How AI is accelerating leadership development by enabling more practice

At BTS, we’re constantly challenging ourselves to innovate at speed. And right now, it feels like we’re standing at the edge of something massive. The energy? Electric. The velocity? Unprecedented. For many of us, the current pace feels a lot like the early days of the pandemic: disorienting, high-stakes, and somehow exhilarating. And honestly—it should feel that way. Our teams have been tinkering with AI, specifically LLMs, for the past 2.5 years and it has really been in the last eight months that I can see the profound impact it is going to have for our clients, for our services and our operating model.

The opportunity isn’t about the technology. The world has it and it’s getting better by the minute. The issue is people and people’s readiness to adopt it and be re-tooled and re-skilled. It’s about leadership. AI is deeply personal, it’s surgical. In fact, that’s its genius. So, getting full scale adoption of AI, re-tooling everyone in the company by workflow, so that they can invent new services, unlock new customer value, unlock new levels of productivity, even use it for a better life, is the current race. The central question I’ve been wrestling with, alongside our clients and our own teams, is this:

What does AI actually mean for leadership and culture?

And the answer is clearer by the day: AI isn’t just a new toolset. It’s a new mindset. It demands that we rethink how we lead, how we learn, and how we build thriving organizations that can compete, adapt, and grow.

The productivity paradox revisited

Let’s start with the elephant in the boardroom. There’s been a lot of buzz around AI and its promises. But many leaders have quietly wondered: Will any of this actually move the needle? A year ago, we were asking the same thing. We had licenses. We had curiosity. We had early experiments. But the results were modest, a 1% productivity gain here or there. But by April, we were seeing:

• 30–80% productivity gains in software engineering
• 9–12% gains in consulting teams
• 5%-20% improvements in client success and operations

Just as importantly, the innovation unlock and creativity across our platforms due to vibe coding along with new simulation layers, is leading to new value streams for our clients. This isn’t theoretical. It’s not hype. It’s real. The difference? Adoption, ownership, and a shift in how we lead in order to energize the AI innovation within our teams. The challenge now isn’t whether AI creates value. It’s how to unlock and scale that value across teams, geographies, and business units—and do it fast.

Two Superpowers of the Agentic AI Era

In working with leaders across industries, I’ve come to believe in two superpowers (there are more as well) that will unlock the potential of this AI era: Jazz Leadership and a Simulation Culture.

1. Jazz Leadership

Forget the orchestra (although personally I am a big fan.) The successful team cultures that are innovating with AI feel more like jazz. In jazz, there’s no conductor. There’s no fixed sheet music. There are core bars and then musicians make up music on the spot based on each other’s creativity, building off of each other’s trials, riffs and mistakes, build something extraordinary together. This is how experimenting with AI today, in the flow of work, feels like.

For each activity across a workflow, how can new AI prompts, agents, and GPTs make it better, codify high performance, drive speed and quality simultaneously? How can we try something totally different and still get the job done? How might we re-invent how we work? That’s how high-performing teams operate in the AI era. The world is moving too fast for command-and-control leadership, a perfect sheet of music with one leader who is interpreting the sheet music and directing. What we need instead is improvisation, trust, shared authorship, courage and a playful spirit because there are just as many fails as breakthroughs.Jazz leadership is about creating the conditions where:

• Ideas can come from anywhere
• People see tinkering and testing as key to survival and AI failures mean your team is at the edge of what’s possible for your services and ways of working
• Leaders say, “I don’t have all the answers, but I’ll go first, with you”
• People feel “I’m behind relative to my peers in the company” and the company sees this as a good sign because the pace of learning with AI means higher chance of success in the new era

At BTS, we recently promoted five new partners who embody this mindset. They weren’t the most traditional leaders. But they were the most generative. They coached others. They experimented and are constantly re-tooling themselves and others. They inspired movement. They are keeping us ahead, keeping our clients ahead and driving our re-invention. Jazz leaders make teams better, not by directing every note—but by setting the stage for breakthroughs. It is similar to the agile movement, similar to how it felt in Covid as companies had to reinvent themselves. It’s entrepreneurial, chaotic and fun.

