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Making People Matter in AI Era

Making People Matter in AI Era

GUEST POST from Janet Sernack

People matter more than ever as we witness one of the most significant technological advancements reshaping humanity. Regardless of size, every industry and organization can adopt AI to enhance operations, innovate, stay competitive, and grow by partnering AI with people. Our research highlights three workplace trends and four global, strategic, and systemic human crises that affect the successful execution of all organizational transformation initiatives, posing potential barriers to implementing AI strategies. This makes the importance of people mattering in the age of AI greater than ever. 

Three Key Global Trends

According to Udemy’s 2024 Global Learning and Skills Trends Report, three key trends are core to the future of work, stating that organizations and their leaders must:

  1. Understand how to navigate the skills landscape and why it is essential to assess, identify, develop, and validate the skills their teams possess, lack, and require to remain innovative and competitive.
  2. Adapt to the rise of AI, focusing on how generative AI and automation disrupt our work processes and their role in supporting a shift to a skills-based approach.
  3. Develop strong leaders who can guide their teams through change and foster resilience within them.

Five Key Global Crises

1. Organizational engagement is in crisis.

Recently, Gallup reported that Global employee engagement fell by two percentage points in 2024, only the second time it has fallen in the past 12 years. Managers (particularly young managers and female managers) experienced the sharpest decline. Employee engagement significantly influences economic output; Gallup estimates that a two-point drop in engagement costs the world $438 billion in lost productivity in 2024.

2. People are burning out, causing a crisis in well-being.

In 2019, the World Health Organization included burnout in its International Classification of Diseases, describing “Burn-out is a syndrome conceptualized as resulting from chronic workplace stress that has not been successfully managed. Three dimensions characterize it:

  • Feelings of energy depletion or exhaustion;
  • Increased mental distance from one’s job, or feelings of negativism or cynicism related to one’s job; and
  • Reduced professional efficacy.

Burn-out refers specifically to phenomena in the occupational context and should not be applied to describe experiences in other areas of life.”

They estimate that globally, an estimated 12 billion working days are lost every year to depression and anxiety, costing US$ 1 trillion per year in lost productivity.

Burnout is more than just an employee problem; it’s an organizational issue that requires a comprehensive solution. People’s mental and emotional health and well-being are still not prioritized or managed effectively. Well-being in the workplace is a complex systemic issue that must be addressed. Making people matter in the age of AI involves empowering, enabling, and equipping them to focus on developing their self-regulation and self-management skills, shifting them from languishing in a constant state of emotional overwhelm and cognitive overload that leads to burnout.

3. The attention economy is putting people into crisis.

According to Johann Hari, in his best-selling book, “Stolen Focus,” people’s focus and attention have been stolen; our ability to pay attention is collapsing, and we must intentionally reclaim it. His book describes the wide range of consequences that losing focus and attention has on our lives. These issues are further impacted by the pervasive and addictive technology we are compelled to use in our virtual world, exacerbated by the legacy of the global pandemic and the ongoing necessity for many people to work virtually from home. He reveals how our dwindling attention spans predate the internet and how its decline is accelerating at an alarming rate. He suggests that to regain your ability to focus, you should stop multitasking and practice paying attention. Yet, in the Thesaurus, there are 286 synonyms, antonyms, and words related to paying attention, such as listen and give heed.

4. Organizational performance is in crisis.

Research at BetterUp Labs analyzed behavioral data from 410,000 employees (2019-2025), linking real-world performance with organizational outcomes and psychological drivers. It reveals that performance isn’t just about efficiency, it’s about shifting fluidity between three performance modes – basic: the legacy from the industrial age, collaborative: the imperative of knowledge work, and adaptive: the core requirement to perform effectively in the face of technological disruption, by being agile, creative, and connected. The right human fuel powers these: motivation, optimism and agency, which our research has found to be in short supply and BetterUp states is running dry.

Data scientists at BetterUp uncovered that performance has declined by 2-6% across industries since 2019. In business terms, half of today’s workforce would land in a lower performance tier, across all three modes, by 2019 standards.

GenAI relies on activating all three performance gears, and the rise of AI-powered agents is reshaping the way teams work together. Research reveals that companies that invest in adaptive performance see up to 37% higher innovation.

5. Innovation is in crisis.

According to the Boston Consulting Group’s “Most Innovative Companies 2024 Report,” Innovation Systems Need a Reboot:

“Companies have never placed a higher priority on innovation—yet they have never been as unready to deliver on their innovation aspirations”

Their annual survey of global innovators finds that the pandemic, a shifting macroeconomic climate, and rising geopolitical tensions have all taken a toll on the innovation discipline. With high uncertainty, leaders shifted from medium-term advantage and value creation to short-term agility. In that environment, the systems guiding innovation activities and channeling innovation investments suffered, leaving organizations less equipped for the race to come. In particular, as measured by BCG’s proprietary innovation maturity score, innovation readiness is down across the elements of the innovation system that align with the corporate value creation agenda.

