Category Archives: Innovation

The Architecture of Organizational Agility

Beyond the Pivot

LAST UPDATED: February 24, 2026 at 5:22 PM

Architecture of Organizational Agility

by Braden Kelley and Art Inteligencia

I. Introduction: The Agility Imperative

Beyond Reactive Maneuvering toward Proactive Orchestration

The Stability Paradox

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.

Braden Kelley Flexibility Quote

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.

Organizational Agility Framework

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:

  1. Green Zone: Elements everyone agrees are Fixed. These are your strengths.
  2. Red Zone: Elements everyone agrees are Fixed but should be Flexible. These are your targets for immediate “unlearning.”
  3. 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.

Organizational Agility: Frequently Asked Questions

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.

Image credits: Braden Kelley (1,100+ FREE quote posters at http://misterinnovation.com), Google Gemini

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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Capitalizing on Disruptive Innovations

Capitalizing on Disruptive Innovations

GUEST POST from Geoffrey A. Moore

In Silicon Valley, we are in love with disruptive innovations, largely because we make a lot of them and have profited exceedingly well from so doing. But for anyone on the receiving end, the relationship is not so rosy. Yes, the potential for gain is extraordinary, but the path to getting there is strewn with attempts that have fallen far short of the hype. How can one engage responsibly with this sort of opportunity? Here’s a framework that can help.

Capitalizing on Disruptive Innovations Stairway to Heaven Framework

There are four proven ways to capitalize on disruptive innovation, and they are organized here in terms of escalating risk and reward. Each stair appeals to a different persona in the Technology Adoption Life Cycle, the bottom one attracting conservatives, the second, pragmatists in pain, the third, pragmatists with options, and the fourth, visionaries. Each stair can be managed to its targeted reward, but it is very hard indeed to manage two or more stairs in tandem. Most failures occur because management is not decisive about which gains it is committed to achieving and in what priority order it should be served. Needless to say, there is a better way.

The first use of this framework is to explore the possibilities of each stair for your enterprise. That is, if you were to prioritize this stair, what would success look like, how would you expect to measure it, and what costs and risks would be entailed? You want to talk this through as a team, ensuring everyone gets heard. Specifically, you want to make sure that the adoption personas of the most powerful people in the room do not dominate this part of the dialog. They are likely going to make the call in the end, but it is critical that they hear everyone out before they do.

Let’s try this out with everyone’s latest favorite example—generative AI. Imagine you are a member of the executive team at a pharmaceutical corporation, and you have charged your IT team to come up with a GenAI strategy. Wisely, they have come back to you with an array of options, arranged in a stairway to heaven. Here’s what they might say:

  • Automate. There is a whole series of regulatory compliance obligations that today we outsource overseas to be serviced by a lower-waged workforce. Not only would automating these tasks reduce our costs, it would also lower the error rate and continuously improve performance as more and more machine learning is put to work. This is a low-risk, modest-return option. There would be no disruption to any of our other operations, and we in IT could learn a lot about a technology that is mutating far faster than anything we have ever seen before.
  • Reengineer. Our proteomics research scientists are having a real problem with the combinatorial explosion of all the possible 3D configurations a given 2D sequence of amino acids might adopt. By focusing our generative AI models on just this one problem, we can vastly accelerate our discovery phase, transforming our problem set from completely intractable to continuously improving. This is a medium-risk, high-return opportunity that is confined to a single department, thereby minimizing disruption to the rest of our value chain.
  • Modernize. Our go-to-market teams are competing for smaller and smaller slices of time from the physician offices they call upon. We need relevant messaging to get the appointment and highly personalized content to get buy-in from both the doctors and the nurses. Today we rely on experience and anecdotal data, which works OK for our long-tenured members but makes recruiting, onboarding, and ramping a nightmare. By focusing our Large Language Model on all the data in our CRM systems, combined with all our data from the labs, clinical trials, patent submissions, as well as the patient records we have access to, we can arm our GenAI with more information than any one human could process. We still will have humans in the loop to monitor and adapt this material throughout the sales process, but they will be much better equipped to compete than ever before. This is a high-risk, high-return opportunity that will impact a large portion of our workforce, so we plan to stage the implementation to capture learnings as we go.
  • Innovate. Deep Mind’s AlphaGo program taught itself to play go at the highest level by playing against itself millions and millions of times. We think we can take a similar approach to drug discovery. It’s a moon-shot idea, and our data scientists are still in their own discovery phase, but this could be a game-changer for the industry. We’d like to take a VC approach to funding this effort, ring-fencing the funding across several years, but holding ourselves accountable to meeting material milestones along the way.

As you can see, there is a case to be made for each stair, but there is only so much time, talent, management attention, and working capital to go around, so it is critical that the executive team prioritize these four options and sequence them appropriately. Different teams will come up with different priorities. You are not looking for the “right answer.” You are looking for the one that will yield the best risk-adjusted returns for your enterprise under current conditions.

