Tag Archives: Customer Experience

At the Heart of Successful Digital Transformations are Humans and Data

At the Heart of Successful Digital Transformations are Humans and Data

Digital transformation has become an overused buzzword.

When most people speak about digital transformation, they are really speaking about digitization, digitalization, or digital strategy.

They are all very different and none of them are digital transformation.

Let’s look at each of these four terms so that we can be very clear about what we are talking about:

  1. Digitization – Digitization is the process of converting information into a digital (i.e. computer-readable) format (source: Wikipedia)
  2. Digitalization – Digitalization is the adaptation of a system, process, etc. to be operated with the use of computers and the internet (source: Oxford Dictionary)
  3. Digital strategy – In the fields of strategic management, marketing strategy, and business strategy, digital strategy is the process of specifying an organization’s vision, goals, opportunities and related activities in order to maximize the business benefits of digital initiatives to the organization (source: Wikipedia)
  4. Digital transformation – A digital transformation is the journey between a company’s current business operations to a reimagined version from the perspective of how a digital native would build the same business operations leveraging the latest technology and scientific understandings of management science, leadership, decision science, business and process architecture, design, customer experience, etc. (source: bradenkelley.com)

At the heart of successful digital transformation, innovation, disruption, and even customer experience are two things:

  • Humans
  • Data

Digital transformation is not about digitizing physical objects, systems, or processes or about building a strategy for operating in the digital space, although all of those things may play a part, but it’s about people, the information they want, and the information you have – and information comes from data.

If you have the right data, connected in the right ways it turns into information, and when you consider the information you possess through the right lenses, you can create the knowledge and insights necessary to understand your customers’ needs and your future business success. But many organizations start building a digital transformation approach without putting a solid human-centered data foundation in place to build success on top of.

Where Insights Come From Braden Kelley

Insights are developed from the connection, distillation and analysis of data, information and knowledge to identify WHY the behaviors occur at all. Building upon my “Where Insights Come From” framework above, let’s look at an example of the distillation of data into insights:

  • DATA will tell us that we sold 20 black cars, 19 blue cars and 17 white cars in Atlanta.
  • INFORMATION identifies that we sold more black cars than any other color in Atlanta.
  • KNOWLEDGE helps us see that we sold 20 of 100 available black cars, 19 of 50 available blue cars, and 17 of 17 available white cars in Atlanta, meaning that Atlanta residents are crazy about white cars and we should be making more of them.
  • INSIGHTS will tell us that the white cars sold out because people prefer white cars that stay cooler in the hot sun, and so perhaps in addition to building more white cars we should experiment with offering more light colors for sale in Atlanta.

Looking through the insights lens forces us to focus on why things are happening and go beyond what the data, the information, or even our intelligence is telling us to get to the human influence on the situation we are evaluating.

The insight lens forces us to look carefully at the data we are gathering to identify whether it will help us answer the WHY question and identify situations where we need to make modifications in our data strategy to help answer the WHY question or to commission separate research to answer it.

Focusing on insights helps us be more empathetic, human-centric and to break out of the vicious cycle of gathering data just because we can.

But, it is only when we gather the right data and connect it all together that the magic happens. When a customer calls in, you can only anticipate their needs if your data is connected. For example, if your phone system doesn’t know all of the following, you are likely to underwhelm your customer:

  1. Two weeks ago they purchased the latest version of your product
  2. They called customer service last week
  3. Sentiment analysis of the call recording indicates it was a problem call
  4. A replacement product was shipped out
  5. Before yesterday they haven’t called customer service for seven years
  6. They have been a loyal customer for fifteen years
  7. They purchased an extended warranty on their previous product but not this one
  8. They received the shipment of an accessory yesterday

Customers don’t want to start from the beginning every time they call, but most companies do exactly that because their data lives in silos, it’s not connected, and they’re drowning in technical debt. Customers hope companies know them, and can anticipate their needs, but too often we let them down.

Every time a customer has a great experience – somewhere else – this becomes their new baseline. The companies moving the humans to the center of everything that they do (including their employees) are changing the game for everyone.

But it’s not all about delivering better customer service & support. When you create a human-centric data model free from silos, it empowers you to progress from creating better service to an overall improved customer experience, and beyond towards improved products & services and insight into marketing and innovation opportunities that will keep your company resonant and relevant.

Don’t be afraid to ask for help in creating a human-centric data model that pulls your customers and employees to the center of everything you do, they’ll thank you for it, and your shareholders will too.


