.png){kind=small}
Ai Readiness: Why Most SME's Are Still Hammering Square Pegs Into Round Holes
- Mark Evans MBA, CMgr FCMi
- Mar 17
- 4 min read
Updated: Mar 24
When I first read the latest McKinsey Global Survey on AI*, I couldn't help but see the parallels with every technological revolution I've witnessed in my career. The pattern is familiar: exciting new technology emerges; businesses rush to adopt it without truly understanding it and then wonder why the promised revolution hasn't materialised in their bottom line.
The Leadership Paradox
The finding that CEO oversight of AI governance correlates strongly with bottom-line impact isn't surprising, but the fact that only 28% of organisations have this in place is telling. It reminds me of the early days of social media, when companies would assign junior staff to "handle that Twitter thing" whilst the C-suite remained comfortably detached.
Today's reality? Your organisation's AI strategy and readiness is too important to delegate downward. Without the cognitive and emotional buy-in from leadership, gen AI initiatives become expensive technological ornaments rather than business transformation tools.
Think about it – how can your team fundamentally redesign workflows when the people with decision-making power aren't deeply engaged in understanding the technology's capabilities and limitations? It's like asking someone to renovate your house without giving them the keys.
The AI Workflow Revolution That Isn't Happening
Perhaps the most revealing statistic is that redesigning workflows has the biggest impact on EBIT outcomes, yet only 21% of organisations have done this. This isn't merely a missed opportunity – it's a fundamental misunderstanding of how transformative technologies create value.
When you look closely at consumer behaviour today, you'll see how our brains have evolved to process information differently. The modern knowledge worker is no different. Their cognitive filters are highly tuned, unconsciously sorting through the white-noise to find meaning and value. Dropping gen AI into existing workflows without reimagining those processes is like putting a Ferrari engine in a horse and cart – impressive under the bonnet but, still moving at the same pace.
The uncomfortable truth is that gen AI onboarding requires us to question our basic assumptions about how work should be structured. It's not about making the current system faster; it's about creating an entirely new system.
The SME Challenge: Falling Further Behind
The UK's economic backbone – our SMEs – are increasingly being left in the digital dust. Just as I've witnessed in previous tech revolutions, resource constraints often lead to a "wait and see" approach that ultimately widens the competitive gap.
This cognitive trap is understandable but dangerous. When I work with smaller organisations, I often find they're not lacking in ambition but in the mental frameworks needed to envision how their business model could be fundamentally enhanced through AI.
The brain seeks patterns from past experiences, and without exposure to AI applications in similar contexts, many SME leaders struggle to see beyond using it as a slightly better version of existing tools. This is where creativity and lateral thinking become crucial – the ability to look at your workflows and imagine them not just improved but completely reimagined.
The Human-Machine Dance
The productivity gains reported from gen AI are real, but I'm concerned about organisations that view this primarily through the lens of headcount reduction. Having witnessed numerous technology transitions, I've seen how this myopic focus on automation without augmentation ultimately backfires.
Our unconscious relationship with technology is complex. When we experience it as a threat to our livelihood rather than an enhancement to our capabilities, psychological resistance is inevitable. The most successful AI implementations I've seen don't just change what tools people use – they transform how people understand their own value in the workflow.
This isn't fluffy thinking – it's cognitive science. The human brain's remarkable adaptability is an asset that AI cannot replicate. Organisations that recognise this will focus on developing uniquely human capabilities that complement rather than compete with artificial intelligence.
Charting a More Authentic Path
The experiential economy that I've long advocated for has primed consumers to value authenticity and meaningful engagement. The same principles apply internally when transforming organisations for the AI age.
True transformation requires more than superficial application of technology – it demands genuine reimagining of how value is created. If you're not willing to fundamentally reconsider your organisational structure, decision-making processes, and workflow design, you're simply applying expensive digital lipstick to an analogue pig.
The businesses that will capture significant value from gen AI won't just be the ones with the biggest AI budgets or the most advanced tools. They'll be the ones with the courage to question their existing mental models and the vision to rebuild their operations around what this technology makes possible.
Like any powerful tool, gen AI will amplify whatever organisational dynamics already exist. For forward-thinking businesses ready to embrace authentic change, it offers extraordinary potential. For those looking for a quick technical fix without addressing deeper structural issues, disappointment awaits.
The question isn't whether your organisation will use generative AI – it's whether you're brave enough to let it change how your organisation fundamentally works.
At 360 strategy we use a unique suite of tools and process to prepare your business and team for the now and future.