2. Simulation Culture

The ability to simulate is a super-power in this next agentic, AI era. Simulation has always been part of creating organizational agility, high performance and leadership excellence. But AI and high-performance computing have transformed it into something bigger, faster, and infinitely more powerful. It means that building a simulation culture is within all of our grasp, if we tap its power.Today, companies simulate:

• Strategic alternatives - from market impact all they way to detailed frontline execution
• New business, new markets and operating models
• Major capital deployment e.g. build a digital twin of a factory before breaking ground
• Initiative implementation
• Workflows current and future
• Jobs to assess for talent and critical role readiness
• Customer conversations and sales enablement motions

With a simulation culture, where you regularly engage in scenario planning and expect preparation and practice as a way of working, billions in capital is saved, cross-functional teams are strengthened, high performance gets institutionalized, win rates increase, earnings and cash flow improves.

Where to get started

Below are a few examples of what leading organizations are doing. Consider testing these in your own organization:

• Conversational AI bot platforms used to scale performance expectations and the company’s unique culture.
• Agentic simulations built into tools so people can prepare and practice with 100% perfect context and not a wasted moment.
• Digital twins of the job created so that certifications and hiring decisions are valid.
• Micro-simulations spun up in hours to align 50,000 people to a shift in the market or a new operational practice.

Final Thoughts

• Lead like a jazz musician. Embrace improvisation, courage and shared creativity.
• Build a simulation culture. Because in a world that’s moving this fast, practice isn’t optional—it’s how we win.

This is a brave new world. Not five years from now. Right now.Let’s shape it—together.

Nearly every leader I talk to knows the old planning model doesn’t make sense anymore. Multi-month cycles. Layers upon layers of initiatives. Budgets that quietly replace strategy as the plan. By the time it’s all done, the competitive landscape has already shifted under their feet. And yet, many companies still do it this way. They can feel the mismatch as they strive to move fast. They just don’t know what to do instead. The old game was setting direction. Decide where to go. Communicate it. Cascade it down. It made sense when the future looked enough like the past that you could be certain of your choices. But certainty is gone. In its place: disruption, surprise, and acceleration. Which means the work of leaders has shifted. The new game is adapting direction.

What needs to be new and different

If strategy execution today is about improv, then strategy setting is no longer about choreography. It requires a more flexible approach. Here are four flaws of traditional strategy planning, and what leaders can do differently:

1. Stop pretending there’s only one future.

We know the future won’t unfold exactly as envisioned. Customer needs shift. Competitors surprise you. Economies wobble. So why do we plan for just one version of what’s next? When one “winning” idea emerges too fast, it often gets momentum without being stress-tested. A better approach:evaluate multiple distinct directions at the same time.  One executive team we worked with had five competing visions for doubling the business in three years. Instead of forcing consensus, we worked with them to think through the core choices for each, including customer focus, product bets, and geographic expansion. Once leaders saw the real implications, they quickly ruled one option out. The eventual plan blended elements of the others, with contingencies built in. Thinking through alternatives gave them confidence and resilience when the inevitable twists came.

2. Make choices real before you announce them

Too many strategic plans race to the declaration moment at the Town Hall: here’s the big idea, now go execute. The problem? Leaders rarely know what they’ve actually signed up for, or what needs to change in how the work gets done. If you believe that strategy execution requires improv, then even in setting strategy you need to imagine what comes next and rehearse moves, implications, and ripple effects across future time horizons, albeit in a simpler but realistic form.  One client we worked with knew that acquisitions were essential to their growth. They had several targets in sight and negotiations underway, but no imminent deal. Instead of waiting, we ran the extended leadership team through a series of acquisition scenarios with different strategic intent that examined variables such as deal size, level of integration, and adjacency of the added business. As they worked through each scenario, they not only got a view into the nature of potential targets but also what changes they, as the leaders of the organization, needed to make now. They were choosing what kind of organization they would become. Based on what they were learning, they were able to make key decisions to position themselves for future success. They agreed on new hiring profiles, streamlined decision processes, leadership shifts, so they’d be ready when the right deal came. Strategy shifted from a conceptual statement to a real, lived preparation for a different future.  

3. Work across time horizons.

People can change fast. Infrastructure and capital cannot. Budgets, board approvals, and physical assets move slowly. Leaders need to intentionally plan for what can change now, what will take time, and what’s locked in, while still identifying the opportunities at each stage.  Take a pharma company with a pipeline bursting with new drug development. If even half their drugs made it through approval, their manufacturing capacity would be insufficient. Together we built an adaptable manufacturing plan, anchored on essentials, with clear trigger points for future decisions. When 70% of the drugs cleared approval, they were ready. Without that horizon-based thinking, they would have been caught flat-footed.