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The Rise of Employee Relationship Management (ERM)

The Rise of Employee Relationship Management (ERM)

by Braden Kelley

What’s in a name?

From the early days when HR was referred to as workforce management or personnel management, to the emergence of scientific management and labor unions, the practice of human resources has been constantly evolving.

The name for the practice and principles of getting the most out of people in business has continued to change too, with the latest term ‘human resources’ coming into being along with an acceptance that human factors were more important than physical factors and monetary rewards for motivation.

The Accelerating Pace of Change

But, in an era when the pace of change and transformation are constantly accelerating and innovation is increasingly important to maintaining relevance, should we still be focused on ‘human resources’? Or does our view and language need to evolve?

Every day customer experience becomes more crucial to market success, and more people are talking about happy employees as being the key to happy customers. But, are employers backing up this talk?

Today most digital transformations have at their heart, several elements of an evolved customer relationship management (CRM) approach and often one or more customer journey maps.

The Shift from HCM to ERM

So, should we be shifting our views from a focus on Human Capital Management (HCM) to a focus on ERM (Employee Relationship Management) and EX (Employee Experience) to mirror how we are thinking about the importance of employees as something not to be managed but instead to be empowered, supported and developed?

And how will Generation Z change expectations of employers?

Making a shift in our mindset and our language when it comes to employees, could also cause us to focus on different metrics – shifting from a focus on controlling the costs of salaries and benefits to optimizing employee lifetime value (ELV).

Unlocking the True Value of Employees

Employees are not just a cost, they are a source of incredible value and to unlock their full potential we must invest in helping them maximize the value they can create, access, and translate for customers. Me must go beyond training and invest in even more powerful initiatives like human libraries and internal internships to help each employee not just do the job they were hired to do, but to do the job they were born to do.

Innovators Framework(one of the many concepts introduced in my first book Stoking Your Innovation Bonfire)

Building on the work of London Business School’s Gary Hamel and shifting to an Employee Relationship Management (ERM) mindset we can get beyond the obedience, diligence and intellect that fear, greed, management and leadership can deliver, and instead focus on unlocking the initiative, creativity, passion and innovation that will drive the organization to higher levels of success and continuing relevance with customers.

Employee Relationship Management (ERM) is the Future of HR

We must reimagine our approach to the humans in our organizations and to recognize and leverage their uniqueness instead of treating them as replaceable cogs in a machine.

The time has come for organizations to manage both the experiences and the relationships with each of their employees as individuals to make the collective stronger, healthier, and more resilient.

Now is the time to build a conscious, measured, professional approach to Employee Relationship Management (ERM).

What say you?


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Starbucks Upgrading the Last Minute of the Mobile Ordering Journey

Starbucks Upgrading the Last Minute of the Mobile Ordering Journey

Starbucks is definitely regarded as an innovator in the mobile commerce and loyalty space.

Starbucks was one of the first retailers (2008) to successfully introduce a card-based loyalty program with broad adoption – the Starbucks card – which not only had loyalty benefits for customers but also could be used as a means of payment.

Building from this, Starbucks created a mobile app early in the smartphone era that mirrored many of the capabilities of the Starbucks card, allowing people to not only pay with their mobile phone (backed by a credit card), but to check their points and payment balances.

Starbucks then launched mobile order & pay in Portland near the end of 2014 before beginning to release it more broadly in 2015.

All of Starbucks’ loyalty and mobile technology inventions positioned the company quite well to survive the COVID-19 shutdowns around the world.

Starbucks Mobile Ordering

Personally I try to keep as many apps OFF my phone as possible. So, it wasn’t until the coronavirus restrictions that I finally caved in and downloaded the Starbucks app. The reason?

Given the pandemic, the last thing I wanted to do was stand around in an enclosed space with suspect ventilation waiting for my Starbucks beverage any longer than I had do. So, I downloaded the app and began ordering my drink from the car and waiting 4-5 minutes (or longer if they looked busy) before going inside to get my drink.

What I found annoying though was that the app gave an estimate that often was in the 15-23 minute range, despite the fact that it rarely took more than five minutes, and there was no notification when my drink was ready.

I started designing a better approach in my mind, and was about to suggest it to Starbucks when I happened upon what is likely a pilot in one of my local Starbucks. It looks like this:

Starbucks Mobile Order Board

At this particular pilot Starbucks they have this flat screen that shows the people who have mobile orders placed (in alphabetical order) and then the Starbucks employee at the end of the line has a tablet they manage.

