The 80% Challenge
40%
of AI initiatives fail
Not due to technology, but due to people and culture issues
Why AI Transformations Fail:
- ✗Technology focus without change management
- ✗Resistance and fear not addressed
- ✗Inadequate training and support
- ✗No clear use cases or value demonstration
- ✗Leadership not aligned or modeling behavior
Why North Highland Succeeds:
- ✓80% culture + 20% technology approach
- ✓Systematic change management with 5 pillars
- ✓Crawl-Walk-Run methodology (gradual adoption)
- ✓Quick wins to build momentum and belief
- ✓North Highland change management heritage (30+ years)
Five Pillars of AI Change Management
Comprehensive approach ensuring successful and sustainable AI adoption
📖
Vision & Storytelling
Compelling narrative about AI future
Key Activities:
- •Articulate clear vision for AI-augmented PM
- •Share success stories and quick wins
- •Address fears with transparency
- •Connect AI adoption to organizational strategy
- •Use "humans + AI" framing, not "AI replaces humans"
Deliverables:
Vision statementChange story deckSuccess story libraryFAQ document
🎯
Leadership Alignment
Executive sponsorship and modeling
Key Activities:
- •Secure executive sponsor and champions
- •Align leadership on AI strategy and investment
- •Leaders model AI adoption behavior
- •Address leadership resistance first
- •Create leadership AI literacy program
Deliverables:
Sponsor charterLeadership roadshowExecutive AI trainingChampion network
📚
Training & Enablement
Building AI fluency and skills
Key Activities:
- •Role-based AI training curriculum
- •Hands-on workshops and office hours
- •AI prompt engineering for PMs
- •Tool-specific training
- •Continuous learning and skill-building
Deliverables:
Training curriculumWorkshop materialsJob aids and cheat sheetsCertification program
📣
Communication & Engagement
Multi-channel ongoing communication
Key Activities:
- •Launch communications plan
- •Regular town halls and Q&A sessions
- •Yammer/Slack channels for peer support
- •Newsletter with tips and success stories
- •Feedback loops and listening tours
Deliverables:
Comms planEmail templatesSlack/Teams channelsMonthly newsletterFeedback surveys
🏆
Incentives & Recognition
Rewarding AI adoption and innovation
Key Activities:
- •Recognize early adopters and champions
- •Tie AI adoption to performance goals
- •Celebrate quick wins publicly
- •Gamification and friendly competition
- •Career advancement for AI fluency
Deliverables:
Recognition programPerformance KPIsLeaderboardsAwards and prizesCareer paths
Common Resistance Patterns
How to identify and address the most common forms of AI resistance
Job Security Fear
""AI will replace me""
Response:
Reframe as augmentation. Show how AI handles tedious work so PMs focus on strategy, relationships, judgment.
Tactic:
Share data: AI adoption = higher job satisfaction and career growth opportunities
Competence Anxiety
""I'm too old/not technical enough""
Response:
Emphasize AI is user-friendly. Provide training and support. Celebrate non-technical early adopters.
Tactic:
Pair experienced PMs with AI champions for mentorship
Loss of Control
""I don't trust AI recommendations""
Response:
Position AI as decision support, not decision-maker. Humans always in control.
Tactic:
Explainable AI: Show how AI arrives at recommendations
Change Fatigue
""Not another transformation""
Response:
Acknowledge fatigue. Start small with pilots. Show quick wins to build momentum.
Tactic:
Crawl-Walk-Run approach: Gradual, manageable change
Skepticism
""This is just a fad""
Response:
Share industry data on AI adoption ROI. Connect to business imperatives (speed, cost, competition).
Tactic:
Pilot results: Show tangible value in their context
Don't Ignore or Dismiss Resistance
Resistance is data. It tells you what people fear, what they value, and what barriers exist. Address resistance with empathy and transparency, not with "you'll get over it" or "this is mandatory."
Tip: Host listening tours early. Ask "What concerns do you have about AI?" and "What would make you excited about AI?" Use this input to shape your change approach.
Crawl-Walk-Run Methodology
Gradual, phased approach that builds confidence and capability over time
Crawl
Months 1-3
Build confidence with low-risk wins
Key Activities:
- •Select 2-3 low-risk, high-value AI pilots
- •Train pilot team (10-20 early adopters)
- •Automated status reporting pilot
- •AI-assisted risk assessment pilot
- •Document lessons learned and quick wins
Success Criteria:
Pilots show 30%+ time savings, positive user feedback, no major issues
Walk
Months 4-9
Scale to broader team and additional use cases
Key Activities:
- •Expand to 50-100 users
- •Roll out 5-7 additional AI capabilities
- •Establish AI governance and best practices
- •Launch training program for all PMs
- •Measure and report value realized
Success Criteria:
60%+ PM team actively using AI, measurable ROI, organizational support
Run
Months 10-18
Embed AI as standard practice, pursue advanced capabilities
Key Activities:
- •AI integrated into all PM processes
- •Advanced use cases (portfolio optimization, predictive analytics)
- •Build internal AI expertise and champions
- •Continuous improvement and innovation
- •Share learnings as thought leadership
Success Criteria:
AI ubiquitous, competitive advantage realized, industry recognition
Why Crawl-Walk-Run Works
Reduces Risk
Start small, learn, adjust. Avoid "big bang" failures that kill AI momentum.
Builds Confidence
Quick wins in Crawl phase create believers who become champions in Walk/Run.
Matches Maturity
Organizations at Level 2-3 aren't ready for advanced AI. Start appropriate to maturity.