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OpenAI’s founding team started with 11 people, including Elon Musk. Now Musk is suing the company for allegedly going against its founding mission and several of OpenAI’s cofounders are stepping away from their roles.

Late Monday, OpenAI cofounder John Schulman announced on X that he would be leaving to join rival AI firm Anthropic. He specified that his decision was personal, and not based on lack of support for AI safety research.

“My decision is a personal one,” he wrote, adding later that he will “still be rooting” for the OpenAI team, “even while working elsewhere.”

Related: AI Is Standing Between You and Your Next Job — Here’s How to Get Your Application Into Human Hands.

Schulman’s departure overlaps with another OpenAI cofounder stepping back from the company. On Monday, OpenAI president Greg Brockman stated that he would be taking an extended sabbatical for the rest of the year.

I’m taking a sabbatical through end of year. First time to relax since co-founding OpenAI 9 years ago. The mission is far from complete; we still have a safe AGI to build.

— Greg Brockman (@gdb) August 6, 2024

Brockman, CEO Sam Altman, and Wojciech Zaremba, a research and language team leader, are the only members of OpenAI’s 2015 founding team who remain at the company.

The rest, including former OpenAI chief scientist Ilya Sutskever, have left, with Sutskever founding his own Safe Superintelligence venture in June.

Related: OpenAI Resignations: How Do We Prevent AI From Going Rogue?

Peter Deng, OpenAI’s vice president of consumer product, also left OpenAI on Monday per The Information, though he wasn’t on the founding team.

OpenAI has faced controversy recently, with Jan Leike, its former safety leader who departed for Anthropic in May, accusing the company of prioritizing “shiny products” over safety. In the same month, Scarlett Johansson hired legal counsel after finding that ChatGPT’s voice sounded “eerily similar” to hers.

The drama is heating up between CrowdStrike and Delta Airlines amid a potential lawsuit against the technology company after July’s mass outage that allegedly led to the cancelation of thousands of Delta flights.

On Sunday, CrowdStrike’s lawyer Michael Carlinsky reportedly wrote to Delta Airlines’ lawyer David Boies that Delta’s threats of a lawsuit “contributed to a misleading narrative that CrowdStrike is responsible for Delta’s IT decisions and response to the outage.”

The letter alleged that CrowdStrike CEO George Kurtz reached out to Delta CEO Ed Bastian amid the disaster to “offer onsite assistance, but received no response,” per CNBC.

Related: Read the Memo from CrowdStrike Explaining Massive IT Outage

Carlinsky also said that should Delta go forward with the lawsuit, the airline would have to “explain to the public, its shareholders, and ultimately a jury why CrowdStrike took responsibility for its actions—swiftly, transparently, and constructively—while Delta did not.”

Last week, Bastian spoke to “Squawk Box” and said that the airline had “no choice” but to seek damages following the incident.

“We have to protect our shareholders,” Bastian said on the show. “We have to protect our customers, our employees, for the damage, not just to the cost of it, but to the brand, the reputational damage.”

The CrowdStrike update caused widespread outages on Microsoft-run devices and internal issues at Delta, affecting one of the airline’s top crew-tracking tools.

Delta reportedly lost between $350 million and $500 million during the outages and canceled roughly 7,000 flights.

Related: Delta Hires Famous Attorney, Seeks CrowdStrike Compensation

Delta has not disclosed how much it would seek in compensation from CrowdStrike, and the lawsuit has not yet officially been filed. Still, Bastian told employees via an internal memo last Friday that the airline was “planning to pursue legal claims” against the tech company.

Delta Airlines was down over 15.5% year-over-year as of Tuesday afternoon.

The service industry today is experiencing significant changes driven by technology and evolving customer expectations. Businesses are prioritizing customer experience and adopting real-time, automated services to meet rising demands for seamless, omnichannel support.

According to Zendesk, 63% of companies are now placing greater emphasis on improving the customer experience. Predictive maintenance and advanced technologies like AI and VR are enhancing service delivery, while sustainability and social responsibility are becoming crucial for consumer engagement. Along with all these changes, companies face challenges in hiring and retaining skilled workers amid economic pressures such as inflation and supply chain disruptions.

