Last Time the Market Was This Expensive, Investors Waited 14 Years to Break Even
In 1999, the S&P 500 peaked. Then it took 14 years to gradually recover by 2013.
Today? Goldman Sachs sounds crazy forecasting 3% returns for 2024 to 2034.
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So, maybe that’s why they’re not alone; Vanguard projects about 5%.
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Hey there,
Noticed how quickly hiring strategies become companies blind spots? Unemployment increases by 10%, yet 82% of jobs don't need degrees: qualified candidates getting screened out are often the most AI-native in your pipeline.
Experienced workers remain employed, frontline roles explode, and only 27% trust leadership on AI. Disconnect isn't just a hiring problem - it's a widening problem.
Here's what's shifting, where opportunities are being made and how rethinking now builds capacity faster than headcount in 2026.
In this issue:
Playbook of the Day
How to Manage your Profit Center Operations
Goal: Shift operations from cost center to AI ROI leader before competitors do.
Who: COO/Head of Ops, VP Supply Chain, Procurement Lead, HR Ops Director. Quarterly planning session, monthly constraint checks.
Before your Q1 planning session (20 mins):
Each lead audits current AI pilots and marks which ones have production workflows + measurable ROI.
Each lead writes one sentence: "What becomes our bottleneck once AI starts handling manual work?"
COO reviews and highlights 3 primary workflows where AI minimizes their cycle time 30%+ in 90 days time.
During the 2-hour Q1 session:
Claiming Territories (25 mins): COO declares ops as AI ROI center and reallocates 20% of customer AI budget to primary operations (supply chain, procurement, compliance). No debate.
Automate Workflows (30 mins): Choose highest-volume manual process. Map it end-to-end. Locate where AI automates 40%+ of tasks. Owner pilots in 30 days with defined success metrics.
Redesign Middle Management (35 mins): Inventory managers as routers or instigators. Upskill 10 managers this quarter on hybrid teams. AI handles routine work, they become player-coaches.
Name Your New Constraints (20 mins): Each function answers: once AI handles speed and expansion, what's the bottleneck? (Supplier relationships? Question quality?) One owner per constraint.
Lock Q1 Actions (10 mins): COO recaps 3-5 must-complete actions for 90 days with single owner each. Verbal "yes" from owners in making your decisions.
Rules:
No pilot theaters, invest 60% in organizational change not just your tech stacks, walk before you run with small operational wins, COO owns this era not CIO.
Latest News
💼 Coca-Cola’s Henrique Braun Now CEO Successor
Coca cola’s Newly-Appointed CEO - Henrique Braun
Published: 12/11/2025
Coca-Cola named COO Henrique Braun as CEO effective March 31, 2026, replacing James Quincey (who becomes Executive Chairman). Reuters calls it "evolution", as Braun’s leadership and international operations experience moves the company forward, navigating through demand for healthier options and affordability.
Upside: This decision validates supply chain mastery, cost discipline, and portfolio optimization are now CEO-level metrics. Boards increasingly favor operators who handles margin pressure and commodity volatility over just growth visionaries. For COOs in CPG, retail, or manufacturing: position operational wins as strategic assets and provides insights how supply chain decisions protect shareholder value.
Impact: Operations leaders framing their work as strategic risk management are positioning themselves for the C-suite responsibilities. Boards want executives who balance growth with efficiency and navigate complexity without sacrificing brand equity. This leadership succession provides what companies value in 2026.
🤖 HR’s AI Deployment, and Lagging Talent Strategy
Published: 12/23/25
HR Brew examines why 88% of global employees are now using AI at work, yet only 28% of companies report business transformation from it. AI adoption is expanding while talent foundations remain fragile, creating a disconnect where expensive tools generate activity without delivering operational returns or competitive advantage.
Upside: Research provides a clear diagnostic for operations leaders to ensure AI collaboration, and change management redesign addresses team-level resistance. AI should be treated as a talent transformation project rather than an IT initiative by aligning workforce capabilities with technology outputs for better performance.
Impact: If operations leaders are pairing talent development with AI investments, they’re more likely to bridge 88% usage versus 28% transformation gap. Combined with leadership that prioritizes workforce readiness over platform acquisition, this could transform AI from expensive theater into a great business acceleration tactic.
📌 Reality Check: What The Numbers Are Saying
Published: 12/22/2025
Josh Bersin drops information stopping every operations leader mid-scroll: US unemployment increased by 4.6%, up 24.7% in two years, and new college graduate displacement is pushing 10%, the highest since pandemic recovery. Employers are slowing entry-level hiring despite younger candidates being more AI-native, and frontline workforce are exploding while white-collar positions automate jobs.
Upside: If you're rethinking talent strategy, this clarifies what’s going to happen. Entry-level candidates are often faster to innovate with AI than senior employees who use tech to "speed up old ways" instead of reimagining workflows. Frame AI as a "job-leveler" that democratizes expertise, not a headcount terminator.
Impact: Frequent AI users are more likely to solve problems and twice as fast at execution, but only if they trust leadership enough. Get this wrong and watch competitors scoop up the Superworkers you're screening out while your team clings to legacy processes. Get your process right and expand capabilities faster.
Prompt of the Day
Trigger-Based Prompts for Operations
Trigger Event | Action | Use Case Example |
|---|---|---|
Start of quarter. | Talent gaps, AI adoption rates, skills deficits. | Which teams aren't ready for AI transition and where headcount blocks strategy. |
Before board meetings. | Efficiency gains, cost-per-hire, retention risks. | Proof your workforce strategy is protecting margins while scaling capability. |
Hiring pipeline stalls. | Offer acceptance rates, competitor moves, comp gaps. | Is it market conditions, pay issues, or your employer brand killing the funnel? |
Primary executive finishes. | Succession risks, knowledge gaps, morale signals. | Cascade risks and whether this departure signals a broader retention problem. |
Mid-year reviews. | Flight-risk scores, promotion equity, skills inventory. | Who's about to leave, who's ready for stretch roles, where talent is misallocated. |
Prompt
"Act as my operational intelligence assistant. Based on the companies operational state, (1) identify which 2–3 triggers are most relevant to my situation, (2) what data to request from my team for each trigger, and (3) give me the questions to ask in upcoming meetings to surface potential risks before they become problems."
Things get done only if the data we gather can inform and inspire those in a position to make a difference.
One last thing
Operations don't pause when calendars have shifted, they expose who prepared and who didn't. Talent changes, AI gaps, and market issues won't send warnings. They'll show up as disengaged teams, and stalled projects when it matters.
Leaders who dominate 2026 aren't waiting for clarity: they're moving while others process. Rebuild AI expansion that compound while competitors react.
The best advantages get built when nobody's watching.
Until the next edition,
Chloe Rivers
Editor-in-Chief
COO Intelligence
P.S. Interested in sponsoring a future issue? Just reply to this email and I’ll send packages!