4. Align at the right level of detail.

Here’s a trap: mistaking varied interpretation of the strategy for purposeful improvisation. They are not the same. Without clarity and alignment at the top, every leader fills in gaps differently. That isn’t agility, it’s chaos. Leaders must turn the conceptual strategy into something tangible and real, in order to be able to align and lead the organization in the same direction. Strategic modeling allows leaders to test choices at the right level of fidelity, so they know what they’re actually agreeing to. Growing “a lot” versus growing 37% are not the same thing. The detail that is uncovered in the modeling exercises provides enough clarity to shape coherent execution, while still leaving room for adaptive moves over time.

From map to compass

Old strategy setting was about certainty. New strategy setting is about clarity of intent and readiness to adapt. It’s less a map and more of a compass. If your strategy and planning process still looks like a marathon toward a finished plan, ask yourself: are you preparing for the world you wish you had, or the one you actually face? The trick is helping leadership teams shift from setting direction to adapting direction—so strategy setting and execution can adapt. The future won’t wait for your plans.

Most leaders focus on strategy—not because they undervalue culture, but because strategy feels concrete. It has structure, timelines, metrics, and deliverables. It’s visible and defensible. When pressure is high, strategy gives leaders something they can point to and steer. Culture doesn’t always feel that way. It’s harder to define, harder to measure, and often lands in the “important, but not urgent” pile. That’s not a leadership flaw. It’s a gap in how we’ve equipped leaders to lead.But if you want to change how your organization operates, you have to start with what people experience every day.

Below are six no-fluff actions from our recent event, , designed to help you leave your team stronger than you found it.

‍Culture Without the Fluff→ Don’t miss events like these! Sign up for our newsletter or visit our events page to see what’s coming.

1. Build shared habits

If strategy defines where you’re going, culture determines whether you’ll get there. Strategy can shift quickly, with a new market, goal, or CEO. Culture can’t. It’s shaped by the beliefs, habits, and norms that don’t pivot on command—and that’s where friction starts. The disconnect doesn’t usually show up in big moments. It shows up in how decisions get made, what’s prioritized under pressure, and whether feedback is honest or avoided. These daily behaviors signal what really matters, regardless of what the strategy says. That’s why high-performing organizations go beyond communicating direction. They turn strategy into clear expectations for how people should work, lead, and collaborate—and then reinforce those expectations through routines, incentives, and leadership behavior.

Try this:

Pick one strategic priority and ask: What should people be doing differently if this is truly our focus? If you’re not seeing those behaviors, there’s a gap. Ask yourself: Do our daily habits match the future we’re trying to build?

2. Use the levers you already own

Culture change doesn’t have to start with a massive initiative. It can start with the levers you already own. Culture lives in the mechanics of your team’s work: how meetings are run, how frontline decisions are made, how failure is treated, and what behaviors leaders model. These small signals shape big beliefs. That’s why abstract values and vision statements alone often fall flat. They’re not wrong, but without action behind them, they’re just words on a page. Real change starts by zooming in on specific moments that shape how work gets done, and making small, intentional shifts. Want a culture of accountability? Focus on what happens after meetings. Want more innovation? Look at how failure is handled during team reviews.

Start here:

Pick one lever (like how meetings are run) and ask:

• What messages are we sending through how we meet?

• Who speaks up? Who stays silent? What actually gets decided?

Then make small adjustments that reinforce the culture you want—not the one you’ve inherited.

3. Avoid the tempting pitfalls

If you’ve ever rolled out a new set of values, launched a culture initiative, or shared a bold new vision, only to see behavior stay exactly the same, you’re not alone. Most culture efforts stall not because leaders don’t care, but because they start with what’s visible and familiar: messaging, posters, kickoff events. These feel like the right moves. But they rarely shift what people actually do, and rarely resonates in a meaningful and lasting way In our recent webinar, we shared six common traps that organizations fall into often with the best intentions. Here are three that come up again and again:

1. Relying on values to do the heavy lifting. Most teams have clear values, but that’s not the problem. The challenge is turning those values into real habits. If the way you run meetings, make decisions, and give feedback doesn’t reflect what’s on the wall, people notice—and disconnect.
2. Expecting HR or culture champions to lead the culture shift alone. HR and champions play a big role in culture, but they can’t do it without leaders. People take their cues from credible influencers in the business: what gets rewarded, what gets ignored, and how leaders show up under pressure. That’s where real culture change starts.
3. Announcing culture change before actually changing anything. This is a classic case of show don’t tell. When leaders talk about change without shifting the day-to-day experience, people become skeptical. They’ve heard it before. What earns their belief and commitment is seeing leaders act differently in ways that directly affect their work.  

