The Importance of Experience When Teaming with AI in Strategic Planning for Lower Middle Market Companies

[Editor's Note: Lower Middle market companies have unique characteristics that require critical thinking and experience to yield the best results when using AI in strategic planning. We hope you find this article useful - dpm] Artificial intelligence is rapidly reshaping how companies approach strategic planning. From market analysis to scenario modeling, AI tools promise faster insights, broader perspectives, and more data-driven decision-making. For lower middle market companies—often operating with lean teams, limited resources, and high execution risk, the appeal is clear. Yet AI is not a strategist. In the lower middle market, experience is essential when using AI in strategic planning, and that experience often comes not only from internal leadership but from an experienced strategic planning consultant who understands both the tools and the terrain. The strongest outcomes emerge when AI is paired with seasoned judgment—internally and externally.  AI Is a tool, not a decision-maker or a substitute for judgement. AI excels at processing large volumes of information, identifying trends, and generating strategic options. It can evaluate markets, analyze customers, model pricing, and stress-test assumptions far faster than traditional approaches. What AI cannot do well is understand organizational culture, leadership dynamics, or execution realities. It lacks awareness of past initiatives, informal decision-making structures, and the human factors that often determine whether a strategy succeeds or fails. Experienced leaders—and experienced consultants—know that strategy rarely fails because of poor analysis and often fails because of misalignment, timing, or execution. AI informs decisions; experience determines whether those decisions are realistic and actionable. Lower middle market companies have some unique characteristics. Many AI tools are trained on generalized datasets reflecting public companies or large enterprises. Lower middle market firms operate under very different conditions where customer concentration is higher, management teams are lean, systems and data are imperfect, and capital decisions can be existential. An experienced strategic planning consultant brings pattern recognition from dozens of similar companies and situations. They understand that what might work at scale often breaks at $20–$100 million in revenue. Their role is to translate AI-generated insight into strategies that fit the company’s true constraints—leadership bandwidth, cash flow sensitivity, and owner risk tolerance. Experience shapes better questions. AI’s usefulness depends heavily on the quality of the questions (prompts) it is asked. Knowing which questions matter—and which assumptions to challenge—is a function of experience. Seasoned consultants help leadership teams: ·    Frame the right strategic questions. ·    Identify blind spots in internal thinking. ·    Challenge data that looks precise but is directionally wrong. ·    Focus on decisions that will actually move the needle and add value. For example, AI may suggest aggressive geographic expansion based on market growth data. An experienced consultant may recognize that talent limitations, customer service risk, or operational complexity make that path dangerous. Experience reframes the discussion from “Where can we grow?” to “Where can we grow without breaking the business?”  Pattern recognition matters more than prediction. AI is effective at prediction based on historical data. Experienced consultants contribute something different: pattern recognition shaped by real outcomes across multiple companies and cycles. They have seen: ·    Strategies that looked compelling but failed in execution. ·    Growth initiatives that strained culture or cash flow ·    M&A plans that underestimated and inadequately planned for integration risk. This perspective allows consultants to act as a strategic filter—helping teams avoid attractive but unwise paths. In the lower middle market, avoiding the wrong move can be as valuable as selecting the right one. Speed requires judgment and facilitation. AI dramatically accelerates strategic planning by enabling teams to test more scenarios in less time. However, speed without judgment increases risk. An experienced consultant plays a critical facilitation role by: ·    Slowing decisions that require alignment. ·    Helping teams prioritize clarity over optimization. ·    Ensuring strategy translates into executable initiatives with clear accountability. They use AI to broaden thinking and pressure-test assumptions, while applying experience to determine what deserves action. This balance is essential in environments where recovery from a bad decision is costly. Strategy is also about Trust and Alignment. In many lower middle market companies, strategy is a trust exercise involving boards, lenders, family owners, and employees. Data alone does not create confidence. Experienced consultants bring credibility, objectivity, and the ability to translate AI-driven analysis into clear, human narratives. They help to align stakeholders, manage differing agendas, and ensure the strategy is understood and owned—not just approved. The future of strategic planning in the lower middle market is not AI-driven or consultant-driven—it is collaborative. The strongest results come when leadership teams, experienced consultants, and AI tools work together. Companies that succeed will not be those that adopt AI fastest, but those that integrate it thoughtfully with seasoned leadership and external perspective. We can help.  Mead Consulting Group has worked with scores of organizations and leaders to help them move to develop a highly- functioning management team that plans and acts strategically and accomplishes its goals. If you would like to learn more about how we can help your organization, please contact me at meaddp@meadconsultinggroup.com or (303)660-8135. For more information, see some of our success stories with organizations from $10M to $250M.  Best regards, Dave Mead