You can overcome these crises by transforming them into opportunities through a continuous learning platform that empowers, enables, and equips people to innovate today, making people matter in the age of AI. This will help develop new ways of shaping tomorrow while serving natural, social, and human capital, as well as humanity.

Current constraints of AI mean developing crucial human skills

While AI can perform many tasks, it cannot yet understand and respond to human emotions, build meaningful relationships, exhibit curiosity, or solve problems creatively.

This is why making people matter in the age of AI is crucial, as their human skills are essential.

Some of the most critical human skills are illustrated below.

Some of the Most Critical Human Skills

These essential human skills are challenging to learn and require time, repetition, and practice to develop; however, they are fundamental for creating practical solutions to address the three trends and four crises mentioned above.

Making people matter in the age of AI involves:

  • Providing individuals with the ‘chance to’ self-regulate their reactive responses by fostering self and systemic awareness and agility to flow with change and disruption in an increasingly uncertain, volatile, ambiguous, and complex world.
  • Inspiring and motivating people to ‘want to’ self-manage and develop their authentic presence and learning processes to be visionary and purposeful in adapting, innovating, and growing through disruption.
  • Teaching people ‘how to’ develop the states, traits, mindsets, behaviors, and skills that foster discomfort resilience, adaptive and creative thinking, problem-solving, purpose and vision, conflict negotiation, and innovation.

Human Skills Matter More Than Ever

The human element is critical to shaping the future of work, collaboration, and growth. The most effective AI outcomes will likely come from human-AI partnership, not from automation alone. Making people matter in the age of AI is crucial as part of the adoption journey, and partnering them with AI can turn their fears into curiosity, re-engage them purposefully and meaningfully, and enable them to contribute more to a team or organization. This, in turn, allows them to improve their well-being, maintain attention, innovate, and enhance their performance. Still, it cannot do this for them.

Making people matter in the age of AI by investing in continuous learning tools that develop their human skills will empower them to adapt, learn, grow, and take initiative. External support from a coach or mentor can enhance support, alleviate stress, boost performance, and improve work-life balance and satisfaction.

Human problems require human solutions.

Our human skills are irreplaceable in making real-world decisions and solving complex problems. AI cannot align fragmented and dysfunctional teams, repair broken processes, or address outdated governance. These are human problems requiring human solutions. That’s where human curiosity and inspiration define what AI can never achieve. It is not yet possible to connect people, through AI, to what wants to emerge in the future.

Making people matter in the age of AI can ignite our human inspiration, empowering, engaging, and enabling individuals to unleash their potential at the intersection of human possibility and technological innovation. We can then harness people’s collective intelligence and technological expertise to create, adapt, grow, and innovate in ways that enhance people’s lives, which are deeply appreciated and cherished.

This is an excerpt from our upcoming book, “Anyone Can Learn to Innovate,” scheduled for publication in late 2025.

Please find out more about our work at ImagineNation™.

Please find out about our collective learning products and tools, including The Coach for Innovators, Leaders, and Teams Certified Program, presented by Janet Sernack. It is a collaborative, intimate, and profoundly personalized innovation coaching and learning program supported by a global group of peers over nine weeks. It can be customized as a bespoke corporate learning program.

It is a blended and transformational change and learning program that will give you a deep understanding of the language, principles, and applications of an ecosystem-focused, human-centric approach and emergent structure (Theory U) to innovation. It will also upskill people and teams and develop their future fitness within your unique innovation context. Please find out more about our products and tools.

Image Credit: Unsplash

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Why Business Transformations Fail

(and What Data Centers Can Teach Us About Getting Them Right)

Why Business Transformations Fail - Pexels

GUEST POST from Robyn Bolton

On May 6, Nvidia CEO Jensen Huang and ServiceNow CEO Bill McDermott joined CNBC’s “Power Lunch” to discuss the companies’ partnership.  But something that Huang said about large-scale cloud service providers (i.e., hyperscalers) at the end of the interview stopped me in my tracks:

It’s not a data center that stores information. It’s a factory that produces intelligence. And these intelligence tokens could be reformulated into music, images, words, avatars, recommendations of music, movies, or, you know, supply chain optimization techniques.

What struck me wasn’t the claim about what data centers and AI could create — we’ve seen evidence of that already. It was the re-framing of data centers from storage solutions to “intelligence factories.”

When leaders fail to lead, or even recognize that the business they’re in is different, even the best efforts at business transformation are doomed.

Because re-framing is how Disruption begins.

Data Centers Are No Longer in the Data Business

Repositioning your company to serve a new job requires rethinking, redesigning, and rebuilding everything.

