Workplace Trends

Performance Management in the Age of AI: the new 3‑Dimensional Model For decades, the 9‑box grid shaped how organizations assessed talent—mapping individuals along two familiar axes: ✔ Business performance (“what”) ✔ Behaviors or potential (“how”) Over time, many companies moved away from this model, concluding it oversimplified the complexity of human performance and sometimes reinforced bias more than it reduced it. AI is fundamentally reshaping work, shortening the lifecycle of skills and creating new capability demands at a pace conventional frameworks were never designed to keep up with. As a result, a new paradigm for performance management is emerging. Organizations are starting to consider a three‑dimensional approach to performance—one that integrates not just what people deliver and how they behave, but also how they grow. The new 3D model consists of three axis: 1. Business Results: Measures impact, delivery, and contribution to outcomes. 2. Behaviors / Ways of Working: Captures collaboration, leadership etc. and.. 3. Skills Development: Assesses capability building, learning velocity, and readiness for future roles. The third axis reflects a simple reality: In an AI‑driven workforce, continuous skills development is no longer optional—it’s strategic. IBM has begun to formalize this multidimensional view in its talent and rewards model. Their approach includes: 1. Integrating skills into pay: Base pay and equity linked to skill progression. 2. Balancing objectives: Business and skills goals carry equal weight 3. Future skills visibility: Regular communication on evolving skill requirements see: https://lnkd.in/eTDE-XmE Not every organization can replicate this model at scale, but it illustrates where performance management is heading. The central questions are shifting. Not just: “Did someone deliver results?” But also: “Are they developing the skills the organization will need next?” and “Are they learning at the speed the environment requires?” The move from a 2D grid to a 3D, capability‑driven framework may become one of the most consequential shifts in performance management in the age of AI—signaling a future where growth, adaptability, and skill relevance stand on equal footing with results.

IndiGo (InterGlobe Aviation Ltd) CRISIS WASN’T IN THE SKIES. IT WAS IN THE LEADERSHIP CABIN. Three things stood out. One: Employees were left alone to face furious customers. No leader should ever let that happen. If you don’t stand by your people in a storm, don’t expect them to stand by your customers in the sun. Customer experience collapses the moment employees feel abandoned. Two: In any crisis, honesty is the only strategy that works. This time, the communication wasn’t transparent. When leaders hide the full picture, years of goodwill can disappear overnight. A crisis can earn trust, but only if you tell the truth. Three: The belief that “we are too big to be ignored” has ended more companies than competition ever has. Customers always have a choice. And if they don’t, they will create one. We shouldn’t watch the Indigo crisis like spectators. This is a reminder for every leader to build their own crisis blueprint. Because crises will come, when they do, your response becomes your reputation. There is more to business than profits. There are people, trust, and how you show up when it matters most.

There has been much handwringing about the increasing credit problems of subprime borrowers and the fallout on the financial system and economy. Subprime borrowers are indeed suffering serious financial stress. The delinquency rate on #subprime loans (loans to borrowers with below a 660 Vantage score) jumped to 8.3% in September. This is the highest delinquency rate in September since 2010 in the immediate wake of the Global Financial Crisis. And the direction of travel is disconcerting. It is just more evidence of how hard-pressed lower and middle-income Americans are. However, worries that losses on subprime loans will be a big blow to banks and other financial institutions are overdone. Subprime loans outstanding as of this September total $2.63 trillion, equal to 15.3% of all household debt outstanding. At their peak in 2007, they totaled $3.38 trillion, equal to 28.2% of outstanding debt. Outstanding subprime first mortgage loans are a shadow of what they were in the lead-up to the GFC, and there is about the same amount of subprime bank cards outstanding. Consistent with the recent bankruptcies in the auto sector, there are more subprime auto loans outstanding than prior to the GFC. Still, even so, they amount to just over $400 billion in outstanding. Not enough to do the financial system or the economy in. At least not yet.

