need to build narratives. We like things to fit into neat patterns and fill in the gaps in our knowledge so that everything makes sense.
Psychologists often point to a halo effect, the tendency for an impression created in one area to influence opinion in another. For example, when someone is physically attractive, we tend to infer other good qualities and when a company is successful, we tend to think other good things about it.
The truth is that our thinking is riddled with subtle yet predictable biases. We are apt to be influenced not by the most rigorous information, but what we can most readily access. We make confounding errors that confuse correlation with causality and then look for information that confirms our judgments while discounting evidence to the contrary.
I’m sure that both Matt Taibbi and I fell into a number of these pitfalls. We observed a set of facts, perceived a pattern, built a narrative and then began filling in gaps with things that we thought we knew. As we looked for more evidence, we seized on what bolstered the stories we were telling ourselves, while ignoring contrary facts.
The difference, of course, is that I went and checked with a primary source, who immediately pointed out my error and, as soon as he did, it broke the spell. I immediately remembered reading in Keating’s book that he resigned and agreed to stay on for six months while a new CEO was being hired. Our brains do weird things.
How Our Errors Perpetuate
In addition to our own cognitive biases, there are a number of external factors that conspire to perpetuate our beliefs. The first is that we tend to embed ourselves in networks that have similar experiences and perspectives that we do. Scientific evidence shows that we conform to the views around us and that effect extends out to three degrees of relationships.
Once we find our tribe, we tend to view outsiders suspiciously and are less likely to scrutinize allies. In a study of adults that were randomly assigned to “leopards” and “tigers,” fMRI studies noted hostility to out-group members. Research from MIT suggests that when we are around people we expect to agree with us, we don’t check facts closely and are more likely to share false information.
In David McRraney’s new book, How to Change a Mind, he points out that people who are able to leave cults or reject long-held conspiracy theories first build alternative social networks. Our associations form an important part of our identity, so we are loath to change our opinions that signal inclusion into our tribe. There are deep evolutionary forces that drive us to be stalwart citizens of the communities we join.
Taibbi was, for years, a respected investigative journalist at Rolling Stone magazine. There, he had editors and fact checkers to answer to. Now, as an independent journalist, he has only the networks that he chooses to give him feedback and, being human like all of us, he subtly conforms to a set of dispositions and perspectives.
I probably fell prey to similar influences. As someone who researches innovation, I spend a lot of time with people who regard Netflix as a hero and Blockbuster as something of a bumbler. That probably affected how I perceived Antioco’s departure from the company. We all have blind spots and fall prey to the operational glitches in our brains. No one is immune.
Learning How To Not Fool Ourselves
In one of my favorite essays the physicist Richard Feynman wrote, “The first principle is that you must not fool yourself — and you are the easiest person to fool. So you have to be very careful about that,” He goes on further to say that simply being honest isn’t enough, you also need to “bend over backwards” to provide information so that others may prove you wrong.
So the first step is to be hyper-vigilant and aware that your brain has a tendency to fool you. It will quickly grasp on the most readily available data and detect patterns that may or may not be there. Then it will seek out other evidence that confirms those initial hunches while disregarding contrary evidence.
This is especially true of smart, accomplished people. Those who have been right in the past, who have proved the doubters wrong, are going to be less likely to see the warning signs. In many cases, they will even see opposition to their views as evidence they are on the right track. There’s a sucker born every minute and they’re usually the ones who think that they’re playing it smart.
Checking ourselves isn’t nearly enough, we need to actively seek out other views and perspectives. Some of this can be done with formal processes such as pre-mortems and red teams, but a lot of it is just acknowledging that we have blind spots, building the habit of reaching out to others and improving our listening skills.
Perhaps most of all, we need to have a sense of humility. It’s far too easy to be impressed with ourselves and far too difficult to see how we’re being led astray. There is often a negative correlation between our level of certainty and the likelihood of us being wrong. We all need to make an effort to believe less of what we think.