Consider the old adage that railroads failed because they thought they were in the railroad business. By defining themselves by their offering (railroad transportation) rather than the Jobs to be Done they solve (move people and cargo from A to B), railroads struggled to adapt as automobiles became common and infrastructure investments shifted from railroads to highways.

Data centers have similarly defined themselves by their offering (data storage). However, Huang’s reframing signals a critical shift in thinking about the Jobs that data centers solve: “provide intelligence when I need it” and “create X using this intelligence.”

Intelligence Factories Require a New Business Model

This shift—from providing infrastructure for storing data to producing intelligence, strategic analysis, and creative output—will impact business models dramatically.

Current pricing models based on power consumption or physical space will fail to capture the full value created. Capabilities mustexpand beyond building infrastructure to include machine learning and AI partnerships.

But Intelligence Factories are Just the Beginning

While Intelligence Factories will require data centers to rethink their business models and may even introduce a new basis of competition (a requirement for Disruption), they’re only a stepping-stone to something far more disruptive: Dream Factories.

While the term “Dream Factory” was coined to describe movie studios during  Golden Era, the phrase is starting to be used to describe the next iteration of data centers and AI. Today’s AI is limited to existing data and machine learning capabilities, but we’re approaching the day when it can create wholly new music, images, words, avatars, recommendations, and optimization techniques.

This Is Happening to Your Business, Too

This progression will transform industries far beyond technology. Here’s what the evolution from data storage to Intelligence Factory to Dream Factory could look like for you:

  • Healthcare: From storing medical records to diagnosing conditions to creating novel treatments
  • Financial Services: From tracking transactions to predicting market movements to designing new financial instruments
  • Manufacturing: From inventory management to process optimization to inventing new materials
  • Retail: From cataloging products to personalizing recommendations to generating products that don’t yet exist

How to prepare for your Dream Factory Era

Ask yourself and your team these three questions:

  1. Is my company defining itself by what it produces today or by the evolving needs it serves?
  2. What is our industry’s version of the shift from data storage to dream factory?
  3. What happens to our competitive advantage if someone else creates our industry’s dream factory before we do?

If you’re serious about transformation, take a cue from the data centers: redefine what business you’re in—before someone else does.

After all, the key to success isn’t trying to stay a data center. It’s recognizing you’ve become an intelligence factory, and your long-term success depends on becoming a dream factory.

Image credit: Pexels

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Innovation, Leadership and Productive Conflict

Five Questions to Laura Weiss

Innovation, Leadership and Productive Conflict

GUEST POST from Robyn Bolton

You need friction to create fire. It’s true whether you’re camping or leading change inside an organization. Yet most of us avoid conflict—we ignore it, smooth it over, or sideline the people who spark it.

I’ve been guilty of that too, which is why I was eager to sit down with Laura Weiss, founder of Design Diplomacy, former architect and IDEO partner, university educator, and professional mediator, to explore why conflict isn’t the enemy of innovation, but one of its essential ingredients.

Our conversation wasn’t about frameworks or facilitation tricks. It was about something deeper: how leaders can unlearn their fear of conflict, lean into discomfort, and use it to build trust, fuel learning, and drive meaningful change.

So if conflict feels like a threat to alignment and progress, this conversation will show you why embracing it is the real leadership move.

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Robyn Bolton: What’s the one piece of conventional wisdom about change that organizations need to unlearn?

Laura Weiss: The belief that change is event-driven.  It’s not, except for seismic shifts like the Great Recession, the COVID-19 pandemic, 9/11, and October 7. It’s happening all the time!  As a result, leading change should be seen as a continuous endeavor that prepares the organization to be agile when unforeseen events occur.

RB: Wow, that is capital-T True! What is driving this misperception?

LW: It’s been said that ‘managers deal with complexity, but leaders deal with change’. So, it all comes down to leadership. However, the prevailing belief is that a “leader” is the person who has risen to the top of the organization and has all the answers.

In many design professions, those who are promoted to leadership roles are exceptional at their craft. But evolving from an ‘individual contributor’ to leading others involves skills that can seem contrary to our beliefs about leadership. One is humility – the capability to say “I don’t know” without feeling exposed as a fraud, especially in professions where being a “subject matter expert” is expected. Being humble presents the leader as human, which leads to another skill: connecting with others as humans before attempting to ‘lead’ them. I particularly like Edgar Schein’s relationship-driven leadership philosophy as opposed to ‘transactional’ leadership, where your role relative to others dictates how you interact.

RB: From your experience, how can we unlearn this and lead differently?

