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Its been 70 years since Douglas McGregor sketched a management theory at MIT Sloan that leaders still ignoreand their teams pay the price. Known as Theory X and Theory Y, McGregors framework built on Abraham Maslows work on employee self-actualization, and it quickly became one of the foundational texts of modern management thinking. In McGregors theory, leaders fall into two camps. Theory X managers assume that employees are inherently lazy, need constant supervision, and would rather coast along than contribute. Theory Y managers, by contrast, see employees as self-motivated, responsible, and capable of growth if given the right environment. And the kicker is that both kinds of managers usually get exactly the employees they expect, no matter who they originally hired. What McGregor was tapping into was the fact that certain beliefs have an uncanny way of turning into real, measurable effects on human behavior. Whether its placebo studies in medicine or examining how teachers’ expectations impact classroom performance, the science is unambiguous about how far-reaching effects simple expectations can have. The psychology behind high expectations Psychologists were among the first to observe and take note of the feedback loops that expectations set off. Take the now-famous study by Rosenthal and Jacobson in 1968. Elementary school teachers were told that a group of randomly selected students had been identified as “late bloomers” who were about to show remarkable academic growth. The result surprised even the researchers themselves. Those students did indeed outperform their peers, in part because the teachers, subconsciously or not, started treating them differently by offering more encouragement, more patience, and more challenging material. The students responded in kind, rising to the challenge now that someone in authority believed them capable of meeting it. The only thing that had changed was the expectations. Journalist David Robson chronicles just how far this phenomenon goes in The Expectation Effect, a book that should be required reading for leadership. From placebo heart surgeries that deliver real relief to workouts that burn more fat just because people believe theyre working harder, Robson lays out the scientific evidence showing how our expectations construct reality around us. The psychology behind the effect is simple: Your brain doesnt sit around waiting for input like a neutral recordkeeper. It ceaselessly guesses and simulates what might happen so that you can be prepared for whatever comes across your desk. At each moment, the brain is busy constructing an internal map of whats likely to happen, and then it updates that map based on whatever comes next. Its no surprise to find that our expectations prime the brains sensory and emotional circuits almost as if its already happening. If you are expecting pain, the amygdala lights up before you even stub your toe. If you expect failure, your cortisol rises, your attention narrows, and your working memory takes a hit before youve even started the task. Expect a sense of existential dread and meaninglessness at work? Here you go, says the brain, lowering your dopamine levels until motivation plummets because your brains prediction model no longer sees a reason to invest cognitive effort. Thats why a sugar pill can relieve chronic pain, why sham surgeries produce real outcomes, and why a warm-up jog feels harder if you think it’s the workout. The experience conforms to the prediction, and belief becomes biology. When leaders talk about setting the tone or creating a culture of excellence, theyre not that far from hitting upon something truly powerful. If we accept that expectations change biology, cognition, and motivation, then leveling them appropriately becomes one of leaderships central tasks. Be careful what you expect, because you might get it If you walk into a boardroom assuming your team lacks ambition, youll subconsciously act like it by designing processes that assume failure. Your team, in turn, will riseor in this case, sinkto the level you’ve set. Welcome to management by cynicism. Nelson Repenning, an MIT Sloan School of Management professor and coauthor of the new book Theres Got to Be a Better Way, has spent his career helping leaders break out of this cycle. He advises leaders to expect moreand betterfrom their people as a starting point. When people fail, we treat it like a character flaw. But in most organizations, failure is a design problem, he says. The question every leader should ask isnt why did they screw up? Its what about our system made it easy to screw up? Repenning and his longtime collaborator Don Kieffer argue that modern management has become too disconnected from the work itself. Youd be amazed how many executives cant describe how the work actually gets done, Kieffer says. Its like trying to fix a car without opening the hood. These leaders cant set a good expectation because theyre so far removed from reality to begin with. Without that intimacy, leaders default to assumptions, not expectations. Before long, youre managing caricatures of your team instead of the real people doing the work. Anyone can ask for a 17% increase in revenue and expect it to happen, Repenning says. But thats not a healthy way to set goals, let alone a culture of expectations. Leaders need to know what they are asking for, and they need to understand how powerful the expectations they set are. This is where too many leaders trip over their own lofty visions. They expect more, but enable less. Perhaps some even care less. Repenning calls this the paradox of servile leadership: Great leaders dont set expectations and step back. They ask, What do you need from me to get there? Then they go and move those boulders. The accompanying leadership model isnt that much more complicated. Set the target, communicate belief, and then roll up your sleeves to start fixing whats brokenwhether its systems, workflows, org charts, tools or, yes, your assumptions. McGregor and Maslow would be nodding along if they were still with us. Decades before we started talking about psychological safety and employee empowerment, they argued that the job of management was to unlock people’s natural drive. Give them autonomy and show them how their work connects to a bigger picture. Eliminate the management by the stopwatch, and start practicing management by the soul. Expectation is freedisappointment is expensive If you expect your team to take shortcuts, youll create a culture of cutting corners. If you expect your team to challenge ideas, theyll innovate. If you expect mediocrity, youll be surrounded by it. And the inverse holds, too. When leaders believe in their people, when they really believe in their capacity to achieve, something remarkable happens. People stretch to meet the expectations, and trust begins to compound. Done right, simply expecting greatness might do more than any retreat or bonus ever could, Repenning ays. But expecting isnt enough. You still have to earn it. Thats the fine print of McGregors theory, and the trap too many leaders fall into. They want the results of Theory Y, but still manage like they believe in Theory X. The message that sends is: I dont really think youve got it in you. But prove me wrong. Thats not leadership. Thats abdication. And now you know how to do better.
