Digital Enablement Helps Reinvent Your Organization

Artificial Intelligence Tools Drive Decision-Making Down, Excellence Up

Digital enablement and artificial intelligence tools could help end the frustration I have when serving on boards of directors.

For years, I have watched board members bury themselves in revenue, expenses and profit and loss statements. Organizational leadership is the same everywhere, from the United States to the rest of the world. Public companies especially obsess over P&L statements – month after month, quarter after quarter.

They analyze income and depreciation with a laser focus. And it bothers me. I believe boards are focusing on the wrong things.

Because board members need to be guiding your organization’s future, not staring at the present.

The Four Layers of an Organization – Minus Digital Enablement

Because an effective organization should function with four distinct layers, each with a clearly defined role. With the board of directors mired in profit and loss, all the other levels focus on the wrong things as well.

Currently,

• Boards of directors focus on financial oversight.
• The C-level focuses on operational decision-making.
• Middle management gathers and analyzes data for the C-level.
• The rest of the company’s operations function as best they can.

What Problem-Solving at the Board Level Should Be

At the top, the board of directors should practice insightful leadership. They should anticipate change, recognize patterns and position an organization for long-term success. These organizational leaders must see beyond short-term metrics and focus on readiness, optionality and innovation.

Rather than reacting to the present, insightful leaders proactively shape the future. They don’t just ride the waves of disruption; they learn how to surf them. (Yes, I wrote a book about it.) Board members should focus on strategic goals and how the organization should look three to five years in the future.

They should be asking: How prepared are we for that vision? Are we investing in people development? Are we fostering innovation? How can we strengthen our competitive advantage with optionality?

Boards need to invest in the right tools and technologies and maintain the flexibility to pivot when needed. They need to ensure a leadership pipeline to sustain long-term success.

That’s the real work of the board.

If boards embrace this role, they will have no time for the P&L. And that’s a good thing.

Digital Enablement Helps Shift Responsibilities to the Right Levels

With boards focusing on strategy, the responsibility for financial accountability naturally shifts to the C-suite. The CEO, CFO, CIO and CSCO should be answering the tough financial questions: Are we profitable? How can we increase profitable growth? Who is accountable, and how do we enforce accountability?

Now, if the C-level is going to focus on P&L, who is going to take over C-level responsibilities? Who will make operational decisions?

Two words: Middle management. I believe middle management can handle 98% of those decisions and do a great job.

I can almost hear the gasps in the crowd and see the shock on your faces. You’re leaving such important operational details in the hands of middle management! Egads! They’re going to mess it up!

Well, right now they might. But in the future, they won’t. The future organization that is digitally enabled with artificial intelligence tools will have middle management capable of handling all that and more.

After all, middle management is closer to where your organization executes. They have a better feel for operational capabilities, who can do what, who needs more training, where you need additional workers, where you can deploy labor on demand, everything.

Digital enablement for middle management allows the C-level to focus on P&L. Middle management makes those decisions about business processes, customer service, continuous improvement and more. Equipped with AI tools and analytics, they will be more capable than ever of making the right calls.

That leaves one more level – what I call the execution layer,

How Digital Tools Help the Execution Layer

At the foundation of this structure is the execution layer – the people who do the actual work. Their efforts keep the business running, delivering the products and services that customers rely on. While AI and digital tools enhance efficiency, execution teams remain vital as ever. They must apply their skills and expertise to make operations work in the real world.

They’re using digital technologies too. For example, in a distribution center, warehouse associates use automated picking systems and AI-driven inventory management tools to fill orders quickly and accurately. In a manufacturing plant, machine operators oversee production lines, leveraging AI predictive maintenance systems to minimize downtime and maximize efficiency.

In customer service, representatives use generative AI chatbots and data-driven insights to resolve issues quickly while maintaining that human touch for complex concerns. Truck drivers use digital route optimization tools to improve delivery times and reduce fuel costs. Meanwhile, finance and accounting teams leverage AI-powered analytics to detect anomalies, streamline invoicing and ensure financial accuracy.

These workers interact with technology and artificial intelligence tools, adapt to new processes and play a critical role in continuous improvement. This is the layer where strategy meets reality. And organizations that empower these workers with the right digital tools will gain a significant competitive advantage.

Overall, execution team members go from “people doing good things” to “good people doing great things.”

The New Organizational Model

This digital enablement and AI-driven shift transforms the way organizations operate:

• Boards move from financial oversight to future readiness and insightful leadership.
• The C-suite moves from decision-making to financial accountability.
• Middle management shifts from data analysis to operational decision-making, empowered by AI and digital tools.
• Execution teams continue to carry out the critical tasks that keep the business running. Only they do it better.

This is what I call reinventing the organization. This model positions businesses for long-term success beyond short-term gains.

Ready to reinvent your organization? I’d love to discuss where digital enablement and AI tools can work for your organization. Reach out, and let’s position your company for the future.

It’s time for boards to step up, look forward and lead with insight.

Related Reading

• Unlocking the Automated Economy through Digital Enablement
• Why Leadership Principles Must Change for 2025 and Beyond
• 7 Lessons for Success from Amelia Earhart