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.
Workplace Trends
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November Jobs Report: Some Glitter but Mostly Gloom ‼️ The November jobs report, including October data delayed by the government shutdown, sent mixed signals but leaned weak. However, with many complicating factors at play, investors looking for clues on whether the Federal Reserve will gift another rate cut in January may have to wait until the new year. ⬇️In the details⬇️ ➡️Weak headline growth but less concerning details: The U.S. economy lost 41k jobs across October (‑105k) and November (+64k), bringing the three‑month moving average down to 22k from 51k in September. However, October weakness was entirely driven by a 162k decline in federal government payrolls. Private payrolls delivered a better‑than‑expected result, rising 121k over the two‑month period. The private sector added 75k jobs, on average, in the three months ended November versus 57k in September. ➡️Government employment plummets due to deferred resignation program: As expected, federal government employment was a huge drag. The sector shed 162k jobs in October and another 6k in November as employees who accepted the Trump Administration’s deferred resignation program rolled off payrolls. Elsewhere, growth was sluggish at best. On net, goods‑producing sectors added 10k jobs, although this was entirely driven by a November rise in construction (+28k). Manufacturing employment fell for a seventh straight month. Service sectors added 111k jobs over the two‑month span, but health care and social assistance continued to shoulder the load (+128k). ➡️Unemployment rate reaches four‑year high: The unemployment rate rose 12bps from September to 4.6% (4.56% unrounded) in November, putting it above the median FOMC forecast from the December SEP. But with the government shutdown and Thanksgiving holiday complicating the collection process, the survey response rate was seasonally low at 64%, and the BLS noted that “November estimates are associated with slightly higher than usual standard errors.” These figures could be revised in the months ahead, but importantly, the unemployment rate remains on an upward trend. ➡️ Wage growth slows to four‑year low: Private wages rose just 0.1% m/m (cons. 0.3%) and 3.5% y/y, the slowest annual increase since May 2021. With wage growth trending lower and inflation higher, the streak of positive real wage gains could be at risk next year. Market expectations for Fed rate cuts changed little despite the dramatic headlines, and the probability of a January rate cut has held around 25%. Elevated uncertainty may have caused investors to have low conviction in their forecasts, while mixed details also likely kept markets from shifting posture. Stocks, however, sold off sharply in early trading. With two more CPI reports and another jobs report due out ahead of the Fed’s next meeting, the jury is still out on a January rate cut. That said, a continued rise in the unemployment rate could warrant more policy easing than expected in 2026.
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Global energy security faces an unprecedented range of risks & uncertainties across multiple fuels & technologies. The new International Energy Agency (IEA) World Energy Outlook’s scenarios show the synergies & trade-offs with other priorities like affordability, access & climate: https://iea.li/3JTJphc Newer vulnerabilities like critical minerals join traditional oil & gas risks. Geographic concentration in refining has grown for nearly all key minerals since 2020. One country dominates refining of 19 of 20 strategic minerals with a ~70% average share: https://iea.li/3LWnI0A Securing supply chains for critical minerals – vital not only for grids, batteries & EVs but also for AI chips, jet engines, defence & other strategic industries – requires looking beyond mining. Strengthened efforts are also needed to diversify refining & processing. Oil markets look well supplied in the near term, but the outlook varies. In the Current Policies Scenario, demand keeps rising through 2035 & beyond as electric vehicle sales stall outside China & Europe. In the Stated Policies Scenario, broader EV growth flattens global oil use around 2030. New LNG project approvals have surged in 2025, adding to the coming wave of natural gas supply in the years ahead. About 300 bln cubic metres of new annual LNG export capacity is scheduled to start operation by 2030. But questions still linger about where all the new LNG will go. A year ago, IEA said the world was moving quickly into the Age of Electricity – it’s clear today that age has already arrived. Electricity is the key energy source for sectors accounting over 40% of the global economy & the main energy source for most households. Renewables are set to grow faster than any other major energy source across #WEO25 scenarios, led by solar PV. And nuclear’s comeback is underway, with global capacity set to rise by at least a third by 2035. Natural gas is also poised to play a growing role in power generation. The Age of Electricity is set to reshape the nature of power system security. Careful attention is needed to ensure the availability of dispatchable sources, boost system flexibility & resilience, and expand & modernise the world’s grid networks. As countries face rising energy security risks, the world is falling short on universal access. 730 mln people live without power, and nearly 2 bln rely on basic cooking methods. #WEO25 shows a path to electricity for all by 2035 & clean cooking by 2040, with LPG playing a key role. With climate risks rising, WEO25 shows global warming regularly exceeding 1.5C by 2030 in all scenarios. The CPS sees emissions rise then plateau; in the STEPS, they peak then slowly decline. Only the updated net zero scenario brings temperatures back below 1.5C in the long term. Explore the wealth of freely available energy analysis in #WEO25: https://iea.li/3LWnI0A And join the lead authors, Laura Cozzi & Tim Gould, and me for our LIVE launch event at 11 CET: https://iea.li/4qJGbNS
