Oscillating between extremes is a familiar pattern for organizations and the concept of the cultural pendulum illustrates how workplace values shift over time. These shifts often swing between opposing ends before eventually finding a balanced middle ground. In recent years, however, disruptions like the pandemic, technological acceleration, social movements and evolving work expectations have significantly amplified these swings. We’ve witnessed organizations shift from hierarchical to flat structures, traditional workplaces to fully remote setups, hustle culture to well-being focus, uniformity to hyper-personalization and stability to relentless innovation.   

Cultural oscillations don’t just disrupt workflows. They drive disengagement and attrition. Reports indicate that 90% of UK employees feel disengaged, with many opting for ‘quiet quitting’ a term used to describe doing only the bare minimum at work in order to prioritize life outside of it. Global turnover climbed to 20% in 2024, while the average tenure has dropped to 4.2 years.   

While change is inevitable, constant pendulum swings are exhausting, disruptive and rarely optimize the return on human capital investments. For organizations to achieve sustainable success, cultural balance is essential, leveraging the best of extremes while aligning with internal and external factors. This is not just a CHRO concern, but a critical agenda for CEOs and business leaders striving for uncommon growth. By fostering stable and resilient cultures organizations create the conditions for innovation, engagement and long-term competitive advantage.   

What Companies are Getting Wrong   

As the cultural pendulum swings again, organizations must take heed of the extremes shaping today’s workplace. 2025 presents a pivotal opportunity to find equilibrium and thrive, but the examples we’re seeing from major companies serve as cautionary tales. 

The Cost of Retreating from DEI   

Recent headlines have revealed unsettling shifts. Companies like Ford, Walmart and McDonald’s have scaled back their Diversity, Equity and Inclusion (DEI) commitments, a move criticized for prioritizing short-term savings over long-term growth, equity and engagement. These retrenchments risk derailing progress and eroding trust.   

Action is critical: Rather than retreating from these crucial values, focus on ways to embed inclusivity at every level, from recruitment to performance management and leadership development. If you can no longer set goals for achieving diversity at senior levels, review consistency of career development plans, promotions and performance ratings across diverse groups as well as attrition rates. Equip your leaders with these insights to ensure DEI is at the core of all decisions to deepen engagement and create an environment where diverse voices shape the future of the business.  

The Return to Office Dilemma   

Another tension point is the resistance to strict in-office mandates being enforced by Amazon, JPMorgan, PwC and others. After years of remote work, many employees expect flexibility, yet in-person collaboration remains vital for building trust and sparking creativity.   

Here’s the way forward: Rather than forcing employees back into full-time office environments, listen to your employees’ perspective on when and how they feel most productive layered on top of the needs of teams, functions and ultimately the business. There’s not a one-size-fits-all as there may be cyclical needs for teams to come together in person. Employees who are just starting off their careers, or those new to a business, may feel a greater need to spend more time amongst colleagues in-person learning how things work. Flexibility often in the shape of a hybrid-first approach balances autonomy with intentional in-person interactions is increasingly a requirement top talent are looking for from employers. Thoughtfully designed on-site events, such as brainstorming sessions and team-building activities, can create meaningful connections while preserving the flexibility employees value.   

Breaking the Cycle of Cultural Extremes   

The pendulum effect isn’t new. It impacts multiple facets of organizational culture.  Decision-making for instance, often swings between rigid top-down control to decentralized autonomy or vice-versa, sometimes losing clear direction in the process. Uber’s shift from centralized to decentralized, and then back again, illustrates the risks of extremes.   

The key to a balanced culture lies in anchoring your organization in its core values. Values-led organizations are uniquely equipped to navigate change, maintain consistency and are perceived more authentically even in the most turbulent times. The results speak for themselves. Costco’s unwavering commitment to its values has led to industry-leading retention rates, while IKEA’s steady growth is fuelled by value-driven decisions in areas like product innovation and sustainable supply chains. By prioritizing long-term impact over reactive trends, these organizations demonstrate the power of living their values.  

Unfortunately, for many organizations, values remain little more than words on a page. That’s why we work hand-in-hand with our clients to ensure values are not just defined but embedded into the fabric of the organization, influencing everyday behaviors, rituals and processes. Using our Human-Centered Transformation Model, we align every aspect of an organization with its core values, helping clients like Chick-fil-A and Encompass Health turn their values into actionable practices that drive sustainable growth and engagement.

Make 2025 Your Year of Culture Balance   

A balanced approach to culture creates stability and a much-needed foundation for businesses, especially those navigating change, growth and transformation. Let’s face it, this is something most businesses are grappling with most of the time. Creating a clearly understood and communicated view brings greater trust, tolerance and engagement that supports business performance during the most turbulent times.    

Here are our top 5 strategies to support cultural balance for the long term:  

1. Keep culture front and center on the executive agenda: Being intentional about measuring employee sentiment, both internally and externally, is critical for understanding emerging expectations and how to respond to them. By making culture a regular agenda item, you’re more likely to make ongoing adjustments, reducing the need for major overhauls.  
2. Stay anchored in values: Use your core values as a guide for decision-making and clearly communicate how they impact decisions that are taken. Consistently integrate these values across the employee eco-system from attraction and recruitment and performance management to rewards, recognition, promotions and development.     
3. Prioritize employee listening: Regularly seek and act on employee feedback to create policies that reflect their evolving needs and expectations. A culture of listening builds trust, strengthens engagement and ensures employees feel valued and connected.  
4. Develop leadership for balance: Equip leaders with the tools and skills to navigate tensions, balance autonomy with collaboration and adaptability with accountability. Strong, values-aligned leadership is the foundation for stability and engagement.   
5. Make incremental changes: Introduce small, manageable adjustments to build change resilience and ensure long-term impact, rather than relying on one-off initiatives. This measured approach ensures resilience, reduces resistance and drives sustained impact.   

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As a CMO, you’re under growing pressure to deliver measurable growth and revenue from your brand investments, especially if you’re (re)launching the brand. 

The challenge is that while you’re being asked to do more with fewer resources, traditional Marketing functions often only control a fraction of the levers needed to maximize brand impact. In today’s complex environment, operating in such a silo is no longer viable – the entire organization must align and work together to deliver on the brand promise. Leading CMOs are connectors and orchestrators, working with multiple departments and the executive teams to point all the elements of your organizational DNA – strategy, purpose, values, behaviors, employer brand, CX and more – in the same direction. While this sounds straightforward, the reality is far from simple. You’re navigating a maze of existing frameworks, competing priorities and political agendas that must be simplified and negotiated – meaning you rarely start with a blank slate or direct path forward.  

So, how do you ensure your organization is aligned to deliver maximum brand impact?  

Design to Align 

Alignment is the critical foundation. When the core elements of your strategic framework are aligned with your brand strategy – or designed into it – everyone in the organization can drive in the same direction. This cohesion not only sets the stage for delivering on brand and customer promises but also fuels sustainable growth. Our latest Brand and Demand research underscores this, revealing that 89% of leading marketing organizations have a clear growth and brand strategy. These organizations know where they are going and share a common vision of how to get there, proving that alignment is essential for long-term success and partnership. 