Private Equity is Ruining Everything from Sandwiches to Pet Ownership
LAST UPDATED: January 20, 2026 at 3:59 PM
GUEST POST from Art Inteligencia
I have always maintained that innovation is a byproduct of human curiosity meeting competitive necessity. It is a biological process of sorts; a marketplace needs diversity, mutation, and the survival of the fittest ideas to stay healthy. However, we are currently witnessing a systemic threat to this ecology: the massive concentration of wealth in the hands of a dwindling few. This financial gravity is creating a “Consolidation Gravity Well” that is sucking the life out of industries, raising prices, and — most crucially — killing the very spirit of innovation, community and entrepreneurship.
When wealth is widely distributed, it acts as seed corn for a thousand different experiments. But when wealth is concentrated, it becomes a weapon of market stabilization. For those at the top, innovation is often viewed as a threat to be managed rather than an opportunity to be seized. The result is a rapid consolidation across industries — from digital platforms to healthcare to agriculture — that leaves consumers with fewer choices and higher bills.
“When wealth concentrates, the marketplace loses its heartbeat. We trade the vibrant pulse of human-centered discovery for the sterile, predictable hum of a monopoly’s balance sheet.” — Braden Kelley
The Erosion of Value for Money
The standard economic argument for consolidation is “efficiency.” Larger firms, we are told, can leverage economies of scale to lower costs. Yet, in practice, we see the opposite. When three or four firms control 80% of a market, they stop competing on value creation and start competing on extraction. Without the threat of a nimble competitor stealing their lunch, these giants engage in “shadow pricing” and “feature stripping.”
The consumer feels this as a decrease in value for money. You pay more for a subscription that offers less; you buy food that is more processed but more expensive; you use software that hasn’t seen a meaningful update in five years because there is nowhere else to go. This is a direct consequence of wealth concentration allowing incumbents to buy their way out of the need to innovate.
How Financial Gravity Sucks Wealth Upwards
Concentrated wealth creates a financial gravity that funnels massive pools of capital — from sovereign wealth funds and ultra-high-net-worth individuals — directly into private equity (PE) vehicles seeking high-return alternatives to public markets. This capital is deployed through aggressive “roll-up” or “buy-and-build” strategies, where a PE firm identifies a stable “platform” company in a fragmented industry — like plumbing, dental services, HVAC, or veterinary care — and systematically gobbles up smaller independent competitors as “bolt-on” acquisitions. By centralizing control, these firms often shift the focus from organic, empathy-driven innovation to “multiple arbitrage” and operational extraction, where value is manufactured by selling the consolidated giant at a higher valuation multiple than the individual pieces were originally purchased for. The ultimate cost is a landscape where consumer prices often spike by 7% to 20%, competition is silenced, and the marketplace loses the healthy diversity required for genuine, breakthrough human-centered innovation.
Case Study 1: The “Kill Zone” in Digital Platforms
In the technology sector, the concentration of wealth has created what venture capitalists call the “Kill Zone.” This is the space around a dominant platform (like Google, Amazon, or Meta) where any startup that shows true innovative potential is either acquired or crushed. Because these giants have nearly infinite cash reserves, they don’t have to wait to see if a startup’s idea is better. They simply buy the team and the patents, often “sunsetting” the product to protect their existing revenue streams. This has led to a stagnation in social media and search innovation, where the goal for founders is no longer to “build a great company,” but to “get bought by the monopoly.” The human-centered focus on solving user problems is replaced by the financial focus of an exit strategy.
The Innovation Debt of Oligopolies
Consolidated industries suffer from what I call Innovation Debt. Because they face no external pressure to reinvent themselves, they continue to polish old, inefficient systems while ignoring the fundamental shifts in human needs. They become brittle. When a shock hits the system—be it a pandemic or a supply chain crisis—these consolidated giants often fail to adapt because they have spent decades optimizing for profit extraction rather than resilient innovation.
