Leading Through the Whirlwind

Real talk on leading teams through GenAI disruption and economic uncertainty

At Transform, I had the privilege of joining a stellar panel on The Now and Next of Work with NASCAR's CHRO John Ferguson and Intuitive's CHRO Pat Wadors, moderated by the inimitable Laurie Ruettimann. Our conversation cut through the buzzword bingo to examine what's actually happening (and what should be happening) in today's workplace.

For those keeping score at home: no corporate clichés were harmed in the making of this newsletter, though "AI" was mentioned approximately 742 times.

Watch the panel conversation.

The Leadership Whiplash

If you're feeling like your leadership playbook got shredded sometime between 2020 and now, you're not alone. As John Ferguson put it,

"Everything is non-linear. So throw out the 'this is how we've always done it.' The X equals Y is no longer true because at 9:00 AM something came out at 10:00 PM that is no longer valid."

This resonated deeply with me because we're all navigating the economic and political chaos of 2025 on top of workplace transformations driven by AI advancement and evolving workforce expectations.

What it takes to be a great leader has changed, as have the tools you need to use to build alignment and drive performance. As I noted,

"What worked for me in the 1980s does not work today. I've heard board members walk into executive meetings and say, 'When I was coming up, this is the thing that worked, and by God you're all gonna do it.'"

This refusal to adapt is the leadership equivalent of refusing to upgrade from Windows 95.

AI: From Buzzword to Implementation Reality

When it comes to AI, most organizations fall into three camps: the enthusiastic early adopters, the "let's wait and see" crowd, and the "I hope this blows over" contingent. Unfortunately, that last group might be the largest.

Our panel talked about the fact that about a third of employees are using AI openly, with another 20% as what Ethan Mollick calls "secret cyborgs" – using the technology but hiding it from management out of fear. The remaining half? They're going slow, surface-level users and some are hoping AI is just another management fad.

John Ferguson offered practical advice about treating AI like an intern and experimenting yourself as a leader. You don't have to get it right, but just start experimenting. He shared a story about a team member with an English degree who initially resisted AI but later found it helpful for various tasks. His formula?

“Artificial intelligence plus human intelligence is where you're gonna find the return on investment.”

My take, based in part on a panel I was on with CHROs from Anthropic, Databricks and Hubspot:

“Stop saying efficiency. Talk outcomes, which is what Pat was talking about: What are the goals that we've got? How are we gonna grow this business? Then you get people aligned about something that's positive. If you say efficiency, people hear layoffs.”

For CHROs specifically, Pat Wadors suggested mapping AI opportunities to the employee journey:

“Most companies have some kind of customer journey map: how do you attract a customer, land that customer, retain that customer and keep them expanding with their product or services.

Not many CHROs create that employee journey map, and we should. From attracting talent to onboarding, to ramping people up to their productivity, to their joy, and then supporting them in transitions, that new promotion, first time managers, and more…

All those transactions, actions, rest on technology stack and all of them require data and insight.”

By identifying where AI can eliminate administrative headaches throughout the employee lifecycle, HR leaders can focus on the human elements that truly matter.

Last, one key decision facing many companies is whether to invest in reskilling or “rip and replace” – laying off some workers while hiring others to close AI skill gaps. My take:

“If you're doing rip and replace, you're also signaling something to employees, which is you're gasket, and you are replaceable. So you shouldn't expect that they're gonna treat you as anything more than a paycheck either.”

That includes those new hires who have AI skills – and greater choice in where to work.

Leading Through Chaos and Change

The most powerful moments came when discussing how to lead through our current economic and political uncertainty.

Pat shared how her CEO addressed uncertainty:

"What we are certain of is that we're in an uncertain time, and we do not know what's going to happen in the next six months. What we do know is that we have opportunities in front of us today.

We know that there are some things you can control. Focus on those things. Be optimistic, be compassionate, patient, and appreciate one another, and each day make progress because that's where you'll get your grit and your resilience.”

This focus on what can be controlled rather than what cannot provides a leadership anchor.

John Ferguson emphasized transparency:

"People are not naive. There's enough headlines out there, so I believe in lowering that waterline."

By being honest about business challenges and involving employees in solutions, leaders build trust during uncertain times.

My advice?

"As a leader, if you want to build trust, there's three magic words: I don't know."

Acknowledging uncertainty rather than faking certainty builds more credibility with your team.

The Anti-Layoff Strategy: Focus on Outcomes, Not Efficiency

With economic uncertainty looming, many organizations are preparing for potential downsizing. But the panel emphasized a critical distinction in how leaders communicate.

Pat offered a brilliant approach to resource constraints:

"If your budget is cut by 10%, first look to see what you’d do to cut it by 30 – see what your team would do, and then give them that extra 20% and see what they unlock."

This reframing turns constraint into opportunity and encourages innovative thinking.

The Path Forward

As we look ahead, the conversation emphasized several key principles for navigating workplace transformation:

1. Resilience and trust are the foundation of effective leadership today

2. Transparency about uncertainty builds more credibility than false confidence

3. Experimentation with AI should be encouraged at all levels

4. Focus on outcomes rather than efficiency to align teams positively

5. Embrace constraints as opportunities for innovation

John Ferguson left us with this thought:

"We should strive to make our organizations a great place to work. But most importantly, a great place to be from."

This perspective shift recognizes the reality of shorter tenures while still investing in people's growth.

The final word belongs to Pat Wadors:

"Lean in with curiosity, optimism, and humanity. Just balance your IQ with your EQ and bring people along the journey with us."

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You can also watch the panel or read the transcript.

What leadership approaches are working for you in this era of transformation? Reply to this email and let me know - I'd love to feature your insights in our next edition.

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