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🚨 BREAKING: Revolut Just Got MiCA licence to Sell Crypto to 450 Million Europeans Revolut has announced it secured a MiCA license & launches 1:1 stablecoin redemption at zero spread Coinbase got their MiCA license in June. OKX, Bybit, Crypto.com all have theirs. But Revolut just did something none of them can. --- They're launching "Crypto 2.0" across 30 EEA countries, which includes: → 280+ tokens → Zero-fee staking up to 22% APY (you keep 100% of yields) → RevolutX—their pro trading platform with 0% maker / 0.09% taker fees → **Direct 1:1 stablecoin-to-USD conversion with zero spread** That last line is the killshot. Most platforms bury 0.5-2% in the spread when you exit stablecoins. It's invisible profit on every conversion. Revolut just made it free. $1 in = $1 out. Every single time. --- MiCA demands this: full 1:1 backing, transparent reserves, monthly audits, real redemption rights at par value. But here's what makes Revolut different from every crypto exchange scrambling for compliance: They have 65 million customers globally. 14 million already trade crypto on their platform. Their wealth division grew 298% YoY on crypto activity alone. --- And now they have infrastructure no pure-play exchange can match: → European banking license (via Lithuania, ECB-supervised) → SEPA rails for instant settlement → KYC already complete on tens of millions → Regulatory clearance to scale crypto like a bank product The competition explains why their stablecoin reserves sit in offshore entities with quarterly attestations from firms nobody's heard of. Revolut's reserves will be in European banks. Audited by top-tier firms. Disclosed monthly. With EU banking supervision. --- This is what the crypto product looks like when it's built by people who've been planning for this since 2017. 450 million Europeans need to move between fiat and stablecoins without friction, without spread, without regulatory risk. Revolut now is best placed to be that rail. --- MiCA was supposed to slow everyone down. Instead, it just separated the fintechs who were building compliance into their infrastructure from the exchanges who thought they could add it later. Revolut was ready.
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INDIA GOES OFFLINE, DIGITALLY! The Reserve Bank of India has launched the Offline Digital Rupee, a Central Bank Digital Currency that can move from one wallet to another even without internet or mobile network. Imagine paying for a cup of tea in the Himalayas or for groceries in a rural market where connectivity is zero and still completing the transaction in seconds. ✅ Digital trust has reached a new level. Money that works without the internet is not a product of convenience. It is the evolution of trust. When the value can move offline yet remain verified and authentic, we are witnessing the future of financial inclusion, not just technology. ✅ It solves the last-mile problem. For years, digital payments depended on networks, servers, and gateways. Rural India, remote areas, and even disaster zones were often left behind. The Offline Digital Rupee removes that dependency and gives digital money a physical character. This changes how we think of accessibility forever. ✅ It is faster, cheaper, and smarter. No third-party switches. No failed connections. No dependency on payment gateways. The value moves directly from one device to another, just like cash, but secured by blockchain-based architecture and backed by the central bank. The power of digital efficiency now exists without digital dependence. ✅ Programmable money means purposeful money. The RBI’s Programmable Central Bank Digital Currency model means money can be coded for a reason. Subsidies can be released only for their intended use. Corporate payouts can have specific validity. Social benefits can be tracked transparently. It adds responsibility to the currency itself. ✅ It redefines how economies will interact. Offline CBDC is not just a domestic innovation. It opens the door for new models of cross-border settlements, disaster-resilient financial systems, and new layers of fintech innovation. The world will look at this model as a live example of how technology can merge with human need, not just convenience. ✅ It reminds us what innovation truly means. The right innovation is not when a feature gets smarter, but when it becomes more inclusive. When a person in a no-network zone can transact as easily as someone in a metro city, that is when digital transformation turns into social transformation.