Case Study 2: The Consolidation of American Meatpacking
In the mid-20th century, the meatpacking industry was relatively diverse. Today, just four companies control the vast majority of the market. This concentration of wealth and power has allowed these firms to keep prices high for consumers while keeping payments to farmers low. From an innovation standpoint, the industry has stagnated. Instead of investing in more sustainable, humane, or efficient farming practices, the focus has been on process consolidation and political lobbying to prevent regulation. When the supply chain was tested recently, the lack of innovative, decentralized alternatives led to massive price spikes and shortages. The lack of competition meant there was no “Plan B” being developed by a smaller, hungrier innovator.
Case Study 3: Consumer Goods and Shrinkflation Innovation
In consumer packaged goods, consolidation has produced a different form of innovation failure. Fewer parent companies control hundreds of brands. Price increases are disguised through shrinkflation, packaging changes, and marketing narratives.
Instead of innovating on nutrition, sustainability, or affordability, companies innovate on perception management. Value erodes while margins grow.
This is not innovation in service of humans—it is innovation in service of financial engineering.
Case Study 4: How Private Equity is Redefining the Price of Pet Companionship
For decades, the local veterinarian was a staple of the community—an independent practitioner who knew your dog’s name and your family’s budget. Today, that landscape has been fundamentally reshaped. As of early 2026, private equity firms and megacorporations control approximately 50% of all veterinary clinics in the United States, a staggering leap from just 10% a decade ago. This aggressive “roll-up” strategy is not just changing who signs the paychecks; it is systematically altering the economics of pet ownership, pushing life-saving care and insurance out of reach for many families.
The private equity playbook is simple: acquire independent clinics, centralize administrative functions, and implement standardized, profit-maximizing medical protocols. While proponents argue this brings professional management and better technology, the data suggests a different reality for “pet parents.”
“We are witnessing the financialization of empathy. When a clinic’s primary metric shifts from ‘patient outcome’ to ‘EBITDA multiple,’ the price of a pet’s life becomes a line item that many middle-class families simply can no longer afford.”
Case Study 5: The Industrialized Home
In a world of accelerating change, we often focus on digital transformation, but one of the most significant shifts is happening behind the walls of our homes. The plumbing and HVAC sectors, historically dominated by local family businesses, are currently undergoing a massive private equity roll-up. This financialization is fundamentally decoupling the “service” from the “provider,” leading to an environment where the objective is no longer the longevity of the machine, but the maximization of the average service ticket.
“When a technician is carrying a sales quota instead of a toolbox, the pride of an effective and reasonably priced repair dies. We are trading the resilience of our home infrastructure for the sterile efficiency of a private equity exit strategy.”
— Braden Kelley
The “Roll-Up” Reality: Sales over Service
By early 2026, it is estimated that nearly 40% of residential service revenue in major U.S. metropolitan areas is captured by private equity-backed platforms. These firms utilize a “platform and bolt-on” strategy: they buy a large, reputable local company and then acquire smaller competitors to “bolt on” to the operation. While the name on the truck remains the same to preserve generational trust, the internal culture is replaced by high-pressure sales training.
Mini-Case 1: The Wrench Group and the Pricing Surge
The Wrench Group, backed by Leonard Green & Partners, has become a dominant force in the trades. By consolidating major brands like Abacus and Coolray, they have built a multi-billion dollar platform. In many markets where Wrench or similar entities have taken over, homeowners have reported that a standard “capacitor fix” (a $20 part) that used to cost $150 now frequently results in a $15,000 quote for a full system replacement. This shift effectively raises the barrier to home maintenance, making homeownership increasingly unattainable for the middle class as “repairability” is phased out in favor of “replacement cycles.”
Mini-Case 2: TurnPoint Services and the “Membership” Trap
TurnPoint Services, supported by OMERS Private Equity, has rapidly acquired dozens of local plumbing and electrical brands. A core part of their “innovation” is the aggressive push for proprietary membership programs. While marketed as preventative maintenance, these programs are often designed as lead-generation engines. Technicians are trained to find “critical failures” during routine check-ups, using the membership as a hook to keep the homeowner within the corporate ecosystem. This decreases value for money by forcing consumers into a subscription model for services that were historically transactional and transparent.