When an order is complete, the Starbucks employee updates the order status to ‘READY’ on the tablet, the image on the board changes to show a READY indicator, and a text message is sent to the person’s phone.

When the customer picks up their order, then the Starbucks employee marks it ‘PICKED UP’ on the tablet so that the person’s name is removed from the board.

This is very close to the idea that I was going to propose, but with one big exception.

My idea was to suggest printing out an enhanced bar code that could be scanned at the end of the line by the barista to trigger the text message – instead of using a tablet and a screen. This could have been a much simpler and cheaper approach both in terms of technology and labor.

Either way, there is no doubt that Starbucks continues to experiment and push for improvements in the last minute of the mobile ordering journey to create a great experience. This enables them to keep their employees and customers healthy and safe, and keep Starbucks ahead of their competition.

Keep innovating!

Image (2) credit: Digitaltrends.com


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What is digital transformation? – EPISODE THREE – Ask the Consultant

Live from the Innovation Studio comes EPISODE THREE of a new ‘Ask the Consultant’ series of short form videos. EPISODE THREE aims to answer a question that many people struggle to answer or accurately discuss:

“What is digital transformation?”

Digital transformation is a complicated topic for people to speak intelligently about and to explore in depth because there is so much misinformation and confusion about what a digital transformation actually is – a lot of it espoused by technology vendors.

Together in this episode we’ll explore what digital transformation is by looking at two definitions that show what digital transformation is not.

1. Wikipedia’s bad definition of Digital Transformation

“Digital Transformation (DT or DX) is the adoption of digital technology to transform services or businesses, through replacing non-digital or manual processes with digital processes or replacing older digital technology with newer digital technology. Digital solutions may enable – in addition to efficiency via automation – new types of innovation and creativity, rather than simply enhancing and supporting traditional methods.”

— Wikipedia

2. This Definition of Digital Transformation Gets Closer But Still Isn’t Right

“Digital transformation is the integration of digital technology into all areas of a business, fundamentally changing how you operate and deliver value to customers. It’s also a cultural change that requires organizations to continually challenge the status quo, experiment, and get comfortable with failure.”

— EnterprisersProject

So, let’s dig into what Digital Transformation really is …

A digital transformation is the journey between a company’s current business operations to a reimagined version of itself from the perspective of how a digital native would build the same business operations leveraging the latest technology and scientific understandings of management science, leadership, decision science, business and process architecture, design, customer experience, etc.

A digital transformation can only be successfully achieved if you put customers and employees at the center to create a human-centered data model and explore the intersection between what’s needed and what’s possible to simplify processes, reduce complexity, and to design elegant experiences.

The key thing to remember is that technology comes at the end, not the beginning, starts by making strategic choices, and focuses on identifying and building the needed capabilities to execute the new strategy.

Here is a quick review list of ten things to keep in mind for a successful digital transformation:

  1. Reimagine your business from a digital native perspective
  2. A Human-Centered Data Model (customers & employees)
  3. Put your customers and employees at the center
  4. Identify intersection of what’s needed & what’s possible
  5. Simplify processes
  6. Reduce complexity
  7. Design elegant experiences
  8. Technology comes at the END – not the beginning
  9. Start by making strategic choices
  10. Build capabilities needed to achieve your transformation

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Help Shape the Next ‘Ask the Consultant’ Episode

  1. Grab a great deal on Stoking Your Innovation Bonfire on Amazon while they last!
  2. Get a copy of my latest book Charting Change on Amazon
  3. Contact me with your question for the next video episode of “Ask the Consultant” live from my innovation studio

Below are the previous episodes of ‘Ask the Consultant’:

  1. EPISODE ONE – What is innovation?
  2. EPISODE TWO – How do I create continuous innovation in my organization?
  3. All other episodes of Ask the Consultant


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Why Your Digital Transformation May Be Doomed to Fail

Why Your Digital Transformation May Be Doomed to Fail

Digital Transformation, like Innovation, has become an overused buzzword that is losing its meaning. Whoever created the Wikipedia page for Digital Transformation defines it this way:

“Digital Transformation (DT or DX) is the adoption of digital technology to transform services or businesses, through replacing non-digital or manual processes with digital processes or replacing older digital technology with newer digital technology. Digital solutions may enable – in addition to efficiency via automation – new types of innovation and creativity, rather than simply enhancing and supporting traditional methods.”Wikipedia

This definition is too focused on technology as the source of the transformation instead of the transformation being driven by the needs of customers and employees. In my view, technology should always be seen simply as a tool to help achieve the desired human-centered transformation.

