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Hello and welcome to Modern CEO! Each week this newsletter explores inclusive approaches to leadership drawn from conversations with executives and entrepreneurs, and from the pages of Inc. and Fast Company. If you received this newsletter from a friend, you can sign up to get it yourself every Monday morning. From technological advances and geopolitical changes to workplace culture shifts and market pressures, 2025 has been a year of change, uncertainty, and disruption. Im Gwen Moran, and for nearly three years as Modern CEOs editor, Ive had a front-row seat as Mansueto Ventures CEO and Chief Content Officer Stephanie Mehta talks to business leaders and experts to help CEOs navigate the modern world. Every year, I recap some of the key insights from a year of interviews with the array of leaders featured in the newsletter. Here are four themes that we saw repeatedly in 2025. Uncertainty and change were everywhere Leaders faced nearly constant changeand more than a few curveballsthis year. When E.l.f. Beauty CEO Tarang Amin was named inaugural Modern CEO of the Year near the end of 2024, little did he know that tariffs, blowback over an influencer scandal, and attacks on the diversity efforts that E.l.f. champions were awaiting him in the coming months. When we asked CEOs to share their thoughts on leading during times of great uncertainty, we got responses representing industries from architecture to pharmaceuticals. Some of the changes we saw this year will have lasting ripple effects. Gates Foundation CEO Mark Suzman talked about closing one of the worlds largest and most well-known philanthropies over the next two decades. What had become an annual check-in with former SAIC CEO Toni Townes-Whitley was canceled after she and the company parted ways, leaving TIAAs Thasunda Brown Duckett as the only Black woman currently leading a Fortune 500 company. AI still dominates the conversation One of the most pressing mandates many CEOs face is figuring out how to realize the potential of artificial intelligence (AI). And they were forthcoming about their opportunities and challenges this year. Weber Shandwick CEO Jim OLeary discussed how his firms multifaceted AI use is giving him back what most leaders value most: time. OLeary estimates that AI saves him one to two hours per day. This spring, Workday CEO Carl Eschenbach said the quiet part out loud when he discussed how his company made head count cuts to invest in AI. Then, during the summer, seven leading C-level execs gave us a peek at how they are using AI to do their own jobs. Regardless of their path, leaders dont succeed in a bubble This years reporting showed us that there are many paths to the CEOs office, from intern to chief financial officerand even a comeback story as former Beautycounter CEO Gregg Renfrew took the reins at her new beauty company, Counter. Despite their different backgrounds, they have one thing in common: They need great people around them to succeed. Leaders shared insights about performance management, the importance of strategic partnerships, the challenges of keeping CEOs safe, and what happens next in diversity, equity, and inclusion initiatives. Additionally, one of our top-performing pieces was about how boards need to focus more on their No. 1 job: succession planning. Creativity and community fuel growth Modern CEO dropped dispatches from Cannes Lions in June. It was clear that this Festival of Creativity has grown into an important event for CEOs. As Shelley Zalis, founder and CEO of the Female Quotient, a community of women in business, put it: Any CEO who wants to grow, innovate, and stay culturally relevant will benefit from being here. The importance of creativity is a message AKQA Global CEO Baiju Shah discusses with the next-generation business leaders he teaches at Northwestern University. He believes that a fusion of technology and creativity is essential for businesses, especially in the age of AI. Another recurring theme in this years coverage was community. Cult brand co-CEO AJ Kumaran, who heads chicken chain Raising Canes, attributes his companys success to a rigorous focus on its community. And your community includes your team, too: WorkJam CEO Steven Kramer explained how enlisting the wisdom of frontline workers can help you find market insights and solutions. What lessons did you take away from Modern CEO in 2025? Were there issues of Modern CEO that helped you or gave you something to think about this year? Wed love to hear from you. Please share your thoughts in an email message to stephaniemehta@mansueto.com. Read more: other Modern CEO highlights Conscious capitalism isnt dead Why your companys next CEO might be a multi-hyphenate Modern CEO readers share their thoughts on top leaders
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E-Commerce
