Let’s be honest, most CHRO groups out there are bad. They are expensive, filled with vendor pitches, and loaded with “fluff” resources that are outdated by the time they are published. That’s why I put together Future of Work Leaders. A CHRO group for people leaders who are moving beyond traditional HR to focus on the future of work and employee experience. No pitches, no selling, no fluff.
The community is focused on discussions, candid Q&A sessions, and sharing of resources and insights. Members include Lego, Novartis, PwC, Saks Global, and dozens of others. I’m just in the process of planning our annual in-person forum which will be at the end of March. if you want to learn more and request an invite go to Future of Work Leaders or email me directly Jacob[at]thefutureorganization[dot]com.
Most organizations are currently sprinting toward an AI-first future, but very few are building a “human strategy” to match the pace. As efficiency-driven automation scales, the risk of losing the cultural glue that holds a workforce together becomes a strategic threat.
It is easy to get lost in the efficiency metrics and forget that at the end of every digital interaction is a person seeking connection, especially during moments of stress.
In this episode, Kathie Patterson, Chief Human Resources Officer at Ally, shares how the nation’s largest digital bank stays “people-first” and more human in a tech and AI-driven world of work.
Kathie views this tension through the lens of a “startup of scale.” While Ally is the nation’s largest digital bank, it carries a 100-year legacy rooted in its history as GMAC. Managing 10,000 employees in this hybrid environment requires a dual-track strategy: integrating AI as a ‘supplement’ to productivity while doubling down on emotional intelligence and conflict resolution training to ensure that culture remains a competitive advantage.
Listen to the episode here on Apple Podcast & leave a review!
AI as a Productivity Supplement, Not a Replacement
The corporate world is looking at AI all wrong. It’s not about replacement; it’s about supplementation. We should be using this technology to strip away the ‘busy work’ like the endless emails and manual reports that keeps us from doing our best work.
When we let AI handle the technical heavy lifting, it actually puts the pressure on us to be more intentional. It frees us up to focus on the things a machine can’t touch: human judgment, real empathy, and deep connection.
Kathie shares Ally’s “employee-centered” AI approach is built on the premise that technology should serve as a tool for liberation, not elimination. The organization utilizes a strategic mix of tools:
- Microsoft Copilot: A pilot program helping employees manage administrative workflows and digital tasks.
- Customized In-House AI Tool: Developed with a partner to allow employees to experiment safely with data analysis and report generation while protecting sensitive customer information.
By positioning AI as a “sparring partner,” employees can focus on education. They are taught how to master “prompts” to enhance their own work, effectively turning the technology into a sophisticated research assistant rather than a replacement.
Stop Managing for the “Bottom 10%”
In the rush to bring people back to the office or tighten the reins, many companies are falling into the “broad brush” trap. They create restrictive, one-size-fits-all policies designed to control the bottom 10%—the outliers who might abuse flexibility—and in the process, they end up penalizing the other 80 to 90% of high-performers who actually value their agency.
Kathie’s philosophy is simple: you have to treat employees like adults. While younger generations might have more “courage to vote with their feet” if their autonomy is stripped away, the desire for agency is universal across every age group. Real leadership isn’t about over-engineering a policy to catch a few bad actors; it’s about setting clear boundaries and dealing with the outliers individually so you don’t stifle the rest of your talent.
Prioritize Humans for “Moments That Matter”
There is a massive difference between a routine transaction and a high-stakes life event. While AI can process data with incredible speed, it lacks the ability to offer reassurance or build trust during stressful interactions.
As Kathie notes, in moments of high-stakes stress, people want to talk to someone they trust and feel understood by. Relying solely on automated systems, like dead-end phone trees, only increases frustration when a human connection is actually required. Leadership in a digital age is about identifying these “moments that matter” and ensuring a human is always in the loop.
Listen to the episode here on Apple Podcast & leave a review!
