Leadership Gap No One Prepared Us For

Person hanging as a bridge between two rocks

A Human-Centered Leadership Series for the Age of AI

Work is undergoing a transformation unlike anything most organizations have experienced before. The scale and speed of change, from artificial intelligence (AI) to emerging skills-based and technology-enabled ways of working, are putting enormous pressure on leaders.

At the same time, many organizations have diverted resources away from leadership development towards technology investments, unintentionally under-investing in the leadership capabilities required to guide people through the transformation. The result is a modern organizational paradox: significant investment in new technology without comparable investment in the leadership capacity needed to realize its full potential.

We’ve explored this leadership gap – and practical ways to begin addressing it – in more detail in our earlier post, The Leadership Gap is Growing (Here is How to Fix It!). In this three-part series, we build on that foundation by taking a closer look at why this moment matters and why a human-centered approach to leadership has become essential to navigating change while still delivering meaningful business outcomes.

The Pace of Change is Accelerating

AI is reshaping the environment at remarkable speeds. According to Microsoft’s 2024 Work Trend Index, 75% of global knowledge workers are already using generative AI at work. Tools that were experimental just two years ago are now embedded in everyday workflows.

Most organizations are struggling to translate that potential into

real business value.

 

Studies from McKinsey & Company and Boston Consulting Group suggest that while companies are investing heavily in AI, many still fail to scale it across the enterprise or capture meaningful impact.

Meanwhile, work itself is becoming more fluid. Roles are evolving faster than job descriptions can keep up. Organizations are increasingly forming teams around specific projects or priorities, bringing together people from different functions rather than relying on fixed departmental structures. Skills are replacing static roles as the primary unit of work. Research on skills-based organization shows that companies adopting this approach can redeploy talent faster and respond more effectively to changing priorities.

All this change is placing incredible pressure on employees, and especially on managers and leaders. Surveys from Gallup and other organizations consistently show rising burnout, declining engagement, and increasing strain on managers who are responsible for helping employees navigate constant disruption.

In the middle of all this, organizations are asking leaders to do something that sounds simple but is profoundly difficult: help organizations move faster while ensuring people do not break under the pressure.

This is why many organizations are rediscovering a leadership idea that leaders and researchers have discussed for decades, but rarely implement consistently: human-centered leadership.

At it’s core, human-centered leadership is a research-based approach to leading that prioritizes how people experience change – building trust, capability, and adaptability – so organizations can sustain performance in environments of ongoing disruption. It focuses not only on choosing between people or performance, but on recognizing that human experience is central to how organizations achieve performance.

Human experience is central to how performance is achieved

 

This is not about slowing down or lowering expectations. It’s about recognizing that transformation; whether driven by AI or any other strategic priority, depends on people’s ability to learn, adapt, and stay connected to purpose along the way.

Often, the real constraint on transformation isn’t technology. It’s the human side of change.

Where Leadership Goes Next

We’ll continue to examine human-centered leadership in the following areas:

  • Why human-centered leadership is a performance strategy
  • What human-centered leadership looks like in practice and why it matters now

Let’s connect

Interested in exploring strategies for your own leadership pipeline? CARA helps organizations build strong pipelines of adaptable, innovative, and ready-now leaders. Contact us to discuss how we can support your leadership development strategies.

Michelle Reid-Powell, Strategic Advisor

Author Michelle Reid-Powell, Strategic Advisor

Michelle Reid-Powell is a Strategic Advisor to The CARA Group, Inc. Michelle describes her role as, “a trusted advisor guiding CARA’s strategic growth and providing support to help the CARA team achieve that vision.” Michelle is a former member of CARA’s leadership team where she was passionately devoted to elevating the performance of CARA’s team and clients. Prior to CARA, Michelle held strategic leadership roles in the learning and change management arena at companies including McDonald’s Corporation, marchFIRST, and Arthur Anderson. She has led high-performing teams acknowledged by Brandon Hall, The Masie Center, and Workforce Chicago.

More posts by Michelle Reid-Powell, Strategic Advisor
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