Growing a workforce in a specialized field, like pool services, presents significant challenges. The unique nature of the service industry demands employees with specific technical skills and a customer-focused attitude. At GL Pools, we’ve faced these hurdles head-on and found that the keys to overcoming them lie in four areas: effective recruitment, comprehensive training, strong employee retention and cultivating a supportive company culture.

Related: 7 Steps to Building a High-Performing Team

Filtering out the bad applicants

Recruiting talent in the pool service industry is no easy task. We found the biggest challenge is finding individuals who not only possess the technical skills but also the reliability and customer-focused attitude necessary for the job. To address this, we implement a rigorous screening process to ensure that candidates meet our high standards. We also created a training program to help our new hires learn the business.

Retaining skilled employees is essential for maintaining high service standards and ensuring business growth. Many of our best technicians have been with us for years, thanks to our supportive company culture and clear career advancement opportunities. We provide regular performance evaluations and celebrate employee achievements, which helps to keep our team motivated and invested in their roles.

Creating a motivating company culture is vital in a niche service industry. We achieve this through structured training, team-building activities and regular opportunities for career advancement. We believe that a supportive culture is key to employee satisfaction and performance, and we make it a priority to regularly acknowledge and reward employee achievements.

Based on my experiences, here are five effective ways entrepreneurs with businesses in niche services can better scale their workforce:

1. Invest in continuous training

Develop a training program that covers technical skills and customer service. Be sure new hires understand the company’s values and expectations. Remember to regularly update the training program to incorporate new techniques and technologies. Comprehensive training programs are essential for equipping employees with the necessary skills and knowledge.

At GL Pools, we created GL University, a two-month intensive training program that offers tailored, ongoing development focused on technicians’ strengths and passions. Effective training is crucial for ensuring employees are well-prepared to excel in their roles. Our GL University program covers all aspects of pool maintenance, from diagnosing issues to implementing solutions. This program provides new hires with the technical skills they need and emphasizes the importance of customer service and reliability. This investment also enhances service quality and boosts employee confidence and competence.

Related: Invest in Your Team or Fall Behind – 3 Ways to Upskill Your Team with Continuous Training

2. Create clear career paths

Providing clear career advancement opportunities helps retain skilled employees and motivates them to perform well. Regular performance evaluations and clear paths for growth within the company are essential. For example, technicians at GL Pools can advance through various levels based on their skills and experience, which encourages them to stay with the company and grow professionally.

Clear career paths provide employees with goals to strive for and a sense of direction. This motivation leads to higher retention rates and a more skilled workforce. Develop a clear framework for career advancement, including the skills and experience required for each level. Above all, don’t forget to communicate these paths clearly to all employees.

One company that does this well is Deloitte. Employees have well-defined career paths that include opportunities for promotion, lateral moves and special projects. This structure helps employees see a future with the company and motivates them to work towards their career goals.

3. Establish a supportive culture

Fostering a company culture that values and supports employees is paramount for ensuring they feel motivated and appreciated. This includes creating a positive work environment, recognizing and celebrating achievements, and providing support for both professional and personal development.

A supportive culture leads to higher employee satisfaction, increased loyalty and better overall performance. A study by the American Psychological Association found that 93% of employees who feel valued are motivated to do their best work, highlighting the importance of effective training and recognition programs.

Start by creating a positive work environment through team-building activities and open communication. Recognize and celebrate employee achievements regularly. Provide opportunities for professional and personal development.

Related: 9 Simple Techniques Any Leader Can Use to Show Employees Appreciation

4. Make sure values are aligned

Recruiting individuals who align with the company’s values and mission ensures a cohesive and dedicated team. During the hiring process, we prioritize candidates who not only have the necessary skills but also share our commitment to excellence and customer satisfaction. This alignment ensures that everyone is working towards the same goals and enhances team cohesion. This cohesion leads to a more productive and harmonious work environment.