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The most enduring leaders arent the ones with flawless résumés. Theyre the ones whove been tested, humbled, and reshaped by failure. From an early age, I trained intensively to become a professional ballet dancer. Ballet wasnt just a passion. It was my identity, my future, my entire world. Until an audition in Vienna changed everything. A sudden injury ended the career I had spent years building. That moment could have marked the end of my story. Instead, it became the beginning of a new one. I pivoted into finance and marketing, building a career at American Express and Amazon. Today, I advise boards and CEOs on succession, governance, and talent strategy at Egon Zehnder, one of the worlds preeminent global leadership advisory firms. One truth has stayed with me throughout this journey. Setbacks arent detours. Theyre gifts. And if you havent failed in a meaningful way, you may not be ready to lead yet. Setbacks clarify what matters When things dont go as planned, its a moment that forces reflection. Perhaps youve been passed over for a promotion, convinced you were the most qualified candidate. Or the product you thought would set a new sales record didnt perform as well as expected, and customers were underwhelmed. Suddenly, you start asking different questions. Are you communicating your impact clearly? Have you built strong sponsorship? Are you recognized as a leader or just as someone who executes well? Can you pivot quickly and creatively based on changing circumstances? Failure shakes our sense of certainty and exposes how fragile our narratives about ourselves can be. It reminds us that success isnt always linear, and performance doesnt speak for itself. These moments are hard, but they also teach us the difference between doing good work and being seen as ready to lead. Resilience isnt built in moments of triumph. Its forged by challenges Mary Barra, now CEO of General Motors, rose through engineering and manufacturing at a time when few women held those roles. Her experience proved essential in 2014, when GM faced a major crisis over ignition-switch failures. Barra didnt deflect blame. She addressed Congress directly, took responsibility, and began reshaping the companys culture. That could have been a defining failure. Instead, it became a defining moment. Barras story is a reminder that leadership isnt about never being questioned. Its about responding to challenges with clarity, consistency, and a willingness to grow. Ultimately, resilience is built in the quiet, difficult moments when no one is cheering you on. Conviction without listening is arrogance Jeff Bezos once said Amazon succeeds by being stubborn on vision, flexible on details. That mindset helps explain how even a product like the Fire Phone, a commercial failure, still served a strategic purpose. Rather than doubling down on a misfire, Amazon listened to customer feedback, learned from the experience, and used those insights to develop Alexa. The distinction matters: Conviction without listening is arrogance. But conviction that adapts based on what customers are telling you? Thats leadership. Passion, unfortunately, doesnt replace market truth. Tenacity can easily turn into tunnel vision. As leaders, our job is not just to have ideas. Its to make sure those ideas matter to someone else. If were not listeningto our teams, to our customers, to the world around usthen were building in a vacuum. Ideas only matter if others believe in them In my work advising CEOs and boards, I meet leaders with really good ideas who struggle to influence others. They know what needs to be done, but they cant bring people along. Thats not a strategic problem. Its a leadership problem. Influence starts with empathy. The ability to see what others value, where they hesitate, and how to connect with them. Often, that empathy is forged through failure. When leaders fall short, theyre forced to see blind spots, hear hard truths, and confront the real impact of their decisions. Consider Microsoft CEO Satya Nadella. After early stumbles in Microsofts mobile strategy, he leaned into a more collaborative, learning-oriented culture that valued listening over ego. That shift helped him rebuild trust internally and reposition Microsoft as a more agile, empathetic company. Nadellas story is a powerful reminder that failure isnt just a test of resilience. Its a chance to become the kind of leader others actually want to follow. Failure builds humanity. And humanity builds leadership Many of todays most