Whitney D. Zimmerman

BCG just told 95% of companies to run before they can walk.   Their latest report analyzes 1,250 companies and confirms what much of the other research is finding, only 5% are generating substantial value from AI. The other 95% are struggling or stuck. BCG's answer? CEO-led strategy, AI-first operating models, workflow reinvention, agentic AI adoption. But here’s what’s missing from that strategy... Most companies can’t execute this playbook because they don’t have the foundations to stand on. 1️⃣ Data Foundations Future-built companies are 3x more likely to operate on a single enterprise-wide data model. Stagnating companies? Just 4%. You can’t “reshape workflows with agentic AI” when your data is scattered across 47 systems, 60% is unstructured, and no one knows what’s clean or complete. Agentic AI needs context-rich, structured, accessible data. Without it, agents hallucinate and break workflows.   2️⃣ Process Maturity BCG says to “reshape and invent workflows.” But what if your processes aren’t even documented? You can’t automate what you don’t understand. Most companies have tribal knowledge locked in heads, inconsistent execution, and no clear ownership.   3️⃣ People Capabilities BCG says future-built companies upskill 50%+ of the workforce. But upskill them to do what? 👉 Basic AI literacy? (How to prompt, when to trust outputs) 👉 Process redesign? (How to decompose workflows) 👉 Data fluency? (Understanding quality, context, limitations) Most companies are still teaching Excel pivot tables. Now they’re supposed to orchestrate 3–5 AI agents while redesigning workflows? The honest truth?   The 5% aren’t ahead because of a better playbook. They’re ahead because they’ve spent the last 5–10 years building foundations: --> Data as a product with ownership and quality standards --> Process discipline, documenting and standardizing workflows --> Technical literacy at scale across the workforce These aren’t 2025 priorities. They were 2015 priorities that most ignored. Now BCG says “adopt agentic AI” to companies that can’t answer: --> Where does our customer data live? -->How long does order-to-cash actually take? --> Can our workforce query a database? BCG is right... the AI gap is widening. But it’s not because laggards aren’t trying. It’s because winners built their foundations years ago, and the rest are trying to skip straight to agentic AI. --> You can’t reshape workflows you haven’t documented. --> You can’t deploy agents on data you don’t have. --> You can’t upskill a workforce that’s still learning the basics. The real AI value gap isn’t organizational. It’s foundational.

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As a Senior Advisor Boston Consulting Group (BCG) i often get the opportunity to be one of the contributors along with many other great leaders to bring together a diverse group of CEOs across many parts of the globe and cover a bunch of very interesting topics. Last week it was BCG’s flagship Transformation CEO Forum, which brought together 16 remarkable CEOs in New York. Each of them are navigating large-scale transformations in times of immense uncertainty. Together, these leaders represented organizations with over $100B+ in combined revenue and more importantly, a shared commitment to bold change. Here were 4 big learnings and takeaways for me coming out of the days discussions : 🔹 Transformation is an always-on leadership discipline. In a world of geopolitical tension, economic disruption, and technological acceleration, transformation is no longer episodic. It’s a sustained journey—and CEOs are the ones driving it forward with urgency and intent. 🔹 GenAI has crossed the tipping point. The conversation has shifted from automation to impact. We heard compelling cases on using AI to reshape how value is created, not just how costs are reduced. But success still hinges on people—70% of GenAI outcomes are driven by adoption, not algorithms. 🔹 The human side is the hardest—and the most important part. Transformation narratives must be clear, honest, and aligned with reality. CEOs are learning to activate the “neutral middle,” not just fight resistance. Recognition, communication, and emotional clarity are essential to maintain energy and momentum. 🔹 The CEO–Board relationship is evolving fast. It’s no longer about “managing” the board—it’s about true partnership. The most effective CEOs now co-create strategy with their directors and invest in helping them stay current, aligned, and engaged. 💬 One CEO said it best: “This was a valuable investment of my time... learning from peers in a neutral setting.” That spirit of shared learning and leadership growth is what makes these forums so powerful. I myself learnt so much from BCG's CEO Advisory Lead Christine Barton and from the other cohost Kristy Ellmer and from my fellow contributors— Philipp Carlsson-Szlezak, Matthew Kropp , Julia Dhar and Jack Stahl. Genpact Jabil MathCo Bain Capital Brighton Park Capital AVALT Innospark Ventures HighRadius HTEC ABSL HFS Research