To make sure you find new hires with aligned values, clearly communicate the company’s values and mission during the recruitment process. Look for candidates who demonstrate a passion for those values, by incorporating values-based questions into interviews to assess alignment.

One company that does this well is Patagonia. The outdoor clothing company recruits employees who are passionate about environmental activism, aligning with its mission to protect the planet. This alignment has created a dedicated and passionate workforce with some of the lowest turnover in the world.

Growing a team in a niche service industry, like pool maintenance, is a tall order. But by implementing these strategies, entrepreneurs can build a strong, knowledgeable team that drives business growth and maintains high service standards.

A woman returned a $499.99 queen mattress to Costco five years after buying it, without a receipt — and Costco accepted the mattress under its generous return policy.

In a TikTok liked almost 20,000 times, @purrfectreads showed how she and her partner wheeled their five-year-old mattress to Costco’s return center and received $414.95 back in a Costco gift card. Even though they didn’t have a receipt, Costco looked up the purchase on their account and found it in their account history.

Related: A Woman Is Going Viral for Returning Her Couch to Costco 2 Years After Buying It: ‘We Just Don’t Like the Color Anymore.’

The couple said that the mattress was uncomfortable and sunk too much as their reasons for bringing it back.

“I was so nervous,” @purrfectreads wrote.

@purrfectreads Desperate times comes for desperate measures ? we decided to try the theory on can you return stuff thats been more than couple years at costco and without a receipt and well it work ? #costcotiktok #costcoreturn#costco #kingbed #noshame #savingmoney ♬ HOOLIGANG – Joey Valence & Brae

The couple used the refund to buy a new king mattress. They ended up paying $300 for a king bed on top of the gift cards.

This TikToker isn’t the first to return a product to Costco years after buying it, and also not the first to go viral.

In January, Costco member Jackie Nguyen shared with over two million viewers that she returned a couch she had owned for two and a half years to Costco — without a receipt. She got a full refund for the couch.

Related: Costco Increases Membership Fees Days After Announcing Hourly Employees Are Getting a Raise

Costco’s return policy states that the company “will refund your purchase price” with a few exceptions on products like electronics, diamonds, gold bars, and gift cards.

That’s not to say that Costco doesn’t have consequences for years-old returns. Members who abuse the return policy could see their membership revoked.

Costco did not immediately respond to Entrepreneur‘s request for comment.

When my company launched a community feature for our customers a couple of years ago, we made some incorrect assumptions in our messaging that derailed the campaign’s success. But when our creativity didn’t land, instead of learning from our mistakes, we made an even bigger error: we abandoned our efforts altogether. The truth? We were perfectionists struggling to face a fairly public failure. But instead of iterating on our campaign to improve it, we let it fizzle out.

They say perfection is the enemy of progress, and I’ve seen this play out both in my own career and with many entrepreneurs. No matter how genius an offering is, the pressure of getting everything just right can often delay — or completely derail — a launch.

Perfectionism is a well-known enemy of productivity, the root cause of many psychological disorders and a common answer to the interview question, “What is your biggest weakness?” But while we recognize perfectionism as a barrier to progress (and I certainly have), why do so many creative and innovative people still fall into its trap?

Perfectionism might not be a new hindrance, but it is on the rise – and not just with entrepreneurs. A culture of competitive individualism, amplified by social media, pressures all of us to be flawless and can seriously undermine our ability to succeed in business. In fact, it almost certainly guarantees failure.

The reality is, we all need to be able to take risks — and fail — in order to improve our work. Embracing the value of imperfection is the only viable way to get there.

Perfectionism can be downright damaging

As a recovering perfectionist, I now understand that perfectionists are more than just uptight overachievers. They can obsess over meeting exceptionally high standards and unrealistic expectations. They can even be highly self-critical and fear criticism from others. And yet many go into their entrepreneurial journey by comparing themselves to those who have already hit it big, blind to any mistakes those role models made along the way.