respected leaders have careers marked by public missteps and personal reinventions. In the process, theyve developed resilience and deeper empathythe foundations of strong leadership. Because setbacks dont just humble you, they humanize you. And leadership without humanity doesnt last. Ballet is still a part of me. I attend performances. Some of my closest friends are dancers and choreographers. In a twist of lifes full circle, I now have a daughter who is already a more talented dancer than I ever was. Watching her on stage reminds me that what I once thought was the end of my story was really the beginning of hers. Thats the unexpected gift of setbacks. They dont just close doors. They open better ones. But only if youre willing to walk through them without the armor of perfection. Your best chapter may begin in your hardest moment As I advise CEOs and boards navigating complexity, I see a clear pattern. The most effective leaders are the ones whove been tested by hardship and hold their conviction while remaining open to challenge. Theyre the ones who understand that every stumble is an opportunity to rethink, reframe, and reemerge more strongly. In a world of relentless disruption, we need leaders who can metabolize failure into progress. We need leaders who understand that credibility isnt built on being right all the time, but on how you respond when youre wrong. So if youre facing a setback, dont rush to move past it. It could very well be the greatest gift you receive on your leadership journey. Embrace it, learn from it, and let it remake you. Because the story you planned might not be the story youre meant to live. And your best chapter may be the one that begins right after your biggest setback.
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It should be shocking to nobody that were dealing with an absolute surplus of AI consumables. Breakthroughs. Policy changes. New tools that promise to “10x your productivity.” Most of it is either too technical, too abstract, or just plain filler. You don’t need another wall of text, you need the signal. Luckily, there are a handful of AI newsletters that consistently deliver real value without taking up half your morning. (My editor wanted to make sure you knew about Fast Companys own such newsletter, by senior reporter Mark Sullivan: AI Decoded. You can sign up for it here.) The Rundown AI: The Daily Scan If you have exactly five minutes between pouring your coffee and jumping on your first call, The Rundown AI is for you. All business, no fluff, it gives you the full, daily landscape in a highly digestible format. If something major drops from OpenAI, Google, or Meta, you’ll know about it. This is best for the busy professional or anyone who just wants the highlights without having to chase links all day. Superhuman AI: The Productivity Power-Up The Superhuman AI newsletter runs the gamut from grand philosophical debates of AI to the tools that make your job easier. At its best, its practical, actionable, and focused on handing you the tools, tips, and tutorials to integrate AI into your daily tasks. Think prompt engineering tips and how to use the latest AI to automate something you hate doing. This one is ideal for individuals looking to boost their personal productivity and executives focused on operational efficiency. The Neuron: Connecting the Dots If The Rundown is the summary, The Neuron is the analysisthe one that tells you what the news means. Expect a thoughtful analysis with a touch of dry humor. The Neuron is excellent at connecting the technical developments to the real-world impact. This is excellent for strategy leaders and those who need to understand the implications of AI for their industry. Ben’s Bites: For the Builders Bens Bites is less about the press releases and more about what the AI community is actually building right now. Curated by Ben Tossell, its a daily digest packed with new tools, product launches, and startup funding news. If youre a founder, developer, or just love being the first to try a new app, this is your resource. The Batch: The Educational Authority When you need to go beyond the chatter and understand the foundational elements of AI, The Batch is authoritative, educational, and reliable. This weekly digest strikes a nice balance, covering the major research breakthroughs alongside the applied use cases. It keeps you current without oversimplifying the complex subject matter. This is best for anyone transitioning into a technical AI role or the leader who needs to speak confidently about AI.
