The Human Side of Digital Transformation: Insights from John Fallon on Why Incumbents Succeed, The Pace of Organizational Change, and Integrating AI in Education

We’re joined by John Fallon, former CEO of Pearson PLC, who led its transformation from a 175-year-old publisher to a global digital learning company. Now an author and academic, John shares insights from his new book, “Resurgent,” on how established companies can thrive amidst disruption by leaning into their core strengths while learning to be agile. He argues that a strong, unifying sense of purpose is the most critical factor in navigating the immense challenges of change.

John asserts that the “transformation” aspect of digital change is far harder than the “digital” part itself. He describes the core leadership challenge as bridging the gap between exponential technological progress and the linear way humans adapt. Success requires making change tangible and near-term, and he reframes middle managers not as a “permafrost” layer blocking change, but as the organization’s essential “shock absorbers” who translate strategy and manage the associated anxiety.

Looking ahead, John provides practical advice, from using AI as a tool to create a powerful “first draft” that human creativity can then elevate, to having the patience required for a journey that often takes over a decade. He explains that leaders must protect small, innovative initiatives with non-financial KPIs and foster a culture of continuous change, recognizing that in the modern era, you are either busy being born or busy dying.

→ John’s new book "Resurgent: How Established Organizations Can Fight Back and Thrive in an Age of Digital Transformation"