Too often the SaaS and Cloud vendors co-opt the true practice of digital transformation by trying to claim that a shifting from on-premise software to Software-as-a-Service (SaaS) is somehow a digital transformation or that going to the Cloud is the secret to everything that troubles your organization.

None of this of course is true in and of itself.

This definition of digital transformation from EnterprisersProject is a bit closer to the truth:

“Digital transformation is the integration of digital technology into all areas of a business, fundamentally changing how you operate and deliver value to customers. It’s also a cultural change that requires organizations to continually challenge the status quo, experiment, and get comfortable with failure.”

But, even this definition doesn’t go far enough…

Number One Reason Your Digital Transformation May Be Doomed to Fail

The primary reason your digital transformation will fail or take much longer than you expect, or possibly even than you can fund, is the failure of the organization to put the customer and the employee at the center of its data model and to be able to construct a fully-linked and coherent picture of every customer and employee’s body of interactions/transactions/experiences across the enterprise.

When you lack this ‘single source of truth’ and this ability to connect everything together, you greatly increase the chances that your well-intentioned digital transformation will fail or will be abandoned when you run out money.

Defining What Successful Digital Transformations Look and Sound Like

Successful digital transformations are human-centered transformations empowered and accelerated by the proper use of technology in support of the desired experiences and outcomes. You can’t have a human-centered transformation without a human-centered data model. You also can’t have a human-centered transformation without a holistic understand of what information customers and employees are looking for, what information you have, what they want to do using your digital infrastructure, what they can do with your digital infrastructure, and where the gaps are.

One of the many tools in the Change Planning Toolkit™ is a series of worksheets that help you explore these foundational questions for a successful human-centered digital transformation.

While you can improve the organization through a judicious use of technology in absence of a consciously designed human-centered data model, you cannot digitally transform the organization without doing this difficult work.

The disruption that many startups attempt against the incumbents is achieved because they start with a human-centered data model. Their approach leverages technology where appropriate to add value and remove friction from the human-centered design of their customer experience instead of trying to force customers to use new and often disparate technology experiences. It is a subtle but important distinction. We must be careful not to let the servant become the master.

So, what is driving your digital transformation?

Do you need help creating a human-centered design?

If so, contact me.

Change Planning Toolkit Backed By Million Dollar Investment

Image credit: Pixabay

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Co-Creating AI with Frontline Stakeholders

LAST UPDATED: March 14, 2026 at 11:52 AM

Co-Creating AI with Frontline Stakeholders

GUEST POST from Art Inteligencia


I. The “Stable Spine” of Trust: Anchoring AI in Human Safety

To scale any innovation — especially one as disruptive as Agentic AI — an organization must first establish what I call the “Stable Spine.” This is the rigid, dependable core of organizational values, psychological safety, and transparent communication that allows the “Modular Wings” of technological experimentation to flex without breaking the culture.

Establishing Psychological Safety First

The greatest barrier to AI adoption isn’t technical debt; it’s automation anxiety. When frontline stakeholders feel that AI is being “done to” them, they instinctively protect their tribal knowledge. Co-creation flips this script. By involving employees before a single line of code is written, we shift the narrative from replacement to augmentation.

  • The Pre-Mortem Dialogue: Openly discussing “What happens if this works?” and “How does this change your value to the firm?”
  • Vulnerability in Leadership: Admitting that the AI is a “student” and the frontline workers are the “teachers” provides the grounding needed for honest feedback.

Moving from “Black Box” to “Glass Box” Collaboration

Traditional AI implementations often fail because they are opaque. A Human-Centered approach demands a “Glass Box” philosophy where the logic, data inputs, and intent of the AI are visible to those using it. When a Regulatory Compliance Officer understands why an agent flagged a specific document, they transition from a skeptic to a supervisor of the technology.

Defining the Shared Purpose

The “Stable Spine” is reinforced when the AI’s goals are perfectly aligned with the frontline’s daily friction points. We aren’t just implementing AI to “increase efficiency” (a corporate-centric goal); we are implementing it to “remove the soul-crushing administrative burden” (a human-centric goal). Shared Purpose is the glue that keeps stakeholders engaged when the initial novelty of the tech wears off.

