Leading Through AI Disruption and Economic Uncertainty

Context

A global, mid-sized technology-enabled services company was facing a period of acute volatility. The organization was rolling out AI-enabled systems across core operations to drive efficiency and competitiveness at the same time that global economic uncertainty—tight capital markets, inflationary pressure, and geopolitical instability—was forcing difficult cost and workforce decisions. While the executive team was confident in the strategic rationale, anxiety inside the organization was rising sharply.

Employee engagement scores were declining. Leaders reported increased resistance, slower decision-making, and a noticeable drop in candid upward communication. Several executives privately acknowledged concern that ethical and reputational risks related to AI adoption were not being surfaced early enough.

Assessment and Diagnosis

The engagement began with a multi-layered diagnostic approach. Using Barrett Values Centre tools, the organization conducted a Cultural Values Assessment, comparing current culture, desired culture, and leadership values. The results revealed a significant increase in entropy—driven by fear of job loss, siloed decision-making, and avoidance of difficult conversations. While leaders valued accountability, transparency, and innovation, employees experienced leadership behavior as distant, overly rational, and insufficiently empathetic.

In parallel, individual leaders completed values assessments and participated in confidential coaching sessions to explore personal blind spots, particularly around how their communication style and decision-making were experienced during uncertainty.

Leadership and Team Interventions

The work focused on helping leaders understand that despite embodying strong personal values, more was needed to create the work environment that addressed the employees’ fears and resistance.

Leaders participated in workshops to understand how “mensch” behaviors such as humility and empathy could play a critical role and what each individual leader needed to do to embody such values.

Organizational Outcomes

Within six months, follow-up assessments showed a meaningful reduction in cultural entropy and a strong increase in values associated with trust, openness, and accountability. Speak-up indicators improved, and leaders reported earlier visibility into operational and ethical risks related to AI deployment. While economic uncertainty remained, the organization became more resilient—able to make difficult decisions without losing trust.

Key Insight
The case demonstrated that during periods of disruption and economic volatility, organizations stabilize and perform better when leaders act like mensches—anchoring strategy in humanity, responsibility, and trust.