Workplace Trends

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.

Notional defaults (red) remain low, even as bankruptcy filings (yellow) have picked up. ➡️ This is not a classical credit cycle. Bond default rates dollar-weighted have stayed MUTED, far below prior stress episodes, reflecting ample liquidity, refinancing capacity, and strong issuer differentiation. ➡️ Bankruptcy filing numbers in contrast have RISEN, concentrated among smaller, weaker firms, reflecting the K-shaped dynamic seen across the economy, consumers, and equity margin trends, and pointing to idiosyncratic stress rather than systemic deterioration, in our view. ➡️ In our 2026 Global Outlook, we write about how an environment of greater DISPERSION makes manager selection, due diligence, workout capabilities and track records even more crucial. It gives established lenders with strong documentation and proven expertise an edge.

This hospital charges ₹1999/year for unlimited doctor visits and tests - for a family of 4. Here's how they're making money while doing it. Most Tier 1 city hospitals in India are stuck in a broken cycle. They spend ₹2 crores per bed just on land and construction. This debt pressures them to overcharge, overcrowd OPDs, and push doctors to generate more revenue. Superhealth in Bangalore is doing something completely different. And I think it could change healthcare for millions of people. Here's what they've built 👇 ▶ 1. The VIP Pass model ₹1999/year gets a family of 4: - Unlimited doctor consultations - All prescribed tests covered (yes, even MRIs) How is this viable? The B2B cost of common tests is incredibly low. By cutting out traditional markups and billing friction, they can offer it at near-cost. ▶ 2. Slashed infrastructure costs by 65% They don't buy land or buildings. They lease old structures - like shopping malls - and convert them into 50-bed facilities. Construction drops from 3-6 years to just 120 days using standardized designs and prefabrication. So cost per bed? ₹70 lakhs instead of ₹2 crores. ▶ 3. Faster patient turnover Traditional hospitals keep patients for 3-5 days on average (often to maximise revenue). Superhealth's procedures are optimised 1-1.5 day length of stay. This means their 50-bed facility matches the patient volume of a 150-bed traditional hospital. ▶ 4. Fixed salaries for doctors No commissions. No referral fees. No pressure to over-prescribe. Doctors get ESOPs instead, aligning them with long-term patient outcomes rather than short-term revenue. ▶ 5. Transparent, fixed pricing Whether you're paying cash or using insurance, the price is fixed. No surprises. No hidden costs. Discharge happens within 15 minutes of the doctor's approval because billing is already settled. So the real innovation isn't just affordability. It's proving you can build profitable, high-quality healthcare without exploiting patients. They're essentially competing with health insurance by removing the friction and anxiety that plague traditional care. Book appointment on the app. Walk in. See the doctor. Get tests done. Walk out. No waiting. No billing hassles. Super easy. And I think that’s incredible. Do you think this model could work in your city? #entrepreneurship #healthtech #innovation

If someone told me in the 90s that some day people would pay to count their steps and track their sleep, I would have laughed. Back then, fitness in India was very simple. Some basic gyms. Morning walks. A few public playgrounds. No business models. No content. No communities. I started training because I loved it. I did it for my body, my mind and my work. Somewhere along the way, it became who I am. Over the years, I’ve watched fitness slowly turn into an industry. First came the big shiny gyms. Then the boutique studios. Then the apps & watches, the challenges, the programs. Today, fitness is no longer just workouts. It is a full ecosystem. Trainers, physios, nutrition coaches. Sports academies for kids. Senior citizen programs. Group classes, local leagues, communities. Wellness tourism too! There are businesses being built around fitness and wellness now. When you build it right, a fitness business does 2 things. It makes people healthier. And it money earned with a clean conscience. The hard part is doing it right. I’ve seen gyms open with big launches and shut down quietly a year later. Apps that spent on downloads & influencers, only to see users disappear in weeks. The real problem in fitness is not getting people to start. It is making them stay. The businesses I like are the ones that understand this. They invest in good coaches. Their pricing allows them to survive for years, not just months. They’re honest about what’s possible in 3 months, and what will take 2 years. It may not look very exciting in a pitch deck. But that is the only way any fitness business truly wins. I see a huge opportunity in India for those who understand this. Parents who want their children to move more. Professionals who sit long hours and need strength, not just looks. Seniors who want to stay independent for as long as they can. If you can build for these people with patience and realism, you will not run out of work. I also feel the next big wave in fitness will be about community, not weight loss or abs. Local sports leagues. Small group training. Like this group of runners I see regularly, training for a marathon. I love seeing young adults spend their Saturday nights playing football or cricket on the turf with their friends. Ahan tells me these turfs are always booked. At least in the big cities, padel and pickleball are a part of almost every second conversation. That tells me people are looking for movement that is fun, not just serious. People do not only want a six pack. They want to feel like they belong somewhere. I say this as someone who’s been training for years. Workouts matter. But the people around the workout matter just as much. If you are building in fitness or wellness today, do not just ask how many people signed up this month. Ask how many came back. Ask how many feel stronger and safer in their own body because of you. If you can keep that number growing, you’re building something that is built to last.