When I talk with business leaders about Gen Z, the same frustration often bubbles up: They wont stay. Its said with a kind of bewildered shrug, as if the younger generation has suddenly rewritten the rules out of thin air. I heard it again last week during a radio segment I did about generational dynamics at work. The host asked why Gen Z feels so comfortable moving on so quickly. Heres what Ive learned after a decade teaching them, coaching them, and watching them navigate the workplace: Gen Z doesnt think theyre doing anything unusual. And frankly, once you look at the data, its hard to argue with them. A new Youngstown State University study of 1,000 full-time U.S. professionals found that nearly half of Gen Z workers are already planning to leave their jobsnot for higher pay, but for better growth. That is the highest rate of all generations surveyed. Its not impulsiveness. Its not disloyalty. Its something far more reasonable. Its “growth hunting.” What Companies Assumeand Whats Actually Happening Theres a familiar script about young workers: Theyre too quick to leave, too impatient, too everything. That narrative has been around for so long that many leaders use it as the default explanation without thinking. But when nearly one out of two early-career workers say they cant picture a future where they are, that points to something systemicnot personal. Heres what the data actually shows. Eighty-six percent of Gen Z say they wont pursue upskilling unless their employer helps pay for it. Thats not a lack of drive. Thats the reality of trying to build a career while carrying historic student debt and paying rent that climbs faster than wages. Forty-three percent say theyre too burnt out to take on education outside of work. Thats not an excuse. Thats a sign that the modern workload has pushed people to their limit long before you ever ask them to add night classes. And seventy-six percent say the main thing blocking their advancement is costnot interest, not effort, not ambition. Cost. Taken together, the message is straightforward: This generation isnt avoiding responsibility. Theyre asking employers to share it. Why Growth Hunting Makes Sense Right Now Older generations built careers around staying put and climbing step by step. That path made sense when wages matched living costs and companies offered predictable ladders. Gen Z is coming of age in a completely different economy. Careers dont unfold in neat lines anymore. Skills expire quickly. Entire industries shift in a few years. And the price of staying competitive keeps climbing. So Gen Z does the logical thing: They move toward the places where they can grow. Theyre not chasing titles. Theyre chasing momentum. Every semester, I watch students who are smart, thoughtful, and deeply motivated figure out how to build a career in a landscape that changes constantly. Theyre not waiting for permission. But they will absolutely walk if an employer refuses to invest in them. And honestly, thats rational. Growth hunting is not about impatience. Its about survival. The Leadership Miss That Keeps Repeating For years, companies have preached the language of development and continuous learning. Theyve told young employees to take initiative, expand their skills, stay ahead. Gen Z listened. And now they want to know why the bill for that development keeps landing on their doorstep. You cant ask workers to level up and then close the door to the support they need to do it. You cant talk about retention and then offer no path forward. You cant position upskilling as essential and then make it unaffordable. This is where the generational disconnect becomes obvious. Companies say they want a future-ready workforce. Gen Z is asking them to mean it. A Cultural Standoff That Was Bound to Happen This feels like the moment where the values of Gen Z and the habits of corporate culture finally collide. Not because Gen Z is rebelling, but because theyre taking organizations at their word. If you say you value growth, you have to create it. If you say you care about development, you have to invest in it. Otherwise, Gen Z will simply walk toward someone who does. And heres the twist: They dont feel guilty about it. Theyre not sneaking out the back door. Theyre leaving through the fronthead highbecause the expectations were never mutual to begin with. What Employers Can Do This doesnt require an overhaul. It just takes intention. And while every organization is different, here are a few approaches that can make a real difference. Put money behind upskilling. Even partial funding shifts the relationship. Make advancement transparent. When people have to guess, they eventually stop trying. Tackle burnout before talking development. Growth cant happen when people are running on empty. Promote based on readiness rather than time served. Tenure alone doesnt tell you whos capable. Ask employees what growth actually means to them. The answers are often more practical than leaders expect. These arent the only steps, but theyre a meaningful start. And theyre far more achievable than most leaders realize. The Future Belongs to the Growth Hunters Gen Z isnt running from work. Theyre running toward growth. They know what it costs to stay still, and theyre not willing to pay that price. Not anymore. They arent rejecting the workplace. Theyre asking it to evolve with them. When employers offer real development, this generation will show up with incredible commitment. When they dont, Gen Z moves on with the same honesty and clarity they bring to everything else. That clarity is a gift if leaders choose to use it.Because building a workplace where people can grow isnt just good for Gen Z. Its good for everyone.