“Innovation is not about the technology; it’s about the humans the technology serves. If the spine of trust isn’t straight, the wings of innovation will never lift.” — Braden Kelley

II. Identifying High-Friction “Experience Level Measures” (XLMs)

To move beyond the hype of AI, we must move beyond the vanity of traditional metrics. In a human-centered innovation framework, we don’t just look at Key Performance Indicators (KPIs); we look at Experience Level Measures (XLMs). While a KPI tells you what happened (e.g., “Average Handle Time”), an XLM tells you how it felt for the human involved. This is where the real “Revenue Leakage” and “Engagement Leakage” are hidden.

The CX/EX Audit: Hunting for Friction

Innovation starts by identifying where human potential is being throttled. We conduct a dual audit of the Customer Experience (CX) and the Employee Experience (EX). When frontline stakeholders are forced to perform “swivel-chair” data entry or navigate fragmented legacy systems, their cognitive load is exhausted before they ever reach a high-value task. These are the high-friction zones ripe for AI co-creation.

Mapping the “Soul-Crushing” Journey

By mapping the stakeholder journey, we can pinpoint specific moments where AI agents can act as a “frictionless lubricant.” We look for three specific types of friction:

  • Cognitive Friction: Where a worker must synthesize too much disparate data to make a simple decision.
  • Process Friction: Where “the way we’ve always done it” creates unnecessary loops or wait times.
  • Emotional Friction: Where the task is so repetitive or mundane that it leads to burnout and disengagement.

From SLAs to XLMs: Redefining Value

Traditional Service Level Agreements (SLAs) are often centered on the machine or the process. In a co-created AI environment, we shift the focus to the human outcome. If an AI agent reduces a task from 60 minutes to 10 minutes, the value isn’t just the 50 minutes saved; the value is what the human does with that newly found 50 minutes. Does it go toward deep work, creative problem solving, or building a stronger relationship with the customer?

Traditional Metric (KPI) Human-Centered Metric (XLM) The AI Opportunity
Task Completion Rate Cognitive Ease Score Automating “Low-Value” data synthesis.
Response Time Empathy Availability Freeing up humans for complex emotional labor.
Error Rate Confidence Index Using AI as a “second pair of eyes” to reduce stress.

“Efficiency is doing things right; Effectiveness is doing the right things. XLMs ensure that our AI initiatives are making us more effective, not just faster at being frustrated.” — Braden Kelley

III. The Co-Creation Workshop: Where Art Meets Science

In the world of innovation, we often talk about the “Science” of data and the “Art” of human intuition. The Co-Creation Workshop is the laboratory where these two forces collide. We don’t just ask frontline stakeholders what they want; we observe how they solve problems and then design AI “agents” that mimic their best instincts while automating their worst hurdles.

Empathy-Driven Design and Personas

We begin by building robust Personas for our frontline stakeholders. Whether it’s a Global Supply Chain Manager balancing logistics during a port strike or a Customer Success Lead managing a high-churn account, we need to understand the emotional and contextual landscape they inhabit. This empathy-driven approach ensures the AI is built for the “messy reality” of the job, not a sanitized version of the process manual.

[Image of an Empathy Map for User Experience Design]

Designing “Modular Wings” for Human Agency

A key Braden Kelley principle is that while the organization needs a “Stable Spine,” the frontline needs “Modular Wings.” In our workshop, we identify which parts of the AI system should be rigid (compliance, data integrity) and which should be flexible (UI preferences, decision-making thresholds).

  • The Rigidity: The underlying LLM and the corporate data safety protocols.
  • The Flexibility: The ability for the frontline worker to “tune” the agent’s tone, level of detail, and escalation triggers.

By giving users the “knobs and dials,” we increase their sense of ownership over the final product.

Rapid Prototyping: The Experience Walkthrough

Instead of long development cycles, we use Experience Prototypes. These are low-fidelity simulations — sometimes as simple as a storyboard or a “Wizard of Oz” test — where the human interacts with a “pretend” AI. This allows us to map the Human-AI Handoff:

  1. The Trigger: What event causes the human to turn to the AI?
  2. The Interaction: How does the AI present information? (Is it a suggestion, a summary, or a draft?)
  3. The Judgment: How does the human validate or correct the AI’s output?
  4. The Feedback Loop: How does the AI learn from that correction?

The “Art” of Intuition vs. The “Science” of Automation

The workshop highlights that AI excels at Synthesizing (Science), but humans excel at Contextualizing (Art). We use this session to define the “Escalation Matrix.” If the data is 90% certain but the human “gut feeling” says otherwise, how does the system handle that conflict? Designing for this tension is what makes an AI tool truly innovative rather than just “efficient.”

