Bridging the Gap: Aligning Strategy, KPIs, and Outcomes in the Age of AI

In today’s AI-driven world, business leaders face a paradox: They have access to more data than ever, yet misalignment between strategy, KPIs, and real outcomes remains one of the biggest barriers to success.

Cameron Hedrick, Chief Learning Officer at Citi, explains that many organizations suffer from “system misalignment”—where leaders set ambitious goals but fail to align performance metrics, incentives, and workplace behaviors to achieve them.

The result? Frustrated employees, wasted resources, and missed opportunities.

To thrive in the AI era, leaders must learn to identify misalignment, fine-tune performance systems, and create an environment where people can excel. Here’s how.

1. Stop Measuring the Wrong Things

AI allows companies to track countless metrics, but more data does not mean better decisions. Many organizations measure outputs that don’t truly reflect business success.

🔹 Common Pitfall: Tracking activity instead of impact
✅ Example Fix: Instead of measuring how many hours employees spend in training, focus on skill improvement and business outcomes.

🔹 Common Pitfall: Focusing on short-term KPIs while ignoring long-term strategy
✅ Example Fix: If an AI adoption initiative is measured only by cost savings, it might miss critical long-term benefits like employee productivity, customer experience, and innovation.

💡 Hedrick’s Take:
KPIs should not just track effort—but measure actual progress toward strategic goals. Leaders must audit their metrics regularly to ensure they align with business priorities.

2. Align Incentives with Desired Outcomes

What gets rewarded, gets repeated. But too often, employees are incentivized to hit short-term goals that conflict with what’s actually best for the business.

🔹 Common Pitfall: Rewarding efficiency over innovation
✅ Example Fix: If employees are only recognized for meeting deadlines, they may cut corners rather than take the time to test new AI-driven solutions.

🔹 Common Pitfall: Prioritizing individual performance over collaboration
✅ Example Fix: Sales teams rewarded solely for personal targets may withhold valuable customer insights instead of sharing knowledge across departments.

💡 Hedrick’s Take:
Business leaders must ensure compensation, promotions, and recognition systems reinforce strategic goals—especially in AI transformation initiatives.

3. Reduce Friction Between Strategy and Execution

AI is supposed to accelerate business performance, but it often creates confusion and resistance when people don’t understand how it fits into their work.

🔹 Common Pitfall: Implementing AI without clear job alignment
✅ Example Fix: If employees fear AI will replace them, they may resist adoption. Leaders must communicate how AI will enhance their roles, automate routine tasks, and free up time for higher-value work.

🔹 Common Pitfall: Lack of cross-functional collaboration
✅ Example Fix: HR, IT, and Operations must work together when integrating AI—ensuring that skills development, technology tools, and workflows are synchronized.

💡 Hedrick’s Take:
Leaders must be behavior architects. They need to create conditions where AI adoption is seamless, rewarding, and directly tied to business success.

4. Move from Fear to Curiosity in AI Adoption

Resistance to AI often stems from uncertainty and fear of job displacement. Hedrick suggests flipping the narrative from AI as a threat to AI as an opportunity.

🔹 Solution: Empower employees to develop AI literacy
Instead of forcing top-down AI adoption, encourage grassroots innovation. Run AI “Shark Tank” challenges, where employees propose ways AI could improve their workflows.

🔹 Solution: Shift from owning “jobs” to owning “skills”
AI will change the way work is done. Instead of tying employees to rigid job descriptions, encourage them to own their skills portfolio and continuously upskill.

💡 Hedrick’s Take:
“The best organizations don’t tell employees, ‘This is the AI tool you must use.’ Instead, they ask employees, ‘What problem can we help you solve?’ That’s how you build engagement.”

Final Thoughts: How Leaders Can Take Action Today

To ensure your AI transformation is a success, follow these steps:

✅ Audit your KPIs—Are you measuring what truly matters?
✅ Align incentives with outcomes—Are you rewarding behaviors that drive real business success?
✅ Reduce friction in AI adoption—Are you making it easy and beneficial for employees to use AI?
✅ Move from fear to curiosity—Are you helping employees see AI as a tool for growth?

The organizations that thrive in the age of AI won’t just implement new technologies. They’ll master the art of alignment—ensuring strategy, metrics, incentives, and execution all work together seamlessly.

🔹 As Cameron Hedrick puts it: "I'm not here to force learning. My job is to remove friction—so people can naturally do the right things."

Leaders who apply this mindset will unlock AI’s true potential—while building a workforce that’s engaged, adaptable, and future-ready.