Our Leaders in Transformation community recently gathered at our London HQ for an engaging discussion on three key topics shaping business today: AI implementation, funding product operating models, and best practices for mergers and acquisitions. The casual layout fostered open dialogue among leaders from diverse sectors including finance, education, media, technology and more.
AI: Tactical vs Strategic, Centralised vs Decentralised
The conversation kicked off with a lively debate on AI implementation strategies. A key takeaway was the importance of integrating AI into existing processes rather than treating it as a separate initiative. As one participant noted, “It’s an enablement and a technology – we shouldn’t mystify it.”
Leaders shared experiences ranging from centralised AI governance to more decentralised innovation. One media company found success by allowing individual business units to experiment with AI, leading to innovative applications like AI-generated podcasts and improved content creation workflows. The group agreed that while some governance is needed, overly restrictive central control can stifle innovation.
There was consensus that AI should be viewed as a tool to augment human capabilities rather than replace jobs entirely. As one attendee put it, “It’s about how we build AI into the stuff that we’re already doing rather than seeing it as a separate thing.”
Product Operating Models: Culture Change and Funding Challenges
The discussion then shifted to product operating models, with a focus on the cultural and financial hurdles of implementation. Leaders emphasised that moving to a product model requires more than just reorganising teams – it demands a mindset shift across the organisation.
A major challenge identified was aligning traditional financial processes with product-based funding. Annual budgeting cycles and project-based accounting can conflict with the more fluid nature of product development. As one participant observed, “Finance processes have stayed the same while technology has moved radically over the last decade.”
The group explored strategies for navigating these challenges, such as finding influential allies in finance and HR, demonstrating early wins, and sometimes “faking it till you make it” by packaging product initiatives in ways that fit existing financial frameworks. There was agreement that getting finance and HR involved early in transformation efforts is crucial for success.
Mergers & Acquisitions: The Human Element is Key
The final topic cantered on best practices for successful M&A, with a particular emphasis on the human and cultural aspects. Leaders shared both positive and cautionary tales from their experiences.
A standout success story came from a well-known national operator transition, where early and transparent communication was credited with smoothing the integration process. The acquiring company formed focus groups with mid-level managers to gather input and disseminate accurate information, countering the spread of demotivating rumours.
Conversely, examples of poorly handled integrations highlighted the dangers of neglecting cultural integration and clear communication. In one case, years after a major bank merger, employees were still identifying themselves by their legacy company.
The evening’s discussions underscored the interconnected nature of technology, process, and people in driving successful transformations. While AI and new operating models offer powerful tools for innovation, their effectiveness ultimately depends on thoughtful implementation that considers the human element. As organisations navigate mergers, adopt new technologies, or transform their operating models, clear communication, cultural alignment, and a focus on long-term value creation remain critical success factors.
Our Leaders in Transformation community continues to provide a valuable forum for sharing insights and learning from peers across industries. We look forward to our next gathering and the continued evolution of these important conversations. For more information on our Leaders in Transformation community, visit: https://www.sullivanstanley.com/leaders-in-transformation/