LW: Leaders need to do three things:

  1. Be self-aware. After becoming a certified coach, it became clear to me that all leadership begins with understanding oneself. If you’re unaware of how you operate in the world, you certainly can’t lead others effectively.
  2. Be agile. Machiavelli famously asked: “Is it better to be loved or feared…?” Being a leader requires the ability to do both, operating along the ‘warmth-strength’ continuum, starting with warmth. There are six leadership styles a leader should be familiar with, in the same way that golfers know which golf club to use for a particular situation.
  3. Evolve. This means feedback – being willing to ask for it and receive it. Many senior leaders stop receiving feedback as they progress in their careers. But times change, and ‘what got you here won’t get you there.’ Holding up a mirror to very senior leaders who have rarely, if ever, received feedback, or have received it but didn’t really “get it,” is critical if they are to change with the times and the needs of their organization.

RB: Amen!  I’m starting to sense a connection between leadership, innovation, and change, but before I make assumptions, what do you see?

LW: First, I want to acknowledge the thesis of your book that “innovation isn’t an idea problem, it’s a leadership problem” – 1000% agree with that!

Laura Weiss

One of the reasons I shifted from being an architect to focusing on the broader world of innovation was that I was curious about why some innovation initiatives were successful and some were not.  Specifically, I was curious about the role of conflict in the creative problem-solving process because conflict is critical to bringing innovation and change to life. Yet, it’s not something most of us are naturally good at – in fact, our brain is designed to avoid it!

The biggest myth about conflict is that it erodes trust and undermines relationships. The opposite is true – when handled well, productive conflict strengthens relationships and leads to better outcomes for organizations navigating change.

Just as with innovation, the organizations that are most successful with change are the ones that consistently use productive conflict as an enabler of change.

To achieve this, organizations must shift from a reactive stance to a proactive one and become more “discovery-driven”. This means practicing iterative prototyping and learning their way forward. In my mind, innovation is a form of structured learning that yields something new with value.

RB: What role does communication play in leadership and conflict?

LW: Conflict is an inevitable part of the human experience because it reflects the tension between the status quo and something else that’s trying to emerge.  It can appear even in the process of solving daily problems, so the ability to deal productively with conflict, from simple misunderstandings to seemingly intractable differences, is crucial.

The source code for effective conflict engagement is effective conversations.

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The real challenge in leadership isn’t preventing conflict—it’s recognizing that conflict is already happening and choosing to engage with it productively through conversation

This conversation with Laura reminded me that innovation and change don’t just thrive on new ideas. They require leaders who are self-aware enough to listen, humble enough to ask for feedback, and courageous enough to stay in the tension long enough for something better to emerge.

Image credit: Unsplash, Laura Weiss

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Transform Your Innovation Approach with One Word

Transform Your Innovation Approach with One Word

GUEST POST from Robyn Bolton

Have you heard any of these sentences recently?

“We don’t have time”

“Our people don’t have the skills”

“We don’t have the budget”

“That’s not what we do”

I hear them all the time.  

Sometimes they’re said when a company is starting to invest in building their innovation capabilities, sometimes during one-on-one stakeholder interviews when people feel freer to share their honest opinions, and sometimes well after investments are made.

Every single time, they are the beginning of the end for innovation.

But one word that can change that.

“We don’t have time – yet.”

“Our people don’t have the skills – yet.”

“We don’t have the budget – yet.”

“That’s not what we do – yet.”

Yet.

Yet creates space for change.  It acknowledges that you’re in the middle of a journey, not the end.  It encourages conversation.

“We don’t have time – yet.”

“OK, I know the team is busy and that what they’re working on is important.  Let’s look at what people are working on and see if there are things we can delay or stop to create room for this.”

“Our people don’t have the skills – yet.”

“Understand, we’re all building new skills when it comes to innovation.  Good news, skills can be learned.  Let’s discuss what we need to teach people and the best way to do that.”

“We don’t have the budget – yet.”

“I get it.  Things are tight. We know this is a priority so let’s look at the budget and see if there’s a way to free up some cash.  If there’s not, then we’ll go back to leadership and ask for guidance.”

“That’s not what we do – yet.”

“I know.  Remember, we’re not doing this on a whim, we’re doing this because (fill in reason), and we have a right to do it because of (fill in past success, current strength, or competitive advantage.”

You need to introduce the Yet.

It is very rare for people to add “yet” to their statements.  But you can.

When someone utters an innovation-killing statement, respond with “Yet.” Maybe smile mischievously and then repeat their statement with “yet” added to the end.

After all, you’re not disagreeing with them. You’re simply qualifying what they’re saying.  Their statement is true now, but that doesn’t mean it will be true forever.  By restating their assertion and adding “yet,” you’re inviting them to be part of the change, to take an active role in creating the new future state.

There’s a tremendous amount of research about the massive impact of this little word.  It helps underperforming students overachieve and is closely associated with Dr. Carol Dweck’s research into fixed and learning mindsets.

