Our Biggest Challenge?

Pace of change...

Many of our challenges are arguably no different, no worse, than those faced by any generation.

Many leaders see Gen Z as a challenge, but is there really anything new in those in their 40's and 50's struggling to understand youth culture?

Is there any generation that hasn't accused the younger generation of being lazy?

Is there any generation in the last 200 years that hasn't dealt with technological, economic and political disruption and change?

The answer of course is no, none of this is new.

Therefore those who argue we shouldn't overthink these challenges are in part right, but there is a new element that fundamentally changes the same old problems:

1) The pace of change and the pace at which new changes arise and evolve.

In short, pace magnifies the depth of the challenge due to less thinking and adaptation time.

Not to mention the fact that as humans our emotional state is rarely able to adapt instantly, we need time to absorb, consider and re-set. This is one of the reasons why the current pace of change can add to increasing levels of anxiety.

There are many examples, but to take just one; we are sprinting to keep up with the AI revolution but, whilst 57% of Gen Z use AI every day in the workplace, the large majority of middle and senior leaders do not use it AT ALL.

We are taking the normal generational divide and then supercharging it within a matter of a few years, by adding fast moving technology. Not to mention social media algorithms which now mean a twenty something office worker in London, Paris, NYC, Seoul, or Sau Paulo have more in common with each other than the 50 year old they report to.

There are examples of this everywhere, it would be a long list!

But what does this rapid pace of change mean for us as leaders? (See data at end for an example of the pace of change in the workplace.)

It means we need to focus on 2 things:

1) As leaders we have to adapt - We cannot stand still and assume how we've done things before will keep working. We have to lead the world that is, not the one we wish it was.

2) Never forget what always works, the basic principles of good leadership: (See last weeks newsletter: https://www.linkedin.com/pulse/leadership-keep-simple-david-haylor-jwaye )

So, we make the basic principles of good leadership our bedrock and then layer on top of those the necessary adaptations to deal with the high speed change coming at us, for example: (By no means a comprehensive list! just examples)

• The old hierarchical, deferential structures are creaking... They are too slow to adapt and embrace new ideas. Businesses that create more open, cross discipline, cross generational working groups come up with better ideas and gain buy in from across the organisation.
• Communication needs to be more fluid... Two way feedback, weekly check ins, sharing new uses of technology and creative ideas across disciplines and age groups. These cannot only take place at annual appraisals, and quarterly ideas sessions. The world will have passed you by.
• Shorten your time horizon... If you are in a knowledge work based business, which I imagine almost all of my readers will be, and someone says to you, or your business, what's your 5 year plan, what would you say? If you have one it is only credible if you have clearly identified the possible changes that AI will bring to your business and have articulated how you plan to adapt. If you haven't and yet still have a 5 year plan then it is meaningless. Given the in-depth changes are so unknowable right now, we have to drop our time horizons and focus on what we can achieve and learn now, how do we put ourselves in a better position to adapt?
• Be honest...Too many established firms still have the internal messaging, explicit or implied, that work hard, do what you're told and you can be a partner / director in 10 years. Whilst at board level they are discussing how to implement AI to reduce headcount and cost, and therefore kill off that career path for the majority early in their careers. Balancing this can be difficult, BUT...
• Honesty works... Younger employees know their career path is tenuous, they know their skills and knowledge now have a short shelf life. One of the ways they can get some form of security is by joining a firm which is actively and openly embracing AI and talking about how it will accelerate their growth. There is risk either way, but better to join a firm that is bold and agile enough to embrace change and honest enough to talk about it.
• Leaders as role models, mentors and coaches... In a period of fast paced change, traditional management in regards following the rules, managing outputs etc. is less and less effective. Turbulence and change require adaptability, recognising when people need support, recognising when an old process needs dropping or adapting, recognising when a new idea is worth a try and recognising that failed attempts at new ideas are part of the adaptation process. Teams that can pull this off have leaders who act more as coaches and mentors, leaders who model the right behaviours and help others to grow.
• Recognise that constant change is stressful... We need to recognise that it is stressful for a successful young graduate to know that despite their hard work, there are no guarantees they will get / keep their job or know how to achieve their ambitions. It is stressful for a middle manager trying to lead these grads and others in a changing hybrid environment where their own future is now unsure. It is stressful for fifty year old execs having to face up to the fact that the model they now sit a top of is no longer fit for purpose, so...
• We need to look after ourselves and each other... and that requires a more open and collegiate approach, we need to talk more and work out together how we adapt our roles, our teams and our businesses to succeed.

None of this is meant to replace systemised change management programs. It is to suggest ways in which we can adapt to the fact change now is, and very much feels, constant.

If any of you are still not sure that AI is having a tangible effect, below are some key takeaways from a very recent Harvard research paper: (note: simplified in my own words for clarity)

• In those firms that have actively adopted AI, hiring of graduates fell by 22% post-2023 Q1 Whilst the hiring of senior workers remained at the same level.
• Those graduates who remained promoted quicker.
• From an educational point of view: graduates from tier-2 and tier-3 schools experienced the largest employment declines. Tier-1 (elite) and tier-4 (lower-tier) graduates were less affected, while tier-5 (lowest prestige) saw negligible impact. This suggests a cost-quality trade-off: elite graduates are retained for productivity, low-tier for affordability, while mid-tier are most vulnerable to substitution.

(To be clear this is from a recent report from Harvard: "Generative AI as Seniority-Biased Technological Change" Aug 2025 / Seyed M. Hosseini and Guy Lichtinger)

The world is changing fast, as leaders we need to adapt.

If you would like help working out how best to adapt your leadership within your context then do get in touch. I am running numerous workshops across multiple leadership development programs, and I'm always happy to have a chat and share ideas.

Please do forward on my newsletter if you think it may be of interest to one of your network.

Good leaders change the world for the better, thank you for being one of those leaders!