As we enter 2025, businesses have faced a year of profound change driven by rapid AI advancements, shifting workforce dynamics, and evolving customer expectations. The rise of artificial intelligence and automation is transforming industries at an unprecedented pace, creating both opportunities and challenges. Hybrid work models have become the norm, forcing companies to rethink collaboration and productivity; others to fight it. Simultaneously, customers are demanding faster, more personalized experiences, while stakeholders emphasize the importance of sustainable and socially responsible business practices.
Coupled with higher inflation and economic pressures, manager teams and founders have had quite the year. In this environment, managers are tasked with navigating complexity, addressing operational inefficiencies, and building resilient organizations that can thrive in the long term.
In Nortalis Advisory’s recent survey of business managers and founders, 8 top challenges are on their minds as they prepare to move initiatives forward.
1. Integrating Advanced Technologies
Many managers cited the challenge of adopting AI and automation while aligning these technologies with their business goals. They want to provide the resources to help employees find information faster and empower them to make more front-line decisions. To overcome this, leaders must develop a clear tech roadmap, prioritize scalable solutions, and invest in reskilling their workforce to ensure successful integration. One idea that Nortalis is testing is the efficacy of chatbots that are experts in company Standard Operating Procedures (SOPs) in HR or Operations which may be able to answer questions posed by employees.
2. Balancing Innovation with Legacy Systems
While innovation is essential, respondents highlighted the challenges of managing legacy systems. A phased approach to modernization—prioritizing critical workflows—allows businesses to innovate without disrupting day-to-day operations. Many companies struggle with CRMs that they have outgrown and do not provide actionable insight. Many companies want to see high level dashboard, and reduce the manual methods of measuring performance. Many companies are turning to low code technology like the monday CRM and hubspot.
3. Overcoming AI Adoption Anxiety
While AI offers transformative potential, many managers noted employee anxiety about its implementation. Leaders can address this by fostering a culture of learning, clearly communicating the benefits, and providing resources to help teams adapt. Adopting change management models like the ADKAR model will help teams move forward.
4. Enhancing Cybersecurity
With increased reliance on digital systems, cybersecurity was a recurring theme in the survey. Managers are focused on adopting proactive security measures, including employee training and regular system updates, to safeguard their operations. While small organizations may not have the budget for full time technical support, things like VPNs, antivirus software, and website/hosting malware tools will prove beneficial.
5. Managing Hybrid Work Models
Hybrid work continues to evolve, with respondents emphasizing the need to balance in-office collaboration and remote productivity. Leveraging digital tools for communication and fostering inclusive workplace policies are critical for success in this model. Tools like Microsoft Teams, Zoom and others provided relief during pandemic and have been popular every since. Alternative staffing models may need to be considered as well. The pandemic has also provided the opportunity to develop remote staffing coordinator roles. With the gig economy, one may not need full time team member when the workload demand is not there. Nortalis has developed expertise in managing back-office operations–connecting talented virtual assistants and professionals to business teams that need additional support to move their workflows forward.
6. Reigniting Employee Engagement
Employee engagement emerged as a top concern, with many leaders highlighting low morale and disconnect among teams. Managers should focus on creating environments where employees feel valued, offering professional development, and fostering a sense of purpose within their roles. It all begins with empowering employees with an effective feedback loop. Nortalis works with businesses to design engagement surveys, develop ongoing feedback loops, provide non-biased reporting which all works to encourage their employees to provide more transparent feedback.
7. Attracting and Retaining Talent
The competition for top talent remains fierce. Leaders are addressing this by crafting compelling employee value propositions, implementing flexible work arrangements. Moreover, companies are reevaluating their diversity programs, becoming more clear on what diversity means to them, connecting that to their needs in order to attract and retain skilled professionals with mutually beneficial relationships. Companies are also working with local workforce development agencies and educational institutions to provide training to existing team members and even recruit future employees. Other companies are lookign at turnkey Learning Management Systems (LMSs) to help keep their teams engaged with continuing education and learning incentives.
8. Adopting Sustainable Practices
Sustainability is a growing priority, with managers emphasizing the need to integrate Environmental, Social, and Governance (ESG) goals into their operations. Starting with resource optimization and scaling initiatives over time is a practical way to meet stakeholder expectations. A key aspect in this is social impact measurement where you collect data information along each path of the value and supply chain to show where impact are most beneficial and provide benchmarks for future impact measurement comparison. Nortalis helps companies develop their social impact methodology and improve performance measurement capabilities.
These insights, based on our survey, reveal that managers are not only navigating challenges but also seizing opportunities to transform their businesses. At Nortalis Advisory, we partner with leaders to tackle these barriers head-on, aligning strategies, technology, and operations for meaningful transformation.
As we enter a new year, what’s your biggest challenge or opportunity for 2025? Let’s explore how you can turn it into a transformative moment for your business.
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