The bottom line is that “yet” works.

Put Yet to work for you, your organization, and your efforts to innovate and grow.

Image credit: Unsplash

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Building Innovation Momentum Without the Struggle

Five Questions for Tendayi Viki

Building Innovation Momentum Without the Struggle

GUEST POST from Robyn Bolton

Innovation efforts get stuck long before they scale because innovation isn’t an idea problem. It’s a leadership problem.  And one of those problems is that leaders are expected to spark transformation, without rocking the boat.

I’ve spent my career in corporate innovation (and wrote a book about it), so I was thrilled to sit down with Tendayi Viki, author of Pirates in the Navy and one of the most thoughtful voices on corporate innovation.

Our conversation didn’t follow the usual playbook about frameworks and metrics. Instead, it surfaced something deeper: how small wins, earned trust, and emotional intelligence quietly power real change.

If you’re tasked with driving innovation inside a large organization—or supporting the people who are—this conversation will challenge what you think it takes to succeed.

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Robyn Bolton (RB): You work with a lot of corporate leaders. What’s one piece of conventional wisdom they need to unlearn about innovation?

Tendayi Viki (TV): That you need to start with a big bang. That transformation only works if it launches with maximum support and visibility from day one.

But we don’t think that way about launching new products. We talk about starting with early adopters. Steve Blank even outlines five traits of early evangelists: they know they have the problem, they care about solving it, they’re actively searching for a solution, they’ve tried to fix it themselves, and they have budget. That’s where momentum comes from.

But in corporate settings, I see leaders trying to roll out transformation as if it is a company-wide software update. I once worked with someone in South Africa who was introduced as the new head of innovation at a big all-hands event. He told me later, “I wish I hadn’t started with such a big bang. It created resentment—I hadn’t even built a track record yet.”

Instead of struggling and pushing change on people, I try to help leaders build momentum. Think of it like a flywheel. You start slow, with the right people, at the right points of leverage. You work with early adopter leaders, tell stories about their wins, invite others to join. Soon, you’re not persuading anyone—you’ve got movement.

RB: Have you seen that kind of momentum work in practice?

TV: A few great examples stand out.

Tendayi VikiClaudia Kotchka at P&G didn’t go around talking about design thinking when she started. She picked a struggling brand and applied the tools there. Once that project succeeded, people paid attention. More leaders asked for help. That success did the selling.

And there’s a story from Samsung that stuck with me. A transformation team was tasked with leading “big innovation,” but they didn’t start by preaching theory. They said, “Let’s help senior leaders solve the problems they’re dealing with right now.” Not future-state stuff—just practical challenges. They built credibility by delivering value, not running roadshows.

If you can’t find early adopters, then take one step back. Solve someone’s actual problem. People are always fans of solving their own problems.

RB: When you think about leaders who are good at building momentum, what qualities or mindsets do they tend to have?

TV: Patience is huge. This stuff takes time. And you have to set expectations with the people who gave you the mandate: “It’s not going to look like much at first—but it’s working.”

And I think you can measure momentum. Not just adoption metrics, but something simpler: how many people are coming to you without you pushing them? That’s real traction. You don’t have to chase them. They’re curious. They’ve seen the early wins.

Another big one is humility. You’ve got to respect the people who resist you. That doesn’t mean agreeing with them, but it means understanding. Maybe they need to see social proof. Maybe they’re waiting for cover from another leader. Maybe they’re not comfortable standing out.

None of that means they’re wrong. It just means they’re human. So work with the confident few first and bring in the rest when they’re ready.

RB: Have you always approached resistance that way?

TV: Oh no—I learned that one the hard way.

Early in my career, I was running a workshop at Pearson. I was beating up on this publishing group about how they’re going to get killed by digital, and they were arguing.  It was a really difficult conversation, and I was convinced I was right and they were wrong.

Afterward, one of the leaders pulled me aside and said, “I don’t disagree with what you said. I think you’re right. But I didn’t like how you made us feel.”

And that was the moment. They weren’t resisting because of the content. They were reacting to how I delivered it. I made them feel stupid, even if I didn’t mean to. And their only move was to push back.

It took me years to absorb that lesson. But now I never forget: if people are resisting, check the emotional tone before you check the content.

RB: Last question. What is one thing you’d like to say to corporate leaders trying to drive innovation?

TV: Just chill!

Seriously. There’s so much *efforting* in corporate transformation. All the chasing, tracking, nudging, following up. “Have they responded to the email? Did you call them?” All that pressure to push, to prove.

But it reminds me of this Malcolm Gladwell podcast, Relax and Win, about San Jose State sprinters. Their coach taught them that to run their fastest, they had to stay relaxed. When you tense up, you actually slow down.

Innovation works the same way. Don’t force it. Build momentum. Let it grow. And trust it once it’s moving.

