By Ann Flannigan Petry
Imagine this: tasks that used to take hours—like summarizing meetings or sending follow-up emails—are now completed in minutes, more accurately than before, thanks to new AI tools. Andrea, a financial advisor, no longer loses valuable time doing these monotonous activities.
Instead, with new tools doing the heavy lifting, she’s free to focus on what she truly enjoys: building deeper relationships with clients. This shift is just a glimpse of the broader transformation happening in financial services, where AI isn’t just changing how we work—it’s reshaping the entire landscape.
AI’s rapid development has been staggering since Google introduced deep learning architecture in 2017. New research emerges daily, driving innovations that impact everything from fraud detection to algorithmic trading.
Adaptive leaders invite collaboration and experimentation, fostering an environment where teams learn and grow together.
But for all its potential to bring efficiency, AI also introduces a challenge for leaders: how do we manage the human side of these advances? With employees anxious about the implications of new technologies on their roles, leadership must evolve.
Enter adaptive leadership, a concept popularized by Ronald Heifetz. It’s about helping organizations—and people—adapt to change when there’s no clear solution, a skill set that’s becoming essential in today’s fast-moving, AI-driven world.
Heifetz’s framework emphasizes guiding people through uncertainty, challenging them to rethink their habits and assumptions. Rather than offering top-down answers, adaptive leaders invite collaboration and experimentation, fostering an environment where teams learn and grow together.
This leadership approach is more critical than ever in financial services, where AI is altering how we do almost everything.
Small Steps to Develop Adaptive Leadership Skills
So, how can you develop adaptive leadership skills? Start small. You don’t need to overhaul your approach overnight. Instead, try experimenting with a few manageable behavior shifts. These small steps will help you see firsthand how adaptive leadership fosters greater agility and resilience in your team.
Coach for Development, Not Task Mastery
Begin by shifting your mindset from task manager to coach. Instead of focusing solely on mastering specific tools, guide your employees toward broader development. Use one-on-one meetings to ask questions like,
- “How can we leverage this new software to free up time for you to use your problem-solving strengths?”
- “Where would you like to grow professionally as our business evolves?”
For example, imagine one of your business analysts is excellent at creating detailed reports but struggles to connect those reports to the bigger strategy. With AI now automating many data tasks, this is the perfect moment for them to develop their strategic thinking.
They can move from fearing automation to embracing their evolving role, shifting from report generator to strategic advisor.
Acknowledge Uncertainty
When uncertainty is high, one of the most powerful things you can do is acknowledge it. Be upfront with your team when you don’t have all the answers.
Start meetings by naming the tensions everyone feels: “I know these new tools make our jobs more efficient, but some of you might be worried about what that means for your roles.”
Creating space for these conversations prevents anxieties from festering. Say you have a team member who resists adopting new technology because they fear it could make their role redundant. Instead of brushing past their concerns with technical training, take time to understand their fears.
Once you do, work with them to develop a growth plan, helping them experiment with new approaches to succeed in this changing environment.
Be Genuine
Adaptive leadership also means being open about your own learning process. When implementing new systems, don’t be afraid to share your struggles. You might say, “I’ve been learning this new software, and it’s shifting my thinking. I was surprised by how much complexity there was to it.”
By showing vulnerability, you create a culture where it’s okay not to have all the answers.
For instance, during the rollout of new AI analytics tools, admit if you’re still figuring out how much to rely on the data. Discuss your own learning curve with your team: “I’m not sure how much double-checking we need to do. How are you finding that balance?”
This transparency encourages your team to embrace learning rather than fear making mistakes. As these examples show, you can start testing adaptive leadership behaviors in small, practical ways—and see how they feel.
The financial services industry is at a crossroads. As leaders, our responsibilities go beyond improving customer retention or managing portfolios; we’re also guiding our teams through a landscape of constant change.
By addressing their concerns, fostering their development, and being transparent about our own uncertainties, we create a culture where people feel supported, engaged, and ready to grow. The leaders who stand out in our memories are those who took the time to mentor us, care about our progress, and offer development opportunities. Now might be the time to shape your team’s growth in the same meaningful way.
CPED’s professional development programs can help you and your team develop skills in Change Management, Coaching and Motivating in the Workplace, Business Acumen and Strategy, and more.
Group rates are available if you send three or more team members to the same professional development session, giving your team the opportunity to develop together and have more of an impact when incorporating their newly developed skills back at the office.
Ann Petry is a Managing Partner at Owlish Labs. Her expertise in leadership development and emotional intelligence, along with her warmth and humor, make her a trusted partner. Prior to her current work, Ann served as Chief Products Officer at Goleman EI, where she led the product development and operationalization of Daniel Goleman’s leadership and coach training programs. She is certified in Emotionally Intelligent Leadership and Executive Coaching, Appreciative Inquiry, Associate Certified Coach from the International Coach Federation, and advanced training in Mindfulness-Based Stress Reduction (MBSR) and Mindfulness-Based Cognitive Therapy (MBCT)