Cleaning up data is the critical prerequisite for AI Adoption

[Editor's Note: Artificial intelligence (AI) is often heralded as the next frontier for business transformation. From predictive analytics to automated decision-making, AI promises efficiency, insight, and competitive advantage. the true foundation for AI adoption, however, lies in something less glamorous but infinitely more critical: clean, reliable data. Don't spend money and resources on AI until you do this first. We hope you find this article useful. dpm]

Why Data Quality Matters Before AI

AI systems thrive on data. These tools all require large volumes of accurate, consistent, and well-structured information. If the underlying data is riddled with errors, duplicates, or inconsistencies, the outputs will be flawed. In short: garbage in, garbage out.

For lower middle market companies, which often operate with lean resources and fragmented systems, the risks of poor data hygiene are amplified. Unlike large enterprises with dedicated data governance teams, these companies may rely on legacy systems, manual processes, or siloed databases. Without a deliberate effort to clean and standardize data, AI initiatives can stall or fail outright.

Common Data Challenges

Several recurring issues plague data environments in the middle market:

•           Fragmented Systems: Customer, financial, and operational data often reside in separate platforms with little integration.

•           Manual Entry Errors: Reliance on spreadsheets or manual input increases the likelihood of typos, duplicates, and missing fields.

•           Inconsistent Standards: Different departments may use varying formats for dates, product codes, or customer identifiers.

•           Legacy Infrastructure: Older ERP or CRM systems may lack modern APIs or data export capabilities.

•           Limited Data Governance: Few companies in this tier have formal data governance policies, leading to ad hoc practices.

These challenges create a data environment that is messy, unreliable, and ill-suited for AI-driven insights.

 

Cleaning up data is not just a technical exercise—it is a strategic imperative. Data cleanup is the bridge between current operations and future AI-driven transformation.

•           Improved Decision-Making: Reliable data enables accurate forecasting, pricing strategies, and customer segmentation.

•           Operational Efficiency: Eliminating duplicates and errors reduces wasted time and resources.

•           Regulatory Compliance: Clean, auditable data supports compliance with financial reporting and privacy regulations.

•           Enhanced Customer Experience: Consistent customer records allow for personalized marketing and seamless service.

•           AI Readiness: Most importantly, clean data provides the foundation for machine learning models to deliver meaningful insights.

Steps to Effective Data Cleanup

1.         Audit Existing Data - Begin with a comprehensive inventory of all data sources—ERP systems, CRMs, spreadsheets, and external feeds. Identify redundancies, inconsistencies, and gaps.

2.         Define Standards – Establish company-wide rules for formats, naming conventions, and validation.

3.         De-duplicate and Normalize – Use tools to eliminate duplicate records and standardize values.

4.         Implement Validation Rules – Automate checks to prevent errors at the point of entry.

5.         Integrate Systems – Connect disparate systems through APIs or middleware to reduce silos.

6.         Establish Data Governance – Assign data stewards to oversee quality and enforce standards.

7.         Monitor Continuously – Implement ongoing monitoring and periodic audits to maintain quality.

Technology can help with data cleanup

Fortunately, technology solutions are increasingly accessible to lower middle market firms. Cloud-based data management platforms, ETL (extract, transform, load) tools, and AI-powered cleansing software can automate much of the heavy lifting. Many vendors now offer scalable solutions tailored to mid-sized businesses, reducing the need for large upfront investments.

Data cleanup is not solely a technical challenge—it requires cultural buy-in. Employees must understand the importance of accurate data and commit to following standards. Leadership should frame data quality as a strategic priority, linking it directly to growth, efficiency, and AI readiness. Training and communication are essential to embed data hygiene into daily operations.