This is the single most important paper to come out in our sector in recent weeks. Erik Brynjolfsson, Bharat Chandar and Ruyu Chen investigate whether generative AI is leading to job losses in roles most exposed to AI – and how these effects differ by age and the way AI is used. Key findings: → Young workers (ages 22-25) in high-AI-exposure jobs like software development and customer service experienced a 6% absolute drop in employment since late 2022, while employment for workers aged 35-49 grew by over 9% → This pattern only appears in jobs where AI automates work - jobs where AI augments human capabilities showed no employment decline for young workers → The changes are visible in hiring patterns rather than wages, suggesting companies are hiring fewer entry-level workers rather than cutting pay AI may be creating a two-tier job market. I will be looking deeper into this in Exponential View in the coming days and weeks.

How tech workers really feel about work right now With insights from over 8,000 of you (possibly the largest survey of its kind), Noam Segal and I are excited to share the results of our first-ever large-scale tech worker sentiment survey. What we discovered is that tech professionals are experiencing a fascinating mix of emotions about their careers in 2025. Our biggest takeaways: 1. Burnout is at critical levels: Almost half of our respondents are experiencing significant burnout. 2. Tech workers are more optimistic than we expected—but optimism is declining: 58.5% of tech workers remain optimistic about their roles, and 54.8% remain optimistic about their careers. However, there has been a significant negative sentiment shift over the past year. 3. Startup founders are the happiest people in tech: They’re the only group growing more optimistic while consistently outranking everyone else in workplace well-being. 4. Managers need help: Only 26% of tech workers consider their managers highly effective, while over 40% view them as ineffective. 5. Where people work makes little difference in how they feel about work—on the surface. But dig deeper, and hybrid workers are the happiest, remote workers are doing well, and in-office workers are experiencing hidden frustrations. 6. Small-company employees are doing the best: They outperform their large-company counterparts on nearly every work sentiment measure, from job enjoyment to sense of belonging. 7. The mid-career slump: Mid-career workers are struggling the most with burnout, lower job enjoyment, and the most pessimism about the future. 8. A widespread gap in career clarity: Many tech workers don’t know what they should be doing to continue developing in their careers. Two bonus takeaways you'll find at the end of the report: 1. Women are more burned-out (but more engaged) than men 2. AI is keeping tech workers up at night Don't miss the full report: https://lnkd.in/g8RZeFja

In the U.S., you can grab coffee with a CEO in two weeks. In Europe, it might take two years to get that meeting. I ’ve spent years building relationships across both U.S. and European markets, and if there’s one thing I’ve learned, it’s this: networking looks completely different depending on where you are. The way people connect, build trust, and create opportunities is shaped by culture-and if you don’t adapt your approach, you’ll hit walls fast. So, if you're an executive expanding globally, a leader hiring across regions, or a professional trying to break into a new market-this post is for you. The U.S.: Fast, Open, and High-Volume Americans love to network. Connections are made quickly, introductions flow freely, and saying "let's grab coffee" isn’t just polite—it’s expected. - Cold outreach is normal—you can message a top executive on LinkedIn, and they just might say yes. - Speed matters. Business moves fast, so meetings, interviews, and hiring decisions happen quickly. But here’s the catch: Just because you had a great chat doesn’t mean you’ve built a deep relationship. Trust takes follow-ups, consistency, and results. I’ve seen European executives struggle with this—mistaking initial enthusiasm for long-term commitment. In the U.S., networking is about momentum—you have to keep showing up, adding value, and staying top of mind. In Europe, networking is a long game. If you don’t have an introduction, it’s much harder to get in the door. - Warm introductions matter. Cold outreach? Much tougher. Senior leaders prefer to meet through trusted referrals—someone who can vouch for you. - Fewer, deeper relationships. Once trust is built, it’s strong and lasting—but it takes time to get there. - Decisions take longer. Whether it’s hiring, partnerships, or leadership moves, things don’t happen overnight—expect a longer courtship period. I’ve seen U.S. executives enter the European market and get frustrated fast—wondering why it’s taking months (or years!) to break into leadership circles. But that’s how the market works. The key to winning in Europe? Patience, credibility, and long-term thinking. So, What Does This Mean for Global Leaders? If you’re an American executive expanding into Europe… 📌 Be patient. One meeting won’t seal the deal—you have to earn trust over time. 📌 Get introductions. A warm referral is worth more than 100 cold emails. 📌 Don’t push too hard. European business culture favors depth over speed—respect the process. If you’re a European leader entering the U.S. market… 📌 Don’t wait for permission—reach out. People expect direct outreach and initiative. 📌 Follow up fast. If you’re slow to respond, the opportunity moves on without you. 📌 Be ready to show value quickly. Americans won’t wait months to see if you’re a fit. Networking isn’t just about who you know—it’s about how you build relationships. #Networking #Leadership #ExecutiveSearch #CareerGrowth #GlobalBusiness #US #Europe