The Negative Impact on Innovation
This consolidation has a chilling effect on true innovation. Instead of developing more durable HVAC components or more efficient plumbing diagnostics, “innovation” in the sector is now focused on financing algorithms and sales psychology. When the market is controlled by a few giants whose goal is to sell the company in 3 to 5 years, there is no incentive to invest in 20-year solutions. The result is an Innovation Debt that the homeowner pays through premature system failure and inflated insurance premiums driven by the rising cost of emergency repairs.
The Human Cost of Consolidation
From a human-centered perspective, consolidation produces predictable harms:
Customers pay more for less value
Workers face fewer employers and weaker bargaining power
Entrepreneurs encounter higher barriers to entry
Society loses resilience and adaptability
Innovation ecosystems require tension. Consolidated systems eliminate it.
Rebuilding Conditions for Real Innovation
Restoring innovation is not about punishing success—it is about restoring balance. Healthy systems reward value creation, not value extraction.
That requires:
Modernized antitrust frameworks
Capital access beyond elite networks
Open, interoperable platforms
Human-centered success metrics
Innovation flourishes when power is distributed, competition is real, and human needs—not financial optimization—define progress.
The Path Forward: Human-Centered Systems
If we want to reignite the engine of innovation, we must address the wealth concentration that enables this consolidation. We need policies that protect the “biodiversity” of our markets. Innovation thrives when the barriers to entry are low and the rewards for genuine value creation are high. An innovation speaker like Braden Kelley might tell a boardroom, “Growth is not a zero-sum game of acquisition; it is a generative process of empathy-driven creation.”
We must shift our focus back to the human. When we design markets that prioritize the few, we lose the genius of the many. It is time to climb out of the consolidation gravity well and build an economy that rewards those who dare to build something new, rather than those who simply have the deepest pockets to buy what already exists.
Frequently Asked Questions
How does wealth concentration lead to industry consolidation?
When massive amounts of capital are concentrated in the hands of a few entities or individuals, those players possess the “financial gravity” to acquire competitors, build insurmountable barriers to entry, and buy out emerging startups before they can challenge the status quo.
Why does consolidation decrease innovation?
Innovation requires biological diversity in the marketplace. When an industry consolidates into a duopoly or oligopoly, the remaining players lose the incentive to take risks on breakthrough ideas, shifting instead to rent-seeking.
What is the “Innovation Tax” on consumers?
It is the combination of rising prices and declining value for money that occurs when competition vanishes. Consumers pay more for stagnant products because they have no alternative.
Postscript
Do yourself a favor and avoid private equity owned sandwich chains like Subway, Jimmy John’s, Arby’s, Panera Bread and Jersey Mike’s Subs that have jacked up prices while simultaneously downsizing portions and replacing ingredients with lower quality alternatives. I now routinely go to grocery stores and get a higher quality sandwich at a lower price.
Disclaimer: This article speculates on the potential future direction of society based on current factors. It is hard to predict whether commercial, political and charitable organizations will respond in ways sufficient to alter the course of history or not.
Image credits: Grok, Gemini
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Leaders aspire to create a “dream organization” not merely for the sake of prestige or profit, but because they recognize that a deeply aligned, human-centered culture is the ultimate multiplier of potential. In a dream organization, the traditional friction between individual aspiration and corporate objective vanishes, replaced by a shared sense of purpose and psychological safety that allows innovation to flourish naturally. These leaders understand that when employees feel truly seen, valued, and empowered to contribute their best work, the organization becomes antifragile — capable of navigating uncertainty with a level of agility and commitment that cannot be bought or mandated. Ultimately, the quest for a dream organization is an investment in a sustainable future where the workplace acts as a catalyst for both professional excellence and personal fulfillment.
Today we dive deep into what it takes to create a “dream organization” through a dialogue with our special guest.
Helping Leaders Build Their Dream Organization
I recently had the opportunity to interview Oscar Amundsen, a full Professor of Organization Studies at the Norwegian University of Science and Technology.
He has extensive experience in researching various industries and businesses. His work is focused on change and innovation in organizations. This includes related topics such as leadership, culture, trust, motivation, and organizational development. In these fields, he has published numerous books and scientific articles.
