Why 99% of companies are using AI completely wrong
Transformation with substance: Why strategy, organization, and AI need to be rethought now
Today, companies face a complex set of challenges that traditional approaches are often no longer able to overcome. In the new podcast episode of "Hope is not a strategy," Christian Underwood talks to Martin Orthen, who has been supporting companies with large IT and transformation programs for many years. His conclusion is clear: the way transformation is conceived and implemented in many organizations is no longer appropriate.
Cost reduction without a target vision? A strategic mistake
Many companies are currently in cost-cutting mode. Budgets are shrinking and staff reductions are becoming standard practice. But one crucial point is often overlooked: cost reduction is not an end in itself – it needs a strategic goal. When companies cut jobs first and only then think about organization, roles, and processes, a structural vacuum is created. Points of contact disappear, knowledge is lost, and processes become dysfunctional. This is precisely where transformation risks begin, which later have to be remedied at great expense.
Or, as Martin puts it: "We think too short-term when it comes to cost reduction – instead of asking how much money we can save, we should ask what our organization should look like at the end of the process."
The underestimated role of people in transformation projects
Whether it's SAP implementation, security programs, or process restructuring, complexity is the real problem for many teams. And the more complex the project, the greater the demands on communication, empowerment, and trust. Martin Orthen emphasizes that digital transformation will always remain a people business. Technical expertise is interchangeable—dealing with people, fears, and resistance is not. Especially in tense cost situations, uncertainty grows in organizations. Employees wonder whether AI or new tools will jeopardize their jobs. Taking these fears seriously and actively addressing them is a key success factor.
AI in small and medium-sized enterprises: big expectations, small steps
While everyone on LinkedIn seems to be an AI champion, experience paints a different picture: many companies only use AI on a small scale—for texts, emails, and minor tasks. What is missing is a structural, value-added approach. Processes that previously took weeks or months – such as product development – could be dramatically accelerated with generative AI. However, there is often little willingness to systematically tap into this potential.
There are two reasons for this: a lack of skills—organizations need to learn how AI really works—and a lack of attitude—without strategic openness at the top management level, companies will not move out of their comfort zone.
Navar: AI for the first critical steps of transformation
During the interview, Martin Orthen also presents the Navar solution developed by his team. The idea: Many transformation projects waste enormous amounts of time in the initial phase defining problems, assessing risks, and bringing structure to unclear tasks. Navar takes care of these first steps—using AI. A structured question and sparring system provides a well-founded assessment of the problems at hand, the risks involved, and the steps that need to be taken within a very short time. This not only saves days or weeks, but also creates a level playing field between consultants and companies – and at the same time reduces knowledge monopolies. In the long term, Navar even aims to make informal knowledge paths in organizations visible, identify risks in handovers, and support the entire program logic of transformation projects.
Collaboration is becoming more personal—not more technical
Martin Orthen's assessment of how the relationship between companies and consultants is changing is also exciting. AI will take over parts of traditional consulting work—research, analysis, structuring. But trust, relationships, and joint reflection remain human. And internally? Here, too, collaboration will become more intensive, not more superficial. Employees will be empowered to get involved, identify risks, and help shape the future. AI does not replace people—it requires people to take on more responsibility.
What managers need to do now
For Martin Orthen, successful transformation does not begin with tools, but with attitude. Companies must talk openly about AI and take their employees' fears seriously. At the same time, it is important to empower people rather than simply providing them with licenses. Before efficiency programs are launched, strategic clarity is needed—a target vision that provides orientation. In addition, organization and skills should be understood as key levers that determine the success of change. And last but not least, responsible leadership means investing consciously, especially in times of cost pressure, instead of reflexively cutting costs and thus squandering long-term opportunities.
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SHOWNOTES
Martin Orthen https://www.linkedin.com/in/morthen/
Navar AI https://www.navar.ai/
Christian Underwood https://www.linkedin.com/in/christianunderwood/
StrategySummit 2026 https://www.strategyframe.ai/strategysummit2026
All links https://linktr.ee/strategyframe