Until yesterday, no company worth over $500B had ever gained more than 25% in a single trading day. Then came Oracle. In a move that defied both gravity and historical precedent, Oracle stock surged 40% today, adding over $300B in market cap overnight. The company now hovers just shy of the trillion-dollar mark, and Larry Ellison - armed with a 41% stake - woke up as the world’s richest man, suddenly $100 billion wealthier. Yes, Oracle. The perennial punchline of “legacy software.” The company most of us had filed away in the footnotes of tech history is suddenly the market’s cool kid. For those paying attention, this moment has been years in the making. Oracle’s pivot into cloud and AI wasn’t impulsive - it was deliberate, capital-intensive, and decidedly unsexy. They didn’t chase developer mindshare; they banked contracts. And those contracts just hit the ledger all at once. ➰ The Q1 revenue headline - $14.9B, up 12% YoY - wasn’t what lit the fuse. ➰ Even IaaS revenue at $3.3B, up 55% is strong, but not frenzy-worthy. ➰ The magic number was buried deeper: $455B in Remaining Performance Obligations (RPO), up 359% YoY. That’s nearly 8 times Oracle’s current revenue run-rate, a backlog so large it borders on the surreal. RPO isn’t a flashy number. It doesn’t trend on CNBC tickers. But in enterprise software, it’s gospel. It represents revenue already won but not yet recognized. In plain English: Oracle just told Wall Street, “We’ve already signed nearly half a trillion dollars’ worth of business. All that’s left is execution.” Oracle expects cloud infrastructure revenue which came in at $3.3B this quarter to hit $18B this fiscal year and ramp to $144B within four years. They noted that “most of the revenue in this forecast is already booked in our reported RPO”. It’s less of a forecast and more of a countdown at this point. The market isn’t just reacting to a quarter. It’s reacting to a company that rewired its DNA and is now producing receipts. In a space dominated by Amazon Web Services (AWS), Microsoft Azure, and Google Cloud, Oracle carved out an edge not through branding or developer love, but through being the only one willing to say yes to what AI-native enterprises actually wanted: custom infrastructure, multi-cloud deployments, sovereign regions, long-term capacity, and massive scale contracts. What we witnessed today is the rarest thing in markets: a narrative inversion. Oracle went from legacy to legend not by shouting louder but by building slower, selling longer, and letting the numbers speak. The company that once stood for on-prem databases is now one of the most valuable cloud businesses in the world. TikTok and Twitter are obsessing over the ‘Great Lock-In’ without agreeing on what it means. Oracle just showed the only version that matters: half a trillion in contracts, signed and sealed. King of the Lock-In.

