
How Leaders Turn AI Investment Into Better Business Outcomes with Melanie Steinbach
AI investment can give people new tools without changing the way the business performs. Leaders need to explain what should improve, help teams develop new ways of working, and ensure their goals and incentives support that change. In this episode, Melanie Steinbach , whose people leadership experience spans McDonald’s, Cameo, and MasterClass, joins me to explore how organizations turn AI investment into better business outcomes. Mel explains why benefits take time to emerge, why training needs ongoing practice, and how individual KPIs can undermine shared goals. We also discuss leaders’ responsibility for redesigning work across departments and how recognition can encourage people to share what they learn. This is the third podcast in The Adaptive Enterprise , our five-part article and podcast series on redesigning work, governance, and leadership for the age of AI. Key Takeaways Connect the purpose to the person: Explain why the organization is investing in AI, what it expects to achieve, and what employees need to do differently. Melanie’s example of changing a promotion model shows why both organizational context and individual expectations matter. Measure progress along the way: Capability development and business benefits may emerge on different timelines. Identify meaningful milestones, such as stronger analysis or better cross-functional collaboration, and explain how they contribute to the intended outcome. Treat training as the beginning: A workshop or certification does not establish lasting behavior change. Repeated practice, feedback, and opportunities to apply learning help people develop capability in everyday work. Make work redesign a leadership responsibility: Individual productivity improvements do not automatically improve the whole business. Leaders need to define shared outcomes, remove obstacles, and support teams in changing work across departmental boundaries. Align KPIs with the change you want: Goals and incentives shape what people prioritize. Melanie urges leaders to give individual KPIs the same care as budgets, so that they support collaboration rather than pull people toward competing departmental targets. Additional Insights Learning can be an explicit outcome: Barry describes bank pilots designed to build knowledge about privacy, develop capability, and help risk and engineering work together. Leaders need to be clear about what each investment is intended to teach them. Fear needs context and practical experience: Employees may interpret AI through concerns about job loss. Barry’s bank example combines a CEO’s explanation of the direction with hands-on work on decisions and agents. Managers help turn shared goals into daily decisions: Executives need to commit to common outcomes and resources, while directors and managers coordinate the work, dependencies, and trade-offs required to deliver them. Recognition can sustain knowledge sharing: Barry’s Capital One example shows how celebrating people who taught colleagues helped extend learning beyond certification. Melanie emphasizes that recognition is an incentive and that established lessons about human behavior still apply. Episode Highlights 00:00 – Episode Recap Melanie explains why access to technology does not automatically change behavior and why people need a clear organizational and individual purpose. 01:24 – Introducing the Conversation on AI Outcomes Barry welcomes Melanie back to discuss measuring behavior change, developing capability, and moving beyond counts of AI activity. 03:58 – Explain Why the Change Matters Melanie uses the analogy of a scale or fitness tracker and shares a promotion-policy example to show why context and expectations matter. 09:35 – What Should an AI Pilot Help You Learn? Barry describes a bank’s hands-on learning sessions and a discussion about whether pilot success should include knowledge, capability, and cross-functional collaboration. 11:56 – Investment and Benefits Have Different Timelines Melanie explains the importance of an investment thesis and milestone measures when capability development takes time to produce business results. 18:00 – Training Is the Start of Behavior Change Melanie describes why one training day is insufficient and how small, repeated practice helps people develop new ways of working. 21:36 – Who Is Responsible for Redesigning Work? Melanie challenges the expectation that individual employees should identify the wider organizational redesign needed to turn productivity gains into value. 23:35 – Leaders Create the Conditions for Shared Outcomes Barry explains why executives need firsthand experience with AI, then must clear obstacles and support work that spans multiple departments. 27:14 – Directors and Managers Connect Strategy to Execution Barry discusses coordination, local incentives, competing priorities, and the executive commitment required to support cross-functional work. 29:20 – Give KPIs the Attention They Deserve Melanie argues that individual goal setting needs the same care as budget planning because incentives can support or undermine behavior change. 31:11 – Recognition That Helps Learning Spread Barry shares how Capital One encouraged certification, peer teaching, and visible recognition, then describes learning communities where people shared experiments and failures. 34:22 – Remember What We Know About People Melanie closes by emphasizing recognition, safety, incentives, and the established principles of behavior change as leaders navigate new technology. Useful Resources The Adaptive Enterprise: Stop Measuring AI Activity. Start Managing Outcomes. Artificial Organizations Research Program: Measure AI Outcomes Artificial Organizations Melanie Steinbach’s previous Unlearn Podcast episode: Solve Business Problems with People Melanie Steinbach on LinkedIn L Advisors Incorruptible by Eric Ries Follow Barry O’Reilly LinkedIn: https://www.linkedin.com/in/barryoreilly Website: https://barryoreilly.com Facebook: https://www.facebook.com/barryoreillyauthor/ X: https://x.com/barryoreilly Instagram: https://www.instagram.com/barryoreilly/