That’s what I think. What do you think?

Image Credit: Geoffrey Moore, Google Gemini

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Why It Matters WHO Conducts Your Customer Experience Audit

LAST UPDATED: February 23, 2026 at 4:42 PM

Why It Matters WHO Conducts Your Customer Experience Audit

by Braden Kelley and Art Inteligencia

I. Introduction: The Audit as a Mirror

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 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?

Request a Customer Experience Audit

For more on Customer Experience Audits check out:

Customer Experience Audit 101
Why a Customer Experience Audit is Non-Negotiable in 2026
Is Your Customer Experience a Lie?

CX Audit: Frequently Asked Questions

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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Are Ethics a Constraint or Catalyst for Innovation?

Are Ethics a Constraint or Catalyst for Innovation?

GUEST POST from David Sable

For centuries, innovation has lived in tension with ethics.

Some say moral codes kill progress… Others say they force progress to grow up. And sometimes… they save lives.

The truth?

It’s not binary… It’s a system with three gears:

  • Ethics can kill innovation.
  • Ethics can sharpen innovation.
  • Ethics can morph innovation and save lives.

Let’s explore all three.

When Ethics Slowed or Killed Innovation

Galileo (1633): He was tried by the Church for heresy for supporting heliocentrism. The science was sound… but ethics and religion weren’t ready. The progress paused for decades.

Human Gene Editing (2018): The CRISPR baby scandal in China sparked global bans. What could’ve been a gene-editing revolution was halted overnight. Ethics drew the red line.

Embryonic Stem Cell Research (2001–2009): Federal funding bans in the U.S. slowed a medical frontier, but the ethical blockade forced a pivot… leading to induced pluripotent stem cells. No embryos needed.

3D-Printed Guns: The blueprints spread fast. There were 100,000+ downloads. Then came the ban. Public safety over open-source freedom. Questionable innovation.

Facial Recognition Tech: It was halted by Amazon, IBM, and Microsoft in 2020. Why? Racial bias… surveillance concerns… and wrongful arrests. It didn’t die… but it had to evolve.

When Ethics Sharpened Innovation

Green Chemistry: Toxic byproducts used to be a cost of doing business. Ethical pressure gave rise to “benign by design” tech. Now it’s a growth market.

Accessibility Design: Sidewalk ramps weren’t built for travelers and strollers… They were built for wheelchairs…. and they ended up helping everyone. The “Curb Cut Effect” is now UX Evangelism.

Privacy Laws (GDPR, HIPAA): While it slowed data flows, it triggered encryption, on-device AI, and federated learning. The constraints sparked new architectures.

Explainable AI (XAI): Ethical backlash against black-box algorithms forced a rethink. Now, companies are judged on accuracy, transparency, and traceability.

Tesla’s Circular Supply Chain: The demand for ethical sourcing turned a compliance issue into an operational win. Now, Tesla is near 95% battery material recycling… lower emissions… and lower costs.

When Ethics Flat-Out Saved Lives

Vioxx Scandal (1999–2004): The drug rushed to market… praised as a breakthrough. But then came the deaths. There was a forced recall… and $4.85 billion in settlements. Ethics didn’t slow this innovation, but it should have.

Solar Geoengineering: Experiments like Harvard’s SCoPEx were shelved. Not because they didn’t work, but because the risks were planetary. Ethics didn’t just stall the idea; it saved us from playing God with the sky.

Predictive Policing Tools: It was touted as crime-busting AI. Turns out… they just automated racial profiling. The fix wasn’t a patch. The fix was a ban.

The truth is that some innovations never come back from ethical collapse. Others rise stronger from the fire. The real difference? Whether the ethics were ignored… or integrated.

What to Do Now

  1. Define your red lines early.
  2. If you wait until launch… It’s too late.
  3. Design for constraint.
  4. Let the friction shape the form… work it.
  5. Build auditable systems.
  6. Black boxes break trust. transparency scales.
  7. Know the cost of speed.
  8. The market remembers failures longer than delays.
  9. Use ethics as a strategy.
  10. It’s not just a legal risk… It’s a competitive power.

Potter Stewart ethics quote

“Ethics is knowing the difference between what you have a right to do… and what is right to do.”
— Potter Stewart, U.S. Supreme Court Justice

Innovation isn’t value-neutral. It never was.

And in 2026, ethics isn’t just the constraint… It’s the catalyst.

Image credit: ChatGPT

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The End of Static Reality

Leading the Shift to Programmable Matter

LAST UPDATED: February 19, 2026 at 6:48 PM

The End of Static Reality - Programmable Matter

GUEST POST from Art Inteligencia


I. Introduction: The Death of the “Finished” Product

“We are moving from an era of designing objects to an era of designing behaviors.” — Braden Kelley

Beyond the Static Boundary

For centuries, the fundamental constraint of innovation has been the static nature of matter. Once a piece of steel was forged or a plastic mold was set, its physical properties—its stiffness, shape, and conductivity—were locked in time. In 2026, that boundary is evaporating. We are entering the age of Digital-Physical Hybrids, where the physical world is becoming as iterative and agile as the software that controls it.