Start Early with Other Functions 

The best CMOs focus on cross-functional relationships, with 84% of marketing leaders viewing themselves as organizational orchestrators who enable a modern, connected organization. To set the stage for success, it’s crucial to begin the alignment journey as early as possible by involving all functional and business unit stakeholders in the strategic brand exercise. Invite them to provide input upfront, ensuring the strategic components of their domains contribute meaningfully to shaping the brand strategy. This collaborative approach not only strengthens the brand’s foundation but also balances the tension between leveraging existing organizational strengths and adapting to market opportunities uncovered by the revised brand strategy. 

Stay Close Throughout  

Maintain close engagement with stakeholders throughout the brand strategy development and activation processes. Regular collaboration ensures the core functions and business units co-create activities that they need to own on their own roadmaps to reinforce and deliver against the brand values within their spheres of influence. This sustained alignment keeps momentum moving in the right direction across the organization. 

Select Priority Paths for Organizational Activation 

You have choices to make. Aligning an organization requires prioritization. The specific paths you take will depend on your brand ambitions and the current level of organizational alignment with your brand strategy. For example, if your brand stands for ‘innovation and speed,’ are your customer processes designed to deliver on those values accordingly? Is HR recruiting talent that embodies this mission? Is Finance easy to work with? Are Operations and R&D living up to the promise your advertising claims?  

From our client work, we see that typically, there are five paths to consider as you activate the organization and drive an aligned growth effort behind a new brand. Depending on your context and ambition, you may choose to focus on one as a priority or a combination of these:  

1. Functional Alignment

Equipping leaders across functions and business units with the tools needed to align on strategies and plans is essential for supporting brand strategy and driving growth. For instance, Vistra, a global corporate services firm, successfully aligned leadership across the entire C-suite and business units to embed a new brand strategy. This included defining associated values and behaviors within a newly merged global organization, ensuring alignment across all functions – from front office to back office. 

2. Employee Ignition (EX → CX)

Activating the brand internally is crucial for inspiring and enabling employees to live up to the brand promise, especially by reinforcing customer-facing behaviors. Embracing an always-on change management mindset is key to this effort – acknowledging and leaning into the challenges of transforming internal culture to align with the brand’s external vision. By focusing on customer and consumer centricity, organizations can ensure that their employees are not just aligned with the brand promise but are deeply committed to delivering it in every interaction. Nike provides a strong example of this approach. The company conducted extensive research into global Employee Experience (EX) best practices and experience design for retail store employees to help create the best environment where employees consistently deliver the brand promise directly to customers. 

3. Employer Brand

A well-defined employer brand and employer value proposition (EVP) can help retain and attract top talent who resonate with your brand’s promise. UBS exemplified this by bringing their global brand campaign, ’Craftmakers,’ to life internally. By aligning their EVP with the campaign, they not only strengthened their talent attraction efforts but also ensured alignment between their corporate and consumer brand strategies.  

4. Signature Moves and Change Management

Bold actions can reinforce a revised brand strategy to external audiences, but their success hinges on effective change management within the organization. T-Mobile demonstrated this through their game-changing move to eliminate customer contracts, embodying their ‘Uncarrier’ brand promise, disrupting and redefining the entire industry and underscoring their commitment to a customer-first approach.  

5. Culture Transformation

Sometimes, a revised brand strategy calls for a deep cultural shift across the organization. Kia’s brand transformation, driven by their pivot to electronic vehicles (EVs), is a prime example. Competing with premium brands like Audi and BMW required a closer focus on customer needs, sparking a fundamental shift in their organizational mindset and culture to prioritize innovation and customer-centricity. 

Figure 1: Potential organizational alignment pathways mapped to CMO’s brand ambition 

Hopefully, paths 1 and 2 are foundational when launching any brand repositioning aimed at creating significant impact. The remaining paths depend on the nature of your strategy. Are you looking to make bold changes that disrupt your industry that demand deeper organizational and cultural change? Or are you focused on refining your brand positioning to attract more customers? Perhaps it’s more about attracting the right front-line talent to bring your brand to life, or evaluating how your employee experience shapes the customer experience. There’s no need to tackle all five paths at once. The key is to be strategic and intentional about which areas to prioritize to drive real, tangible impact through a unified brand vision.  

To help you navigate this journey, we offer tailored discovery workshops for executive teams, designed to guide decision-making and foster collaboration, co-creation and alignment from the outset. By integrating this approach into your brand development, you can accelerate brand efforts and ensure the rest of the organization works in harmony and isn’t competing with or stifling the brand impact you could be making. It requires some focused effort along the way, but the old adage holds true here: “If you want to go fast, go alone. If you want to go far, go together.” 

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This year, we’ve been focusing on uncommon growth – how to unlock, create and execute it. Our latest insights confirmed something we’ve always known: leadership is fundamental to successful, sustainable growth. But the wrong kind of leadership can be disastrous.

Take WeWork, for example. Poor governance and erratic leadership resulted in poor decision-making, ultimately costing the company $1.9 billion in revenue. At the Royal Bank of Scotland, a lack of banking experience and attention to risk led to a balance sheet that ballooned to £2.2 trillion (larger than the GDP of the UK) before collapsing.  

On the flip side, Adobe’s leadership transformation sparked innovation, doubling its stock performance between 2018 and 2021. Shantanu Narayen’s vision and the capabilities of his team led to continuous improvement and growth. Similarly, LEGO’s focus on culture and capabilities turned an $800 million debt into $600 million in profits. Even in sports, the All Blacks’ leadership has driven them to win 75% of their games. 

The takeaway? Leadership impacts an organization’s performance more than anything else. However, most are “teams of leaders” rather than true “leadership teams.” Our research shows that to drive sustainable growth, organizations need cohesive leadership teams, not just individual leaders. After years of working with teams at all levels, we’ve distilled key insights on how to shape effective leadership teams that can sustain growth.

1. Leadership Teams Need Continuous Nurturing and Development 

Leadership teams, like people, are living systems that require constant care. Our annual Catalyst Change research found that successful transformations are built on true collaboration, where enterprise and individual interests are integrated. Effective teams shift from an individual focus to a shared team mindset. Figure 1 illustrates this shift from a “team of leaders” to a “leadership team,” with shared goals and genuine collaboration at its core. 

Figure 1: Moving from a team of leaders to a leadership team 

In today’s rapidly changing business landscape, leadership teams must understand their needs and ensure their mindset, purpose and goals remain aligned with organizational and stakeholder needs. Our research reveals that leadership teams failing to champion collaboration and shared goals risk fragmentation and siloed operations, leading to a 3.5-fold increase in the time it takes for strategic decision-making compared to teams with integrated structures. Gallup research also found that leaders who focus on development and use their strengths effectively are 6x more likely to be engaged, 7.8% more productive and 3x more likely to report a good quality of life. It was with this understanding that we helped the executive team of a 2,000-strong leading agricultural vehicle manufacturer optimize performance by shifting from an “I” mentality to a “we” mentality, driving success through effective teamwork that bridged functional divides and fostering both internal and external growth.  

