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On Culture: Transformation by Design


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Dear Culturati Insider,


“If ever there is a misnomer, it’s change management. It rarely causes change—and it’s almost always mismanaged.”


Phil Gilbert, IBM’s former head of design, makes the point plainly in his new book, Irresistible Change: A Blueprint for Earning Buy-In and Breakout Success. Transformation is a design challenge. His work shows how culture sticks when people choose it. At IBM, 400,000 employees adopted new ways of working voluntarily because the change was branded around values. At Culturati, we've said it once and we'll say it again: mandates don’t create movement, meaning does.


That same tension runs through today’s AI landscape. According to a HBR survey of 100+ C-suite leaders, 45% of executives say their AI initiatives underperform because incentives and systems remain misaligned. The technology isn’t the problem. The operating system of trust and communication is. Transformation fails when adoption is treated as a technical upgrade instead of a behavioral one.


Current workforce data tells a similar story. Gartner projects that 40% of business applications will soon include AI agents, while Stanford research shows a 20% decline in employment for 22–25-year-olds in AI-exposed roles. Organizations are becoming diamond-shaped—thick in the middle, thin at the base—risking a future with fewer apprentices and more algorithms. Without intentional design, we’re building systems that scale output but starve growth for future leaders.


To stay ahead of this curve, leaders need two tools: better thinking and faster adaptation. Analogical thinking strengthens creativity by connecting patterns across fields, turning innovation into a disciplined practice rather than a rare spark. And those who approach leadership like founders—learning fast, adjusting in real time, and embracing discomfort—consistently outperform peers who wait for certainty. Both habits build the same muscle: agility rooted in awareness.

Real transformation, cultural, technological, or personal, requires leaders who design for belief and move forward with intention.


By design,


Myste Wylde, COO

Why ‘Change Management’ Almost Always Fails (and How to Do It Right)

Inc.

By Marcel Schwantes

 

Summary: Most change initiatives fail because they’re managed like compliance projects instead of being designed like products. In Irresistible Change, Phil Gilbert, IBM’s former head of design, argues that transformation sticks only when people choose it. During IBM’s culture overhaul, not one of its 400,000 employees was required to change—the program was branded Hallmark and adopted voluntarily. Gilbert’s data-backed playbook reframes transformation as design: brand it around values, not technology; replace top-down evangelism with peer stories that build belief; and align people, practices, and places so behavior change becomes natural. Real change, he says, is earned through choice, not mandates—and the companies that treat transformation like a premium product see faster adoption and deeper cultural traction.


Overcoming the Organizational Barriers to AI Adoption

Harvard Business Review

By Jin Li, Feng Zhu and Pascal Hua

 

Summary: Most companies miss the ROI on AI not because the tech fails but because their systems do. In a survey of over 100 C-suite leaders, 45% said AI results were below expectations, and only 10% exceeded them. The real barriers are human: fear of replacement, outdated workflows, and power politics. Organizations that succeed treat AI as a catalyst for redesign: they align incentives, retrain workers, and update governance so human behavior and machine capability reinforce each other. At DBS Bank, a simple ethical AI framework drove $274 million in value by embedding trust and clarity into every use case. Firms that tackle AI adoption as organizational transformation—redefining how people work, connect, and lead—turn automation into acceleration.


Will the Bottom Rung of the Career Ladder Disappear?

The Economist

By Henry Tricks

 

Summary: AI is reshaping the entry-level job market before the class of 2026 even graduates. Gartner projects that 40% of business apps will soon include AI agents, up from just 5% in mid-2025. Stanford research shows employment for 22–25-year-olds in AI-exposed roles like software development has dropped nearly 20% since 2022, even as other age groups gained. Companies adopting AI are hiring fewer juniors while retaining senior staff, creating “diamond-shaped” organizations with shrinking bottoms and expanding middles. Yet opportunity remains for those who adapt: AI-literate graduates can accelerate productivity and outpace slower peers, while sectors like manufacturing may add jobs as AI simplifies machinery. The takeaway for CEOs is clear—AI will change how firms grow talent, but neglecting entry-level hiring risks hollowing out the leadership pipeline of tomorrow.


Unlock Creativity Through Analogical Thinking

MIT Sloan Management Review

By Richard L. Gruner

 

Summary: Analogical thinking offers a practical path to consistent creativity by linking patterns across unrelated domains to spark new solutions. Research shows that leaders who cultivate this skill move beyond linear analysis and drive measurable innovation. The method relies on four disciplined habits: seeking knowledge from distant fields, encouraging play and experimentation, creating safe space for speculation, and rigorously testing insights for fit and relevance. When embedded into daily strategy and problem-solving, analogical thinking turns creativity from a lucky spark into a repeatable process that strengthens both innovation and decision quality.


6 Habits From Founders That New Leaders Can Steal To Ramp Faster

Forbes

By Alisa Cohn

 

Summary: New leaders ramp faster when they think like founders: learn quickly, adapt constantly, and make decisions without perfect information. Six habits stand out. First, conduct regular self-audits to identify gaps and recalibrate strengths. Second, stay agile—45% of leaders say their biggest wins came from shifting strategy in real time. Third, practice tough conversations early to build credibility. Fourth, focus on leading, not doing, by delegating work and clarifying priorities. Fifth, show vulnerability to build trust and allies. And sixth, train for discomfort, using stress as a growth signal. The through line is adaptability. Leaders who treat each challenge as an experiment accelerate learning, inspire confidence, and outperform peers who wait for certainty.

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ree

LEADERSHIP AND CULTURE


C-SUITE


EMPLOYEES


AI AND TECHNOLOGY


CORPORATE RESPONSIBILITY


INCLUSION, DIVERSITY, EQUITY, BELONGING



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