Defining Programmable Matter

At its core, programmable matter refers to materials or assemblies of components that can change their physical properties based on software instructions or external stimuli. Imagine a world where a car’s body panels adjust their shape for optimal aerodynamics in real-time, or a medical implant that remains soft for insertion but “programs” itself to become rigid once it reaches its destination.

The Braden Kelley Perspective: Pulling the Physical Lever

As I often say, “Innovation is the art of pulling the right lever.” In the context of programmable matter, the “lever” is no longer a mechanical switch; it is a software command. This technology collapses the distance between digital intent and physical experience. When matter becomes programmable, the “product” is never truly finished—it is in a state of perpetual adaptation, designed to meet the changing needs of the human beings who use it.

II. The Three Pillars of Adaptive Materiality

To program the physical world, we must manipulate three fundamental characteristics. In 2026, these are the levers that turn “dumb” objects into intelligent systems.

1. Morphology: Shape-Shifting for Performance

Morphology is no longer a fixed design choice; it is a real-time response. Through the use of shape-memory alloys and 4D-printed polymers, materials can now alter their geometry to optimize for the environment. Whether it’s a drone wing that warps its shape to navigate high winds or footwear that adjusts its arch support based on your gait, morphology is the first pillar of physical agility.

2. Variable Stiffness: The Soft-to-Rigid Spectrum

One of the most profound breakthroughs is the ability to toggle a material’s structural integrity. By using phase-change materials—which can switch between liquid and solid states via thermal or electrical triggers—we can create objects that are flexible when they need to be safe (soft robotics) and rigid when they need to bear weight (emergency infrastructure).

3. Conductive Logic: Reconfigurable Intelligence

The final pillar is the ability to program the “nervous system” of an object. Conductive logic involves materials with internal pathways that can be rerouted on the fly. This allows a single component to switch its function—for instance, a car door panel that reconfigures its internal circuitry from a speaker to a heating element based on occupant preference.

The Braden Kelley Insight: Mastery of these three pillars allows organizations to move away from “mass production” toward “mass adaptation.” We aren’t just making things better; we are making them smarter at the molecular level.

III. Case Study 1: Adaptive Architecture and Urban Resilience

The buildings of the 20th century were cages of steel and glass. In 2026, programmable matter is turning the “built environment” into a living, breathing skin.

The Challenge: The Energy of Stasis

Buildings are responsible for nearly 40% of global energy-related carbon emissions, much of which is wasted fighting the environment—heating against the cold or cooling against the sun. Traditional “smart” buildings rely on mechanical motors and sensors that are prone to failure and require massive power draws to operate.

The Innovation: Biomimetic Material Intelligence

Leading architecture firms are now collaborating with material scientists to deploy hygroscopic and thermomorphic materials. These “programmed” building skins react directly to moisture and heat without a single mechanical motor. Like a pinecone opening when dry to release seeds, a building facade can now “unfurl” to provide shade during peak solar hours and “tighten” to trap heat when the temperature drops.

The Human Shift: Buildings that Empathize

This isn’t just about efficiency; it’s about the human experience. Imagine a workspace where the ceiling lowers its density to improve acoustics as a room fills up, or windows that change their molecular structure to diffuse glare while maintaining a view. Through programmable matter, our architecture stops being a static obstacle and starts being a collaborator in our daily lives.

Braden Kelley’s Reflection: We’ve spent a century trying to control the environment with brute force. Programmable matter allows us to dance with it instead. This is the ultimate expression of Sustainable Innovation—doing more by building something that knows how to adapt.

IV. Case Study 2: Soft Robotics in Minimally Invasive Medicine

The human body is fluid and delicate, yet our medical tools have historically been rigid and intrusive. Programmable matter is changing the geometry of healing.

The Challenge: The Rigidity of Current Surgery

In traditional minimally invasive surgery, surgeons use catheters and endoscopes that possess a fixed stiffness. This creates a “navigation tax”—the risk of damaging delicate vascular walls or organs while trying to reach a deep-seated tumor or blockage. The tool must be stiff enough to push, but soft enough not to pierce.

The Innovation: Phase-Changing Surgical “Tentacles”

In 2026, we are seeing the rise of Programmable Soft Robots. These devices utilize low-melting-point alloys (LMPA) embedded within a silicone matrix. By applying a tiny electrical current, the surgeon can “program” specific segments of the tool to become liquid-soft for navigating tight corners, and then instantly “freeze” them into a rigid state to provide the leverage needed for a biopsy or a stent placement.