2. Address All Dimensions of the Human-Centered Leadership Team Effectiveness Model 

Prophet’s Human-Centered Transformation Model (HCTM) is a proven holistic and people-centered approach to driving growth across organizations. The model is built on the idea that organizations reflect the same makeup as a human including the DNA, mind, body and soul. Effective leadership teams need to follow a similar model that not only builds trust and effective ways of working but aligns individual members to a shared enterprise goal. The Human-Centered Leadership Team Effectiveness Model (Figure 2) shows that addressing all dimensions of the human system is essential for empowering effective outcomes.

Figure 2: Prophet’s Human-Centered Leadership Team Effectiveness Model 

Questions that should be asked include:

• DNA: What is our focus and shared ambition that drives the work of our team?​
• Mind: What new skills are required for the team to drive change?​
• Body: What might need to change in our operating model to enable team performance?​  
• Soul: How might we ignite belief in the change to foster trust and productive relationships?​  

As Figure 3 illustrates, if any of these elements from the model are missing, this has a knock-on effect on leadership teams, increasing the risk of falling short on goals due to a lack of commitment, poor focus and low-quality work. 

Figure 3: What happens when part of the leadership system is missing 

3. Sustain Leadership Team Effectiveness Through Actionable Development 

Continuing with the human system analogy, leadership team development requires establishing “healthy rhythms” of working and meeting. Figure 4 shows how these rhythms can propel an existing leadership team towards high performance and effectiveness. 

Figure 4: Actionable approach to leadership team development  

This approach combines both “art and science” to shape team dynamics, capabilities, identity and culture of the leadership team. It involves:  

1. Conducting a leadership team diagnostic to help the team (and other stakeholders) identify opportunities for improvement based on how the team currently functions.   
2. Early alignment of the team’s purpose, ambition and role within the wider organization, so it can provide both clear leadership and staff empowerment by knowing its distinct contribution to success.   
3. Ensuring psychological safety through trust-building workshops. The team narrative and behavior workshops help teams build trust through sharing their whole selves, the meaning they derive from their work and committing to the behaviors to sustain trust.    
4. Prioritizing trust, healthy conflict and accountability to align the team’s success over individual ego. To uncover this a team strengths and priorities workshop helps sets OKRs and leans into the strengths of the leadership team.   
5. Systematically defining ways of working and decision-making processes. In a session around ways of working, the team can shape the purpose of leadership meetings, how decision-making works and define an effective cadence of meetings.   
6. Focusing on both individual and team learning to sustain growth and development. This typically involves team check-ins (potentially with an observer to feedback on process), re-running of the team diagnostic, team and individual coaching and continuation of individual development.  

Leadership teams are the driving force behind an organization’s performance, especially in today’s rapidly changing world. The key challenge lies not just in the competence of individual leaders but in the collective effectiveness of the leadership team. Like individuals, leadership teams require nurturing and careful development. Breaking free from functional silos requires a rhythm that fuses a human-centered approach with both art and science, creating a sustainable and highly effective team.

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Hybrid work was supposed to be the future, but now with economic headwinds and continuing uncertainties, existing employee experience strategies are crumbling, even in Asia. Despite robust economic growth, concerns persist over potential slowdowns in major Asian markets, such as China and Japan, and their cascading effects on regional trade, investment and talent mobility. Companies are walking on a monetary tightrope due to rising interest rates and global inflation. This has prompted companies to reevaluate their talent needs and prioritize adaptability and digital skills. Additionally, stressors like rising living costs and geopolitical instability have caused a high mental health risk for employees in Asia. 

The Imperative of Fostering an Employee-Centric Strategy 

In Asia’s complex business landscape, adopting an employee-centric strategy is a crucial imperative for organizations seeking uncommon growth. 

Staying Competitive in a Tight Labor Market 

In the competitive labor market in Asia, the war for talent will rage stronger than ever. The 2023 Hays Asia Salary Guide revealed talent and skill shortages as the foremost challenges confronting employers across Asia, driving a shift towards skills-based talent acquisition as a pivotal strategy for thriving in this fiercely competitive landscape.  

Addressing Specific Employee Needs in Asia 

Despite experiencing increased productivity during the remote work era, the modern Asian workforce faces a multitude of challenges, including burnout, cultural disconnection, and diminishing job satisfaction. This is evidenced by a PwC report revealing that only 57% of respondents in Asia are satisfied with their current jobs. 

Prioritizing flexibility and work-life balance remains crucial, alongside the need for proficiency in regional languages and a deep understanding of cultural and regulatory landscapes. Encompassing nearly 50 countries each with its own distinct cultural and linguistic tapestry, many roles in Asia are inherently regional which means there is a higher demand for businesses to foster agility and cultural intelligence.  Employees find themselves at a crossroads, balancing demands from both Asian and Western headquarters. The ability to comprehend and align with the priorities and expectations of each, while advocating for the unique needs of Asian markets, becomes a critical skill. Moreover, fostering positive cross-cultural collaboration is not merely an option but a necessity for organizations to thrive in the intricate Asia business ecosystem. 

Creating Employee-Centric Offerings 

As business optimism confronts talent challenges in Asia, organizations must prioritize employee-centric strategies, emphasizing cultural awareness, flexibility and work-life balance. By addressing the intricacies of the Asia talent landscape, businesses can attract, retain, and engage with the right talent, ultimately driving long-term and sustainable business growth. 

The New Equation: Flexibility + Connection = Wellbeing 

Prophet’s research highlights flexibility and connection as the main levers for achieving holistic employee well-being. This means adapting to diverse needs and fostering meaningful connections aligned with the company’s mission. The dynamic synergy forms a reciprocal relationship: as businesses prioritize well-being, individuals become dedicated stewards, fostering a harmonious cycle of mutual care and organizational success. 

1. Highlighting Flexibility Through Cultural Transformation 

Mercer’s Global Talent Trends (GTT) Study 2023 reveals that only half of Asia-based employers currently offer flexible work options for all employees, trailing behind the global average of 56%. In fact, a substantial 68% of APAC workers expect their companies to offer hybrid work arrangements in the next year. Hence it is crucial for companies in Asia to create a sense of openness and flexibility in the workforce environment that caters to employees’ emotional needs and changing expectations.  

Cultural transformation programs are an effective avenue to cultivate meaningful experiences and internal trust among employees. A key step to bridge the gap between employee expectations and company commitments is by defining a clear and compelling Employee Value Proposition (EVP). 

For example, Singapore’s UOB (United Overseas Bank) has crafted an EVP centered around care, growth, and trust, actively prioritizing employee well-being. The leadership at UOB aims to strike a harmonious balance between purpose and equilibrium, ensuring employee motivation while allowing ample time for personal pursuits. Notably, their implementation of a two-day remote work arrangement in 2022 resulted in increased employee morale and loyalty without any adverse effects on productivity.  

 Coming out of the pandemic, an Asian luxury travel retailer saw the need to revamp their EVP in 2023. This initiative aimed to boost employee engagement, reignite culture and establish a more powerful employer brand to attract and retain top talent. To achieve these goals, they focused on creating a unified message that clearly defined the company’s values and emphasized the opportunities for growth, learning and exploration that aligned with both the employees’ purpose and the overall brand strategy. 