The Strategic Payoff: AI as a Growth and Productivity Lever

Once data is clean, AI can deliver transformative benefits for lower middle market companies:

•           Predictive Analytics: Forecast demand, optimize pricing, and anticipate customer churn.

•           Process Automation: Streamline repetitive tasks in finance, HR, and operations.

•           Customer Insights: Personalize marketing campaigns and improve retention.

•           Risk Management: Detect anomalies in financial transactions or supply chain disruptions.

 

For lower middle market companies, the promise of AI is real—but it cannot be realized without clean data. Data cleanup is the prerequisite, the foundation, and the non-negotiable first step. By auditing, standardizing, and governing their data, firms position themselves to harness AI as a genuine engine of growth and efficiency. In the race toward digital transformation, the winners will not be those who adopt AI first, but those who prepare their data best.

 

We can help.  Mead Consulting Group has worked with scores of organizations and leaders to help them move to develop a highly- functioning management team that plans and acts strategically and accomplishes its goals. If you would like to learn more about how we can help your organization, please contact me at meaddp@meadconsultinggroup.com or (303)660-8135.

For more information, see some of our success stories with organizations from $10M to $250M.

Five New Approaches CEOs Are Adopting to Strategic Planning: How Lower Middle Market Leaders Are Reimagining Strategy with AI

[Editor's Note: With all the hype around AI, itis difficult for Lower middle market leaders to know how to proceed. Some are moving forward with Operational efficiency initiatives. Leading firms are utilizing AI to reimagine strategic planning. I hope you find this article useful. dpm]

1. Move from Annual to Rolling Strategy

Leading lower middle market firms are moving away from rigid, once-a-year strategic plans. Instead, they are embracing rolling 12- or 18-month roadmaps. These evolving plans are reviewed and updated periodically, typically with quarterly check-ins. By leveraging AI dashboards, leadership can now monitor key leading indicators such as sales velocity, customer churn, and working capital trends. These systems automatically highlight deviations from the plan, enabling real-time adjustments rather than waiting for an annual offsite review. As a result, strategy becomes a dynamic, ongoing process rather than a static event.



2. Use AI-Driven Scenario Modeling

Generative and predictive AI tools are now capable of simulating thousands of "what if" scenarios within seconds. For example, leaders can instantly evaluate outcomes such as, "What happens if we raise prices by 3%?" Rather than relying on static spreadsheets, CEOs receive a range of possibilities, each supported by data-driven probabilities. This approach transforms the planning process, taking it from speculative guessing to informed simulation.

3. Run AI-Augmented Strategy Workshops

The next generation of strategic planning sessions integrates AI as an active participant. Imagine uploading company data—such as profit and loss trends, customer segments, and regional performance—into an AI model designed to uncover new opportunities. The AI might identify which markets offer the highest profit velocity, suggest where pricing or discount structures can be optimized, or highlight internal inefficiencies that are quietly reducing margins. The leadership team then reviews and interprets these insights. Importantly, AI does not replace human judgment; it helps sharpen and focus it.

4. Establish Governance and Explainability

As AI becomes more embedded in decision-making, transparency is critical. Stakeholders such as boards, lenders, family owners, and private equity owners need to understand how AI is influencing choices and how its recommendations are validated. Establishing basic governance practices—like documenting data sources, validating models, and ensuring human review—builds trust in AI-driven decisions. This also ensures the company remains compliant and protects its reputation as AI's role expands.

5. Measure AI’s Impact Like Any Other Investment

AI should be treated as a strategic asset, not just an experiment. To do this, CEOs set clear metrics to evaluate AI’s effectiveness, such as improvement in forecast accuracy, reduction in planning cycle time, the return on investment of AI-informed initiatives, and efficiency gains in decision-making. Ultimately, it needs to lead to better execution. When these measurements show positive results, adoption of AI naturally accelerates across all business functions.

The Leadership Shift

AI doesn’t eliminate the need for leadership - it amplifies it.

For CEOs in the lower middle market, the most significant change is not technological, but cultural. This shift means moving from plans to learning systems, from certainty to experimentation, from forecasting to sensing, and from control to agility. AI can make an organization smarter, but only if its leaders become more adaptive—willing to adjust, test, and refine their approach continuously.