Amundsen’s goal is to develop research-based knowledge AND at the same time make the research concrete and accessible. The point is to make the knowledge useful for creating better organizations. Whether the enterprise is in the public, voluntary or private sector.
1. What does it take for an organization to break its own practices and develop new ones?
Organizations can be seen as ‘organisms’ that develop habits. And we all know that habits are not easy to break. But organizations can also be seen as ‘tools for achieving goals’. Since the world around the organization changes, the organization itself must also change to remain a suitable tool for the (changed) tasks that need to be solved.
As a leader, you must have the ability to identify the need for change. This means you need to look both ‘outward and inward’: What is required of us in a changing environment? And what does this mean for how we work within this organization?
Many leaders overlook that the latter question requires deep knowledge of what is happening inside the organization. Therefore, you should consult with employees who are close to the core tasks of the organization. You don’t know everything yourself, and you need some knowledge from the ‘foot soldiers’ to make the organization better.
I would also add that ‘breaking away’ is precisely a hallmark of all innovation. If you are going to do things in new ways, you have to break with what is established (in a market, in a practice, etc.). However, all such breaks require a willingness to take risks. You can never know with one hundred percent certainty how it will turn out, even though you should of course avoid taking reckless chances with your business. But you must accept that things can go wrong from time to time in order to achieve something new.
2. What are the keys to promoting the ability to both change and innovate?
This is precisely the question that the book answers. I present a research-based model with eight keys to strengthening the ability for change and innovation. The book is therefore structured around eight chapters, each addressing one of these keys. The point is to show how these eight mechanisms influence the capacity for change and innovation. This knowledge gives you the opportunity to build and develop an organization that not only solves its tasks smarter and better, but also becomes an attractive place to be for both leaders and other employees.
3. Why do people resist sharing new practices?
If you have an organization where people are afraid of making mistakes and trying new things, much will happen in secret. In the book, I write about an employee who comes up with a new and efficient way of working but keeps it hidden from both colleagues and managers because she fears her solution deviates from established procedures. She knows the solution is both sound and sensible. It is only when a researcher visits the organization that she (anonymously) shares her new way of working. Her lack of trust in leadership means that a new practice remains with her, even though it could have spread (and been improved) if it had been openly discussed among employees and managers. This organization misses out on the resource that ordinary employees represent for improving and renewing the business.
4. What are the keys for leaders to manage that determine whether trust or mistrust dominates?
Let me first say that trust is worth its weight in gold in this context. The reason is that trust in an organization is absolutely fundamental to building its ability to innovate. In the book I highlight five aspects that explain why and how trust influences the organization’s ability to change and innovate.
As a leader, you should understand these aspects, because only then can you say something meaningful about the state of trust within the organization.
Practicing trust requires a certain degree of courage. Trusting someone always (in principle) involves some risk: You can never be 100 percent certain that the trust you show will be honored. It may sound strange, but despite this, I recommend a more trust-based leadership approach because it has so many positive effects.
Concretely, you should reflect on the signals you personally send out, but may be even more important: You should examine the control systems used in your organization. Is there more control than necessary in some areas? What is the purpose of that control? Is it to ‘catch’ people making mistakes, or is it to learn from mistakes?
5. Why is autonomy so important to employees?
There is solid research evidence to support the claim that autonomy is, in fact, a fundamental human need (along with mastery and belonging). All people function better when they have some influence over their own situation – of course within the goals and frameworks set by the organization. In the book, I discuss how autonomy strengthens people’s motivation and drive – and (not least) increases their willingness to contribute constructively within an organization. It is well-established knowledge from innovation research that autonomy, within good boundaries, is positive for innovation.
6. Why is it important for organizations to have positive vibes and how is this different from optimism?
Optimism is good, but it can actually become a ‘straitjacket’. In the book, I illustrate this through a case where I explain the spectacular fall of mobile phone manufacturer Nokia. At the turn of the millennium, they were the world’s largest mobile phone producer. But a culture developed within the company where it was ‘not allowed’ to raise objections or criticize the strategy. Management only wanted to hear good news. The short version of this story is that Nokia was therefore unprepared when the iPhone entered the market, and gradually disappeared until the remnants were bought up some years later.
