Organizational Capability Vs Execution?

Today, many organizations invest in their cloud infrastructure projects, standards and regulatory compliance projects, and of course, there are dozens if not hundreds of AI projects.

But most of these projects miss the point.

They try to "go live" without creating real organizational capabilities. You can see the same pattern repeatedly.

A cloud project with no real governance embedded in the infrastructure, AI-based regulated documents without in-depth implementation, and multiple pilots of infrastructure and AI agents without testing how to manage or secure organizational data.

The result is a lot of work and little organizational capability. Just like the cliché "full throttle in neutral."

I'm sure you will agree that most of these projects, including cloud, regulation, and especially AI, are pursuing the same goals. Eventually, they seek the ability to control information, control access, an understanding of information flow, the ability to monitor, and the ability to make decisions based on this. In other words, organizational capability and not a particular project!

In my experience, a project done in a silo rarely yields capability. At best, the project solves a specific problem. Nothing more. If we get back to clichés, I agree that this is a cure for symptoms, not a disease.

So, what should you do to change your mindset? What must be done?

Instead of asking "How do we meet the requirements?", the correct question should be "What organizational capacity are we building through this project?"

Basically, you want to approach the project as follows:

Projects should be divided into three layers:

Infrastructure Layer:

Design the right architecture. Start by looking at the components and, simultaneously, at the plan for the information flow. When a project stakeholder identifies the data flow and acknowledges the components, it means that you are on the right track. It is highly recommended to define, in advance, the user lists, their permissions (especially if AI agents are included) and what controls and railguards must be implemented within the project boundary. Comprehensive planning is the essence of this phase.

Management and Governance Layer:

Defining responsibilities and ownership clearly, implementing practical work processes (not just writing documents, but connecting the various teams - IT, security, business) and defining success metrics including agreeing on controls and monitoring mechanisms are equally important.

Application Layer:

Test and ensure that things work as planned. As mentioned in the infrastructure layer, the design should be able to extend and add further components. In this way, you will be able to implement additional AI tools, support existing and additional regulatory requirements, and most importantly, security and safety railguards can be maintained without losing control of the process. The application layer is not just about checking the box and moving on to the next project. It's about improving organizational capabilities and making it stronger and more resilient if possible.

I have previously used clichés, so you can look at these layers as clichés, or just some theory, or even just pretty words. But if you truly want to change your mindset, I urge you to put them into practice. You will see the difference immediately.

The easiest way to understand the difference is by using a common scenario. Think of a situation where your organization needs to comply with ISO 27001 or SOC 2.

Do you develop a separate checklist for each requirement? Or do you create a single infrastructure that meets both (and supports additional regulations) and only adjusts for specific audits as required?

With great regret, I must admit that the first option is significantly more common. Working with a checklist rather than building organizational capacity is significantly more common.

Organizations that will succeed in the coming years will not be those that do the most projects, but those that turn every project into capability building.

If you are now embarking on a cloud, regulatory, or AI project, it is worth pausing for a second to ask yourself, "is this just another project?" or could this be an opportunity for building business capability?

by Oren Hadar

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