As a mid-market business, you may have already felt the rumblings of change. Disruption is coming, and it’s set to transform the landscape for all businesses. We’re on the brink of unfathomable changes, transitions, and beautiful opportunities. Remember, with great disruption comes great opportunity. In this post, I’ll highlight three major disruptions on the horizon and provide three crucial considerations for senior leaders to navigate this new terrain.
The Three Major Disruptions Coming Our Way
1. AI, Automation, and Machine Learning
This disruption is akin to teenage infatuation—everyone’s talking about it, a few are dabbling in it, but no one has mastered it yet. AI and automation tools are poised to revolutionize industries in ways comparable to the advent of electricity or the steam engine. Imagine a world where AI handles tasks that currently require significant human effort or professional knowledge. This is not a distant future; it’s happening now, and businesses must prepare to integrate these technologies to stay competitive.
2. Financial Shifts
Here in the USA, we may experience significant financial upheavals. We are likely at the end of an era of historically low-interest rates. Inflation is expected to rise, and governments’ short-term debt, especially incurred during COVID-19, was issued as short-term bonds, not long-term infrastructure debt. These bonds are coming due, and the interest costs for reissuing them could potentially quadruple. Furthermore, as baby boomers retire and withdraw their investments, there will likely be less capital flowing into the market at a macro level. These factors, combined with additional international financial conditions, will make it crucial for businesses to adapt to the likely new normal associated with capital costs.
3. Geopolitical Impacts and Population Changes
Countries like China, Russia, South Korea, Japan, and Germany are experiencing population declines, leading to an inverted population pyramid. This means fewer young people to work and drive economic growth, and many more older people who require resources but do not contribute economically. This will most likely result in economic and geopolitical instability, as well as massive disruptions in supply chains and manufacturing. Businesses must consider these global shifts and their long-term impacts. While the specific impacts on individual businesses will vary, disruption is inevitable.
Three Considerations for Senior Leaders to Address These Disruptions
1. Keep the Trains Running
Disruption is inevitable and often rapid. However, maintaining day-to-day operations is crucial. Ensure your business remains functional and efficient, even as you anticipate and plan for future changes. If you know in your gut that you should be making some hard decisions, it’s time to earn your leadership seat and make the challenging but necessary calls.
2. Envision the Future
Look ahead and imagine what amazing could look like with emerging tools and technologies. Investing the time to really consider where your industry is going is one of your primary responsibilities. For example, in the coaching space, I foresee virtual coaches powered exclusively by AI, providing personalized advice indistinguishable from human interaction. Define your industry’s potential future and strategize on how to position your business to thrive
in that landscape.
3. Develop Adaptable Frameworks
Creating an interim horizon—bridging the gap between current operations and long-term
vision—is where many struggle. AI won’t immediately eliminate jobs but will transform them. This bridge horizon involves creating a framework that can integrate both current knowledge and tools with upcoming AI applications to maximize outputs. It is now possible for one person with AI to accomplish what 100 people did a decade ago. Create frameworks that allow for rapid adaptation, leveraging today’s tools and skills while preparing for tomorrow’s opportunities. This will enable your business to stay ahead of the curve as the pace of change accelerates.
Taking the time to reflect on these disruptions and strategically planning your response can position your business to not only survive but thrive amidst change.
If you found a nugget or two in here you liked, let us know. If you disagree with anything, we would love to hear a counter-opinion.
Stay resilient, and let’s embrace the beautiful opportunities that lie ahead. Embrace the change and thrive.
Keep smiling,
Kris
