“You can always count change as a constant,” Nicole Conley, associate director of employee experience at ibex, said during a From Day One webinar. But change doesn’t have to be a setback. Psychological flexibility is the skill that separates teams that crumble under the pressure created by disruptive technologies from those that successfully adapt to their new realities. 

Conley was joined by a panel of speakers during a session about “The Power of Adaptability: Thriving Through Change in 2026,” to share concrete ways leaders can cultivate adaptability in themselves and the teams they lead. 

Laura Magnuson, LAMFT and VP of clinical engagement at Talkspace, defines psychological flexibility as the ability to be present and open to difficult experiences, and take actions aligned with your values, rather than getting stuck in rigid, unhelpful patterns like avoidance or impulsivity.

Magnuson traces the concept of psychological flexibility to acceptance and commitment therapy, pointing out shared philosophies like staying in the present, accepting uncomfortable feelings, and taking action. 

The Importance of Leadership Modeling Adaptability 

All four panelists agreed that leaders must exhibit the behaviors they want to see in team members. Jamie Smith Hubbard, the senior director of talent management at Compass Group, described three layers of connection her team uses: monthly company check-ins, weekly peer gatherings, and what she calls “Friday Focus,” a block of time designated for team members to catch up with each other or address personal needs. 

“We use that time to really make sure that we’re taking care of ourselves,” she said, noting that such rituals help to normalize downtime without negatively impacting productivity. 

Tools for Navigating Change

Kristina Gardiner, the senior director of talent management at Help at Home, says transparency is the most effective tool for reducing change-induced anxiety. “A better informed soldier is a better performing soldier,” she said, borrowing from her military experience to explain how sharing the “why” behind decisions helps people connect the dots, making them more adaptable. 

Gardiner’s team replaced mass email blasts with conversations led by team leaders and small group sessions, so employees could ask questions in real time. 

It’s the small moments that matter, according to Conley. Psychological flexibility shows up in everyday moments, like checking in, naming what’s hard, and pausing before reacting, she says. She writes down everything to separate emotions from real issues when she feels overwhelmed, and returns to solve the problem with a calmer mind. That five-minute pause is what helps managers respond effectively to change instead of reacting irrationally.

The panelists agreed that behavioral interviews using realistic scenarios best reveal adaptability, often more than personality tests. They also cautioned that chasing too many initiatives creates fatigue, urging leaders to push back and focus on the highest-impact changes.

Navigating Generational Challenges and AI’s Impact

Leaders should be attuned to how different team members deal with change. Magnuson points out a Talkspace survey that found Gen Zers are uniquely self-critical when they fail. “As leaders, first being aware that this is something that might be happening with this younger group of employees, and figuring out how we can help to coach and support them to accept failure and take on that growth mindset is crucial,” she said.

One major source of workplace uncertainty is artificial intelligence. While AI is expected to open up new opportunities, it also sparks fear. The panelists agreed that leaders should remain measured and human-centric when addressing these concerns. 

“We’re exploring different AI platforms and doing smaller pilots,” Hubbard added as she stressed how irreplaceable the human element is. Gardiner suggests transparent communication about industry “headwinds and tailwinds,” while Conley recommends empowering employees to see AI as a tool that helps them “work smarter, not harder.”

Why Adaptability Drives Business Performance 

Psychological flexibility is often the difference between organizations that turn change into a ladder to propel growth and those that are hindered by it. 

Companies that can pivot quickly will capture opportunities at the speed required by technological change and shifting markets, while those that are slow to adapt will miss out on these opportunities, says Magnuson. “If you don’t have a team that’s really nimble and ready to move and pivot, you as a business might lose out on some opportunities,” she said. 

The demise of Blockbuster highlights the immense cost of failing to adapt. The defunct video rental giant once dominated its market with thousands of stores and a widely recognized brand that had become a household name. 

However, when confronted with the disruptions brought by digital streaming and a DVD-by-mail model pioneered by Netflix, Blockbuster’s leadership clung to its brick-and-mortar blueprint and once-lucrative late-fee revenue model. They even passed on the opportunity to acquire Netflix for $50 million. Netflix is now valued at around $435 billion, while many Gen Zers have never heard of Blockbuster. 

Ultimately, adaptability doesn’t just give companies a competitive advantage; it's necessary for their survival. 

Editor’s note: From Day One thanks our partner, Talkspace, for sponsoring this webinar. 

Ade Akin covers artificial intelligence, workplace wellness, HR trends, and digital health solutions.

(Photo by JuSun/iStock)