Leaders Must Get Comfortable With the “Sloppy”
Emotional Intelligence (EQ) is not a skill that is mastered through a digital course or a textbook; it is built through the messiness of real-world interaction and conflict. Many leaders hit a career ceiling because they lack the self-awareness or the ability to resolve organizational friction, even if they are technically brilliant.
You can teach technical skills in a lecture hall, but human skills like empathy and conflict resolution require a ‘messy’ approach. Kathie argues that these competencies require “sloppy” practice. Human interactions are unpredictable; one can never be entirely sure how the person on the other end will respond, making the experience more like a dance than a programmed routine.
To prepare the workforce, particularly the “anxious generation” of new graduates who often enter the workforce with a “rubric mentality” (they’re looking for a clear point system for success that just doesn’t exist in the corporate world), Ally utilizes:
- Crucial Conversations Training: Teaching leaders to navigate high-stakes conflict.
- Role-Playing: Providing a safe environment for trial-and-error.
- Ally University: A centralized learning platform offering digital and interpersonal skill-building. While Ally University provides a digital foundation for these skills, Kathie is clear that real growth only happens when you move beyond the screen and get comfortable with the inherent sloppiness of human connection
The goal is to move beyond the classroom and get comfortable with the inherent sloppiness of human connection, teaching leaders that they can survive conflict and emerge with stronger professional relationships.
Don’t Get Stuck in the “Ivory Tower”
There’s a dangerous phenomenon that happens as you climb the corporate ladder: you start thinking you’re a lot better at leadership than you actually are. In the research I did for my book, The Future Leader, where I surveyed 14,000 employees and 140 CEOs, I found that senior leaders rated their own EQ significantly higher than their employees did. It’s the “Ivory Tower” effect, and it’s a silent killer of culture because the more power you have, the less likely people are to tell you the truth.
Kathie saw this firsthand when she became CHRO and noticed her jokes suddenly became “much funnier” to everyone in the room. While that might be a boost for the ego, she views it as a major red flag. If people are too intimidated to tell you a joke isn’t funny, they definitely aren’t going to tell you when a business strategy is failing.
To break this cycle, at Ally, they don’t just hope for honesty; they bake 360-degree feedback right into the performance process. It forces a confrontation between your intentions and your actual impact, making self-awareness a non-negotiable requirement for the job.
Empathy and Accountability Are Not a “Sucker’s Choice”
There is a persistent myth that a leader must choose between being empathetic and driving high performance. In reality, a people-first culture is a strategic differentiator. At Ally, high engagement scores and customer retention are not seen as separate from the business strategy—they are the strategy.
However, empathy must not be exercised at the expense of the organization. As Kathie notes, “we are not a non-profit.” Empathy and accountability are balanced by:
- Meeting Employees Where They Are: Recognizing the mental health needs of the workforce and providing tools for support.
- Evolving Benefits: A prime example is Ally’s shift from “infertility benefits” to “fertility benefits”—a change that removed the requirement of a medical diagnosis and acknowledged diverse paths to parenthood.
- Clear Standards: Maintaining firm, non-negotiable performance standards while providing the care and support necessary for employees to meet them.
Culture is a Strategic Differentiator, Not a Corporate Perk
In an era where talent can easily “vote with their feet,” a people-first culture is a measurable driver of performance. While AI can process data at lightning speed, it will never provide the purpose, pride, or community that employees crave.
The future of work isn’t a choice between technology or humanity; it’s about using the “and” to create a workplace that is both more efficient and more deeply connected. As the corporate vibe shifts back toward accountability, the leaders who thrive will be those who can balance high-tech tools with high-touch leadership.
Are your leaders ready to handle the “humanness” that remains?
For more insights on the future of leadership and the human element in the tech and AI-driven world, listen to my full conversation with Kathie Patterson here:
Organizations around the world have lost their way. It’s time to get back to basics and focus on what really drives people and performance. This is why I’m so very excited to share that after 2 years of research and writing, my new book The 8 Laws of Employee Experience: How to Build a Future-Ready Organization is finally available. Grab a copy at 8exlaws.com
