The Innovation Gap You’re Not Measuring
Before chasing shiny tools, get honest about your culture, your systems, and your readiness to change.
When it comes to adopting AI in the built environment, too many firms start in the wrong place.
They jump straight to the tools.
They roll out new licenses. They talk about “doing AI.” But they skip the one thing that actually determines whether those tools deliver value: their internal readiness.
That’s exactly what this episode of AI in AEC tackled head-on. Jeff Echols (Executive Director at Catalyst) and Frank Lazaro (Head of Advisory at KP Reddy Co.) unpacked the DIAL Assessment, a simple but powerful framework that helps AEC firms figure out where they stand on the innovation curve before they make major tech bets.
“If you're starting with the tool, you're starting in the wrong spot.” -Frank Lazzaro
Wait, what is DIAL?
DIAL stands for Disruptor, Innovator, Adopter, and Laggard. It’s not just a label. It’s a diagnostic for your technology adoption posture.
As Frank explains:
“We look at DIAL as a way to identify whether a firm is a disruptor like OpenAI, an innovator pushing the envelope, a cautious adopter, or a laggard still stuck in old ways.”
The assessment measures six core pillars:
Internal Innovation
External Innovation
Culture
Ecosystem
Tech Adoption
Blue Sky Thinking
It’s free to take at https://kpreddy.co/dial, and yes, you get instant results.
What firms get wrong about innovation (and AI)
AEC firms love process. It’s what makes them dependable. But that same commitment to “how we’ve always done it” creates resistance when new tools arrive.
“Most engineers say, ‘My process works. It may not be efficient, but it’s predictable.’ Technology introduces risk, and that’s scary.” -Frank
Worse, many firms suffer from internal disconnects. Jeff and Frank shared examples of departments working on parallel projects. One group was experimenting with AI. The other was completely unaware.
“We found two managers doing similar work, and one said, ‘Oh, we’re using AI to do this report.’ The other said, ‘I didn’t even know we were doing that.’” -Frank
That’s not just inefficient. It’s costly.
Why measurement matters more than momentum
Everyone wants to be innovative. But wanting it isn’t enough.
The DIAL Assessment gives leaders clarity. Not just on where their firm stands, but also on where the blind spots are and what actions to take next.
“There's a big difference between knowing and doing,” Jeff reminded us. “We have to go from talking about innovation to actually operationalizing it.”
And that starts by being brutally honest:
“You can't take the assessment with rose-colored glasses,” said Frank. “You have to be real about where you are and whether your culture supports innovation or just talks about it.”
Three big reasons to take the DIAL Assessment today
Clarity and Focus
See exactly where your team stands across the six pillars of innovation. Know where to double down and where to course correct.Tailored AI Strategy
Skip the tech for tech’s sake. Use your innovation posture to make smarter decisions about which AI tools to implement and how.Benchmarking
With anonymized data from hundreds of firms, you can see how your company stacks up against others in your space.
“You can measure yourself, execute on improvements, and then retake the assessment six months later to see real change.” -Frank
But here’s the catch…
You can’t just take the DIAL Assessment and expect results.
You need to act.
“The assessment doesn’t replace execution. It's the first step in a longer journey,” said Frank. “You need the systems, the training, the culture, and a plan.”
And don’t expect everyone to be on board immediately. Culture change is uncomfortable. But, as Jeff put it:
“Growth stems from discomfort. If you want innovation, you have to lean into it.”
Final Takeaway: Don’t start with AI. Start with alignment.
If you’ve ever handed out ChatGPT licenses and wondered why half the team never used them or why adoption stalled after a few months, it’s probably not the tool’s fault.
It’s your org’s innovation posture.
DIAL helps you uncover that posture, take real action, and start building an actual culture of innovation rather than just checking boxes.
“If you don’t measure it, did you really do it?” -Frank
Take the DIAL Assessment today: https://kpreddy.co/dial
Ignite what's next
We have launched something new... It’s called Catalyst.
It’s a space for AEC forward-thinkers are reimagining what’s next. This is where the top minds in the industry are sharing ideas, leading change, and pushing the future of AEC forward.
Sounds like you? Join the waitlist at kpreddy.co.
Check out one of our Catalyst conversation starters, AEC Needs More High-Agency Thinkers.
Hope to see you there!
Resources to Explore:
Podcast Episode: Listen to the full episode of KP Unpacked for deeper insights.
YouTube Episode: Watch the full conversation in action on KP Unpacked.
Follow KP Reddy Co. on LinkedIn: Stay up to date with the latest insights coming directly from one of the most prominent figures in the industry.