P.S. We’ve rounded up 3 more pitfalls worth avoiding. See them here.

Start here:

Surface the unspoken. Ask: What do people believe they’ll be rewarded for today? What would they have to believe to behave differently?Culture change requires shifting the mental models that shape behavior.

4. Shift the beliefs beneath the behaviors

You can’t shift behavior without understanding the beliefs behind it. If teams aren’t collaborating across silos, it’s probably not because they don’t want to—it’s because they’re rewarded for competing, not collaborating. If leaders aren’t taking smart risks, it might be because failure has been punished, not treated as a learning moment. These everyday behaviors are just the surface—what’s driving them are deeper, often invisible beliefs that probably outlast the tenure of some of your employees.

Start here:

Ask: What are the unspoken rules here? What would someone need to believe for this behavior to feel natural, safe, and worth it? Until you name and shift those beliefs, culture efforts will stay stuck at the surface.

5. Don’t let your culture fall behind your tech

Honestly, the real surprise would be if AI wasn’t reshaping your culture. Some organizations are going all-in on experimentation. Others are still figuring out what their approach will be. But wherever you are on the curve, one thing’s clear: this moment feels a lot like the wild west. And your talent is picking up on that. Leaders are signaling the need to adapt and innovate—but rewards and incentives often tell a different story. Without clear signals from the culture that it’s safe to try, valuable to learn, and worth the risk, even the smartest tools won’t be used to their full potential.

Ask yourself:

• How are we capturing what’s working with AI—and making those insights visible and usable across the organization?

• What are we taking off people’s plates to give them the time and space to learn, experiment, and adapt?  

• Have we updated the priorities, deliverables and expectations to reflect the new reality—or are we layering AI on top of an already full workload?

• Are leaders helping people see the personal value in this shift—so AI feels like a path to growth, not a threat to their role?

6. Start small, scale fast

Most leaders assume culture change has to be slow and sweeping. But it doesn’t.We’ve seen major progress start with one small shift—the kind that’s visible, repeatable, and high-impact. The key? Start where the energy already is: a team that's eager, a leader who's ready, a process that’s stuck. Then focus on one behavior that’s holding things back—and change it. From there, scale what works.

Start here:

Use this simple 3-step exercise to find a small, high-impact place to start:

1. Pinpoint a stuck spot: Where is strategy getting delayed, deprioritized, or lost in translation? Common areas include:
   • Team meetings that always run long but lead to no decisions
   • A new tool or process people aren’t adopting
   • A frontline team disconnected from the broader strategy
   • An area with low engagement or slow execution
2. Identify the blocker behavior:
   • What specific habit, mindset, or expectation is in the way? (e.g., defaulting to top-down decisions, rewarding speed over learning, fear of trying something new)
3. Make one shift—and scale what works
   • Change that behavior in one team, one moment, or one process.
   • Capture the impact. Then share the story and replicate what worked.

Change spreads through stories. Show people what’s possible, and they’ll move with you.

Culture change is hard. Doing it alone? Even harder.

We work with teams around the world to:

• Spot what’s working—and what’s getting in the way

• Test small shifts that create big ripple effects

• Keep momentum going as change starts to spread

Reach out to us to start a conversation!

Each business revolution has reshaped not only how businesses operate, but how they organize themselves and empower their people. From the industrial age to the information era, and now into the age of artificial intelligence, technology has always brought with it a reconfiguration of authority, capability, and judgment.

In the 19th century, industrialization centralized work and knowledge. The factory system required hierarchical structures where strategy, information, and decision-making were concentrated at the top. Managers at the apex made tradeoffs for the greater good of the enterprise because they were the only ones with access to the full picture.

Then came the information economy. With it came the distribution of information and a need for more agile, team-based structures. Cross-functional collaboration and customer proximity became competitive necessities. Organizations flattened, experimented with matrix models, and pushed decision-making closer to where problems were being solved. What had once been the purview of a select few, judgment, strategic tradeoffs, and insight became expected competencies for managers and team leads across the enterprise.

Now, AI is changing the game again. But this time, it’s not just about access to data. It’s about access to intelligence.

Generative AI democratizes access not only to information, but to intelligent output. That shifts the burden for humans from producing insights to evaluating them. Judgment, which was long the domain of a few executives, must now become a baseline competency for the many across the organization.

But here’s the paradox: while AI extends our capacity for intelligence, discernment, the human ability to weigh context, values, and consequence, is still best left in the hands of human leaders. As organizations begin to automate early-career work, they may inadvertently erase the very pathways and opportunities by which judgment was built.

