A research-grounded model of how AI adoption actually unfolds inside a firm: a repeating cycle of three phases, shaped by the conditions surrounding it — which either speed it up or hold it back. Built from interviews with 20 senior leaders across 18 UK SMEs, conducted at Warwick Business School.
Readiness is not a gate you pass before adoption. It develops through use — and can stall or reverse if trust, time, or boundaries collapse.
Phase 1 sends signals from leaders to Phase 2; Phase 2 is where people try things out, feeding Phase 3; Phase 3 returns what they learn to Phase 1. One loop, not three orbits.
The LSRH at a glance — one orbit, three phases, two field bands. Readiness is not a gate you pass: it emerges from use, and it can stall or reverse, so the loop does not close.
The loop closes because experience requires meaning to be given to it again: what people live through in Phase 3 — the wins, the failures, the workflows that quietly stuck and the ones that quietly didn't — re-enters the leaders' frame for the next cycle.
They are not stages. They act on every phase, continuously — they slow the loop down, or they speed it up.
The cycle does not close because the work is done; it closes because experience requires meaning to be given to it again. The fields keep acting throughout. Constraints can tighten or loosen. Trust can deepen or fracture. The same loop, run under different field conditions, produces different organisations.
Sensegiving, sensemaking and emergent readiness are the three handles we use for this cycle in client work — handles for understanding what is happening in a firm, never a delivery sequence. How we help →
If something you've read raises a question about your own organisation, we'd welcome a conversation. We can help you explore what it means for your priorities and where to go next.