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Last week, Congress released more than 23,000 pages of documents from the late convicted sex offender Jeffrey Epsteins estate to the public. Since then, the bombshell release has garnered commentary from the Trump administration, thousands of internet users, Saturday Night Live, and, now, merch sellers on Etsy. In recent years, a certain contingent of ultra-niche online merch sellers (and, most likely, dropshippers) have decided that any notable event is fodder for potential T-shirts, mugs, and bumper stickers. In recent months alone, sellers have profited off of merch designed to covertly signal anti-Trump messaging; merch promoting “Alligator Alcatraz,” the Trump administrations migrant detention facility in the Florida Everglades; and merch based on a series of New Jersey drone sightings that spawned conspiracy theories across the internet. Just days after the new Epstein documents were released, merch sellers on sites including Etsy and Amazon have already turned the disclosures into NSFW statements. Etsy and Amazon flooded with merch inspired by the Epstein emails Of all the information included in the documents revealed by Congress (including one message in which Epstein claimed that Trump knew about the girls), most merch sellers are focusing on a specific email exchange in March 2018 thats become a major subject of internet scrutiny. In the exchange, Epsteins brother, Mark Epstein, asks Epstein how hes doing. When Epstein responds that hes with Steve BannonTrumps former White House chief of staffMark Epstein follows up, Ask him if Putin has the photos of Trump blowing Bubba? Given that Bubba is a well-known nickname for former president Bill Clinton, netizens have begun speculating that the comment might refer to a sex act between Trump and Clinton. The comment even got some national airtime on Saturday as part of SNLs cold open on November 15. (Both Trump and Clinton have denied any knowledge of Epstein’s abuse or sex-trafficking operations and neither appears to have been explicitly implicated of wrongdoing in the emails.) Mark Epstein has since gone on record to multiple publications claiming that he was just jokingbut thats not stopping merch sellers from capitalizing on the theory. A look into the NSFW merch designs Out of the dozens of new Etsy and Amazon listings that have popped up since the files were released, one of the most common themes is a riff on the phrase Big beautiful bill, which Trump used to describe a major tax and spending law that he signed in July. In these merch items, however, the bill in question is Clinton. The items, many of which are not safe for work and potentially offensive, feature President Trump and former president Clinton along with a variety of suggestive phrases. (See here, here, here, and here for examples, but click at your own risk.) While most of the merch is fairly predictable, a few sellers have opted for more creative designsincluding one image of Trump and Clinton inspired by the iconic film Brokeback Mountain. Etsy and Amazon did not immediately respond to Fast Companys request for comment on whether its aware of an uptick of merch in this vein, and whether the merch fits within their terms for seller designs.
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E-Commerce
It’s not just executives or knowledge workers in offices who are using artificial intelligence. It’s being adopted in fields like healthcare, retail, hospitality, and food services, too. But frontline workers often aren’t prepared for AI adoption. In fact, many are completely unaware that it’s being implemented in their workplaces at all. Workplace management platform Deputy surveyed 1,500 frontline workers across the U.S., U.K., and Australia for its “2025 Better Together Survey: How AI and Human Connection Will Transform Frontline Work.” The survey found that nearly half of workplaces (48%) use AI. However, only 1 in 4 workers say they regularly interact with it. But, surprisingly, 10% don’t know if their workplace is even using the technology to begin with. That could be due to the fact that employers aren’t being totally transparent about whether their companies have adopted AI. Just 17% of shift workers say their employer was open about the company’s AI use. Likewise, only 15% say they were consulted about new AI tools in the workplaceeven though they want to bewith 63% of frontline workers saying that communication about AI is essential. “Employees are sending a clear message: They want to be part of the conversation about how AI is used and introduced in their organizations,” Dan Schawbel, managing partner at research and advisory firm Workplace Intelligence, said in a press release. “When workers feel informed and included, trust growsand thats what unlocks the full potential of AI. Empathy, transparency, and inclusion arent just soft skills; theyre the foundation of successful AI adoption,” he said. While AI’s role in the workplace isn’t always clear, what is clear is that the workers using it are having positive experiences with the technology. In fact, 96% of shift workers say they are happy with the technology’s role, which shows up in tasks like scheduling, in AI-powered kiosks for ordering, as well as streamlining administrative tasks, and more, in their workplace. Likewise, 94% say it makes their job easier. That’s likely why nearly 1 in 4 employees who were surveyed said they’d rather have more AI support than an extra week of PTO (23%) or even a promotion (24%). And that’s likely why workers want to be in the know when it comes to how their organization is using the technology: 27% say they desire more transparency and communication about the technology and how it’s being used. “New tech arrives. We’re supposed to just figure it out,” one food worker who took part in the survey said. In retail, the statistic is even higher, with 31% saying more communication is needed, likely because the technology is so visible to customers. “They put in self-checkout without even telling us why,” one retail worker explained. “Customers ask us questions we can’t answer.” Interestingly, while workers report positive experiences with AI, only 37% feel optimistic about the technology’s future at their workplace, which could point to how the technology is implementedoften with little communication. As another worker put it: Employees can’t integrate AI properly if it’s never been introduced to them, which leaves employees feeling the need to push back rather than use the tools to their advantage. “If you explain it, we’ll accept it,” that same worker said. “If you don’t, we’ll resist.”
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E-Commerce