With a well-defined EVP, businesses can then implement effective internal communication and culture programs to create meaningful and engaging experiences. Many companies in Asia are actively undertaking culture transformation initiatives to enhance employee experience. 

2. Deepening Connection Through Collaboration 

In hybrid and digital workplaces, employees are increasingly seeking meaningful connections, not just with their peers, but also with the leadership. In addition to creating interesting and engaging employee experiences, businesses must also recognize the pivotal role of collaboration in enhancing connections. Deepened collaboration not only enables employees to forge stronger bonds, fostering a sense of unity and shared purpose but also cultivates a profound connection to the core values and mission of their company. This, in turn, leads to a collective commitment to overarching goals, enhancing workplace camaraderie. 

Prophet’s research, The Collaborative Advantage, not only sheds light on Southeast Asian companies’ heightened appreciation for collaboration but also reveals a noticeable lag in execution compared to their counterparts in other regions. The report introduces the Collaboration Flywheel, a comprehensive framework guiding leaders in prioritizing and expediting efforts to strengthen collaborative capabilities. Key tenets of this framework include: 

• Coordination: Illustrate the linkage between an employee’s individual effort and the organization’s purpose. Guide individuals by showcasing “what good looks like” and granting decision-making authority to lower levels, leveraging digital transformation as an enabler. 
• Cooperation: Align incentives across the organization, balancing differing definitions of what a “good” incentive is. Consider cultural differences when creating incentives and foster a shared mindset that collectively achieves unified goals. 
• Collaboration: Focus on the process, not just outcomes, to make room for more agile thinking, allowing synergies and interdependencies to form. Empower employees through a bottom-up, test-and-learn approach, encouraging them to challenge the status quo and implement new, fresh ways of thinking. 

Singapore’s Government Technology Agency (GovTech) provides an excellent case study. GovTech embraces a flat organizational structure that grants partial autonomy to its sub-divisions. This structure enhances agility in market response and allows robust collaboration among its divisions. When recruiting new talent, GovTech prioritizes individuals with strong learning agility, ensuring that its workforce remains adaptable and forward-thinking. This internal culture of collaboration enables it to remain competitive among other tech players. As a result, in 2022, 99% of citizens surveyed expressed satisfaction with Singapore’s government digital services. Moreover, GovTech ranked third place in Singapore’s Best Workplaces in Technology List in 2023. 

Additionally, representation and diversity are becoming a pivotal piece in strengthening connections within an organization. According to the EY Asia-Pacific Belonging Barometer 2022, employees’ sense of belonging is enhanced from 22% to 70% when they perceive diversity and strong leadership in Diversity, Equity, and Inclusion (DEI) initiatives. In the dynamic Asian talent market, where individuals are increasingly prioritizing DEI considerations, companies risk losing valuable employees if they fail to invest in creating an inclusive workplace. It is essential for organizations to articulate DEI mission statements and define how these principles align with their core values.  

For example, Microsoft Asia Pacific has demonstrated a commitment to DEI through initiatives like the “Code; Without Barriers” program which certifies women in AI across the region, pushing the company further to continue their mission of empowering Asia Pacific’s digital ambition. Similarly, Ørsted Taiwan exemplifies an award-winning approach to DEI by embedding it in their business strategy, with a goal to achieve a gender ratio of 6:4 by 2030. Right now, over half of the Asia Pacific senior management team comprises females. Moreover, Ørsted Taiwan fosters strong connections through initiatives like utilizing the “Insights Discovery” psychometric tool and implementing “GenderIN” sessions to encourage discussions and guide policymaking, contributing to a high level of employee satisfaction. 

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Corporate coldness doesn’t work any longer. Just ask Elon Musk. Months after his brutal mass layoffs – with many of Twitter’s 6,000 downsizing victims finding they’d gotten the axe only when they lost access to email – the company is still struggling. Ad revenues and stock performance have plummeted. Consumers are racing to competitors, including Threads. And all because he forgot the most essential rule in business today: People matter.  Change initiatives require empathy to succeed even when making tough calls, like reducing staff. 

Prophet calls this a human-centered approach to change. Our research and experience prove that companies approaching transformation from this point of view are more agile and responsive to the needs of their people and have more flexibility when it comes to adjusting roadmaps as they move through their journey. They have more robust, loyal workforces because they align new governance policies around people, not technology. Even before profits and efficiencies, these companies center their strategies on the people in the business.  

The impact is clear. In May 2023, Prophet commissioned Forrester to explore how firms use human-centricity to design their transformation initiatives and assess their performance. This joint research confirmed that firms that adopt a human-centric focus were: 

• 10x more likely to see revenue growth of 20% or higher
• better able to engage employees and create impactful stakeholder experiences
• able to improve overall levels of innovation, time to market, creative differentiation, and capture new markets with enhanced product offerings

We’re not saying this approach is straightforward. If the last few years have proved anything, change isn’t linear. Leaders face new demands and are often driving multiple changes simultaneously. CEO tenure keeps falling. And even though murky economic forecasts are causing layoffs in many sectors, investors still demand growth. It often feels that the expectation that businesses change and then keep changing is more significant than ever. 

Yet our research and experience working with change leaders have shown us that it pays to adopt a human-centered approach – ensuring strategies are holistic and integrated improves the success of any single initiative. 

Prophet’s Four Directions of Change Model Cultivates a Human-Centric Mindset 

Change isn’t one-dimensional. Neither are people. So human centricity can’t be, either. By definition, it’s holistic. It requires a constant shift in perspective, understanding no organization or industry operates in a vacuum. All businesses, from small B2B companies to sprawling consumer giants, work in constantly expanding ecosystems. 

To successfully navigate this expansion, we believe leaders need to pay attention and respond to each “dimension” at which change occurs. Four directions are essential: 

1. Look outside-in.

 Real-world forces and societal changes are happening all the time. Workforce demands and expectations that emerged in the last few years continue to intensify, and organizations must respond. The top triggers? Employee well-being and mental health, cited by 71% of companies we surveyed, sustainability and climate change (65%), the ongoing challenges of remote and hybrid work (64%) and diversity, and equity and inclusion (61%). Addressing these needs takes an integrated and experimental approach – aligning people, operations and technology functions to address new ways of working. 

2. Lean on the existing culture, inside-out.

Leaders should consistently assess their organization’s aptitude or fitness for change and build a unique change journey from this starting point. We know the most effective change accelerator is a powerful, actionable ambition. But to reach those goals and set an ambition, organizations need an honest assessment of their performance across critical fundamentals. They need to know how well they enable employees to adapt to required changes and build the best mechanisms to support them. They need to push decision-making rights downward, as reducing hierarchical decisions improves asset allocation and boosts effectiveness. Leaders should leverage their organization’s strengths – reinforcing the elements that drive pride and comfort around change while painting a brighter future in areas where change will improve their people and the business. 