Why judgment matters more than ever

Deloitte’s 2023 Human Capital Trends survey found that 85% of leaders believe independent decision-making is more important than ever, but only 26% say they’re ready to support it. That shortfall threatens to neutralize the very productivity gains AI promises.

If employees can’t question, challenge, or contextualize AI’s output, then intelligent tools become dangerous shortcuts. The organization stalls, not from a lack of answers, but from a lack of sense-making.

What organizations must do

To stay competitive, organizations must shift from simply adopting AI to designing AI-aware ways of working:

• Build new learning paths for judgment development. As AI replaces easily systematized tasks, companies must replace lost learning experiences with mentorship, simulations, and intentional development planning.

• Design workflows that require human input. Treat AI as a co-pilot, not an autopilot. Embed review checkpoints and tradeoff discussions. Just as innovation processes have stage gates, so should AI analyses.

• Make judgment measurable. Assess and develop decision-making under ambiguity from entry-level roles onward. Research shows the best learning strategy for this is high-fidelity simulations.

• Start earlier. Leadership development must begin far earlier in career paths, because judgment, not just knowledge, is the new differentiator.

What’s emerging is not just a flatter hierarchy, but a more distributed sense of judgment responsibility. To thrive, organizations must prepare their people not to outthink AI, but to out-judge it.

P R E S S R E L E A S E
Stockholm, May 5, 2025

STOCKHOLM, SWEDEN – BTS Group AB (publ), a leading global consultancy specializing in strategy execution, change, and people development, has agreed to acquire Nexo Pesquisa e Consultoria Ltda., Nexo, a boutique consulting firm headquartered in São Paulo, Brazil.

Nexo has been growing continuously since it was founded in 2017. With revenues of approximately 12 million Brazilian Reales (approx. 2.1 million USD) in 2024, and a highly capable team of 21 members, Nexo has built a strong reputation for delivering transformative projects in strategy, innovation, leadership, and culture.

Nexo collaborates with a great portfolio of clients across sectors such as financial services, consumer goods, and technology, assisting both local and global companies in navigating uncertainty, unlocking creativity, and activating strategy through people. Their work encompasses culture transformation, leadership development, employer value proposition, innovation culture, and vision alignment – supported by proprietary methodologies and frameworks.

BTS currently operates in Brazil servicing both local and multinational clients with a team of 13 employees. By acquiring Nexo, BTS not only increases the Group’s footprint in Brazil but also adds significant capabilities in culture and transformation services. Nexo’s client base has limited overlap with BTS, creating strong growth potential and synergy opportunities.

“Nexo is known for helping leaders and organizations tackle some of the most complex, human-centered challenges with creativity, empathy, and strategic clarity and the Nexo team is loved by their clients,” says Philios Andreou, Deputy CEO of BTS Group and President of the Other Markets Unit. “Their products and services complement and elevate our existing offerings, especially in culture transformation, and we are thrilled to welcome the Nexo team to BTS.”

“We’re excited to join BTS. We’ve long admired BTS’s approach and unique portfolio to support large organizations and leaders in connecting strategy with culture across the organization,” says Andreas Auerbach, co founder of Nexo. “Becoming part of BTS, allows us to scale our impact and bring more value to our clients while staying true to our values and culture,” adds Mariana Lage Andrade, co-founder of Nexo.

Upon completion of the transaction, Nexo’s business and organization will merge with BTS Brazil. Nexo’s founders will assume senior management roles in the joint operation.

The acquisition includes a limited initial cash consideration. Additional purchase price considerations will be paid between 2026 and 2028, provided Nexo meets specific performance targets. A limited portion of any such additional purchase price considerations will be paid in newly issued BTS shares. The transaction is effective immediately.

BTS’s acquisition strategy continues to focus on broadening our service portfolio, expanding our geographic reach, and enhancing our capabilities to support future organic growth in a fragmented market.

For more information, please contact:
Philios Andreou
Deputy CEO
BTS Group AB
philios.andreou@bts.com

Michael Wallin
Head of investor relations
BTS Group AB
michael.wallin@bts.com
+46-8-587 070 02
+46-708-78 80 19

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Work today is too complex for individuals to succeed in isolation, and almost every critical decision, innovation, or transformation depends on teams working effectively together. To understand what actually makes those teams work, BTS analyzed 6,702 leader coaching goals and 3,211 leadership team survey responses using our High-Performing Team Assessment model, comparing what leaders say they are working on with what teams say is getting in their way.