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The real challenge in corporate innovation isn’t convincing people that change is needed—it’s helping them feel safe enough to join you.

This conversation with Tendayi reminded me that the most effective innovation leaders don’t lead with pressure or pitch decks. They lead with patience, empathy, and small wins that build momentum.

Image credit: Pexels, Tendayi Viki (via LinkedIn)

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Three Real Business Threats (and How to Solve Them)

“The Call is Coming from Inside the House”

Three Real Business Threats (and How to Solve Them)

GUEST POST from Robyn Bolton

“The call is coming from inside the house” is one of those classic quotes that crossed over from urban legend and horror movies to become a common pop-culture phrase.  While originally a warning to teenage babysitters, recent research indicates that it’s also a warning to corporate execs that murderous business threats are closer than they think.

In the early weeks of 2025, Box of Crayons, a Toronto-based learning and development company, partnered with The Harris Poll to survey over 1500 business leaders and knowledge workers to diagnose and understand the greatest challenges facing organizations.

They found that “while there is a tendency to focus on external pressures like economic uncertainty, technological disruptions, and labor market issues, our research shows the most critical challenges are unfolding within the workplace itself.”

The threat is coming from inside your house.

Here’s what they found and what you can do about it

Nearly one (1) day each workweek “is lost to the fear of making mistakes.”

Fear is at the core of all the issues making headlines – burnout, disengagement, lost productivity. It  “breeds doubt, prompting individuals to question themselves and others, instigating anxiety, hindering productivity, and promoting blame instead of teamwork.”

Fear is also a virus, spreading rapidly from one person to their team members and on and on until it infects the entire organization, embedding itself in the culture.

Executives and managers are key to breaking the cycle of fear that kills innovation, initiative, and growth.  By reframing mistakes and learnings, rewarding smart risks even if they result in unexpected outcomes, and role-modeling behaviors that encourage trust and psychological safety, their daily and consistent actions can encourage bravery and remaking the culture.

70% of people don’t see value in listening to people they disagree with.

Unless you’re employed by Lumon Industries, it’s impossible to be a completely different person at work compared to who you are outside of work. So, it should come as no surprise that most people no longer listen to opinions, perspectives, or evidence with which they disagree.

The problem is that different perspectives and experiences are essential to elements of the problem-solving process.  Without them, we cannot learn, develop new solutions, and innovate.

Again, executives and managers play a critical role in helping to surface diverse points of view and helping employees to engage in “productive conflict.”  Rather than rushing to “consensus” or rapidly making a decision, by expressing curiosity and asking questions, people-leaders create space for new points of view and role model how to encourage and use it.

87% of leaders lack the skills needed to adapt.  64% say funding to build those skills has been cut.

Business leaders are fully aware of the changes happening within their teams, organizations, and the broader world.  They recognize the need to constantly adapt, learn, and develop the skills required to respond to these changes.  They can even articulate what they need help with, why, and how it will benefit the team or organization.

But leadership training is often one of the first items to be cut, leaving new and experienced people-leaders “ill-equipped to manage the increasing complexity of today’s workplace, stifling their ability to inspire, guide, and support their teams effectively.”

The solution is simple – invest in people.  Given the acute need for support and training, forget big programs, multi-day offsites, and centralized learning agendas.  Talk to the people asking for help to understand what they want and need and how they learn best.  Share what you can do right now with the resources you have and engage them in creating a plan that helps them within the constraints of the current context.

Answer the phone

Just like that terrifying movie moment, the call threatening your business isn’t coming from mysterious outside forces—it’s echoing through your own hallways. The good news? Unlike those helpless babysitters in horror films, you can change the ending by confronting these internal threats head-on.

What internal “call” is your organization ignoring that deserves immediate attention?

Image credit: Unsplash

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What Innovation is Really About

What Innovation is Really About

GUEST POST from Stefan Lindegaard

Sometimes a short and simple word-play brings out some great reflection.

  1. Resistance kills Change
  2. Fear kills Experimentation
  3. Bureaucracy kills Speed
  4. Control kills Flexibility
  5. Tradition kills Disruption
  6. Pressure kills Creativity
  7. Hierarchy kills Agility
  8. Silos kills Collaboration
  9. Organizational inertia trumps Talent

Now, read that RIGHT to LEFT.

This is in many ways the essence of innovation in my view.

Image Credits: Stefan Lindegaard

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Three Practical Keys to Managing Uncertainty

Three Practical Keys to Managing Uncertainty

GUEST POST from Robyn Bolton

“A Few Good Men” is one of my favorite movies.  As much as I love Jack Nicholson’s classic line, “You can’t handle the truth!” lately, I’ve been thinking more about a line delivered by Lt. Daniel Kaffee, played by Tom Cruise – “And the hits just keep on comin’.”