• From Plans to learning systems
• From Certainty to experimentation
• From Forecasting to sensing
• From Control to agility

The best-performing firms will be those where AI is not only part of the technology stack but also embedded in how the CEO and leadership team think about thinking.



The Bottom Line – It’s all about results!

The lower middle market is grounded in pragmatism, valuing execution over hype and results over rhetoric. This pragmatic approach makes it an ideal environment for AI adoption.

The focus is not on futuristic automation or replacing people, but on enhancing decision-making, improving foresight, and enabling agility in a fast-moving market where both risks and opportunities abound.

Companies that view AI as a strategic partner, rather than just a cost-saving tool, will be better equipped to plan effectively, pivot quickly, execute with better focus, and build a lasting competitive advantage. 

We can help.  Mead Consulting Group has worked with scores of organizations and leaders to help them move to develop a highly- functioning management team that plans and acts strategically and accomplishes its goals. If you would like to learn more about how we can help your organization, please contact me at meaddp@meadconsultinggroup.com or (303)660-8135.

For more information, see some of our success stories with organizations from $10M to $250M.

Best regards,

Dave Mead   

Six CEO traits that inhibit growth

 Six CEO traits that inhibit growth

[Editor’s Note: Many small and lower middle market businesses have early success due to the personalities, vision, and skills of the Founder or CEO. However, some of the very traits that may help build early success, can prevent the organization from being able to scale. This is an excerpt from Chief Executive magazine (8/26/2025) -dpm]

 Below are six CEO traits that inhibit a business’ ability to scale. The symptoms include: 

1.     Micromanagement. Difficulty delegating tasks or trusting others with decision-making.

2.     Resistance to change. Reluctance to adopt new systems, processes or leadership structures.

3.     Identity fusion. The founder or CEO sees the organization as an extension of themselves, making objective decisions difficult.

4.     Over-centralization. All decisions funnel through the founder or CEO, slowing down operations.

5.     Poor succession planning. Avoidance of planning for leadership transitions or grooming successors.

6.     Emotional decision-making. Decisions driven by personal attachment rather than strategic thinking. 



During periods of uncertainty and stress, organizations can revert to known behavior and may have a tendency to centralize decision-making or other counter-productive traits.

We can help.  Mead Consulting Group has worked with scores of organizations and leaders to help them move beyond these traits to develop a highly- functioning management team that plans and acts strategically and accomplishes its goals. If you would like to learn more about how we can help your organization, please contact me at meaddp@meadconsultinggroup.com or (303)660-8135.

For more information, see some of our success stories with organizations from $10M to $250M.

Prepare your company to be bought

 [Editor's Note 1: There is currently almost $3.5 Trillion in dry powder in Private Equity firms and Strategic Acquirers. While the last 2 years have been slow years for transactions, there is the sense that once interest rates begin to come down and there is more certainty, there will be a flood of activity as PE firms and strategics rush to deploy capital]

 [Editor's Note 2: Many business owners fail to prepare their businesses for a sale either because they believe that a potential sale is far off in the future or because they are focused on current issues and do not consider preparation to be a priority. We would submit that companies need to be "prepared to be bought." Sometimes lucrative offers come unexpectedly for companies that are well-positioned. We typically recommend that a company engage an experienced investment banker to assist them in a sale - often even if they have received an offer - in order to generate a competitive environment.

Even more important, however, is for the company to be prepared.

Some business owners who have tried to "time the market" at some point off in the future have found that unpredictable events such as the Trade and Tariff uncertainty, Covid-19 pandemic, 2007-2012 recession, credit and stock market crunches, tech bust(s), 9/11, industry issues, etc. can derail their ability to sell at maximum value. We recommend to our clients to work each year to make certain that their companies are currently desirable to buyers. - DPM]

 

How best to position your company to be attractive to buyers:

 

1.   Demonstrate Strong Financial Performance

*   Consistent revenue growth (at least upward trend)

*   Strong operating margins

*   Importance of last twelve months

*   Focus on hitting projected revenue and earnings numbers

*   Review net profitability of customers and products

2.   Maintain "clean" financials (Audited or "auditable" Financial Statements)

3.   Diversify your customer & supplier base (Diversification signifies a healthy business and reduces risk)

*   Buyers will pay less for companies dominated by one or two customers

*   Do you have multiple suppliers for critical components/services? Have you done the work to add resilience to the supply chain? 