3. Coordinate a leader-led change.

Leaders need to communicate, direct and model the change desired. Unless executives believe in and model the change required, it will fail. Our research on how well companies collaborate for transformation finds that leaders who don’t practice what they preach are a leading cause of initiative failure. Additionally, having an aligned leadership team is key to managing prioritization and execution – ensuring there’s a coordinated effort to focus on what matters and manage capacity internally. When defining “the way we do things around here” and motivating employees to adopt these same behaviors, senior leaders must act first to exemplify what effort and success look like.  

4. Engage from the ground up.

Leaders include those impacted most in the strategy, development and activation. Companies can decrease implementation time and increase employee engagement by including members of the affected employee groups in strategic change initiatives, such as having them co-create solutions, recognizing them through stories of behaviors in action, or elevating them as change champions. When doing this, it is critical to ensure representation across race, gender, tenure, generation, and geography in addition to business units and levels. 

Managing Across These Four Directions in Action: How It Works 

The new CEO of the largest business unit of a major global industrial client asked for our help as she took on her role, recognizing that to achieve sustainable growth, significant change was needed inside the organization, both in mindset and ways of working. We started by building a picture of the current cultural dynamics for her and her leadership team and integrated this into the strategy development. 

With this integrated foundation, we were able to codify the key behavioral shifts required and the program of work across the cultural ecosystem required to enable this.  The interdependency of strategy and culture inherent in the program ensured that the change work itself was inside-out as well as outside-in, leader-led of course, but also focused on front-line engagement and performance. 

At its heart, this change journey was shaped from the ground up. Our work was defined by reviewing key employee insights and engaging the organization in identifying the key shifts we needed to make to achieve our ambition.   

From the outset, a leader-led principle was established for this work, reflecting the importance of leaders not just understanding but championing and role modeling change. Initially, key leadership groups input into the assessment and then helped co-create the program of work. The beginning of this journey was then largely focused on leadership skills and capabilities. We defined a multi-stage journey with different levels of leadership to ensure alignment, championship, connection and focus in owning the transformation. This involved both regular engagements as well as dedicated events like full-day in-person summits (held twice- yearly since).  

Naturally, the work was dominantly inside-out – building a compelling “story” for the journey the organization was on and using this to help all employees understand the criticality of the strategy and culture work driven by their purpose.  The “story” activation approach was informed by engaging the front line – getting the voice of the day-to-day operators into the work.  Helping these audiences fully appreciate how their work delivers real value in the world has been instrumental – with 84% of employees feeling personally connected to purpose in their latest employee voice findings.  

Outside-in, we built a renewed partnership with union leaders – a critical strategy in what is a heavily unionized working environment where relations had historically been strained. This collaboration with union leaders enabled us to align on a set of central issues to be resolved – ranging from inclusion and diversity to safety and future of work implications. 

The program has run for three years – and in that time all four of these change dimensions have been sustained – even as different focus areas for the work have evolved. Our work together continues to transform the way the organization operates and how it maintains relevance in such a rapidly changing market and world. Importantly, the purpose is frequently cited as one of the key reasons employees join and stay with the organization. Survey results also show that our work has helped to align and guide day-to-day actions of employees across the organization. 

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This article is the third in a series based on our latest research, Catalysts: How to Build an adaptable organization that thrives during uncertainty. Conversations with senior executives in multiple industries helped us define concrete steps leaders can take to create a sense and structure for shared ownership within the organization.  

In his now-famous address to Congress in 1961, President John F. Kennedy laid out an audacious goal of landing a man on the moon and returning him safely to the earth.” The President lauded the endeavor’s impressiveness to humankind and its importance to future space exploration. The speech also represented an unspoken political gauntlet throwdown: pitting the distributed intelligence and decision-making of the US’s market-based economy against the Soviet top-down, centrally-planned model. 

At the time of JFK’s speech, and for the better part of the twentieth century, management theory favored predictability and consistency as means to economies of scale. This resulted in streamlining business processes and organizational structures to maximize standardization and minimize marginal cost. Whole disciplines such as Toyota Production System (TPS), Six Sigma, and Lean emerged as proven methods with terrific results when implemented well.  

Today we operate in a very different economy. The advancement of digital technology has upended the economics of value creation. As a result, we live in a world that is more unpredictable. Today’s leaders must channel President Kennedy’s faith in systems with distributed intelligence and decision-making to thrive. Rather than centralize decision-making, leaders can gain better control through the twists and turns of the market by “letting go” – empowering autonomy and decision-making within their organizations by establishing the organizational structures, processes and culture to make it successful. 

The Benefits of “Letting Go” 

Leaders and managers who look at the big picture quickly realize that delegation of authority greatly benefits the firm and its customers. The company gains strategic agility because it can pivot faster to respond to market shifts. Customers benefit because “bringing authority to the information” increases customer intimacy, driving the development of more relevant and impactful products, services, and experiences. 

Additionally, shifting decision rights lower in the organization drives greater employee engagement, resulting in a 23% productivity increase, according to Gallup’s 2020 meta-analysis. It also delivers a radically improved employee value proposition, as demonstrated by significantly increased retention and ratings for employee wellbeing. 

C-suite leaders that we interviewed for this series told us they are working hard in 2023 on letting go. “This is a major cultural shift that we need to make in order to unlock the potential of the great talent we’ve hired and the leaders we have on deck,” says the Vice President of Talent of a multinational e-commerce company. “We constantly ask ourselves, `What can we do today to step out of their way and unleash that potential?'” 

Three Critical Shifts for Empowering Autonomy and Decision-Making 

“Organizations often underestimate what’s required to release control and still achieve results,” says Jane Hanson, former Chief People Officer of Nationwide Building Society, the UK’s third largest mortgage provider. “It’s not just a matter of leaders stepping back and declaring others are empowered. It’s about building the scaffolding and putting the right systems in place to help people be successful.”  

Empowered teams need the authority to make or influence business decisions. As recently as 2015, just 11% of US workers said they could consistently influence decisions critical to their work. However, it takes more than just leadership’s permission to “let go” successfully. Teams also need the organization’s formal structures, the “Body”, to follow suit. Through our research, we uncovered three critical structural changes required to enable more adaptive and resilient organizations.  

1. Clear Vision, Goals and Accountabilities

To operate with agency, teams need clarity on the strategic direction for the company overall, what success looks like, and how the team contributes to the larger organization. A clear vision and goals at the organizational level establish a “north star,” while breaking enterprise goals down to team-level outcomes and accountabilities gives the team the direction they need to make effective decisions on prioritizing their efforts.  

How goals are framed is equally as important. JFK aimed “to land a man on the moon and return him safely to Earth.” The goal is ambitious and transparent, and its outcomes are easily measured (an astronaut either returns to Earth or they don’t). Yet the goal does not prescribe outputs or how to achieve it. The goal doesn’t stipulate the spacecraft’s design, the mission’s trajectory, the number of crew, etc. Instead, NASA was responsible for determining how they would accomplish this goal. By articulating goals as outcomes (versus outputs) and holding teams accountable to those outcomes, organizations can create greater resiliency and scale by delegating the “how” to teams. 