Nearly every entrepreneurial success story is built on the back of countless failures – and many entrepreneurs are famous for it. But I’ve witnessed personally how striving for perfection from the outset doesn’t lead to a successful offering. In fact, the results can be the opposite: no launch at all. Perfectionism often holds would-be entrepreneurs and creators back from sharing their unique genius with the world and getting a finished product out in the market. However, there are ways to overcome it. And I should know: I’m still working on overcoming it myself.

Fail small, win big

After the communities launch failure (which, fortunately, was a small one in the grand scheme of things), I learned an invaluable lesson: the best way to handle failure is by examining it, embracing it and using it to improve, not by hiding from it and pretending it didn’t happen.

Nowadays, we approach our launches much differently – in phases that allow us to test the waters, get feedback from our customers, and iterate on our approach and messaging until it hits just right.

Making mistakes is par for the course in business, but learning from them and correcting the course is the only way to turn them into a net positive. Many of the most successful creators go a step further and share their failures publicly. Patreon’s CEO Jack Conte calls it normalizing the duds, and his approach is pure storytelling genius: a balance of humility and humor that makes his failures feel like an actual work of art.

Getting past perfectionism

As a recovering perfectionist, I know that embracing imperfectionism is easier said than done. We’re all operating within a hyper-competitive and often unforgiving business climate where every move (especially wrong moves made publicly) can be ruthlessly analyzed and criticized. We’ve all seen the chilling effects cancel culture has on individuals and businesses that have made irreparable mistakes.

Moving past perfectionism means intentionally taking calculated risks and baking blunders right into the development process. Here are a few strategies we use to make that process more palatable:

• Connect with a community of peers: Sharing imperfect work is easier when those around us are doing it too. Getting connected to a community of entrepreneurs in trial-and-error mode is the best way to see that you’re not alone. In fact, by becoming an entrepreneur, you’re part of a group of people in the business of overcoming failure. Whether you find that group through a coworking space or a software-related community, look to others who can accept critical feedback and allow it to inform progress.
• Adopt a coaching mindset: Reminding yourself that nobody’s perfect is helpful because even seasoned experts make mistakes. Redefining the way I perceive failure (and success) meant rebranding missteps as an opportunity to iterate. You can even rewire your brain to appreciate critical feedback for the gift it is.
• Look beyond the launch: Product, campaign or company launches often create an intensity that brings out your best work, but leaning into them too much can lead to a letdown – especially if the results don’t meet your expectations. I often tell my team not to put too much creative energy into something that will likely need to change once it’s in market. Even if it’s flawed, I know we’ll learn something as soon as it goes live that will enable us to improve it.

The truth is, we all have moments of uncertainty. But no matter how uncomfortable it feels to put your creative work out there for judgment, the reality is that people will judge it whether you think it’s perfect or not. Accept that fact, cut yourself some slack and don’t let the idea of perfection hold you back from sharing your unique genius. Done is better than perfect, after all.

Despite many companies issuing return-to-office mandates, the commercial real estate market in big cities like New York remains volatile.

Iconic office towers once valued in the hundreds of millions are taking a major hit. For example, a Midtown Manhattan office building just sold at a 97.5% discount after only receiving one offer, the New York Times reported.

Related: Amazon Is Reportedly Tracking ‘Coffee Badging’ Workers and Their Real In-Office Hours

A 23-story, 925,000-square-foot building, redesigned by the famed Gensler Architects team, sold for $8.5 million last week. The building last sold in 2006 for a whopping $332 million.

The office building, located at 135 West 50th Street, was built in 1963, and auctioned off by UBS on an auction website called Ten-X. It received just one bid.

“UBS’s perspective was, ‘We need to sell this quick, we’ve kind of made peace with this is gonna be a big loss. We need to sell it and we need to move on,” Ten-X president Steven Jacobs told The Real Deal in an interview.

Related: Barbara Corcoran Issues Warning on Commercial Real Estate Market

The building has seen a slew of companies call it home over the years, including Zales and Sports Illustrated, though it’s now 65% vacant due to the pandemic and companies downsizing on office space.