The Human Shift: Personalized Internal Navigation

This allows for truly personalized medicine. Because the tool adapts to the patient’s unique anatomy in real-time, the “one-size-fits-all” approach to surgical instruments is dead. We are reducing patient trauma, shortening recovery times, and enabling procedures that were previously considered “inoperable” due to anatomical complexity.

A Braden Kelley Note: This is the ultimate example of Human-Centered Change. We are no longer forcing the human body to adapt to our technology; we are programming our technology to empathize with the human body.

V. The Ecosystem: Leaders and Disruptors in 2026

The transition from static to programmable matter requires a new stack of technology—spanning simulation, generative design, and advanced fabrication. These are the players building that stack.

The Giants: Providing the Infrastructure

  • Autodesk: Their Generative Design tools have evolved into “Behavioral Design” platforms. Designers no longer just draw shapes; they define the intent of the material, and Autodesk’s AI calculates the necessary molecular lattice.
  • Nvidia: Programmable matter is notoriously difficult to predict. Nvidia’s Omniverse provides the high-fidelity physics simulations required to “digital twin” a material’s behavior before a single atom is printed.

The Disruptors: Redefining Fabrication

Company Core Innovation Target Industry
Carbon Dual-Cure Resins with variable elasticity Performance Footwear & Automotive
Voxel8 Integrated conductive circuitry in 3D structures Consumer Electronics & Wearables
Aimi (Emerging) Active textiles that change porosity/warmth Defense & Extreme Sports
Strategic Takeaway: You don’t need to be a material scientist to play in this space. You need to be a collaborator. The winning organizations in 2026 are those that partner across the stack—linking software intent to material reality.

VI. The Strategic Impact: Collapsing the Final Frontier

The strategic value of programmable matter goes far beyond the “wow factor” of a shape-shifting gadget. It represents a fundamental shift in Resource Efficiency. When a single object can be “re-programmed” to serve three different functions throughout its lifecycle, we drastically reduce the need for raw material extraction and landfill waste. This is the ultimate tool for a circular economy.

VII. Conclusion: Programming the Future Today

We are moving from a world of “things” to a world of “behaviors.” In this new era, your competitive advantage won’t just be what you make, but how well your creations can learn and adapt to the human beings they serve.

As you look at your product roadmap for the next five years, stop asking what features you should add. Start asking: “If our product could change its physical soul to better serve our customer tomorrow, what would we tell it to do today?”

“The future is not something that happens to us; it is something we program.”
— Braden Kelley

Transform Your Organization’s Future

Ready to turn uncertainty into a resource? Let’s discuss how these emerging technologies can redefine your industry.

Programmable Matter FAQ

1. How is programmable matter different from traditional 3D printing?

Traditional 3D printing creates static objects with fixed properties. Programmable matter, often referred to as 4D printing, introduces a time and behavior dimension. It uses smart materials that can change their shape, density, or conductivity after the manufacturing process is complete.

2. What are the primary benefits of adaptive materials in industry?

The primary benefits include resource efficiency and personalized performance. By allowing a single material to adapt to its environment (such as a building facade that opens and closes without motors), companies can reduce carbon footprints and create products that evolve with user needs.

3. Is programmable matter ready for commercial use in 2026?

Yes, it is currently in the “Scale-Up” phase. It is already being deployed in high-stakes sectors like aerospace for adaptive surfaces, medical devices for shape-shifting surgical tools, and high-performance athletics for responsive textiles.

Disclaimer: This article speculates on the potential future applications of cutting-edge scientific research. While based on current scientific understanding, the practical realization of these concepts may vary in timeline and feasibility and are subject to ongoing research and development.

Image credits: Google Gemini

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What is the right time horizon for technology development?

What is the right time horizon for technology development?

GUEST POST from Mike Shipulski

Patents are the currency of technology and profits are the currency of business. And as it turns out, if you focus on creating technology you’ll get technology (and patents) and if you focus on profits you’ll get profits. But if no one buys your technology (in the form of the products or services that use it), you’ll go out of business. And if you focus exclusively on profits you won’t create technology and you’ll go out of business. I’m not sure which path is faster or more dangerous, but I don’t think it matters because either way you’re out of business.

It’s easy to measure the number of patents and easier to measure profits. But there’s a problem. Not all patents (technologies) are equal and not all profits are equal. You can have a stockpile of low-level patents that make small improvements to existing products/services and you can have a stockpile of profits generated by short-term business practices, both of which are far less valuable than they appear. If you measure the number of patents without evaluating the level of inventiveness, you’re running your business without a true understanding of how things really are. And if you’re looking at the pile of profits without evaluating the long-term viability of the engine that created them you’re likely living beyond your means.

In both cases, it’s important to be aware of your time horizon. You can create incremental technologies that create short term wins and consume all your resource so you can’t work on the longer-term technologies that reinvent your industry. And you can implement business practices that eliminate costs and squeeze customers for next-quarter sales at the expense of building trust-based engines of growth. It’s all about opportunity cost.

