Running Value Pools in the Era of AI
How to choose, fund, govern, and scale the few that matter
Introduction
Many companies fail implementing AI because leaders spread effort across too many topics, chase tools instead of outcomes, and avoid hard choices about where value will actually show up in the P&L. Value pools fix that. A value pool is a clearly bounded area of the business where improvements can be measured, credited to owners, and translated into financial and quality outcomes. If you run value pools well, AI becomes a practical instrument for performance, not a sideshow.
Use the following leadership model to keep decisions honest:
Impact = Direction × Decision Quality × Momentum × Coherence.
Direction is where the company is going and why.
Decision Quality is the calibre of leadership choices about what to do and what not to do.
Momentum is the rate and quality of execution, not raw activity.
Coherence is whether the organisation moves together with aligned incentives and shared information.
If any of these terms is near zero, overall impact collapses. Value pools are how you operationalise all four at once.
What a value pool is
A value pool is a small, named domain where changes can be traced to outcomes that matter. It is not a project and it is not a tool category. It is a cluster of outcome metrics tied to a customer journey or a core workflow, and it rolls up cleanly to P&L and risk.
Examples of well-formed value pools include the following.
Claims performance in insurance
Measured through cost per claim, cycle time, first-time-right rate, and audit pass rate. In the era of AI, this pool benefits from agents that triage documents, generate risk summaries for reviewers, and log decision trails automatically.
Inventory health in retail
Measured through stockouts, working capital days, forecast error, and margin leakage. In the era of AI, this pool benefits from assistants that flag anomalies, explain likely causes, propose replenishment options under constraints, and capture the reasons for overrides.
Revenue durability in subscription businesses
Measured through acquisition conversion, churn, average revenue per user, and complaint rate. In the era of AI, this pool benefits from models that detect churn signals, generate retention offers within guardrails, and create service notes that are immediately searchable.
Each pool has a direct link to the P&L and carries both financial and quality metrics. That combination prevents the organisation from winning on speed while losing trust or compliance.
Why you should select only three to five value pools
Three to five value pools is not a slogan. It is a bandwidth constraint backed by experience.
Direction suffers when leaders choose more than five pools at the top level because strategic clarity dilutes. Direction also suffers when leaders choose fewer than three because blind spots appear and diversification vanishes.
Decision Quality degrades when the executive team pretends it can make high-stakes choices for ten or more pools with rigour every quarter. Three to five is the realistic capacity to set targets, define risk boundaries, and make trade-offs without posturing.
Momentum requires weekly attention from owners and steady throughput from design to delivery. Once you move past five, attention fragments and execution slows.
Coherence depends on aligned incentives and shared information. If you try to align pay, dashboards, and governance across ten or more pools, the organisation will pull itself apart.
For large groups, apply the rule at each level. The group may hold three to five pools, and each division may also hold three to five pools. The logic does not change.
How to select the right value pools
Choose value pools by testing six questions. Use full sentences. Write down the answers.
1
Does the pool roll up to material P&L outcomes within the next two to four quarters, or is it primarily a research area?
2
Can we express the pool through a small set of financial and quality metrics that are easy to measure every week?
3
Do we have enough data access and process knowledge to start within weeks, not months?
4
Where would AI be a multiplier rather than an ornament? For example, summarising evidence, proposing options under constraints, assisting human reviewers with ranked risks, generating decisions with trails, or orchestrating multi-step tasks that cross systems.
5
What risks are inherent in the pool and how will we keep them within appetite, including data protection, model error, latency, and cost per transaction?
6
Who will own the outcomes and who will build and run the work, including the agents, the connectors, and the evaluation tests?
If you cannot answer these questions in writing, the pool is not ready. Pick another pool or close the gaps and come back.
Targets that include money and quality
Every pool must publish both financial targets and quality targets. The combination matters.
Financial targets force materiality
  • Unit cost
  • Gross margin
  • Cash conversion cycle
  • Revenue lift
Quality targets protect trust and durability
  • First-time-right rate
  • Error rate
  • Customer satisfaction
  • Audit pass rate
  • Service-level adherence
In the era of AI you should add AI-specific targets that preserve Momentum. Examples include model cost per transaction, model latency at the ninety-fifth percentile, agent override rate by human reviewers, evaluation scores on golden datasets, and incident counts with time to recovery. If quality falls while cost or speed improves, you are not gaining Momentum. You are borrowing against the future.