“Co-creation is the bridge between a tool that is technically impressive and a tool that is actually used. If the frontline doesn’t see their ‘Art’ reflected in the ‘Science’ of the AI, they will find a way to bypass it.” — Braden Kelley

IV. Solving for “Causal AI” and Intent: From Correlation to Context

In the “Science” of standard machine learning, models are often built on correlations — patterns in data that suggest what might happen next. But for a frontline worker in a high-stakes environment, “what” isn’t enough. To truly co-create, we must move toward Causal AI, where the system and the human collaborate to understand the why behind a recommendation. This is where we bridge the gap between algorithmic output and human intent.

Moving Beyond the Correlation Trap

If an AI agent suggests a supply chain reroute or a specific credit adjustment, the frontline stakeholder needs to see the “connective tissue” of that logic. Without causality, the AI is just a black box throwing out guesses. In our co-creation sessions, we design Explainability Interfaces that highlight the primary drivers of a decision.

  • The “Why” Prompt: Every AI suggestion should include a “Show Logic” feature that maps the causal factors (e.g., “Delayed shipment in Suez + Low local inventory + 10% surge in regional demand”).
  • The Counter-Factual: Allowing users to ask, “What if the shipment wasn’t delayed?” to see how the AI’s intent changes.

Context Injection: The Frontline as the “Ground Truth”

Data science often suffers from “Data Silos” — it sees the numbers but misses the Context. A frontline worker knows that a 20% spike in orders might be a one-time anomaly due to a local event, not a permanent trend.

Co-creation allows us to build “Context Injection” points where the human can feed the “Art” of their situational awareness back into the “Science” of the model. This transforms the AI from a static tool into a dynamic partner that respects the Ground Truth of the shop floor or the call center.

Human-in-the-Loop (HITL) 2.0: From Safety Net to Co-Pilot

We are evolving the concept of Human-in-the-Loop. In version 1.0, the human was merely a “kill switch” for when the AI failed. In HITL 2.0, the human is a Co-Pilot. We design the interaction so that:

  1. The AI Proposes: Offering 2–3 paths based on data.
  2. The Human Disposes: Choosing the path that aligns with the current organizational intent (which might shift faster than the data).
  3. The System Learns: Capturing the reasoning behind the human’s choice to refine future causal models.

The Outcome: Cognitive Alignment

When we solve for intent, we achieve Cognitive Alignment. The frontline stakeholder no longer views the AI as a competitor or a mystery, but as an extension of their own expertise. They aren’t just using an app; they are directing an agent that understands their goals, their constraints, and their “Art.”

“An AI that can’t explain its ‘Why’ will eventually be ignored by the people who know ‘How.’ Causal AI is the key to moving from temporary adoption to permanent innovation.”

V. Scaling the Innovation Bonfire: From Pilot to Organizational Agility

The final challenge of any innovation isn’t the spark; it’s the sustainment. Too often, co-creation is treated as a “one-off” workshop. To truly scale, we must take the lessons from our frontline stakeholders and feed them back into the organizational furnace. This is how we move from a single pilot to what I call the “Innovation Bonfire” — a self-sustaining culture of continuous improvement.

Avoiding the “Pilot Trap”

Many AI initiatives die in “Pilot Purgatory” because they fail to account for the Systemic Friction of a full-scale rollout. Scaling requires moving from a specialized co-creation group to a broader “Modular Wings” approach across the enterprise. We must ensure that the insights gained from one department (e.g., Supply Chain) are translated into reusable components for another (e.g., R&D Project Management).

  • Internal Advocacy: Empowering your original co-creators to act as “Innovation Ambassadors.” Their peers are more likely to trust a tool recommended by a colleague than one mandated by IT.
  • Feedback Loops: Implementing automated mechanisms where frontline users can “vote” on AI suggestions or flag hallucinations in real-time.

The Flywheel of Continuous Learning

Innovation is not a destination; it’s a cycle. As the AI handles more of the “Science” (the repetitive, high-rigor tasks), the frontline stakeholders have more bandwidth for the “Art” (the complex, high-empathy tasks). This creates a Flywheel Effect:

  1. Release: The AI releases human capacity by removing friction.
  2. Reinvest: Humans reinvest that capacity into solving higher-order problems.
  3. Refine: Those new solutions provide fresh data and “Ground Truth” to further refine the AI.