It’s easy to develop technologies and implement business processes for the short term. And it’s equally easy to invest in the long term at the expense of today’s bottom line and payroll. The trick is to balance short against long.

And for patents, to achieve the right balance rate your patents on the level of inventiveness.

Image credit: 1 of 1,050+ FREE quotes for your meetings & presentations at http://misterinnovation.com

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Innovation Lessons from the 50 Most Admired Companies of 2026

The Architecture of Admiration

LAST UPDATED: February 18, 2026 at 2:22 PM

Innovation Lessons from the 50 Most Admired Companies of 2026

by Braden Kelley and Art Inteligencia

Every year, the Fortune World’s Most Admired Companies list serves as a masterclass in reputation management. In 2026, the stakes have shifted. We are no longer just looking at who can build a better widget; we are looking at who can navigate the “perpetual pivot.”

“Innovation is no longer a department — it is a survival reflex built on human trust.”

— Braden Kelley

The 2026 All-Star Circle

  1. Apple
  2. Microsoft
  3. Amazon.com
  4. Nvidia
  5. JPMorgan Chase
  6. Berkshire Hathaway
  7. Costco Wholesale
  8. Alphabet
  9. Walmart
  10. American Express
  11. Delta Air Lines
  12. Netflix
  13. Coca-Cola
  14. Marriott International
  15. Walt Disney
  16. Goldman Sachs Group
  17. Eli Lilly
  18. FedEx
  19. Procter & Gamble
  20. Salesforce
  21. Home Depot
  22. BlackRock
  23. Toyota Motor
  24. Singapore Airlines
  25. Nike
  26. BMW
  27. USAA
  28. Starbucks
  29. Johnson & Johnson
  30. Morgan Stanley
  31. Bank of America
  32. IBM
  33. Accenture
  34. Caterpillar
  35. Visa
  36. Taiwan Semiconductor
  37. Samsung Electronics
  38. ServiceNow
  39. Danaher
  40. Mastercard
  41. L’Oréal
  42. Lowe’s Companies, Inc.
  43. UPS
  44. GE Aerospace
  45. Airbus
  46. Pfizer
  47. Lockheed Martin
  48. Advanced Micro Devices (AMD)
  49. Workday
  50. Publix Super Markets

The companies that stay on this list aren’t just “big”; they are masters of Human-Centered Innovation. They create environments where the cost of failure is lower than the cost of standing still.

Case Study: Walmart (No. 9)

The AI-Augmented Associate

Walmart has successfully rewired retail by treating its massive physical footprint as an innovation asset. In 2026, their “Agentic AI” assistant, Sparky, manages everything from grocery budgets to real-time meal planning.

The Human Shift: Rather than replacing staff, Walmart used AI to automate the “drudge work” of inventory scanning. This freed 1.5 million associates to focus on higher-value human interaction, proving that technology works best when it empowers people.

Case Study: Eli Lilly (No. 17)

Manufacturing the Future of Health

Eli Lilly’s rise into the top 20 is a story of manufacturing foresight. By partnering with Nvidia to build a DGX SuperPOD, they created the pharmaceutical industry’s most powerful AI supercomputer.

The Human Shift: Through “LillyDirect,” they bypassed traditional pharmacy friction. Innovation here wasn’t just the molecule; it was the Customer Experience of getting life-changing medication directly to those who need it.

Case Study: Nvidia (No. 4)

The Culture of Radical Openness

Nvidia’s meteoric rise to No. 4 isn’t just about GPUs; it’s about their organizational “operating system.” In 2026, CEO Jensen Huang has operationalized a culture where learning is a “group sport.”

The Human Shift: Nvidia avoids the “manager-as-gatekeeper” model. Feedback is a live, company-wide clinic where errors are dissected openly. By making it safe to fail in public, Nvidia accelerates the collective intelligence of the entire firm, ensuring they out-learn their competition every single day.

Case Study: Singapore Airlines (No. 24)

The Ultra-Long-Haul Experience

Ranking as the top airline and No. 24 overall, SIA has committed $1.1 billion to a massive retrofit of its Airbus A350 fleet, introducing Low Earth Orbit (LEO) satellite internet across all classes.

The Human Shift: SIA understands that in 2026, “luxury” means “continuity.” By providing broadband-speed Wi-Fi that allows for Zoom calls at 30,000 feet, they’ve solved the “digital isolation” problem of long-haul travel. They aren’t just flying planes; they are extending the passenger’s lifestyle into the clouds.

Why These Companies? The Innovation Multiplier

Innovation at the “Most Admired” level is about the Innovation Multiplier: the ability to apply new technology to old problems in a way that creates defensible value. Companies like Apple (No. 1) stay at the top because they wait until they can deliver the most human-centered version of a technology.