Risk appetite that leaders can live with
Risk appetite is not a document in a drawer. It is a plain-language statement of boundaries that operators can act on.
Write it so that any leader can read it once and know what to do. Include rules about data usage and privacy, model error tolerance by use case, latency budgets, cost budgets, where a human must be in the loop, what gets logged, and what triggers incident escalation. In the era of AI you should also specify what decision trails must contain, which prompts and responses must be stored, where data may reside, and how often model drift must be checked. If boundaries are vague, teams will optimise locally and create hidden risks. If boundaries are clear, teams will innovate inside known guardrails and audits will move faster because controls are inside the workflow.
Portfolios, not pilots
Pilots are designed to avoid accountability. A portfolio is designed to create it. Each value pool sits inside a portfolio with three lanes.
Run
Improves the core by reducing unit cost, cycle time, and defects. In the era of AI this often involves assistants that generate drafts, classify cases, propose actions for reviewers, and remove repetitive work with clear checkpoints.
Grow
Increases conversion, cross-sell, retention, and share of wallet. In the era of AI this includes next-best actions under strict constraints, personalised service scripts that respect policy, and content generation that is tied to measurable outcomes rather than volume.
Transform
Creates new products, new channels, or step-change operations such as agent-assisted service or autonomous planning. In the era of AI this involves networks of agents that plan, call tools, reconcile data sources, and hand off to people when confidence drops or when policy requires it.
Every bet in the portfolio has a hurdle rate, stage gates, owners, and kill criteria. Capital moves based on evidence. If a bet cannot produce the evidence, it should stop. If it does produce the evidence, it should scale.
Ownership that actually owns outcomes
Give each value pool an executive sponsor who sets Direction and risk appetite. Appoint a value pool owner who is accountable for P&L outcomes. Name a product owner who runs the day-to-day work. Assign data, risk, and finance partners who can say yes or no with authority. Add an AI lead who maintains agents, prompts, connectors, and evaluation tests for the pool. Make these names public. If everyone owns it, no one owns it.
Executive Sponsor
Sets Direction and risk appetite
Value Pool Owner
Accountable for P&L outcomes
Product Owner
Runs the day-to-day work
Data, Risk & Finance Partners
Can say yes or no with authority
AI Lead
Maintains agents, prompts, connectors, and evaluation tests
The Factory that makes change repeatable
You will not scale value pools by asking every team to invent the basics. Create a Factory that provides shared components and standards that others can reuse.
The Factory should offer connectors to core systems, prompt and agent libraries, tool-calling patterns, and evaluation harnesses with golden datasets. It should enforce version control for prompts and agents, provide a registry for approved components, and define where a human stays in the loop and why. The Factory should also run a showback rhythm where teams present shipped workflows and evidence, not slide decks. Compliance will move faster when controls and audit trails are part of the runtime from the first build. In the era of AI the Factory is the difference between isolated cleverness and compounding performance.
Cadence that compounds
Cadence is not a calendar filler. It is how value appears and how Coherence is maintained.
1
Each quarter
The leadership team reaffirms the small set of value pools, adjusts targets and risk appetite, and reallocates capital across the portfolio.
2
Each month
A portfolio council greenlights, kills, or scales bets based on evidence packs that include AI-specific results, such as evaluation scores, override rates, and cost and latency trends.
3
Each week
The executive team reviews a small set of causal metrics for each pool and the health of the agent network. The review should include adoption by role, incidents, time to recovery, and the most expensive prompts or tools.
4
Each day
Operations keeps service levels green and responds to drift or anomalies with clear kill switches.
Hold the cadence steady. The organisation will learn what matters and will start to move in one direction with force.
Metrics and scoreboards that explain the P&L
Pick a handful of causal metrics per pool. Do not collect everything you can collect. Show the chain between activity and financial impact. Show both leading indicators and lagging indicators. For example, in claims, show the link between automation rates, reviewer overrides, first-time-right, cycle time, and cost per claim. In the era of AI add a small panel for model cost per transaction, model latency distribution, evaluation scores, and incident counts by severity. Display the same scoreboard every week so that people can see movement and argue with data, not with opinions.
Illustrative visual.
