Decision-making at the CEO and C-Suite level has never been easy. But rarely has it been as challenging as it is going to be this year.
If you’re familiar with Homer’ Odyssey, perhaps you may remember the moment when Odysseus needed to navigate the narrow crossing between Scylla and Charybdis.
In Greek mythology, these two were immortal and irresistible monsters who beset the narrow waters traversed by Odysseus in his wanderings to Ithaca. Later, they were localized in the Strait of Messina.
Metaphorically speaking, between Scylla and Charybdis is precisely what CEOs face this year; only that instead of two threatening monsters they face, actually, more of them.
Who are the Scyllas and Charybdis that top executives face this year? Let’s take a look at them one by one.
POPULIST POLITICIANS
I really don’t envy US-based CEOs this year. When I see the line-up that gathers to suck up to Trump before his inauguration, my stomach gets into my throat in a snap.
BTW, great article on this topic in the Financial Times here.
But what can they do? Donald Trump is an irrational, unpredictable force that will bring massive disruption to the US economy and to the world in 2025. As they say, when you run with the wolves, you better learn to howl with them.
Should only US-based CEOs be concerned about the impact of populist politicians on their businesses?
Not at all. Unfortunately, populism is on the rise all over the world. An even darker monster that many thought confined to history – fascism – is also starting to show its ugly face again.
So, between the irrationality of populist politicians and their impact on the economy, legislation, and the regulatory environment, political instability and astute public affairs is one of the mighty Scyllas CEOs face in 2025.
INFLATION? INFLATION!
Many leaders and even some economists heaved a sigh of relief when they saw inflation across Europe and the US settling down around the acceptable 2% level. But is the gory inflation that plagued our world in the post-pandemic years a done story yet?
Probably not. Triggered by the irrational politicians, and mainly the threat of Trump’s tariffs, inflation can pop up again and both local macro-economists and CEOs will have to work hard to generate a healthy bottom-line despite this ugly and persistent Charybdis.
In Europe, inflation can grow not driven by impulsive political acts, but also by putting a hard stop to Russian gas flowing in and by the need to rebuild Europe’s energy and defense infrastructure in a more sustainable manner. Decoupling from the unpredictable US and threatening China will put wind in the sails of inflation. Russia and its threat remains a monster of its own accord.
MORE SOCIAL INSTABILITY AND VIOLENCE IN THE PUBLIC ARENA
Here is a radical opinion: social media are evil and unless we do all we can to unveil and reign in their algorithms and financial model, we might be surprised when real social cohesion and democracy might become a thing of the past.
Let me give you a quick example.
35 years ago, when I was still a kid in our village in Transylvania, people would spend most of their time working, sleeping, going to the church, and chatting on Sundays in front of their porch. The religious practice combined with hefty storytelling boosted empathy and social cohesion.
Now, the same people in the same village spend their Sundays… on Facebook.
When triggered by a “stupid” message posted by a “stupid” neighbor, people take the repercussions into real life – for example they stop answering their neighbor’s greetings. “They should know what they did to upset me,” I hear sometimes from my dad.
Instead of fulfilling their promise to create and nurture our global village, social media have become the rifest medium for disinformation, misinformation, and even malinformation. With scrolling on steroids, social media turn people into emotionally reactive dopamine addicts that are one step away from taking their virtual aggression into real life. This is why I expect the level of social instability and public violence to increase in 2025 and beyond.
What this means for CEOs is that they will deal more and more with an irrational social crowd that can turn against them in a snap.
The assassination of the UnitedHealthcare CEO Brian Thompson on December 4, 2024, is just an example of how fast and tragically social resentment can become personal. In the future, expect more conspiracy theories, social resentment, and irrational customer communications, all fueled by emotional reactivity nurtured on social media.
A MENTAL HEALTH CRISIS BUBBLE ABOUT TO BURST
At the end of 2024 I faced several executive clients seeking my coaching services when, in fact, what they needed was therapy. They were burnt out.
BTW, excellent article on this topic in Fortune.
Top executives and mid-level managers especially are burnt out to their core. In 2025, I expect that the mental health crisis that was brewing for the last five years will peak and numerous people will leave their companies for extended career breaks.
The interesting thing is that once they leave their companies, few of these managers return. The horror of going back to a company they now know well, with processes and leadership in disarray, is enough to knock people back down. So, many managers choose instead to start their own businesses, which is going to take a massive toll on hiring policies, the cost of employment, and the need to generate new ways of contracting talent – fast.
LESS FOCUS ON WHERE, MORE ON HOW WE WORK
I admit that, when I see the level of flexible remote-first and hybrid work skills of people in corporate, I cringe. Therefore, this trend could be more of my wishful thinking than something else.
However, I do hope that in 2025 we can finally shift the conversation from where we work – our location – to how we work and why we work the way we work.
A reinvention of our work and value-creation processes is absolutely essential in order for us and our companies to step into the new AI-powered era with a fighting chance. AI will impact, if not replace, many of the activities we conduct today. As my friend Filip Dřimálka says, if you don’t use AI 20 times a day, you may have lost the train already.
All I can hope is that this renewed focus on how we work, not where we work from, will boost work flexibility, which is the absolute key for having more women in the labor force and in leadership.
Wishful thinking? Let’s see. The Charybdis, in this case, is not external – it’s our own mindset, level of skills, and attachment to privilege.
RETURN ON AI
Last but not least, here is the last Scylla I will mention today – AI. So, let’s take a closer look at it.
In 2025, many managers will face close scrutiny in relation to their investments into AI. As AI tools become more expensive after adoption had been driven for free or low costs, investments into AI can be expected to rise across organizations, while the business use cases and people’s effective and productive AI usage skills will remain relatively low. Could 2025 therefore become the year of focusing more on productivity, processes, and people rather than AI platforms? It remains to be seen.
As you notice, there are so many sharp wooden sticks buried in the sand for CEOs stepping onto the battlefield of top leadership in 2025. What will help CEOs to stay physically and mentally sound, to retain their critical distance, and to make solid executive decisions that they can stand behind long-term? That’s the main question for 2025.
PS: JOIN ME FOR A CONVERSATION ON THIS TOPIC IN-PERSON IN PRAGUE ON JANUARY 29
By the way, if this is a topic of your interest, on Wednesday, January 29, 2025, I have the privilege of facilitating a CEO panel discussion at the Romanian Embassy in Prague. The topic is the many constraints CEOs and C-Suite level executives need to navigate in 2025 and how solid decision-making looks like this year. The event is organized by the Business Professional Women Czechia in collaboration with the Romanian Embassy in Prague. If you are an executive based in Czechia or you’d like to travel to Prague during this time and join us, you are so very welcome. Please register for this event here: https://bpwcr.cz/29-1-2025-weps-embassy-romania.