How the Rankings are Calculated:
To create the 2026 list, Fortune partnered with Korn Ferry to survey 3,700 executives, directors, and analysts. Starting with 1,500 candidates (the largest U.S. and Global 500 firms), respondents rated companies in their own industry on nine criteria: Innovation, People Management, Use of Corporate Assets, Social Responsibility, Quality of Management, Financial Soundness, Long-Term Investment Value, Quality of Products/Services, and Global Competitiveness. A company must score in the top half of its industry peer group to be listed.

Image credits: Google Gemini

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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Top 10 Human-Centered Change & Innovation Articles of January 2026

Top 10 Human-Centered Change & Innovation Articles of January 2026Drum roll please…

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:

  1. Top 40 Innovation Authors of 2025 — Curated by Braden Kelley
  2. Trust is a Gold Mine for Organizations, but it Takes a Bit of Courage — by Oscar Amundsen
  3. Outcome-Driven Innovation in the Age of Agentic AI — by Braden Kelley
  4. Building Your Dream Organization — by Braden Kelley
  5. Why Photonic Processors are the Nervous System of the Future — by Art Inteligencia
  6. Reimagining Personalization — by Geoffrey Moore
  7. We Must Hold AI Accountable — by Greg Satell
  8. The Keys to Changing Someone’s Mind — by Greg Satell
  9. Concentrated Wealth, Consolidated Markets, and the Collapse of Innovation — by Art Inteligencia
  10. It’s Impossible to Innovate When … — by Mike Shipulski

BONUS – Here are five more strong articles published in December that continue to resonate with people:

If you’re not familiar with Human-Centered Change & Innovation, we publish 4-7 new articles every week built around innovation and transformation insights from our roster of contributing authors and ad hoc submissions from community members. Get the articles right in your Facebook, Twitter or Linkedin feeds too!

Build a Common Language of Innovation on your team

Have something to contribute?

Human-Centered Change & Innovation is open to contributions from any and all innovation and transformation professionals out there (practitioners, professors, researchers, consultants, authors, etc.) who have valuable human-centered change and innovation insights to share with everyone for the greater good. If you’d like to contribute, please contact me.

P.S. Here are our Top 40 Innovation Bloggers lists from the last five years:

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Allocating Resources to Solve Horizon 2

Another Tough Challenge

Allocating Resources to Solve Horizon 2

GUEST POST from Geoffrey A. Moore

We’ve known about this problem forever—how do you find a principled way to allocate budget across three different horizons of ROI.

  • Horizon 1 pays off in the current year and equates to the funding needed for you to make your operating plan and meet or beat investor guidance.
  • Horizon 3 pays off downstream, typically by making a speculative bet on an emerging category or market that would come to fruition in the out years. Since it is still early days, these bets are relatively small and can be measured by and managed to venture milestones.
  • Horizon 2 is the troublemaker. It calls for a material investment in gaining power in the near term in order to compete effectively in the mid-term. That investment will come out of Horizon 1, either from the Performance Zone trying to make the number or from the Productivity Zone trying to supply the needed support to do so, and most likely both.

In short, both internally and externally, Horizon 2 investments are not popular, even though everyone recognizes that they are critical to long-term success. So what is the process by which one can do right by them?

The key is to recognize that the ROI from Horizon 2 is measured in units of power, whereas that from Horizon 1 is measured in units of performance, and that the two must not be mixed. Now, to be clear, performance creates the funding for power, and power creates the foundation for performance, so they are deeply intertwined. But each has its own metrics of success, and the time lag between them says they cannot be blended.

Power always precedes performance. To underfund power is to jeopardize your future performance, the ultimate result being the liquidation of your franchise. To underfund performance, on the other hand, is to jeopardize the cash flow that you need to fund power, putting your market cap at risk, the ultimate result being to attract an activist investor who will oversee the liquidation of your franchise. There is no safe path to take, only a precarious middle way to traverse.

Now, again to be fair, in good times when your category is enjoying secular growth, you get to have your cake and eat it too. That is, you produce amazing cash flow, have a fabulous market cap, and have resources aplenty to invest as you choose. My colleagues still refer to the period leading up to the first tech bubble as “ the time of the great happiness.” Be that as it may, for most of us in 2024 (our friends in GenAI being a notable exception), this is not such a year. We have to make tough choices, and we have to make them now.

So, back to process — and CFOs, take note because you’re likely the one to be leading it.