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E-Commerce
If a single type of building could define our present time, it would undoubtedly be the data center. Underpinning the increasingly online way we work, shop, and entertain ourselves, data centers provide the computing power and storage to handle all the Zoom calls, Amazon purchases, and Netflix streams a person can cram into their day. And now as compute-hungry artificial intelligence dominates the future of nearly every sector of the economyand possibly society as a wholethe data center will become even more ubiquitous. A headlong data center building boom is already underway. One report finds that average monthly spending on data centers has increased 400% in the last two years, adding up to more than $50 billion in 2025 alone. One tally contends that there were more than 1,200 data centers either built or approved for construction in the U.S. by the end of 2024; another suggests the total number of data centers in the U.S. is now more than 4,100. The scale and spread of data center building is staggering, and there seems to be no end in sight. All of this is why it’s so disappointing that the design of data center architecture is, by and large, very, very boring. [Photo: halbergman/Getty Images] The typical data center looks something like this: a cluster of large, rectangular warehouses 15 or 20 feet tall, each covering about the area of a professional soccer field. The building’s walls are usually made from tilt-up concrete panels with little adornment. There are few windows, and if there were more they would look out on large outdoor clusters of equipment for cooling equipment, electricity generation, and wastewater treatment. Increasingly, the entire complex is surrounded by security fencing or even opaque walls. For anyone passing by or living in their vicinity, there may be little to see beyond the data center’s unending nighttime glow. For what could be considered the most important buildings of the decade, this is a decidedly dull aesthetic. It is the architecture of value engineering and the minimum viable product. The companies behind these facilities would argue that data centers are more like utilities or infrastructure and therefore don’t need the kind of design a more public-facing building would. But even when these data centers are not located near large communitiesthough many actually arehow they look can send a powerful message about their owners’ sense of responsibility for their many downsides. A missed opportunity By now, the negative externalities of big data centers are well known. From their excessive energy use to their inflationary impacts on local electricity rates to their deep thirst for water to the sheer size of their sprawling campuses, the costs of the data center building boom can feel excessively high, especially in the face of hallucinating chatbots, disinformation campaigns, and unavoidable AI slop. In this light, the warehouse design approach of most data centers is the architectural equivalent of burying one’s head in the sand, a supermax prison tucked out in the boondocks, far from any discourse over mass incarceration or human rights. The boring design of data centers is a missed opportunity to counter their negative externalities with at least a little upside. [Photo: courtesy of Gensler] There are some data centers that are offering glimpses of what a better design could be. Some data companies and spec builders are turning to large and renowned architecture firms to add an extra layer of design to what can be fairly cookie cutter buildings meant primarily to house computers. Some designs are emphasizing natural light and natural materials in their small but important human-centric office and entry spaces. Others are prioritizing new building materials and server cooling equipment that lowers both the embedded and operational carbon impacts of the facilities. Still others are blending themselves into dense urban locations, bringing smaller scale data centers closer to specific types of users. Some look like modern office complexes. If they weren’t so big, some even look like they could hold a high end restaurant or retaier. But for every data center trying to soften its blow on society, there are dozens, if not hundreds, that are spreading as much computing power over as large an area possible that can draw in the enough resources to get the servers up and whirring as soon as possible. This looks to be the predominant developmental strategy. Design is largely an afterthought. [Photo: Gerville/iStock/Getty Images Plus] AI companies and other so-called hyperscalers are scrambling for suitable building sites near electricity generation and transmission lines, making it likely that data centers will edge closer and closer to preexisting communities. This proximity will increase the need for more sensitive design approaches. Some better design is happening now. As the building boom carries on, much more will be needed. The companies behind the AI race have been unambiguous about AI’s potential to dramatically reshape society. If that’s true (the jury is still very much out), perhaps those companies could spend a bit more effort signaling AI’s importance by making its vast and growing physical footprint less of a total bore.
Category:
E-Commerce
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