There has been much handwringing about the increasing credit problems of subprime borrowers and the fallout on the financial system and economy. Subprime borrowers are indeed suffering serious financial stress. The delinquency rate on #subprime loans (loans to borrowers with below a 660 Vantage score) jumped to 8.3% in September. This is the highest delinquency rate in September since 2010 in the immediate wake of the Global Financial Crisis. And the direction of travel is disconcerting. It is just more evidence of how hard-pressed lower and middle-income Americans are. However, worries that losses on subprime loans will be a big blow to banks and other financial institutions are overdone. Subprime loans outstanding as of this September total $2.63 trillion, equal to 15.3% of all household debt outstanding. At their peak in 2007, they totaled $3.38 trillion, equal to 28.2% of outstanding debt. Outstanding subprime first mortgage loans are a shadow of what they were in the lead-up to the GFC, and there is about the same amount of subprime bank cards outstanding. Consistent with the recent bankruptcies in the auto sector, there are more subprime auto loans outstanding than prior to the GFC. Still, even so, they amount to just over $400 billion in outstanding. Not enough to do the financial system or the economy in. At least not yet.

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.

👁 Imagine losing your sight for 10 years… and then, the very first thing you do is recognize the faces of your loved ones again. That’s what happened to Jamal Furani, 78, thanks to a breakthrough in medical innovation: a fully synthetic cornea implant. No donor tissue. No immune rejection. A device that integrates directly with the eye’s own tissue. 💡 The deeper insight: The true revolution here isn’t only technological. It’s structural. Today, corneal blindness affects millions worldwide, but most can’t be treated because there simply aren’t enough donor corneas. A synthetic cornea changes the equation. It turns a scarce resource (donations) into a potentially unlimited one (innovation). And here’s what few realize: this implant doesn’t just restore vision. It restores autonomy, dignity, and human connection. Those are the “side effects” that make technology truly transformative. 👉 My take: The future of medicine won’t just be about “healing.” It will be about reinventing our organs — sometimes with solutions even better than the originals. If you could enhance or replace one organ with technology, which would you choose first? #Healthcare #Innovation #Biotech #FutureOfMedicine

This is the single most important paper to come out in our sector in recent weeks. Erik Brynjolfsson, Bharat Chandar and Ruyu Chen investigate whether generative AI is leading to job losses in roles most exposed to AI – and how these effects differ by age and the way AI is used. Key findings: → Young workers (ages 22-25) in high-AI-exposure jobs like software development and customer service experienced a 6% absolute drop in employment since late 2022, while employment for workers aged 35-49 grew by over 9% → This pattern only appears in jobs where AI automates work - jobs where AI augments human capabilities showed no employment decline for young workers → The changes are visible in hiring patterns rather than wages, suggesting companies are hiring fewer entry-level workers rather than cutting pay AI may be creating a two-tier job market. I will be looking deeper into this in Exponential View in the coming days and weeks.

✈️ Airport Baggage Handling Has Quietly Gotten Smarter — Thanks to AI. What do you think? Remember the days of delayed or lost luggage being the norm. That’s changing — fast. With AI, IoT, and automation transforming ground operations, the baggage handling system at modern airports is becoming a case study in quiet efficiency. Here’s how technology is making a difference: ✅ RFID & real-time tracking – No more guessing where your bag is. ✅ AI-powered sorting & routing – Faster, more accurate handling. ✅ Predictive analytics – Less congestion, fewer delays. ✅ Robotics & automation – Smarter, safer workflows. ✅ Passenger apps – Transparency right in your pocket. 🔍 Fun fact: Since 2007, global mishandled baggage rates have dropped by over 70%. Airports like Changi, Heathrow, and Schiphol are leading the way — and passengers are noticing. Sometimes the best tech transformations are the ones we don’t even realize are happening. #AI #AirportTech #Logistics #SmartTravel #DigitalTransformation #BaggageHandling #Innovation #IoT #Automation video by @theasybag

This changes everything. The relentless reduction in the cost of batteries is bringing around the clock solar power within reach. With 6 GW of solar and 17 GWh of battery storage, the world's sunnier places can already reach over 90% continuous 1 GW solar power at a cost close to US$100/MWh. According to the report from Ember, Muscat gets to 99%. This is no surprise as Masdar's pioneering 24/7 solar project is also in this region. Announced in January, this project will pair 5.2 GW of solar with a 19 GWh battery to provide a continuous 1 GW. But it's not just limited to the Middle East. Other cities in the study include: ➡️ Las Vegas 97% ➡️ Mexico City 96% ➡️ Johannesburg 95% ➡️ Abuja 92% ➡️ Manila 92%. All at a similar cost. You'd have to think South Australia would do well too. And this is being enabled by the sustained cost reduction in batteries. In 2024 alone, average battery prices fell by 40% and signs are that this trend is continuing in 2025. What this means is that the cost for this almost round the clock solar power is 22% lower than it was just a year ago and is now cheaper than coal and much cheaper than nuclear. It's no longer just a technical possibility and distant dream, but an economic reality. This is not meant to be a silver bullet, future energy systems will still benefit from a diversified mix that includes wind, hydro if available, gas backup, potentially nuclear, as well as longer duration storage. But this does have significant implications for energy hungry industries like data centres and manufacturing, unlocking abundant cheap, clean power in many parts of the world. #energy #sustainability #renewables #energytransition