Maintaining the “Human-Centered” Spark at Scale

As you scale, the temptation is to “standardize” everything until the “Art” is squeezed out. This is a mistake. Organizational Agility depends on your ability to maintain that Stable Spine of core processes while allowing different teams the autonomy to adapt the AI to their unique workflows.

We must continuously ask: “Is this technology still serving the human, or have we started serving the technology?” Revisiting your Experience Level Measures (XLMs) quarterly ensures that the innovation remains grounded in actual human value rather than just technical efficiency.

The Outcome: An Agentic Organization

An organization that masters co-creation doesn’t just “use AI.” It becomes an Agentic Organization — a living system where humans and machines are seamlessly integrated, each playing to their strengths. The “Science” of the AI provides the scale, but the “Art” of your people provides the competitive advantage. That is how you win in a world of constant change.

“To scale an innovation bonfire, you don’t just need more fuel; you need more oxygen. In an organization, that oxygen is the trust, empathy, and agency of your frontline people.” — Braden Kelley

Conclusion: Leading the Agentic Revolution with Empathy

The journey from top-down implementation to bottom-up co-creation is the defining shift of the current technological era. As we have explored, successfully integrating AI into the fabric of an organization is not merely a technical hurdle — it is a human-centered design challenge. When we balance the Science of algorithmic rigor with the Art of human empathy, we don’t just “deploy software”; we empower a workforce.

The Human-Centered Dividend

By prioritizing the “Stable Spine” of trust and focusing on Experience Level Measures (XLMs), organizations can unlock a level of agility that was previously impossible. The dividend of this approach is twofold:

  • Operational Resilience: Systems built on the “Ground Truth” of frontline expertise are inherently more robust and adaptable to market shifts.
  • Human Flourishing: By removing “soul-crushing” friction, we allow our people to return to the work they were meant to do — creative problem solving, strategic thinking, and high-empathy customer connection.

A Call to Action for Innovation Leaders

The Innovation Bonfire is waiting to be lit, but it requires leaders who are brave enough to share the matches. If you are ready to move beyond the “Black Box” and start co-creating with your most valuable asset — your people — start with these three steps:

  1. Audit the Friction: Use XLMs to find where your frontline is currently being throttled.
  2. Invite the Experts: Bring the people who do the work into the design room before the technology is finalized.
  3. Design for “Why”: Prioritize causal clarity over simple correlation to build a “Glass Box” culture.

Final Thought

In a world increasingly dominated by Agentic AI, the ultimate competitive advantage isn’t the code you own; it’s the Human-AI Synergy you cultivate. Innovation is, and always has been, a team sport. Your most important teammates are already on your payroll, waiting to help you build the future.

“We shape our tools, and thereafter our tools shape us. Let us ensure we shape our AI with enough heart to make the future a place where humans truly belong.” — Braden Kelley

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Are you ready to audit your organization’s Customer Experience or develop a Human-Centered AI Strategy? Let’s work together to turn your innovation friction into a scalable bonfire.

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Frequently Asked Questions

To help both human readers and search engines better understand the core concepts of co-creating AI, I’ve prepared this brief FAQ. Below the human-readable text, you’ll find the JSON-LD structured data to help “answer engines” index this content accurately.

1. What is the difference between a KPI and an XLM in AI implementation?

While a Key Performance Indicator (KPI) measures the “What” (output, speed, efficiency), an Experience Level Measure (XLM) measures the “How” (the human experience of the process). In AI, XLMs track things like cognitive load and emotional friction to ensure the technology is actually helping people, not just making a broken process faster.

2. Why is “Causal AI” important for frontline stakeholders?

Standard AI often shows correlations, but Causal AI explains the logic or “Why” behind a suggestion. For frontline workers, understanding the intent and cause of an AI recommendation builds trust and allows them to apply their own contextual expertise — the “Art” — to the AI’s “Science.”

3. How does the “Stable Spine” framework assist with AI adoption?

The Stable Spine represents the rigid core of trust, safety, and transparency within an organization. By establishing this foundation first, leaders provide the security employees need to experiment with the “Modular Wings” — the flexible, innovative applications of AI that can change and adapt over time.

