CEO and the Use of AI to Overcome the Business Crisis

Over the years of my experience in the industrial field, particularly in the automotive sector, I have encountered several moments of crisis that truly test a company’s ability to adapt and survive. A business crisis is defined by a complex and chaotic situation where fundamental goals—such as production targets, quality standards, deliveries, or financial performance—are not met.

These crises are typically triggered by a variety of factors: operational losses, weak supply chains, inventory issues, internal supply problems, workforce deficiencies, equipment failures, and disruptions in maintenance systems, energy supply, or subsystems that support the value chain. This accumulation of issues creates chaos that can paralyze the organization.

The situation worsens when the emotional toll affects the entire organization, causing a loss of focus and weakening teamwork—essential for resolving issues. In these circumstances, departments and systems tend to operate in silos, making independent decisions that only deepen the disorder and increase stress.

What makes this even more challenging is the lack of clear leadership, from the operational level to top management. Without effective guidance, individuals act on their own instincts rather than following a unified strategy. Over time, this leads to a growing sense of chaos, and the path to resolution seems further and further out of reach.

The First Responses to the Crisis

When a crisis reaches this magnitude, its effects are felt not only in productivity and customer satisfaction but also in profitability. Products lose their value, turning into ongoing losses that require additional investments to resolve, further deteriorating the company’s financial position and potentially leading to bankruptcy.

The immediate response is often a restructuring of the organizational structure. However, this solution, driven by senior management, frequently exacerbates the crisis by introducing changes that destabilize the organization even more. Often, new leaders or external consultants are brought in with a shallow understanding of the problem, relying more on emotional perceptions than on a detailed analysis. This does not resolve the crisis but extends the period of uncertainty and instability, fostering rumors and further damaging the organization, ultimately leading to both a productive and financial crisis.

Despite the combined efforts of internal teams and special initiatives aimed at improving results, these changes typically offer temporary fixes that don’t address the root causes. This reactive approach leads to what I call a "state of unstructured strength": a temporary recovery powered by sheer effort (muscle power) but lacking the solid foundation needed for long-term sustainability.

It’s also quite common for companies to turn to external consultants in search of “foolproof” solutions. While these consultants offer proven methodologies that should theoretically resolve any issue, these approaches often fail to align with the unique aspects of the crisis the company is facing. What initially seems like the perfect solution ends up closing off potential avenues for recovery. In the end, not only is the resolution of the crisis delayed, but time and resources are wasted in the process. Unfortunately, this happens more often than I can count. A word of caution!

The Potential of Artificial Intelligence in Crisis Management

Faced with such a situation, and drawing on years of experience in dealing with crises and complex chaos challenges, we developed a methodology called Divirtualigente Kaizen Blitz Consulting. This methodology integrates several steps, with a strong emphasis on using artificial intelligence tools. The process involves understanding the situation, collecting vast amounts of data, modeling the situation, and applying the necessary steps to resolve the issues.

By applying this methodology, we can analyze the situation clearly through data analysis and modeling, identifying both visible and hidden elements that contribute to the chaos. This methodology also integrates activities that make the solution more efficient in less time, avoiding the use of basic tools like Core Tools that don’t apply to the situation at hand. Instead of applying generic solutions, the methodology begins with a thorough understanding of the crisis, which allows us to select the right tools. This is a common pitfall in critical situations, where external consultants offer methodologies that have never been tested in similar circumstances. These solutions fail to address the core problem, wasting time and resources while fostering internal dissatisfaction rather than resolving the issue.

In this context, the Divirtualigente Kaizen Blitz methodology, which incorporates artificial intelligence (AI), becomes a crucial tool for transforming a crisis into an opportunity. AI enables precise diagnostics, identifies root causes, optimizes resources, and generates tailored strategies. Its ability to manage thousands of variables, process data in real-time, and offer insights based on patterns and projections can make the difference between failure and a rapid, sustainable recovery. This approach has been proven by the experts at Admexus over the years, and it exemplifies the power of Divirtualigente.

Summary.  Using AI to Overcome the Business Crisis

Throughout my experience in the automotive sector, I have witnessed how business crises—triggered by operational failures, supply chain weaknesses, and lack of leadership—can paralyze an organization. Traditional solutions, such as restructuring or bringing in external consultants, often exacerbate the situation. However, the Divirtualigente Kaizen Blitz methodology, which incorporates artificial intelligence, enables accurate problem diagnosis, identification of root causes, and optimization of resources, transforming the crisis into an opportunity for sustainable recovery, recognized and approved by key OEMs and T1-T5 suppliers.