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I was shadowing a coaching client in her leadership meeting when I watched this brilliant woman apologize six times in 30 minutes. 1. “Sorry, this might be off-topic, but..." 2. “I'm could be wrong, but what if we..." 3. “Sorry again, I know we're running short on time..." 4. “I don't want to step on anyone's toes, but..." 5. “This is just my opinion, but..." 6. “Sorry if I'm being too pushy..." Her ideas? They were game-changing. Every single one. Here's what I've learned after decades of coaching women leaders: Women are masterful at reading the room and keeping everyone comfortable. It's a superpower. But when we consistently prioritize others' comfort over our own voice, we rob ourselves, and our teams, of our full contribution. The alternative isn't to become aggressive or dismissive. It's to practice “gracious assertion": • Replace "Sorry to interrupt" with "I'd like to add to that" • Replace "This might be stupid, but..." with "Here's another perspective" • Replace "I hope this makes sense" with "Let me know what questions you have" • Replace "I don't want to step on toes" with "I have a different approach" • Replace "This is just my opinion" with "Based on my experience" • Replace "Sorry if I'm being pushy" with "I feel strongly about this because" But how do you know if you're hitting the right note? Ask yourself these three questions: • Am I stating my needs clearly while respecting others' perspectives? (Assertive) • Am I dismissing others' input or bulldozing through objections? (Aggressive) • Am I hinting at what I want instead of directly asking for it? (Passive-aggressive) You can be considerate AND confident. You can make space for others AND take up space yourself. Your comfort matters too. Your voice matters too. Your ideas matter too. And most importantly, YOU matter. @she.shines.inc #Womenleaders #Confidence #selfadvocacy
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When Mary Barra took over GM's HR department, she found a 10-page dress code policy. She replaced all 10 pages with just two words: "Dress appropriately." The HR team panicked. A senior director sent an angry email demanding more detailed rules. But Barra held firm. When the director called to complain that his team wore jeans to government meetings, she didn't cave. Instead, she told him: "Have a conversation with your team." Two weeks later, he called back excited. His team had solved it themselves...they'd keep dress pants in their lockers for important meetings. Here's what happened across GM: 1. Managers started making decisions instead of following rulebooks 2. Employee engagement improved as people felt trusted 3. Bureaucracy dropped as leaders focused on outcomes, not compliance Barra realized: "If they can't handle 'dress appropriately,' what other judgment decisions are they not making?" She built a culture where thinking mattered more than rule-following. Most companies write longer policies to avoid problems. Mary wrote shorter ones to create leaders.
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Equal Pay Day moved BACKWARD in 2025 to March 25th, revealing a harsh truth: transparency without enforcement doesn't create equality. 60% of job postings now include salary information—up from just 18% in 2020—yet women still earn just 85 cents to a man's dollar. Even more disturbing? The gap is widening. Of 98 countries with equal pay laws, only 35 have implemented any accountability mechanisms. We're seeing the illusion of progress without the substance. True salary transparency requires action at every level: For individuals: - Share your salary information with "trusted" colleagues - Explicitly ask for pay ranges before interviews - Document salary discussions and decisions - Normalize compensation conversations in your workplace - Research industry standards using sites like Glassdoor and Payscale For managers: - Conduct regular pay equity audits in your teams - Establish clear compensation criteria based on skills and responsibilities - Remove salary history questions from your hiring process - Advocate for transparent promotion pathways For organizations: - Implement formal pay bands with clear progression criteria - Regularly publish company-wide gender and racial pay gap data - Create accountability mechanisms for addressing inequities - Train managers on recognizing and addressing unconscious bias in compensation decisions The data is clear: companies with meaningful transparency see pay gaps narrow significantly in the first year alone. But posting a salary range isn't enough if there's no accountability behind it. Let's move beyond performative transparency toward meaningful equity. Please share this post if you think salary transparency should come with real action. Joshua Miller #SalaryTransparency #PayEquity #Workplace
