By Gord Mawhinney, President – Americas, Avanade
Recent economic headwinds have given little reprieve to businesses; a volatile backdrop marked by persistent inflation and unstable interest rates, shifting trade and tariff policy, a slowing economy, and supply chain kinks, has created a perfect storm of uncertainty. It has also put a spotlight on digital transformation in the enterprise.
Leaders continue to grapple with issues surrounding technology and across the workforce, reigniting a conversation about enterprise resilience. Many question how to separate real AI value from hype, how to keep people at the center of it all despite an increasingly stark skills gap, and how to grow when every economic signal points in a different direction.
This is why sustainable transformation in the enterprise will be key. Here is what I believe leaders should prioritize moving forward. It will take a lot of discipline, some unwavering focus, and a little bit of strategic savvy:
AI needs to move from a productivity game to a reliable value-driver
The market is still grappling with how to get the most out of their AI investments. Gartner predicts that global AI spending will hit a massive 2.59 trillion this year. Those businesses that can finally turn AI experimentation into implementation will get increasingly productive. The bigger shift is qualitative: AI is moving from a tool that assists to agents that act, running whole workflows rather than speeding up single tasks. That is where productivity turns into durable, measurable value. What’s holding back some businesses, however, is that AI tools are bolted onto workflows, creating fragmentation across the tech stack. One report shows that 75% of companies are implementing AI out of the box or isolated to specific functions. While not wrong, the two largest concerns with a fragmented approach are ROI and responsible AI.
When it comes to ROI, leaders should focus on AI use cases and workflows that provide clear value. Projects that are lagging in results within a reasonable timeframe should be cut. CFOs should play a larger role in budgeting, getting to the harder questions about data transparency, compliance, and maintenance. It will take a full audit of what an enterprise has experimented with to what can actually drive ROI most sensibly.
There is also a real ethical risk in adopting AI without a responsible framework in place. This conversation encapsulates everything from bias and privacy, to sustainability and regulation. AI governance should be at the top of every leader’s priority list for the development and deployment of the technology. A rigorous framework gives the company a structure to follow and more control to confidently deploy and innovate. In short, speed without governance is just risk; the goal is to move fast in a way you can defend to your board, CISO and CFO. Healthcare is a perfect example of a highly-regulated industry where AI can shine if it’s governed correctly. It can speed up research, widen access and improve diagnoses, all against the backdrop of HIPAA compliance.
The skills gap needs to be acknowledged and addressed
As AI comes into focus and economic headwinds drive many companies into hiring freezes, a widening gap is becoming apparent between available talent and the ability to hire externally, and the capabilities companies need to keep moving forward with new technology. On paper, automation could solve this, but in practical use, enterprises still need people at the center of AI. AI should take on the routine work so people can focus on judgment, creativity and the relationships that create value.
The next phase of success for many companies will be how quickly they can upskill and reskill employees who have deep business knowledge but need to be trained further technically. While dollars spent on technology still needs to be tracked, “human capability unlocked” becomes a much more insightful metric in terms of transformation progress. Leaders should invest in their people through training tools and new learning pathways. Upskilling needs to move from an episodic investment to a continuous expenditure for sustainable transformation.
Agility needs to be the competitive advantage
Business growth depends immensely on agility in the current economic climate. Volatility is now the growth lever, not scale. While building agility is a message that many companies have been receiving for years, few have really future-proofed their business. The market is fluid and fast, so operations need to be flexible and absorb changes quickly. When looking at it from a sustainable transformation lens, this is less about rushing in based on one use case and more about creating structures that can flex.
Optimization without overhauling the business is the goal. It’s a fast-fail mindset. Leaders need to think about what can help their company become more adaptable. This could be more modular technology, shorter planning cycles, or multi-skilled teams. Workflows need to be implemented and adjusted when the need arises. It will help business not only survive, but thrive, in downturns.
The age of intentional transformation is upon us
This year, speed alone won’t keep business afloat. It will take intentional effort to strategically prepare for a future that breeds uncertainty. The companies that treat AI as a performance engine, invest in their people, and start to view disruption as a competitive advantage will be best positioned to succeed. Sustainable transformation should be the guiding principle. The winners won’t just move fast, they’ll move fast in a way they can defend, and that discipline is what carries a business to the frontier of its industry. The time to start is now.
##
ABOUT THE AUTHOR
Gord Mawhinney, President – Americas, Avanade
Gord Mawhinney leads Avanade’s largest business unit, overseeing strategy, sales, delivery and operations. Working closely with leadership teams in the United States, Canada and Brazil in support of 5000 Americas employees, Gord ensures the delivery of consistent, high-quality outcomes for Avanade’s clients.
With over 30 years in the high-tech industry, Gord has held various roles in technical, consulting, sales, delivery and management, including at IBM and as an entrepreneur at leading award-winning software and services firms. A lifelong learner, Gord has completed a Master’s degree in Leadership from Royal Roads University and earned his ICD-D designation from the Institute of Corporate Directors.
