Connecting the dots this week.

I represent a strange outlier in American society. My education puts me in the top 15% of all Americans. My income also places me in the upper half of wage earners. By all measures, I am very fortunate to be living the American dream. My good fortune is the product of luck, a work ethic instilled in me by my parents, and a hunger for knowledge. I spend plenty of time reading books and news articles. It is why subscribers to my blog receive a selection of stories that get my attention each week. I want you to understand some of the strange, bizarre, and unexpected things I find in the news and create connections on how they may fit together. Reading is a vital leadership skill, and my love of reading is central to my success.

During the week, I discovered some articles that overlapped in interesting ways, and they portray a business community struggling to do what is right for its key stakeholders. The first comes from journalist Adam Chandler, who explains that the work ethic of American workers often creates a toxic paradox. Society teaches Americans that hard work will lead them to success. Thus, individual character determines success or failure. It also absolves us as business people and as a society to take collective action to address problems like housing costs or education. Chandler calls the paradox American Abracadabra because success in the labor force increasingly resembles magic and luck.

One of the pathways to personal and professional advancement is a step into management. Numerous people have clawed into middle management as a path to prosperity. It is an increasingly difficult path to find and follow because, according to Forbes magazine, 3.7 million of the 14.9 million layoffs in 2024 were professionals, business services, and managers. The reasons are higher interest rates and capital expenses, which hinder growth. The other is rising productivity, and the increasing use of technology like artificial intelligence means many businesses need fewer people to get more done.

Combine this trend with our American Abracadabra, and it creates a feeling of resentment and rage. Now, people earn lower wages and shoulder more responsibilities. For industry titans, it is excellent news because the flattening of their organization means more profits. At the same time, it opens up a risk that things that keep employees at the organization, like culture, opportunities for advancement, and belonging, will disappear with middle management. It further harms the social contract with those who generate wealth in our organizations. Unsurprisingly, employee engagement is falling, and job seekers behave like mercenaries.

Finally, CIOs and CEOs note that digital transformations are delayed. The lack of loyalty in corporate America and a lack of training means a significant mismatch exists between what business needs to improve and what employees need to support themselves. And their families. Our current political climate may be angry because the opportunity is declining, and the widening gap between the rich and poor will likely worsen; those of us in the agile business need to recognize these trends to make the office a place where people succeed instead of suffering in silence.  

Until next time.