Outcome-oriented goals can also become an essential facet of the company culture. A senior product leader at one of the world’s largest tech firms shared, “When we pass someone in the hallway that we haven’t seen in a while, typically the first question you ask is ‘what’s your goal?’ not ‘who are you reporting to?’ or ‘what project are you working on?’ Everyone understands what the company’s goals are. It’s actually how we navigate the organization.”  

2. Transparent and Responsive Resource Allocation

In addition to clarity on outcomes and accountability, teams also need resources to achieve their goals. Delivering great products, services, and experiences takes human effort, financial resources, and technological capabilities. Simply having access to those resources is not enough. Teams also need the ability to reallocate those resources to pivot quickly. Too often, financial planning and allocation of talent is an annual process that, for most organizations, is far too infrequent to facilitate effective pivots. Faced with emerging opportunities or market shifts, teams can often find themselves saddled with resources committed to one project while watching opportunities for higher and better use of those resources pass by. Redirecting resources usually takes time and attention-consuming escalation to senior leadership.   

“Letting go” often requires redefining how resources are allocated within an organization, making those processes more agile and giving teams greater autonomy in regular resource reallocation.  

3. Cross-Functional Work 

Reorienting teams around outcomes versus outputs can be liberating but requires more cross-functional work. Rather than being accountable for a single activity or component, teams responsible for business outcomes, such as customer satisfaction, operational efficiency or launching a new product, need the talents of many functional domains that often operate in silos.  

Organizations seeking to become more resilient and adaptive by “letting go” should find ways to accelerate cross-functional collaboration. That could be by shifting the organization’s structure outright, such as to agile teams or matrix models, or by evolving how individuals and teams are aligned to work.  

Putting “Letting Go” Into Practice Across the Organization’s Mind, Body, and Soul

Every organization can find its way to the level of shared, distributed decision-making that best fits its strategies and goals. Using our Human-Centered Transformation Model to think holistically, here are some actionable ways leaders can empower autonomy and decision-making within their organizations.” 

DNA: Define the Strategic Destination 

• Make decision-making faster and easier at all levels by promulgating clear and compelling statements of corporate purpose with well-articulated values to support it. The clearer they are, the easier it is to trust that decisions will be made consistently at all levels. 
• Identify where autonomy and decisiveness are best aligned with company values. 
• Celebrate significant decisions that are well-aligned to purpose and values. 

Mind: Enable Employees With Necessary Skills and Knowledge 

• Shift hiring practices to include problem-solving and cross-functional collaboration, not just hard skills. 
• New responsibilities require new capabilities. Create learning and development resources that help employees build an ownership mindset and cultivate the underlying skills, such as data analysis, to contribute to better decision-making.  

Body: Provide Structure and Governance to Deliver the Strategy 

• Charter work for business outcomes and empower decision-making in the teams that need to achieve them. 
• Simplify governance models as much as possible by moving decision makers closer, if not into, the work process. 
• Advance managers into true coaching models that avoid micromanagement. 
• Ensure all relevant employees can access the data, systems, and inputs they need to make the best decisions.  

Soul: Motivate and Ignite Belief in the Strategy

• Reward progress in decision-making quality, speed and accountability, not just outcomes. 
• Spotlight employees who demonstrate an ownership mindset and recognize them publicly. 
• Champion new leadership behaviors.  

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This is the third article in a series based on our latest research series, Catalysts: How to Build an Adaptable Organization That Thrives During Uncertainty. In the previous article, Catalysts: Transform Purpose From Catchy Slogan to Growth Engine, we explored how the most adaptive companies use their purpose to drive compelling business strategies.  

A culture of experimentation is essential for innovation and growth. And while virtually every business leader knows that’s true, at least in theory, relatively few companies know how to build that culture. Through our research, we uncovered plenty of reasons organizations resist experimentation. Fear and short-term thinking top the list.  

Today’s economic uncertainty makes many organizations even more timid about investing in experimentation. “Since the Great Depression, there have been nine bear markets,” says Mark Jamison, former Global Head of Design and Innovation and currently Head of Global Accounts for Visa. “Humans are not designed to take a longer view. They tend to be reactive, particularly in times of stress. Leaders need the fortitude and the foresight to step back and ask, `What strategies might we put in place to go after opportunities this uncertainty has created?’ You can then use this foresight to focus the organization’s energy on delivering outsized impact while competitors are inwardly focused.”  

But too often, organizations shut down that scientific spirit. Experiments often fail, and that scares people. A 2020 Gallup survey found fewer than one in ten respondents strongly agreed with the statement, “I take risks at my job that could lead to new products or solutions.”  

Ironically, the same leaders who struggle with encouraging experimentation are often the same ones lauding data-driven decisions. To foster an organization that effectively uses iterative experimentation, leaders must promote the discipline of regularly testing hypotheses. And, like any scientist, they have to learn to view every outcome, failure or success, as progress. Only then can innovation flourish.  

Encouraging an A/B Ethos 

Firms born in the digital era, such as Amazon and Netflix have repeatedly demonstrated that experimentation through A/B testing can help identify how to generate more value.  

Amazon, for instance, discovered that making a mobile game called Air Patriots easier unexpectedly increased the enjoyment of its end users, leading to more revenue. Netflix runs constant experiments to determine how best to personalize artwork so that each customer sees images with actors and genres they like best.  

Ghost kitchens have given rise to new levels of innovation for many large restaurant groups over the last three years. These kitchens are used to test new menu items, new restaurant concepts and even branding. They provide an efficient way to offer food delivery, of course. But these kitchens have also proven to be ideal testing labs. Since many have no visible connection to their existing brands, companies can measure market demand and consider how to scale winning concepts with relatively little risk. 

Increasing Organizational Experimentation 

There are specific actions organizations can take to lower the costs of experimentation and increase innovation. At Prophet, we use our Human-Centered Transformation Model to think holistically about an organization. We view the organization as a macrocosm of the individual, with four distinct components. 

DNA: Define the Strategic Destination 

A company’s DNA is its purpose and core beliefs, which should inform all decisions and strategies. If innovation is part of these core corporate values and most companies recognize that new ideas are essential to survival, make sure the definition of innovation includes the idea of experimentation. Innovation often becomes synonymous with “new,” neglecting the disciplined experimentation required to hatch ideas. 

Mind: Enable Employees With the Necessary Skills and Knowledge   

Leaders must also examine the skills and competencies needed to encourage test-and-learn thinking. Knowledge, capabilities and skills compose the mind of an organization. Our research finds that the most innovative companies are reinforcing employee learning in multiple ways, including:  

• Invest in bringing in knowledge from outside the organization, including secondments with other companies, university relationships, entrepreneurs-in-residence and speaker programs. 
• Build experimentation into the performance review for every role. Embedding innovation into the reward and performance structure is vital. 

• Make agile methods, design thinking and innovation skills standard training across functions.  

Body: Provide Structure and Governance to Deliver the Strategy 

Leaders may also reconsider organizational structure. Companies need to be designed in ways that facilitate experimentation. Not only does that differ from company to company, but it also calls for various operating models within each enterprise. Groups working on near-term innovation likely require different teams, funding, processes and incentives than those working on long-term horizons. And organizations need ways to astutely assess the risks and rewards of each flavor of innovation.  