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💭 What’s really going on in Management and Strategy consulting right now? It’s no secret that the broader consulting market has hit a period of recalibration. After a decades of relentless growth, fuelled by transformation spending, digital acceleration and a rising tide of advisory work, the consulting market has softened. Hiring freezes, utilisation pressures and restructuring have become common talking points across firms, from MBB, boutiques and the Big 4. But what’s really behind this shift? 💼 The consulting market is evolving, not disappearing. Clients are still investing, but they are being more selective, more cost-conscious and increasingly looking for partners who can deliver both strategy and execution, not just high-level slides. ⚙️ For strategy consulting in particular, the past 12 months have exposed some real challenges: 🚫 A mismatch between high-cost business models and the appetite for premium fees. 🚫 Over-reliance on traditional value levers like organisational redesign or growth strategy, which are no longer enough on their own. 🚫 Greater scrutiny on ROI, making it harder to justify large strategy-only engagements. 🚫 Internal capability build-outs by clients, particularly in corporate strategy, reducing external reliance. 🔊 Despite these challenges, the opportunity remains significant for those firms willing to evolve. ✅ So where to from here? Here are a few directional shifts that could better align strategy consulting firms to market demand: ▶️ Anchor more in execution. Clients want partners who can help build the roadmap and roll it out. Blending strategy with operational implementation is now essential. ▶️ Think cross-functional and commercial. Pure-play strategy is no longer sufficient. Growth, cost, data and tech need to come together. Firms must show they understand the full business context, not just the strategic theory. ▶️ Reimagine the talent model. The future of consulting talent is hybrid. Firms need problem-solvers with emotional intelligence, cross-industry exposure and commercial acumen. The generalist model needs to evolve. ▶️ Lean into co-creation. Clients expect to build with their advisors, not be consulted to. Collaborative models, embedded roles, and joint ownership of outcomes are becoming the norm. ▶️ Be bold about pricing innovation. Value-based pricing, outcome-linked fees and flexible formats will separate the firms that lead from those that lag behind. The consulting world is NOT in decline BUT it is being redefined. Those who adapt fastest to these new realities will shape the next chapter of the industry. If you’re seeing these shifts play out in your world, I’d love to hear your perspective. Are strategy firms adapting fast enough? #OaktreeLeadershipTips #StrategyandTransformationJobsAustralia

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Masao Nemoto was a former Senior Managing Director at Toyota Motor Corporation and one of the key architects of Toyota’s Total Quality Control philosophy and leadership culture. His "Ten Principles of Leadership" and relentless focus on continuous improvement significantly shaped Toyota’s success. Nemoto is considered alongside Taiichi Ohno as an architect of the cultural and managerial foundations of the Toyota Way. His emphasis on quality, coordination across divisions, and leader involvement helped make Toyota synonymous with efficiency and innovation in manufacturing 1. Improvement after improvement. 2. Coordinate between divisions. 3. Everyone speaks. 4. Do not scold. 5. Make sure others understand your work. An emphasis on teaching and presentation skills is important because of the need for collaboration. At Toyota, managers are expected to develop their presentation skills and to teach associates about their work so that collaborations will be fuller and more effective. 6. Send the best employees out for rotation. 7. A command without a deadline is not a command. 8. Rehersal is an ideal occasion for training. 9. Inspection is a failure unless top management takes action. 10. Ask subordinates, "What can I do for you?" At Toyota this is called "creating an opportunity to be heard at the top." In the first year of a quality-control program, managers hold meetings in which employees brief them about progress. Three rules guide these informal meetings: ➡️  Do not postpone the meetings or subordinates will think their project is not taken seriously. ➡️ Listen to the process, not just the results, since QCs focus in on the process. ➡️ Ask the presenters whether you can do anything for them. If they ask for help,be sure to act on the request. This philosophy can be generalized. If top management is perceived as willing to help with problems, employees are more optimistic about tackling the problems and will take management's goals more seriously. #LeanIsAwesome

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Only 5% of companies - many who claim to be "AI future-built” - are capturing maximum value from AI. And 60% are seeing almost no material gains despite heavy investment. Those 5% are materially widening the gap in performance and results compared to the rest of the pack. The lessons from them are very clear and easy to understand, but the same as with all great things, wicked hard to replicate :-) These insights from our latest "Build for the Future" report on the widening AI value gap show how far we've moved on from experimenting with #AI. It's clear from our teams' extensive research that companies aren’t failing because AI doesn’t work - it's just that so many organizations aren’t built to harness it... yet... Jessica Apotheker, Vinciane Beauchene, Nicolas de Bellefonds, Patrick Forth, Dr. Marc Roman Franke, Nina Kataeva, Santeri Kirvelä, Djon Kleine, Romain de Laubier, Dr. Michael Grebe, Amanda Luther, Mary Martin, Jeff Walters, Christoph Schweizer https://lnkd.in/ePfFQ9qh

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