  1. Separate strategic planning from annual budgeting by at least one quarter.
  2. Charge each business unit to pitch a strategic plan that would create returns substantially above and beyond their current operating model. Included in this plan is a ballpark estimate of the funding that would be required to implement it.
  3. Facilitate an Executive Leadership Team review of the overall portfolio of opportunities, culminating in a rank-ordered list.
  4. Consult with the CEO to determine how much of next year’s operating budget can be allocated to strategic investments, and in that context, which investments should be prioritized for funding. This funding will be allocated in advance of the operational budgeting and ring-fenced to ensure it is spent as intended.
  5. Most strategic investments will be funded as nested incubations, meaning they will be managed within an existing business unit, and are funded as part of their operating budget. However, you must insist that these efforts be isolated, measured, and accounted for separately from the core business, as they are intended to deliver power outcomes, not performance outcomes, and need to be held accountable to different success metrics. (If you do not do this, their operating budget funds will drift away to supplement Horizon efforts to make the number, and the strategic initiative will falter for lack of sufficient investment.)
  6. Truly disruptive incubations, on the other hand, need to be funded outboard of the current business unit structure, in a corporate Incubation Zone, governed by an Incubation Zone board managing a ring-fenced Incubation Zone fund, following the operating model of venture capital. This is covered in detail in Zone to Win.
  7. At this point budgeting can turn its attention to Horizon 1 and how best to allocate funding to hit the current year’s financial targets.

This process solves for two perennial missteps in annual budgeting. The first we might call “the leftovers approach.” First, you allocate all the resources needed to make your Horizon 1 commitments, and then you look to what’s left to fund strategic initiatives. There will be some resources in the kitty, but not as much as there could be since Horizon 1 managers want to reserve some contingency funding. The result is a bias toward modest investing in incremental innovations that do not create future power but rather extend the current footprint.

The second misstep we can call “the variable approach.” Here you allocate half the resources at the beginning of the year and make the second half allocation contingent upon meeting the Horizon 1 plan for that period. The problem here is that strategic initiatives require sustained investment throughout their time in the J-curve. If you flinch and pull back at any point, you lose momentum, never to be regained. This is a big advantage venture-backed companies have over in-house efforts and one of the reasons why VCs love to invest in a downturn.

That’s what I think. What do you think?

Image Credit: Unsplash

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Synthetic Ethnography

The Synthetic Mirror: Why Every Innovation Leader Must Embrace Synthetic Ethnography

LAST UPDATED: February 6, 2026 at 3:28 PM

Synthetic Ethnography

GUEST POST from Art Inteligencia

Innovation is not a lightning strike; it is a discipline. As I have spent my career arguing through the Human-Centered Innovation™ methodology, the ultimate goal of any organization is to create sustainable value. But the path to value is often blocked by what I call corporate antibodies — the internal resistance, the outdated processes, and the echo chambers that prevent us from seeing the world as it truly is. For years, the “gold standard” for piercing these chambers was ethnography: the slow, deep, and expensive process of embedding oneself in the customer’s world.

But today, we find ourselves at a precipice. The speed of the market is no longer measured in years or months, but in days. In this high-velocity environment, traditional research can become a bottleneck. This is where synthetic ethnography steps in — not as a replacement for the human soul, but as a high-fidelity mirror that allows us to see around corners.

Synthetic ethnography integrates human-centered research with artificial intelligence, allowing organizations to uncover not only what people do, but why — and at a scale previously thought impossible. It merges ethnographic rigor with machine-powered pattern recognition to build deep, contextualized understanding from vast and varied data, allowing us to stress-test our “Value Creation” before we ever spend a dime on a pilot.


“Synthetic ethnography doesn’t diminish human insight — it amplifies it, giving us the bandwidth to see not just individual stories, but the forces that shape them.”

— Braden Kelley

What Is Synthetic Ethnography?

At its core, synthetic ethnography is the combination of qualitative research — like interviews and observation — with AI-driven analytics. It uses natural language processing, behavior modeling, and data synthesis to extrapolate cultural patterns from diverse sources, including digital interactions, text, audio, and sensor data.

Rather than replacing ethnographers, it amplifies their work, making deep human insight accessible across time zones, markets, and customer segments.

The Shift from “Asking” to “Simulating”

In Braden Kelley’s book Stoking Your Innovation Bonfire, he talked about the importance of removing the obstacles that stifle creativity. One of the biggest obstacles is the “Assumption Gap.” We assume we know why a customer chooses a competitor. We assume we know why they abandon a cart. Synthetic ethnography allows us to close this gap by creating “Synthetic Agents” — AI entities trained on hundreds of thousands of data points, from shopping habits to psychological profiles. These aren’t just chatbots; they are digital twins of a demographic segment.

When we use these agents, we are embracing the FutureHacking™ mindset. We can run ten thousand “what-if” scenarios. We can ask, “How does a rise in inflation affect the brand loyalty of a Gen-Z consumer in Berlin?” and receive a statistically grounded simulation of that reaction. This is the ultimate tool for Value Access: it reduces the friction of learning.