But, just like Lt. Kaffee had to make peace with Lt. Cdr JoAnne Galloway joining his Cuba trip, we must make peace with uncertainty and find the guts to move forward.

This is much easier said than done, but these three steps make it possible.  Even profitable.

Where We Begin

Imagine you’re the CEO of Midwest Precision Components (MPW), a $75 million manufacturer of specialized valves and fittings.  Forty percent of your components come from suppliers now subject to new tariffs, which, if they stay in effect, threaten an increase of 15% in material costs.  This increase would devastate your margins and could require you to reduce staff.

Your competitors are scrambling to replace foreign suppliers with domestic ones.  But you know that such rapid changes are also risky since higher domestic prices eat into your margins (though hopefully less than 15%), and insufficient time to quality test new parts could lead to product issues and lost customers.  And all this activity assumes that the tariffs stay in place and aren’t suddenly paused or withdrawn.

Three Steps Forward

Entering the boardroom, you notice that the CFO looks more nervous than usual, and your head of Supply Chain is fighting a losing battle with a giant stack of catalogs.  Taking a deep breath, you resolve to be creative, not reactive (same letters, different outcomes), and get to work.

Step 1: Start with the goal and work backward. The goal isn’t changing suppliers to reduce tariff impact.  It’s maintaining profit margins without reducing headcount or product quality.  With your CFO, you whiteboard a Reverse Income Statement, a tool that starts with required (not desired) profits to calculate necessary revenues and allowable costs. After running several scenarios, you land on believable assumptions that result in no more than a 4% increase in costs.

Step 2: Identify and prioritize assumptions.  With the financial assumptions identified, you ask the leadership team to list everything that must be true to deliver the financial assumptions, their confidence that each of their assumptions is true, and the impact on the business and its bottom line if the assumption is wrong.

Knowing that your head of Sales is an unrelenting optimist and your Supply Chain head is mired in a world of doom and gloom, you set a standard scale: High confidence means betting your annual salary, medium is a team dinner at a Michelin-starred restaurant, and low is a cup of coffee. High impact puts the company out of business, medium requires major shifts, and low means extra work but nothing crazy.

Step 3: Attack the deal killers.  Going around the room, each person lists their “Deal Killers,” the Low Confidence – High Impact assumptions that pose the highest risk to the business.  After some discussion to determine the primary assumptions at the beginning of causal chains, you select two for immediate action: (1) Alternative domestic suppliers can be found for the two highest-cost components, and (2) Current manufacturing processes can be quickly adapted to accommodate parts from new suppliers.

A Plan.  A Timeline.  A Sense of Calm.

With this new narrowed focus, your team sets a shared goal of resolving these two assumptions within 30 days.  Together, they set clear weekly deliverables and reallocate time and people to help meet deadlines.

A sense of calm settles on the team.  Not because they have everything figured out, but because they know exactly what the most important things to be done are, that those things are doable, and they are working together to do them.

How could you use these three steps to help you move forward through uncertainty?

Image credit: Pixabay

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From Dinosaur to Disruptor in Three Quotes

From Dinosaur to Disruptor in Three Quotes

GUEST POST from Robyn Bolton

If you’re leading a legacy business through uncertainty, pay attention. When The Cut asked, “Can Simon & Schuster Become the A24 of Books?” I expected puff-piece PR. What I read was a quiet masterclass in business transformation—delivered in three deceptively casual quotes from Sean Manning, Simon & Schuster’s new CEO. He’s trying to transform a dinosaur into a disruptor and lays out a leadership playbook worth stealing.

Seventy-four percent of corporate transformations fail, according to BCG. So why should we believe this one might be different? Because every now and then, someone in a legacy industry goes beyond memorable soundbites and actually makes moves. Manning’s early actions—and the thinking behind them—hint that this is a transformation worth paying attention to.

“A lot of what the publishing industry does is just speaking to the converted.”

When Manning says this, he’s not just throwing shade—he’s naming a common and systemic failure. While publishing execs bemoan declining readership, they keep targeting the same demographic that’s been buying hardcovers for decades.

Sound familiar?

Every legacy industry does this. It’s easier—and more immediately profitable—to sell to those who already believe. The ROI is better. The risk is lower. And that’s precisely how disruption takes root.

As Clayton Christensen warned in The Innovator’s Dilemma, established players obsess over their best customers and ignore emerging ones—until it’s too late. They fear that reaching the unconverted dilutes focus or stretches resources. But that thinking is wrong. Even in a world of finite resources, you can’t afford to pick one or the other. Transformation, heck, even survival, requires both.

“We’re essentially an entertainment company with books at the center.”

Be still my heart. A CEO who defines his company by the Job(to be Done) it performs in people’s lives? Swoon.