“We use the concept of one-way and two-way door decisions,” says Gabriel Mas, chief marketing officer at Amazon Mexico. “A one-way door decision is almost impossible to reverse. A two-way door decision is easy to reverse. For one-way door decisions, more analysis, discussion and senior leader input are provided. If a decision is a two-way door, people closer to the decision are empowered to move quickly and execute, and we have mechanisms in place to learn from each decision, good or bad.” 

Soul: Motivate and Ignite Belief in the Strategy  

Finally, the organization’s soul must celebrate experimentation, especially when an exciting hypothesis is disproved. That means developing traditions, symbols and rituals that make people feel safe. They must be encouraged to test ideas, even when their work results in negative data. It’s easy for a company to say it sees failure as a learning opportunity. But genuinely living that conviction is difficult.  

Leaders need to model and promote the scientist’s mindset, releasing any attachment to the positive outcomes of experiments in their organizations. They need to demonstrate that all experiments deliver valuable information. 

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This article is the second in a series based on our latest research, Catalysts: How to Build an Adaptable Organization that Thrives During Uncertainty. In-depth conversations with senior executives across industries helped us define concrete steps organizations can take to ensure corporate purpose becomes a powerful growth engine. 

Having a mission, purpose or vision for an organization has been a business essential for more than a decade. In our interviews with senior leaders, purpose emerged as one of the five most important drivers for creating a culture of resilience. Yet the practical application of corporate purpose has fundamentally shifted in recent years, and it is fast becoming one of an organization’s highest priorities. 

It’s hard to overstate how fast the purpose train travels through the business landscape. In 2019, the Business Roundtable, a U.S.-based organization chockablock with globally influential companies, released a statement that distilled the new definition: Businesses can’t exist just to make money. They must also serve customers, employees, suppliers, communities and shareholders.  

Months later, the global pandemic arrived. The crisis vaulted purpose-driven thinking into a new realm. COVID caused billions of people to re-examine their individual purposes. Businesses recognized that their workforce and society as a whole had begun to question their expectations about work. By early 2021, academics, economists and journalists began to record a dramatic reshuffling. Whether they called it the Big Quit or the Great Resignation, it all reflected a ferocious desire to prioritize life based on meaning.  

Companies responded in many ways, from increasing work/life balance initiatives to taking stronger stands on social issues. They sought more transparency and better corporate behavior. The number of companies striving for B Corp certification, which requires a full-scale commitment to purpose and higher ESG standards, has risen 38% since the pandemic’s start. 

Moving through 2023, people’s search for meaning through work continues. But economic uncertainty and large-scale layoffs have thrown new curves. People are still increasingly thoughtful about the brands they associate with as employees, consumers and investors. But, they’re more focused on job security and exhausted by bureaucratic inefficiency. 

Authentic Corporate Purposes Unlock Uncommon Growth 

An authentic corporate purpose can inspire and engage both employees and customers. For employees, purpose can inspire belief and cultivate hope for employees that their efforts will add up to something more significant. And for customers, purpose creates brand trust and signals they can and should believe in those brands. Customers and employees are much more loyal when a company’s product or service delivers on its promised value proposition and expressed purpose. 

Well-crafted purposes are durable and can help an organization navigate, particularly in tumultuous times. “Purpose becomes the bridge between us that allows us to be less physically connected but not less aligned,” says Kris Ahrend, chief executive officer of the Mechanical Licensing Collective, a nonprofit music rights administration company. “Purpose minimizes confusion and accommodates creativity. It is integral to maintaining that connectivity and alignment.” 

It’s also a lens for what comes next. “Our purpose is always at the root of our decisions for what to do next and why,” says an HR executive at a large financial company. “We never take our eyes off why we’re here as an organization.” 

A properly developed purpose is part of an overall management philosophy and allows continuous engagement with investors, employees and customers. Operationally, a well-framed corporate purpose is a tool for leadership alignment, a source of employee motivation, a criterion for business decisions and a natural foundation for the brand.  

Making Purpose Practical 

The most adaptive companies keep purpose alive rather than letting it become a platitude. They continually find new ways to use purpose as an engagement tool.  

Patagonia has long been known for its fierce environmental commitments. Over the years, that’s been expressed through supply-chain innovations, leading the re-commerce movement with Worn Wear, voter drives, and even suing the federal government to protect public lands. 

Recently, founder Yvon Chouinard made the most significant purpose-driven move ever, donating the entire $3 billion company to a foundation that will protect the planet. Earth is now Patagonia’s only shareholder. 

This bold move has made Patagonia the most relevant corporate voice in the environmental crisis. And it speaks directly to its adventure-loving and environmentally-conscious customers and employees. 

No other company has gone as far as Patagonia, but more are finding novel ways to express and expand their purpose in memorable and credible ways. Calm, made headlines when it volunteered to pay fines for tennis players like Naomi Osaka, who skip press events for their mental well-being. Chipotle, which has long stood for cultivating a better world, has made massive investments in fighting hunger and food insecurity through tech. 

Every organization can find ways to use purpose just as effectively. To help companies think more holistically about operationalizing a strong corporate purpose, Prophet uses its Human-Centered Transformation Model. Here are four actionable steps that can help companies turn purpose into a reality.   

DNA: Define the Strategic Destination 

For a company’s purpose to be compelling, it has to be right and in tune with its goals and objectives. That means it should be: 

• Inclusive: Corporate purpose needs to encompass every internal and external stakeholder. Without inclusive language, it inherently limits the spectrum of inspiration.
• Built into the employee value proposition: People must understand and reflect on the purpose, so it should be integrated into the hiring process. Hiring skeptics who keep a company honest is great. Hiring folks who might subvert its purpose and values is an unforced error. Dick’s Sporting Goods, for example, is devoted to promoting youth sports and goes out of its way to hire people passionate about athletics,  including Olympic hopefuls. 
• Monitored consistently: Ensuring that purpose is healthy is an ongoing activity. Does it still resonate with stakeholders? Do employees believe in the company’s future? How confident are they that the company is improving the world? 

Mind: Enable Employees With the Necessary Skills and Knowledge  

It is important to identify critical skills required to achieve the company purpose by each function, enabling organizations to understand the roles and responsibilities of each function and champion the skills that best support that purpose. 

3M, for instance, is using science to solve the world’s most challenging problems. That requires diverse thinking, which explains the company’s $50 million commitment to closing the racial gap in STEM and intense recruiting at historically Black colleges and universities. 

Body: Provide Structure and Governance to Deliver the Strategy 

Companies must ensure that employees have the decision rights to infuse purpose in day-to-day operations. For example, Ritz-Carlton operationalizes its purpose, to provide warm, comfortable experiences by delegating every employee that responsibility. Each is empowered to spend up to $2,000 to rescue a souring guest experience without a manager’s approval. 

Soul: Motivate and Ignite Belief in the Strategy 

This means leading by example, making sure leaders demonstrate how they live and celebrate the company’s purpose.  

