We are in the middle of what I'm calling the Great Capacity Squeeze. Organisations everywhere are under huge amounts of pressure at the moment. Pressure from rising costs to serve, ongoing restrictions from regulatory bodies, global conflicts that are making logistics difficult, not to mention the rise of AI, which is making organisations feel like they have to completely redesign the way work is done or risk being irrelevant in a number of years. This translates into people being asked to not only do business as usual, but also to constantly adapt to change, to learn new things, to redesign how they do work and be more efficient with it, to do more with less and somehow keep performing at the same time.
Not to mention all those things outside of work like caring for family members, maintaining social relationships and looking after ourselves physically and mentally. Ultimately, organisations need more from people right at the time where people have less to give. And that's what I'm calling the Great Capacity Squeeze. And the impact is showing up everywhere.
People are exhausted. Leaders have less capacity to really lead and give to their people. Team members are reluctant to put their hand up to be a part of projects, to lead new initiatives, anything outside of their business as usual. And workplaces are definitely experiencing more friction.
And the biggest thing we see is this significant rise in exhaustion, burnout, workplace stress and even psychological injury that organisations are then having to manage workers' compensation claims through. For a long time, organisations have said things like, "We need our people to be more resilient. We need them to be more change ready. We need them to be more flexible, to be able to adapt more rapidly." And in fact, we've spent a lot of money over the years trying to build resilience in employees by helping employees cope better, offering EAP services, wellbeing platforms, discount access to gyms, pizza Fridays, all of these different wellbeing initiatives.
But all of which have a key message. And that key message is resilience is your responsibility. But resilience is a shared responsibility. Yes, individuals can learn how to build skills and habits and greater awareness that support their own wellbeing in the workplace.
But organisations also shape the way work is done. And a lot of the time, there's a number of things inside the way the work is done and the workplace environment and the way in which leaders lead that actually waste precious human capacity without adding value. I call these friction points.
And resilience, if you want a truly resilient workforce, we need both. We need individuals who can build that from within. And we need leaders and organisations who remove those friction points in the organisation so that our precious human capacity can be spent on what's most important. And so that there's some left over in reserve to spend on those things like redesigning the way in which we work, using AI, learning new ways of operating, being open to new ideas and new initiatives and being ready for new opportunities when they arise. Ultimately, we need capacity in reserve.
That's what future ready organisations really look like.