This is another key to avoiding disruption – don’t define yourself by your product or industry. Define yourself by the value you create for customers.

Executives love repeating that “railroads went out of business because they thought their business was railroads.” But ask those same executives what business they’re in, and they’ll immediately box themselves into a list of products or industry classifications or some vague platitude about being in the “people business” that gets conveniently shelved when business gets bumpy.

When you define yourself by the Job you do for your customers, you quickly discover more growth opportunities you could pursue. New channels. New products. New partnerships. You’re out of the box —and ready to grow.

“The worry is that we can’t afford to fail. But if we don’t try to do something, we’re really screwed.”

It’s easy to calculate the cost of trying and failing. You have the literal receipts. It’s nearly impossible to calculate the cost of not trying. That’s why large organizations sit on the sidelines and let startups take the risks.

But there IS a cost to waiting. You see it in the market share lost to new entrants and the skyrocketing valuations of successful startups. The problem? That information comes too late to do anything about it.

Transformation isn’t just about ideas. It’s about choosing action over analysis. Or, as Manning put it, “Let’s try this and see what happens.”

Walking the Talk

Quotable leadership is cute. Transformation leadership is concrete. Manning’s doing more than talking—he’s breaking industry norms.

Less than six months into his tenure as CEO, he announced that Simon & Schuster would no longer require blurbs—those back-of-jacket endorsements that favor the well-connected. He greenlit a web series, Bookstore Blitz, and showed up at tapings. And he’s reframing what publishing can be, not just what it’s always been.

The journey from dinosaur to disruptor is long, messy, and uncertain. But less than a year into the job, Manning is walking in the right direction.

Are you?

Image credit: Pexels

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ChatGPT Blew My Mind with its Strategy Development

ChatGPT Blew My Mind with its Strategy Development

GUEST POST from Robyn Bolton

It’s easy to get complacent about your strategy skills.  After all, our yearly “strategic planning” processes result in quarterly “strategic priorities” that require daily “strategic decisions.” So, it’s reasonable to assume that we know what we’re doing when it comes to strategy development.

I’ll admit I did. After all, I’ve written strategic plans for major brands, developed strategies for billion-dollar businesses, and teach strategy in a Masters program.

I thought I knew what I was doing.

Then ChatGPT proved me wrong.

How it Began

My student’s Midterm assignment for this semester is to develop, recommend, and support a strategy for the companies they’ve studied for the past seven weeks. Each week, we apply a different framework – Strategy Kernel, SWOT, Business Model Canvas, Porter’s 5 Forces, PESTLE, Value Chain – to a case study. Then, for homework, they apply the framework to the company they are analyzing.

Now, it’s time to roll up all that analysis and turn it into strategic insights and a recommended strategy.

Naturally, they asked me for examples.

I don’t have a whole lot of examples, and I have precisely none that I can share with them.

I quickly fed The LEGO Group’s Annual Report, Sustainability Report, and Modern Slavery and Transparency Statements into ChatGPT and went to work.

Two hours later, I had everything needed to make a solid case that LEGO needs to change its strategy due to risks with consumers, partners, and retailers. Not only that, the strategy was concise and memorable, with only 34 carefully chosen words waiting to be brought to life through the execution of seven initiatives.

Two hours after that, all of my genius strategic analysis had been poured into a beautifully designed and perfectly LEGO-branded presentation that, in a mere six slides, laid out the entire case for change (which was, of course, supported by a 10-page appendix).

The Moment

As I gazed lovingly at my work, I felt pretty proud of myself. I even toyed with the idea of dropping a copy off at LEGO’s Back Bay headquarters in case they needed some help.

I chuckled at my little daydream, knowing no one would look at it because no one asked for it, and no implementers were involved in creating it.

That’s when it hit me.

All the reasons my daydream would never become a reality also applied to every strategy effort I’ve ever been part of.

  • No one looks at your strategy because it’s just a box to check to get next year’s budget.
  • No one asks for it because they’re already working hard to maintain the status quo. They don’t have the time or energy to imagine a better future when they’re just trying to get through today.
  • No one responsible for implementing it was involved in creating it because strategy is created at high levels of the organization or outsourced to consultants.

What the strategy is doesn’t matter.*

What matters is how the strategy was created.

Conversation is the only way to create a successful, actionable, and impactful strategy.

Conversation with the people responsible for implementing it, they people on the ground and the front lines, the people dealing with the ripple effects of all those “strategic” decisions.

How It’s Going

Today, I’m challenging myself—and you—to make strategy a dialogue, not a monologue. To value participation over presentation. Because strategy without conversation isn’t strategy at all—it’s just a beautiful document waiting to be forgotten.

Who are you inviting into your next strategy conversation that isn’t usually there but should be? Share in the comments below.

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