Evidence packs that earn capital
An evidence pack is the short set of materials that prove a bet should scale or should stop. Keep the pack simple and repeatable.
Define the baseline
And the period of measurement.
Show the change
In financial and quality metrics.
Explain variance
And data caveats.
Attach the decision trail
That shows approvals, human interventions, and any incidents.
Add AI-specific evidence
Such as evaluation results on golden datasets, override rates by reviewers, and cost and latency trends under load.
State the next decision
And the capital request.
If a team cannot produce the pack, they are not ready for more money.
Controls and auditability built in
Controls belong in the workflow, not in a binder. Build data lineage, access policies, and retention rules into the data layer. Require model and agent approvals with evaluation against accuracy, robustness, and fairness. Enforce versioning so that you can rebuild a decision trail. Set cost and latency budgets in the runtime. Provide kill switches and incident playbooks with clear severity levels. Log prompts, inputs, outputs, and human overrides at the level required by your regulators and customers. If you do this from the start, audits will be faster because the story matches the logs.
Incentives and information that keep people pulling together
Tie executive and manager bonuses to the value-pool scoreboards, not to vanity metrics. Publish a single scoreboard per pool and keep it visible. Replace slide reviews with showbacks of live workflows and evidence. In the era of AI, reward teams for reusing approved components and for improving evaluation scores without increasing cost per transaction. When incentives and information match the pools, teams stop thrashing and Momentum compounds.
Aligned Bonuses
Tie executive and manager bonuses to the value-pool scoreboards, not to vanity metrics.
Visible Scoreboards
Publish a single scoreboard per pool and keep it visible.
Live Showbacks
Replace slide reviews with showbacks of live workflows and evidence.
Three concise AI examples across common pools
Claims performance in insurance
Use an intake agent to classify documents, extract key fields, and assemble a case file with citations. Use a reviewer assistant to generate a risk summary and suggest a decision with confidence. Require a human sign-off for high-risk cases. Track first-time-right, cycle time, cost per claim, override rate, and incident count. Tie capital to evidence packs that show quality and cost moving in the right direction.
Inventory health in retail
Use a forecasting assistant to compare signals, surface likely causes of demand shifts, and propose order quantities under working-capital limits. Use a store-operations assistant to flag exceptions and capture override reasons in plain language. Track stockouts, forecast error, working-capital days, margin leakage, and the cost and latency of the assistant under peak loads.
Revenue durability in subscriptions
Use a retention assistant to detect churn risk, propose compliant offers, and draft outreach messages for human review. Track conversion from offer to save, average revenue per user after save, complaint rate, and first-response time. Include model evaluation scores for offer quality and a guardrail that blocks offers outside policy.
Common pitfalls and how to avoid them
Too many pools
Cut the list to three to five so that leaders can make real choices and teams can focus.
Pilots without portfolios
Convert pilots into portfolio entries with owners, stage gates, and hurdle rates, or stop them.
Tool sprawl
Centralise components in the Factory and decentralise outcome ownership.
KPI fog
Pick a handful of causal metrics that explain the P&L and review them every week.
Shadow AI
Ban unlogged prompts and unversioned agents. Put approvals and logging in the runtime.
Speed without quality
Treat quality metrics as part of Momentum. If quality slips, you are not winning.
Board oversight that helps, not hinders
Boards should insist on two things. First, leadership fluency so that the right pools and bets are chosen. Second, a system that makes those choices repeatable and safe. The board dashboard should show the value pools, the financial and quality targets, the current deltas, the risk posture, and any incidents. Oversight improves when evidence is visible and when controls are inside the workflow.
How to begin this month
Pick one to three candidate pools and apply the six questions. Select the best two. Write the targets and the risk appetite in plain language. Name the owners, including the AI lead. Stand up a small Factory capability if you do not have one and reuse as much as you can. Start measuring weekly. Produce your first evidence pack within a few weeks. Reallocate capital based on what you learn. The point is not to be perfect. The point is to make value pools the way you run the company.
Pick candidate pools
Apply the six questions to one to three candidates
Select the best two
Write targets and risk appetite in plain language
Name the owners
Including the AI lead for each pool
Stand up Factory capability
Reuse as much as you can
Start measuring weekly
Produce your first evidence pack within weeks
Reallocate capital
Based on what you learn
Glossary