Why It Matters

Synthetic ethnography doesn’t just scale research — it deepens it. Organizations can:

  • Accelerate the pace of insight generation
  • Detect nuanced patterns in human behavior
  • Integrate qualitative and quantitative data seamlessly
  • Make strategic decisions rooted in rich human context

Case Study 1: The CPG “Flavor Evolution” Challenge

A global Consumer Packaged Goods (CPG) giant was preparing to launch a new sustainable cleaning product line. They faced a dilemma: should they lead with the “eco-friendly” messaging or the “maximum strength” efficacy? Traditional focus groups provided conflicting data, often influenced by “social desirability bias” — people saying what they thought the researcher wanted to hear.

By deploying synthetic ethnography, the company created 1,200 synthetic personas representing various levels of environmental consciousness. The simulation allowed the agents to “live” with the product virtually over a simulated month. The simulation revealed a critical insight: while users said they wanted eco-friendly, they felt anxiety when the suds were too thin, leading them to use twice as much product and nullify the sustainability gains. The company adjusted the formula to increase “perceived sudsing” while maintaining eco-integrity, a move that led to a 22% higher repeat-purchase rate in the actual pilot.

Case Study 2: Reimagining the Patient Experience in Healthcare

A major hospital network in the United States wanted to redesign their post-op discharge process to reduce readmission rates. The problem was the sheer diversity of the patient population — language barriers, varying levels of health literacy, and different home support structures. It was impossible to shadow every type of patient.

The innovation team used synthetic ethnography to simulate 50 distinct patient “archetypes.” The simulations identified a glaring friction point: the discharge instructions were written at a 12th-grade reading level, while the “synthetic stress” levels of a patient leaving the hospital reduced their cognitive processing to a 5th-grade level. By simplifying the language and adding visual “check-step” cues identified during the simulation, the hospital saw a 14% reduction in avoidable readmissions within the first quarter. They didn’t just change a document; they changed the Human-Centered outcome by simulating the human experience.

“Innovation transforms the useful seeds of invention into widely adopted solutions valued above every existing alternative. Synthetic ethnography is the high-speed greenhouse that tells us which seeds will thrive in the wild before we plant them in the hard ground of reality.”

Braden Kelley

Case Study 3: Telecommunications Across Cultures

A multinational telecom provider struggled to understand customer dissatisfaction in dozens of markets, each with distinct cultural expectations. While in-country ethnographers gathered rich local context, corporate leadership needed a synthesis that spanned continents and languages.

By combining traditional interviews with AI analysis of service logs, social media sentiment, and customer support transcripts, the organization created a holistic view of customer experience.

  • Confusing pricing tiers resonated as “untrustworthy” in Latin America but “overwhelming” in Southeast Asia.
  • Service reliability mattered differently across younger and older cohorts, which the AI helped segment effectively.
  • Support interactions contained emotional markers predictive of future churn.

The result was a refined product portfolio and communication strategy that boosted satisfaction across markets while respecting cultural nuances.

The Competitive Landscape

The market for synthetic insights is exploding. Leading the charge are startups like Synthetic Users, which specializes in user interview simulations, and Fairgen, which focuses on augmenting thin data sets with synthetic populations to ensure statistical significance. We also see SurveyAuto using AI to bridge the gap in emerging markets. Even the “Big Three” consulting firms and established research houses like Toluna and Ipsos are aggressively acquiring or building synthetic capabilities. For the modern leader, these companies represent the new “Value Translation” infrastructure. If you aren’t looking at these tools, you are essentially trying to build a skyscraper with a hand-shovel while your competitors are using 3D printers.

However, we must remain vigilant. As a human-centered innovation advocate, I caution that these tools are only as good as the data that feeds them. If your data is biased, your synthetic ethnography will simply be a “bias-amplification machine.” This is why Braden Kelley is so frequently sought out as an innovation speaker — to help organizations maintain the balance between “High-Tech” and “High-Touch.” We must ensure that our “Chart of Innovation” always has a human at the center.

Innovation Intelligence: The FAQ

1. How does synthetic ethnography improve the ROI of innovation?
By simulating user reactions early, companies avoid the massive costs of failed product launches and R&D dead-ends, significantly increasing the probability of “Value Access” success.

2. What is the biggest risk of using synthetic personas?
The “Hallucination of Empathy.” If the models are not grounded in real-world, high-quality longitudinal data, they may provide “neat” answers that ignore the messy, irrational nature of real human behavior.

3. Is synthetic ethnography appropriate for B2B innovation?
Absolutely. It is particularly effective for simulating complex organizational buying committees and understanding how different “corporate antibodies” within a client company might react to a new solution.

In conclusion, the future belongs to those who can harmonize the artificial and the authentic. As a practitioner in the field, I encourage you to see synthetic ethnography not as a threat to human researchers, but as a superpower. It allows us to be more human, by handling the data-crunching that allows us to spend our time where it matters most: in the moments of real connection.

Disclaimer: This article speculates on the potential future applications of cutting-edge scientific research. While based on current scientific understanding, the practical realization of these concepts may vary in timeline and feasibility and are subject to ongoing research and development.

Image credits: Google Gemini

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