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The most important skills today and in the next years will be human capabilities: critical and analytic thinking, resilience, leadership and influence, overlaid with technological literacy and AI skills to amplify these human capacities. World Economic Forum's new Future of Jobs Report provides a deep and broad analysis of the drivers of labour market transformation, the outlook for jobs and skills, and workforce strategies across industries and nations. It's a really worthwhile deep dive if you're interested in the topic (link in comments). Here are some of the highlights from the Skills section, which to my mind is at the heart of it. 🧠 Analytical Thinking Leads Core Skills. Skills like analytical thinking (70%), resilience (66%), and creative thinking (64%) top the list of core abilities for 2025. By 2030, the emphasis shifts even more towards AI and big data proficiency (85%), technological literacy (76%), and curiosity-driven lifelong learning (79%). This shift underscores the critical role of technology and adaptability in future workplaces. 📉 Skill Stability Declines but at a Slower Rate. Employers predict that 39% of workers' core skills will change by 2030, slightly lower than 44% in 2023. This reflects a stabilization in the pace of skill disruption due to increased emphasis on upskilling and reskilling programs. Half of the workforce now engages in training as part of long-term learning strategies compared to 41% in 2023, showcasing the growing adaptation to technological changes . 🌍 Economic Disparities in Skill Disruption. Middle-income economies anticipate higher skill disruption compared to high-income ones. This disparity highlights the uneven challenges of transitioning labor forces across global regions, particularly in economies still grappling with structural changes. 🚀 Tech-Savvy Skills in High Demand. The adoption of frontier technologies, including generative AI and machine learning, is increasing the demand for skills like big data analysis, cybersecurity, and technological literacy. These trends indicate that businesses are aligning workforce strategies to integrate these advancements effectively. 📚 Upskilling Is the Norm, Not the Exception. By 2030, 73% of organizations aim to prioritize workforce upskilling as a response to ongoing disruptions. This reflects a shift in corporate investment priorities towards human capital enhancement to maintain competitiveness.
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I’ve been headhunting in the CPG industry for the past decade, and I’ve never seen a post-inflation market like we’re in right now. For the past three years, customers have been capitulating to price hikes by extending their budgets. But now, they’re at a breaking point. American families, already tethering on edges of their budgets, do not have the ability or the desire to expand their budget in order to accommodate increased prices. I’m sure you’d agree with this, because my family certainly does. With grocery bills through the roof, we’d rather skip on groceries and essentials rather than paying a premium right now. A couple things led us here, starting the pandemic and the post-pandemic impact on spending and savings. Secondly, the wave of AI and tech developments that caught us off guard. So, where do the companies go now? Once the “price increase” playbook is done, CPG brands can only win in both value and volume by shifting gears. In my chats with executives, I’m sensing a change in tone. To stay competitive, they’re looking for ways to shift from the post-pandemic survival mindset to a growth-focused one that accommodates the customer as well. Rather than hiking prices, the focus is now on bringing down costs, and getting to terms with consumer’s limited budgets and increasing product choices. Layoffs aren’t the only way to bring down costs. In my view, CPG companies do have the leeway to embrace data-driven innovation and efficiency to cut costs. Here are some of the ways in which companies can use AI and ML to achieve targets in 2025 and beyond: 1/ Predicting the demand: Post-pandemic behavior is tough to predict, especially in CPG markets. With AI, the companies can now leverage real-time insights from sources like point-of-sale systems, social media, and even economic indicators to see future trends more clearly. PepsiCo, uses Tastewise to track what consumers are eating across 60+ million touchpoints and making decisions that align with local preference. 2/ Inventory management: With AI-powered predictive analytics, companies are now turning inventory management into a science. Procter & Gamble’s Supply Chain 3.0 initiative is one example of this shift. 3/ Increased personalization: Leaders are tapping into geographical intelligence to connect meaningfully with audiences. Estée Lauder has a voice-enabled makeup assistant for visually impaired customers, reaching a new market while boosting brand loyalty. Bottom line is: customers are no longer meeting brands where they’re at. It’s high time that companies start caring about customers and their shrinking bottom lines. Are you excited to see your grocery bill go down in the next few months? #CPG #AI #ML #fmcg #marketing #trending