4.   Develop a Strategic Growth Plan

*   Maintain a clear strategy and be able to demonstrate your history of execution

*   Be able to articulate specific future growth opportunities

  * Remember: A buyer needs to see a potential Return on Investment

 5.   Build a capable Management Team (Invest in training and key strategic hires, if needed)

6.   Eliminate potential "Gotchas"(these are items that could result in significant discounts to value)

*   Maintain legal documentation (licenses, regulatory filings, contracts, intellectual property, incorporation, etc.) Clear title to all assets

*   Document processes and procedures

*   Resolve legal disputes, environmental issues, etc. Review IT systems and security

 7.   Build a team of Qualified Advisors

*  Minimize distractions from running your business effectively

*  Get advice from professionals who have "done it before" and who have expertise in areas you do not.

*   Beware of advisors that outstep their areas of expertise and pretend to do it all.

 Are you and your company ready if a buyer appeared on the radar? Most business owners who have executed a successful sale of their business will tell you the most important thing is: BE PREPARED.

 

Selling a business is very different than operating a business. As a business owner you know your industry, your product or service, your customers and your markets. Most business owners will only sell a business once in their lifetimes - and it can be by far their most important financial transaction.                          ________________________________________

 

The Mead Consulting Group has helped clients prepare for successful sales transactions ranging from $10M to $350M in transaction value. We help companies increase the value of their businesses leading up to a transaction, minimize the things that cause potential buyers to discount the price, prepare to best position the company, and assist the owners in building a transaction team.

___________________________________________

 

What successful business owners say about us:

 ...We could not have completed the sale of our business without the advice and guidance of The Mead Consulting Group. Their experience was critical in helping us prepare, and endure, the transaction process to a successful outcome. ...Charles M, President, Healthcare IT Company

...A successful process is draining and stressful. The Mead Consulting Group brought the experience and expertise necessary to help our team focus on the critical issues and not get caught up in the multitude of items that can derail a transaction. Why reinvent the wheel? We chose to take advantage of individuals who could help us understand the nuances, negotiate effectively, and close the deal. ... Ken W, CEO, Behavioral Healthcare

 ...We missed the opportunity to sell our family business during the last upcycle. Mead Consulting helped us grow revenue and EBITDA to record levels and guided us through the selection of a transaction team. Dave Mead and his group provided great counsel throughout the sales process, removing obstacles and firmly encouraging us to a great deal with a strategic buyer that mirrored our family business values. ...Dan M, President, Building Products Company

 ...I do not know why anyone would attempt to sell their business without Mead Consulting. Since they have owned and sold their own businesses, they understand the challenges of continuing to run the business while trying to sell it. Their experience kept us focused on the right things and they helped keep our transaction team well-aligned during the process. They truly act as the advocate for the CEO and owner, helping to make sure that it was the best deal for the owner. ...Ron T, CEO, Software Business  

For more information on the process to prepare your business for a successful transaction, please contact me at meaddp@meadconsultinggroup.com or (303)660-8135.

Now that there is more certainty, this is the time for Strategic Planning

 

