AI transformation is reshaping how industrial, manufacturing, and tangible goods organizations operate. While companies are investing heavily in new tools and technology, many are still struggling to see real ROI. In the latest episode of MetaPod, Ron Crabtree sits down with organizational psychologist, Lean Six Sigma Black Belt, and author of Leaderwired, Anna Barnhill, to discuss why technology initiatives fail and what leaders can do differently. Their conversation emphasizes that the biggest barrier to AI adoption is not the technology itself, but rather the leadership, culture, and human side of change. 

The Most Effective Companies Have the Best-Led Teams

Organizations often assume the right strategy, process, or technology will produce the right result, but in Anna’s experience, even well-designed initiatives can fail when leaders do not account for how people experience change. As she puts it, the most effective companies today do not necessarily have the best technology. They have the best-led teams.

For operations executives, manufacturing leaders, and transformation teams, this distinction matters. AI tools may move at the speed of code, but people move at the speed of trust. If employees do not understand where they fit into the future being created, adoption will stall. 

Diagnostic Area #1: The Leadership Identity Gap

One of the first gaps Anna discusses is the leadership identity gap. Many leaders built their careers on expertise, certainty, and having the answers. Those strengths may have worked in the past, but in the AI era, they can become liabilities. Anna encourages leaders to ask themselves: What are my best strengths, and what is the shadow side of those strengths? For example, being the person with all the answers may once have been a sign of strong leadership, but as AI changes how quickly information is accessed and analyzed, leaders must shift from being the answer-holder to being someone who creates clarity, trust, and direction.

A practical diagnostic question for teams is whether or not your leaders clearly articulate their role and responsibility now that AI is handling more technical tasks. If the answer is confusion, old command-and-control thinking, or uncertainty, an identity crisis may already be brewing.

Diagnostic Area #2: The Psychological Safety Deficit

The second major gap is psychological safety, which Anna emphasizes as the foundation of any change initiative, especially AI adoption. Leaders need to know whether their culture allows people to bring problems forward, admit confusion, challenge assumptions, and share when something is not working. If employees do not feel safe doing this, AI will not solve the problem. It may actually amplify the dysfunction.

Ron connects this to the lean mindset, using the example of treating defects or mistakes as “treasures.” Instead of blaming the person closest to the issue, strong leaders ask what training, tools, methods, or support were missing. Anna agrees, noting that employees watch how leaders respond when initiatives stumble. A company can say it values innovation, but the real culture is revealed in how leadership reacts when something fails. 

Diagnostic Area #3: The Change Velocity Mismatch

Many implementation timelines are built around technology deployment and process milestones, but leave out the human adoption cycle. Anna recommends tracking the gap between the official deployment date and the moment when the organization actually begins seeing results. Looking at the last three or four implementations can reveal whether this gap is growing. If it is, the organization may be dealing with change fatigue. Employees may feel overwhelmed, unsupported, or skeptical that the latest initiative is anything more than another “flavor of the month.”

The Leadership Responsibility Behind AI ROI

For leaders trying to close these gaps, Anna recommends starting with the executive leadership team. Before blaming middle management or employees for slow adoption, leaders need to ask what they contributed to the failure:

  • Did they communicate with clarity?
  • Did they provide the right training?
  • Did they understand the risks and value of technology themselves?
  • Did they unintentionally communicate fear, uncertainty, or resistance?

AI adoption is both a technical challenge and a leadership challenge, and should be handled as such. 

Connect and Learn More

If you have further questions or want to learn more about why AI transformations fail, how to diagnose the human side of change, and what leaders can do to drive adoption that actually produces results, you can get in touch with Anna by connecting with her on LinkedIn or visiting annabarnhill.com or leaderwired.com. You can also get in touch with Ron via email at metapod@metaexperts.com or connect with him on LinkedIn.

MetaPod offers a wealth of knowledge and expertise for operational executives and organizations seeking to optimize their operations and supply chains, as well as common challenges such as digital transformation, the forever labor shortage, and doing more with less. Listen and subscribe today for more insightful and engaging discussions on operational excellence, leadership, growth strategies, and organizational transformation.