• Make language purposeful: Include corporate purpose in the internal language, identifying employees as “one of us.” Pfizer employees, for instance, are encouraged to “zig-zag,” making non-linear career moves to bolster personal and organizational growth.  
• Infuse purpose into the everyday: Find “moments that matter” within the experience of both customers and employees. 
• Give employees a platform: Help employees share and celebrate their connection to the purpose by creating forums, social networks, and events. Alaska Airlines’ promise to “run our company with care” has taken on new meaning in the last 18 months, when passenger-facing travel roles have become especially grueling. They now host an annual day-long retreat focused entirely on mental well-being. 

 A company’s purpose must be holistic, permeating all aspects of the organization. That’s what builds adaptability. “Resilience is about understanding your organization’s strengths and areas of focus and aligning people to pursue these things as a collective,” says Danielle Clark, eBay’s vice president of talent. “An adaptive business model or value proposition isn’t enough to create resilience. You need purpose and people behind it.” 

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The turbulence and upheaval of the last few years have become routine. That’s good since many believe this era of volatility, uncertainty, complexity and ambiguity is here to stay. Business leaders should pay close attention to the post-pandemic twist on Darwin’s law. 

It is not the most intellectual of the species that survives; but the species that is best to adapt and adjust to the changing environment which it finds itself.

Charles Darwin 

Recent disruptions have proved that while some companies are already impressively agile, many aren’t. Many larger businesses have spent the last few years lurching from one crisis to another, relying on limited moves torn from old playbooks.  

This article – the first in a series – is based on interviews with senior leaders and is focused on how enterprises can tap into variety, building organizational flexibility.  

Our respondents detailed their successes and setbacks, and ultimately illuminated five critical principles for creating adaptability at multiple speeds during this critical moment in time.  

Defining Adaptability in a Post-Pandemic World 

At Prophet, we define “adaptability” as the ability to anticipate and respond to opportunities created by a shifting market. And we define “at multiple speeds” across three horizons.  

Something that separates humans from other animals is the ability to plan ahead and imagine multiple potential futures. In modern life, we do this quite naturally:  

• What’s for dinner tonight?  
• Where might we take the family on vacation this year?  
• When can I retire, and how much must I save?  

Here are just a few ways our respondents are anticipating and responding to uncertainty across these three key horizons.  

Optimizing for Today 

Our respondents are evolving operating models to deliver the current portfolio of products and services to the same customers. They are organizing resources to increase customer satisfaction and profitability. And they are hunting for efficiencies, like centralizing or outsourcing back-office functions for greater scale or lower costs. 

Innovating for Tomorrow  

Planning within medium-range windows includes expanding product and service portfolios or reaching out to adjacent target customers. And while many of our respondents may be leveraging brand relevance to expand into new categories and integrate new capabilities, it’s still happening within the boundaries of the existing business model. 

Building the Future  

To build for the future, our respondents are transforming their business models and fundamentally changing how the business makes money and creates value for customers. It’s a seismic shift, like Netflix’s move from mail-order DVD business to a content studio. 

Five Ways to Build Adaptive Organizations 

Our research led to five key strategies to enhance adaptability and create future-ready, resilient organizations.  

1. Put Purpose to Work  

Purpose-driven branding has been part of the corporate playbook for over a decade. Yet the definition and expression of that purpose keep gaining importance. Customers increasingly demand that companies stand for something, and people insist employers care about more than money. They won’t settle for a slogan on a wall or some fluffy catchphrase dreamed up at an executive retreat. It must mean something. 

Like human DNA, an organization’s purpose is fixed. “To operate in an environment filled with uncertainty, you have to create stability in other ways,” says Kris Ahrend, chief executive officer of the Mechanical Licensing Collective, a nonprofit focused on streaming royalty distribution. “Our culture is what gives us stability.” 

But while purpose may be steadfast, it can still be leveraged differently and more effectively, filtering throughout an organization’s activities. That way, it can provide renewed focus, guiding decisions and strategies. 

“Our purpose is always at the root of our decisions for what to do next and why,” says an executive at a large banking company. “We never take our eyes off why we’re here as an organization.” 

2. Gain Control by Letting Go 

Decentralizing governance can feel counterintuitive in these turbulent times. “We’re all moving forward wishing we had a crystal ball,” one human resources executive says. “Between the war in Europe, pandemic recovery, economic instability, and return to office policy, everything feels more uncertain.” 

But respondents feel strongly that this uncertainty is what makes pushing decision rights down even more important. Many wish they’d worked harder for this change in the past.  

Decentralization lets those closest to customers and operating problems make better and faster decisions. “It’s not just about tactical changes,” says Danielle Clark, a talent executive at eBay. “We have to address the underlying behaviors that enable leaders to step back and lead differently. It requires trust and a greater appetite for thinking boldly.” 

3. Lower the Cost of Experimentation 

 Adaptability requires innovation. And innovation, by definition, involves failure. Organizations must have realistic conversations and processes about what that means and what those failures might cost, especially in an uncertain economy. It’s easy to invest in experimentation when business is good. But experimentation is too often a prime target for budget cuts when revenue gets tight.  

“To be truly resilient, your organization must practice failing,” says one tech executive. “This is supported by a culture that encourages fast and safe failure with risk mitigation measures in place, so resiliency is exercised regularly.” 

4. Reinvest to Realign  

Aligning new strategies with existing structures is often challenging, especially for big companies that typically overinvest in growth areas during prosperous times and overcorrect in culling these growth areas during times of economic uncertainty.  

Over the last year, we’ve seen this pattern emerge within the technology industry, resulting in a hemorrhage of talent, confusing investors and disappointed customers. These massive gaps between their current structure and new strategy inhibit growth.  

The companies that overcome this risk and protect their business from boom-and-bust cycles are the ones creating agile operating models and continuously aligning structure with strategy.  

It is critical that business leaders get crystal clear about what the organization will not do going forward. “We have a strong understanding of who we are at our core,” says eBay’s Clark. “The work over the past few years has been to innovate boldly to maintain relevance while delivering with impact. This has led to our focused category strategy.” 

5. Embrace the Next Wave of Digital Transformation 

 Digital transformation continues to reshape how industries operate and deliver value to customers. The recent explosion in AI makes automation more accessible than ever before and will usher in the next generation of digital transformation.  

Best-in-class organizations embrace new technology to innovate the customer experience and streamline operations. They are using it to redefine systems, making work and life better. Rather than fearing it, they’re upskilling employees to work with these innovations, finding ways to drive a better business outcome.  

“We are asking questions about the business and people benefits,” says Jane Jin, a vice president at Takeda, a multinational pharmaceutical company. “What productivity might we gain when using these technologies? How might we develop our people so they continue to bring value to the company if technologies automate some of their tasks? How do we innovate responsibly and remove bias? How do our values translate in this digital age?” 

With a leadership team determined to decide when and how to adopt new technologies proactively, companies can guarantee decisions that boost productivity and encourage growth while staying true to their DNA. 

If history is any guide, these companies will grow faster and have an outsized advantage in attracting talent. Those that don’t will fall further behind. 

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