Vol. 34, No. 9 In 2025, we celebrate our 34th year of Issues for Growth. Thank you to the many subscribers that have joined us over the years. Now over 11,000! Since 1991, we have been sending to our clients and friends, articles of interest that we think would be helpful in running their businesses. If you have colleagues you would like to add to the email list please click Subscribe here or contact Ann Comis.     [Editor's Note: Tariffs have finally been established with many major U.S. trading partners. Talks are advancing with Mexico and China. It appears that the chaotic and uncertain days of the last six months may well be beginning to move behind us. Organizations have been pleading for a more certain environment. Now, there are some very positive signs that we may be nearing an environment where we can have some realistic expectations for the future. The shift from cost containment and survival to strategy Organizations across industries have faced unprecedented uncertainty. Many businesses were forced into reactive modes—prioritizing short-term financial health (survival in some cases) over long-term strategy. But as the dust begins to settle and key variables stabilize, a new window of opportunity is opening. Now that there is more certainty, this is the time for strategic planning.  Strategic planning is not just a luxury reserved for stable times—it’s a necessity for navigating complexity with clarity. When uncertainty recedes, even slightly, it creates fertile ground for organizations to reassess, realign, and reimagine their future. Whether you're leading a corporation, managing a nonprofit, or steering a small business, the current climate offers a rare chance to pivot from reactive firefighting and hesitation to proactive growth. Why certainty matters in strategic planning Certainty doesn’t mean predictability in every detail- it means having enough clarity to make informed decisions. When interest rates stabilize, supply chains normalize, and consumer behavior becomes more predictable, leaders can begin to forecast with greater confidence. This enables:         ·    Longer-term investments: Organizations can commit resources to initiatives with multi-year horizons. ·    Talent planning: Hiring, training, and retention strategies can be aligned with future needs. ·    Innovation: R&D and product development can flourish when risk is better understood. ·    Cross-functional alignment: Departments can coordinate more effectively when strategic goals are clear. In short, certainty reduces the cost of hesitation. It allows leaders to move from “wait and see” to “plan and act.” Key Elements of Strategic Planning in a Post-Uncertainty Era Now is the time to revisit the fundamentals of strategic planning with fresh eyes. Here are six essential components to focus on:   External Environmental Assessment  Assess the external landscape: market trends, regulatory shifts, technological advancements. ·      Identify emerging opportunities and threats. ·      Incorporate scenario planning to prepare for plausible futures.  Internal Assessment ·      Conduct a SWOT analysis (Strengths, Weaknesses, Opportunities, Threats). ·      Evaluate operational efficiency, talent capabilities, and financial health. ·      Map existing processes to identify redundancies and bottlenecks. Reaffirm or redefine your mission and vision. Strategic Initiatives ·      Prioritize initiatives that drive growth, innovation, or efficiency. Goal Setting. Set SMART goals (Specific, Measurable, Achievable, Relevant, Time-bound). ·      Assign ownership and accountability. ·      Develop timelines, budgets, and KPIs for each initiative. ·      Align goals across departments to ensure cohesion. Execution and Monitoring ·      Create a cadence for reviewing progress (monthly, quarterly). ·      Use dashboards and visual tools to track performance. ·      Be agile—adjust strategies based on feedback and results. From Reactive to Proactive: A Cultural Shift  Strategic planning isn’t just a technical exercise—it’s a cultural transformation. Organizations that have been in survival mode may need to rebuild strategic muscles. This involves: ·    Empowering teams to think long-term and take initiative. ·    Encouraging cross-departmental collaboration to break down silos. ·    Fostering a mindset of continuous improvement, where feedback loops drive refinement.  Leaders play a critical role in modeling this shift. By communicating a clear vision and demonstrating commitment to strategic goals, they can inspire confidence and alignment throughout the organization. The Risk of Waiting Too Long While it’s tempting to wait for “perfect” certainty, that moment rarely arrives. Strategic planning thrives in the space between chaos and clarity. Organizations that act now will gain a competitive edge—seizing market share, attracting top talent, and building resilience before others catch up. Waiting too long can lead to missed opportunities, stagnation, and strategic drift. In contrast, those who embrace planning now will be better positioned to adapt to future disruptions with confidence and agility. Planning as a strategic imperative The return of certainty is not a signal to relax—it’s a call to plan. Strategic planning is the bridge between today’s stability and tomorrow’s success. It transforms ambiguity into action, and vision into value. Now is the time to identify and gather your team, sharpen your tools, and chart your course. Because in a world that’s finally offering a clearer view, those who plan boldly will lead decisively. We can help. The Mead Consulting Group has been a market leader in strategic growth and execution and scenario planning for many years. We have helped many companies clarify their strategy, execute well and outperform their peers. Check out some of the success stories of our clients. If you would like to get a jump on planning for Q4 and 2026, please contact me. Now is the time to get ahead of the competition. Best regards, Dave Mead