On the other hand: Having positive feelings toward your own company, is of great value to the organization. This is something completely different from a demand for pure optimism. Research suggests that such positive feelings influence your relationship with colleagues and the organization. The point is that a positive atmosphere makes you more:
Helpful: The mechanism is ‘feel good – do good’. Things flow more smoothly, including knowledge sharing.
Engaged: You become willing to make sacrifices and go the extra mile.
Protective: You ‘speak proudly’ about the company externally and help prevent dangers and trouble.
Constructive: You are more likely to come up with constructive suggestions.
The last point directly impacts an organization’s ability to change and innovate, while the first three strengthen that ability indirectly.
7. What do tolerance of failure and diversity look like in practice?
Tolerance for mistakes is essential for achieving innovation. In a ‘zero-error culture,’ you will struggle to innovate simply because people are afraid to experiment, to try and fail. Although mistakes will always happen, it is useful to distinguish between different types of mistakes: What you want to encourage (and have more of) are what can be called ‘intelligent mistakes.’
These are mistakes that occur when you deliberately try something new. The goal is to learn so that you can move forward with what you are trying to develop. Other types of mistakes can be called basic or complex. These are the ones you want as few of as possible, but you cannot say they should never exist. Research shows that if you have zero tolerance for mistakes, they will be hidden, and you lose the opportunity to learn from them.
When it comes to diversity, I write in the book about how different types of perspectives and knowledge are valuable for innovation. I emphasize that leaders should demonstrate a certain level of humility and recognize that they need others’ insights to make good decisions.
8. What is practical anchoring and why is it so important?
Practical anchoring is essentially about involving the right employees in change processes. The point is that you need knowledge of actual practice to carry out sensible change work. People in the organization should see the benefit of the changes you are planning if you want them on board when changes are implemented. This makes sense not only for engagement and motivation but also to ensure you don’t create a less efficient organization with duplicate work and potential obstacles to doing a good job.
9. Why does fear play such a big role in organizations’ ability to change & innovate?
This is a broad topic, which I dedicate an entire chapter to in the book. The short version is that fear leads employees to avoid participating and contributing with their knowledge and experience. We are social beings who generally want to avoid the risk of offering an original contribution or asking a critical or fundamental question if there are potential negative consequences. In the Nokia case, we also see that people became tactical regarding their own career opportunities within the organization: They eventually learned that those who asked critical (but necessary) questions lost opportunities in the company. This caused engineers to drift to the sidelines – even on strategic technical issues.
10. Getting 100% participation is always a good thing, right?
There are many benefits to involving people in both innovation and change efforts. The point is to make the best use of the knowledge resources you have within the organization for the benefit of the organization. In addition, you become a more attractive employer if you allow people to participate in development. Modern employees actually expect to have some influence over their work situation and to use their knowledge in ways that benefit both themselves and the organization.
That said, I still emphasize in the book that there is a balance here: It’s not as if everyone should have an opinion on everything and participate in every possible process. That would only create chaos and overload for people in key roles. In the book, I use the term ‘participation satisfaction’ to describe this. People have different needs for involvement—both personally and, most importantly, based on the role they have. Conclusion: Not “the more participation, the better,” but balanced according to need.
11. Any question I didn’t ask that you want to answer?
Well, you haven’t asked me about the title of the book. I want to underline that “the dream organization” is not meant as a utopic situation. Rather, it’s meant more like a goal image. A goal image for those who want to build and become stronger in change and innovation. So, the book is about improving the organization – and at the same time making it attractive to be a part of – as a leader and as an employee.
So, the title of the book is an invitation to raise your gaze a little and ask something like: “What steps could I take to build a better organization? How can I develop a workplace where people like to work – and where change and innovation are a natural part of working?” That’s the kind of organization I want to help make reality with this book.
Drum roll please…
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