Image credit: Google Gemini

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The Role of Design Thinking in Business Strategy

The Role of Design Thinking in Business Strategy

GUEST POST from Art Inteligencia

Design thinking is a method of problem solving that has been around since the 1970s but has become increasingly popular in business strategy in the last decade. This approach to problem solving relies on creative thinking to find user-centered solutions and has proven to be an effective way to improve customer experience and increase profits. Design thinking has become a key element in crafting business strategy and can help organizations gain a competitive edge. Here are ten ways design thinking can help craft business strategy:

1. Identifying customer needs: Design thinking starts with looking at the user and understanding their needs. Through research and observation, organizations can identify and prioritize customer needs and then use that information to create strategies that are tailored to their customer base.

2. Developing empathy: Design thinking requires organizations to put themselves in the shoes of their customers and understand their motivations, values, and preferences. This helps organizations develop empathy for their customers and design strategies that are tailored to their needs.

3. Improving customer experience: Design thinking helps organizations create a better customer experience by focusing on the user journey and understanding their needs and pain points. This can help organizations create strategies that improve customer experience and increase customer loyalty.

4. Creating innovative solutions: Design thinking encourages organizations to think outside the box and come up with innovative solutions to problems. This can help organizations create strategies that are different from the competition and give them an edge.

5. Enhancing team collaboration: Design thinking encourages collaboration and creativity within teams by encouraging different perspectives and ideas. This helps organizations create strategies that are more effective and efficient.

6. Generating new ideas: Design thinking helps organizations generate new ideas and perspectives that can help them craft better strategies. This can help organizations stay ahead of the competition and create unique solutions.

7. Facilitating decision-making: Design thinking helps organizations make informed decisions by providing them with the data and insights they need to make informed decisions. This can help organizations make decisions that are better for the business and its customers.

8. Improving communication: Design thinking helps organizations communicate more effectively by focusing on the customer and understanding their needs. This can help organizations create strategies that are more effective and better tailored to their customers.

9. Enhancing user-centered design: Design thinking helps organizations create user-centered designs that focus on the user and their needs. This can help organizations create strategies that are more effective and better tailored to their customers.

10. Increasing profits: Design thinking helps organizations create strategies that are more effective and efficient, which can lead to increased profits. This can help organizations increase their competitive edge and stay ahead of the competition.

Design thinking is an effective tool for crafting business strategy and can help organizations gain a competitive edge. Through research and observation, organizations can identify customer needs and then use that information to create strategies that are tailored to their customer base. Design thinking can also help organizations create innovative solutions, improve customer experience, and increase profits. By utilizing design thinking, organizations can create strategies that are more effective and efficient, which can help them gain a competitive edge.

SPECIAL BONUS: Braden Kelley’s Problem Finding Canvas can be a super useful starting point for doing design thinking or human-centered design.

“The Problem Finding Canvas should help you investigate a handful of areas to explore, choose the one most important to you, extract all of the potential challenges and opportunities and choose one to prioritize.”

Image credit: Pixabay

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How to Use Futurology to Make Better Business Decisions

How to Use Futurology to Make Better Business Decisions

GUEST POST from Art Inteligencia

Futurology is the science of predicting future trends and events, and it is becoming increasingly more important in the business world. By understanding the various factors that will shape the future of business, businesses can make better decisions and plan for the future. Here are some tips on how to use futurology to make better business decisions.

1. Research the Market: Researching the current market and trends can provide valuable insight into where the industry is headed and what opportunities may arise. By studying current and past trends, you can gain insight into what the future may bring.

2. Understand Your Customers: Understanding your customers and their needs is essential in making informed decisions. Knowing what they want and how they’re likely to respond to different changes in the market can help you plan for the future.

3. Monitor Emerging Technologies: Emerging technologies can have a major impact on the business world. Keeping track of the latest advances in technology and how they may affect your business can help you stay ahead of the competition and plan for the future.

4. Develop Scenarios: Developing scenarios of different possible futures can help you plan for the different possibilities and prepare for changes in the market. By understanding how different changes in the market may affect your business, you can make better decisions and plan accordingly.

5. Analyze Data: Analyzing data from past and current trends can help you better understand the future of your business. By looking at data on customer behavior, market trends, and other factors, you can gain insight into where the market is headed and how your business should prepare for it.

By understanding these tips on how to use futurology to make better business decisions, you can better prepare for the future and make more informed decisions. With the right knowledge, you can anticipate changes and make decisions that will benefit your business in the long run.

Bottom line: Futurology and future studies are not fortune telling. Skilled futurologists and futurists use a scientific approach to create their deliverables, but a methodology and tools like those in FutureHacking™ can empower anyone to engage in futurology themselves.

Image credit: Unsplash

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