Key takeaways from "What got you here, won't get you there": evolving leadership skills for the AI era.
The AI revolution isn’t just about technology; it’s a shift driven by people. BCG’s 10-20-70 approach reveals that 70% of an organisation’s long-term advantage in transformation depends on people and processes—not technology alone. This underscores the importance of building mindsets and behaviours that foster adaptability and resilience as essential for progress. To succeed, leaders must develop a literacy in both human and artificial intelligence.
In our recent webinar, Positive team members Dr. Sinéad Devine-French and Dr. Brian Marien, along with thought leader Lily Cheng, explored four essential areas where leaders can make an impact by focusing on the human challenges and opportunities that the AI revolution presents.
1. Accelerated Pace of Change and the ‘Technological Metabolic Rate’
The digital landscape demands a relentless tempo of adaptation. As Lily discussed, an organisation’s “technological metabolic rate” — its ability to absorb and integrate new technology — is crucial for success. Leaders must not only manage this pace but also foster a mindset open to continuous learning and flexibility, tolerant of uncertainty and challenge, making the renewal of skills a strategic imperative.
Insight: Leaders must develop a fluency in AI that goes beyond basic tech literacy. While 88% of leaders are excited about AI’s potential, 44% feel unprepared. Cultivating AI literacy equips leaders with the knowledge to make data-driven decisions, while psychological literacy helps in managing resistance and fostering a team culture that embraces change. The crucial next step, however is role modelling these key skills; to challenge beliefs and supercharge organisational adaptability.
2. ROI and Productivity in the Digital Era
Digital transformation isn’t free, and Lily underscored the pressing need to measure its return on investment effectively. However, the metrics extend beyond mere cost; leaders must evaluate how new technologies contribute to genuine productivity gains. This involves aligning digital tools with strategic objectives and ensuring they empower teams rather than becoming unused add-ons.
Insight: Developing generative AI capabilities to enhance productivity and resilience is essential. Particularly given genAI is expected to proliferate, with 84% of employers expecting workers to use genAI on the job within 5 years. Leaders need to foster adaptable teams that are capable of integrating AI tools effectively to improve efficiency, creativity, and innovation. When human-centred skills are combined with AI literacy, it establishes a synergy that accelerates productivity while maintaining human adaptability at its core.
3. Balancing Short-term Wins with Long-term Strategy
The perpetual tightrope walk between immediate pressures and long-term vision is another leadership challenge Lily spotlighted. Short-term successes often look appealing but can lead to strategic drift if not balanced with a broader, future-focused perspective. Leaders must craft roadmaps that deliver today while laying down tracks for tomorrow's digital and economic terrain, and a key piece of the puzzle is cognitive flexibility.
Insight: Cognitive flexibility isn’t a luxury — it’s a superpower for leaders managing the constant push and pull between today’s demands and tomorrow’s vision. Leaders must question assumptions, use Bayesian thinking to ‘update beliefs,’ and role model adaptability to make resilience second nature across the organisation.
4. Avoiding the Sunk Cost Fallacy
In digital transformation, one of the most dangerous traps is the sunk cost fallacy —the impulse to hold onto outdated investments purely because they were costly in the past. Leaders who are truly future-focused must develop the skill of “strategic unlearning,” recognising when it’s time to let go of legacy systems and pivot to more effective approaches. This ability to release what no longer serves the organisation is a hallmark of strategic adaptability and a clear-eyed commitment to progress, even amid uncertainty.
Insight: Leaders who excel at “letting go” build cultures where innovation thrives, and adaptability is the norm. By demonstrating the courage to abandon obsolete practices, they set an example that encourages teams to approach change with confidence and agility, paving the way for a more resilient, forward-looking organisation.
Positive’s Perspective
Three Actions for Building Adaptability in Leadership
- Leadership Behaviours: Model cognitive flexibility and TOU to set the tone. Leaders who demonstrate resilience show teams how to face the unknown with confidence.
- Digital Mindset: Empower teams to question their own assumptions about the future. This shift will make digital strategies future-proof and adaptable.
- Human-in-the-Loop Skills: Develop cognitive and AI skills that evolve in tandem, equipping people to work with AI more efficiently, safely, and ethically. By fostering this blend of human-centred insight and AI literacy, leaders can empower their teams to drive meaningful, high-impact change in the digital landscape.
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