Invisible UX is coming 🔥 And it’s going to change how we design products, forever. For decades, UX design has been about guiding users through an experience. We’ve done that with visible interfaces: Menus. Buttons. Cards. Sliders. We’ve obsessed over layouts, states, and transitions. But with AI, a new kind of interface is emerging: One that’s invisible. One that’s driven by intent, not interaction. Think about it: You used to: → Open Spotify → Scroll through genres → Click into “Focus” → Pick a playlist Now you just say: “Play deep focus music.” No menus. No tapping. No UI. Just intent → output. You used to: → Search on Airbnb → Pick dates, guests, filters → Scroll through 50+ listings Now we’re entering a world where you guide with words: “Find me a cabin near Oslo with a sauna, available next weekend.” So the best UX becomes barely visible. Why does this matter? Because traditional UX gives users options. AI-native UX gives users outcomes. Old UX: “Here are 12 ways to get what you want.” New UX: “Just tell me what you want & we’ll handle the rest.” And this goes way beyond voice or chat. It’s about reducing friction. Designing systems that understand intent. Respond instantly. And get out of the way. The UI isn’t disappearing. It’s mainly dissolving into the background. So what should designers do? Rethink your role. Going forward you’ll not just lay out screens. You’ll design interactions without interfaces. That means: → Understanding how people express goals → Guiding model behavior through prompt architecture → Creating invisible guardrails for trust, speed, and clarity You are basically designing for understanding. The future of UX won’t be seen. It will be felt. Welcome to the age of invisible UX. Ready for it?

AI is no longer just decorating rooms. It’s redesigning how we live. AI can now rethink rooms, floors, and entire layouts—turning bold ideas into build-ready designs. Would you do floor like that? The data behind the shift: • 30–50% faster design cycles using generative layout tools • 100+ layout permutations generated from a single brief • Up to 20–30% improvement in space utilization • 10–25% energy savings when airflow, lighting, and thermal paths are simulated early • 40% fewer late-stage design changes thanks to digital testing What’s fundamentally different? AI treats floor plans like software systems: Pedestrian movement is simulated before construction Natural light and ventilation are optimized virtually Furniture, walls, and utilities are stress-tested digitally Cost, carbon footprint, and materials are optimized in parallel This enables: Smaller homes that feel larger Offices designed around productivity and wellbeing Buildings that adapt over time instead of aging poorly The biggest myth? AI replaces architects and designers. Reality: AI handles complexity and permutations. Humans focus on vision, culture, emotion, and identity. The future of architecture isn’t just smart. It’s generative, data-driven, and human-centric. #AI #Architecture #Design via @Visual Spaces Lab #PropTech #GenerativeAI #FutureOfLiving #SmartBuildings #Innovation

Nature's Hacks for Success. Biomimicry might sound complex, but it's simply about learning from nature to enhance our designs. It's like learning from the best teacher—Mother Nature herself. Defined by the Biomimicry Institute, this approach guides us toward sustainable solutions by mimicking perfected patterns and strategies found in nature. Nature has already solved many of our challenges. So, why not apply its genius to our packaging designs? It offers patterns and relationships that inspire better, eco-friendly packaging designs—whether in structure or materials, designers can draw from nature's beauty, texture, and flow. We discover materials that are waterproof, breathable, flexible, and more—it's as if nature has already completed the heavy lifting of innovation, evolution, and adaptation for us. Think of the honeycomb structure in beehives—it's not only sturdy but also space-efficient. A great example of biomimicry in packaging design is the SIS bottle by Backbone Branding. Their designers draw inspiration from a flower's pistil to shape a two-litre juice bottle. The design not only stands out with its natural juice colour but also resolves many stacking, storage, and merchandising challenges through its interlocking form. Rooted in geometry with equilateral triangles, these bottles fit snugly together, saving space. Every aspect of the bottle, from its size and proportions to its lines and curves, has been carefully considered. Even the label has been specially designed to adhere to the bottle's irregular surface, eliminating the need for glue. Consider adding nature's strategy into your design process. It will help you close the loop and build a solution that resonates with the ecosystem we breathe in. Biomimicry enables us to develop sustainable systems rather than short-lived, isolated solutions that may soon become outdated. One thing's for sure, we stand at a crucial juncture in human history. The challenges ahead demand designers and innovators capable of creating resilient, adaptable solutions. Our path forward must consider the well-being of future generations across the planet. We must continually draw inspiration from nature and reciprocate by nurturing and preserving it. In doing so, we'll not only enrich our designs but also contribute to the greater ecosystem. Let nature continue to inspire us, and in return, let's contribute to its well-being—a cycle of respect and reciprocity where our designs and actions reflect a deep reverence for the natural world. Ready to take a cue from nature's playbook for your next packaging design? 📷Backbone Branding