Today, while AI is disrupting almost all industries and demanding organizational changes, another change is unfolding at the same time – five generations are working together in the workforce.
Leaders face unprecedented demands to manage these changes. About 95% of organizations have gone through more than two major transformations in the past three years, according to a 2025 World Economic Forum (WEF) report, while 64% have gone through more than four.
Yet, historically, only 30% of these transformations are successful, according to McKinsey.
This article will examine how transformational leadership can address these two pressing issues in the workplace – AI adoption and generational change.
AI adoption. As AI is fast spreading, people in organizations are at different stages of adopting or even accepting AI as a trusted tool. The prevalent concerns about data privacy, security, and job safety for humans are eroding the trust between workforce and leadership.
A 2025 Deloitte report found that trust is the single most important factor separating high-achieving AI adopters from the rest. “If employees believe in the organization’s ability to build capable AI systems and its intent to use technology for their benefit – not detriment – then trust can grow,” the authors write. Collaboration, relationship building, and training are key elements of the high achievers’ success. Transformational leaders must develop and implement policies and processes to deploy AI responsibly through oversight of AI governance.
Generational change in the workforce. For the first time in history, five generations are working together, according to the World Economic Forum. “Gen Alpha” – born in 2010 and later – is just beginning to enter the workforce, while some Boomers can be expected to keep working for another decade or more.
The WEF reports that multi-generational workforces will be a hallmark of the future of work. That’s partly due to longer lifespans and partly due to a shrinking population. In 20 years, the workforce in advanced economies is expected to be up to 25% smaller, putting a premium on skilled workers of all ages. Transformational leadership will be needed to bring the generations together, with new skills to meet future challenges.
Leaders are no longer just decision makers. To manage change, they must become visionaries and architects, communicators and advocates. Shifting to this multi-dimensional perspective is essential for a broader definition of a leader’s role.
Change can be frightening, nonetheless. The Deloitte “high achievers” reported high levels of both fear and trust. Transformational leaders help their organizations adapt by creating a culture that values learning and development in order to thrive in changing times.
Design an innovative culture. The AI “high achievers” invest both in training and in change management. Leaders can’t expect to achieve success by simply “throwing money at the problem.” They need to design an innovative culture from the ground up. However, just 37% of organizations make significant investments to manage change when adopting AI, according to Deloitte reports.
Psychological safety. An innovative culture is based on psychological safety, in which people in an organization feel free to express disagreements, experiment, and fail without negative consequences. Psychological safety is the single most important ingredient for innovative thinking and high performing teams, according to a comprehensive Google study. Leaders admit their own mistakes and the limits of their own knowledge, and provide humble leadership.
Growth mindset. To build on the foundation of psychological safety, transformational leaders cultivate a growth mindset both for themselves and their organizations. A growth mindset stems from the idea that our personal qualities and capabilities aren’t written in stone. They can be improved with learning and effort. Obstacles can then be seen as challenges rather than threats.
Transformational leadership and generational change. The future workforce is already here – and it spans a wider range of ages and experiences than ever before. Boomers and Millennials began their careers in the age of paper files and floppy discs; Gen Z grew up with the internet; Gen Alpha may find it difficult to imagine a world without AI. Transformational leaders bridge the gaps between these experiences through communication and community building.
Focus on communication. Begin by making sure all parties understand each other. While people may think they’re excellent communicators, the reality is often different. Communication theory offers a framework to understand the components of communication, as well as the layers of meaning, inference, and assumption that can complicate it.
Communication is improved further when leaders understand non-verbal cues and learn to adopt different viewpoints.
By learning these skills, transformational leaders can ensure that people of different generations are being understood – and help them understand each other. These are the keys to better relationships, not just better information sharing.
Sense of belonging. Another way to bridge generational gaps is to cultivate a sense of belonging in the workplace. Greater belonging leads to better job performance, higher engagement, and improved business outcomes. People in both management and the workforce who feel they belong to their organizations are more motivated and productive.
Developing a sense of belonging hinges on creating a shared culture that fosters connections across generations. That culture includes four main elements: (1) a compelling vision with purpose and values, (2) fair treatment, (3) inclusion of differences, and (4) the flexibility to let teams find their own ways of solving problems.
Transformational leadership calls for new tools to meet changing times. If you would like to learn more about how your organization can become future ready, please contact us.
Copyright ©️ 2025 by Dr. Vic Porak de Varna. All rights reserved.
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