The building’s website boasts floors that range from 12,000 to 63,000 square feet with full-floor blocks that “could serve as a building within a building for the right tenant.”

However, the sale of the building does not include the land beneath it, as UBS sold that to Safehold in 2019 for $285 million.

The new owner of the building has not been revealed.

Related: Salesforce Is Cracking Down on In-Office Work

The difference between business survival and striving for success often boils down to one factor — your mindset. Whether you’re an aspiring entrepreneur or a seasoned executive, your actions are always inspired by how you look at things. This ultimately affects your results and dictates what you can further bring to the table.

Business leaders need to confidently steer their organizations through challenges to inspire their teams to reach new heights and drive their businesses forward. I’ve seen firsthand how the right mindset can transform a business, and these five approaches helped my company reach a significant milestone in just a year:

Related: 5 Critical Questions You Must Ask Yourself to Master an Entrepreneurial Mindset

1. Expect the unexpected

Get used to things not going as you would expect; it’s part of the journey. If your plan A doesn’t succeed, make sure you have 25 more up your sleeve.

There is no perfect roadmap for your business, as each business and founder is unique in the way we approach growing and servicing customers. Accepting a business’s unpredictable nature helps you stay nimble and adaptable, and flexibility allows you to pivot when necessary and capitalize on unexpected opportunities.

2. Outsource early and often

Outsource every possible task as soon as possible. This approach will force you to create Standard Operating Procedures (SOPs) before you become too busy. If you don’t do this earlier, you will find scaling to be very difficult, which will hinder you from generating the revenue needed to support a full-time team.

Consider outsourcing as a way to buy time. An entrepreneur’s main goal is to reinvest time into assets that drive growth as early as possible. Focus on the more critical aspects of your business rather than getting bogged down in routine tasks.

Related: How Mindset Plays a Role in Your Entrepreneurial Success

3. Invest in a business coach

No matter where you are in your business lifecycle, you can’t afford not to have someone who will help you work through challenges and offer perspectives and ideas that will help you not get stuck in the mess. Get a coach at each level of your business.

It’s normal to outgrow your coach as your business evolves, and you should expect this progression. I once hired a very expensive sales coach. His feedback on one call was all I needed to boost my confidence that I was much better at sales than I had given myself credit for. While I didn’t find much value in his other advice, I decided to gamble on one confidence-boosting insight that I knew would return to me tenfold.

Don’t be afraid to take what you need and move on. Don’t get hung up on the cost if it helped you move past an area that is causing friction or if it gave you an “aha moment.”

4. Get comfortable with public failure

The sooner you get comfortable with publicly failing, the quicker you can get back up and learn from your mistakes. If you consistently pay attention to the details or let what others may perceive you as get on your nerves, you’re setting yourself up for disaster.

I was able to overcome imposter syndrome through experience and the lessons I learned from my mistakes. The more experience I gained, the more decisive I got about my decisions. With each win, even if I failed at first, my self-confidence improved because it was never as bad as I thought it would be.

5. Surround yourself with like-minded people

They say, “You are the sum of the five people you spend the most time with,” and I couldn’t agree more. Your network significantly shapes the way you think and perceive things.

Joining the Entrepreneur’s Organization (EO) was one of the best decisions I have made so far. Since then, my calendar has been filled with professional development and personal growth activities, with dozens of like-minded individuals constantly rooting for me.

I also joined several high-end masterminds and have gotten tremendous value out of them. If you can’t afford high-ticket masterminds, you can always choose the more affordable ones, but still, they are a sizable investment. People who sink money into themselves exude a different energy, and those are the people you want to be with when you decide to take yourself and your business to new heights.

Related: 11 Mindset Traits of Successful Entrepreneurs

Your mindset is your most powerful business tool. Keep in mind that in order for your business to succeed, it’s not enough to just hit your targets; you have to blow them out of the water. This means constantly challenging the status quo, embracing failure as a learning opportunity and promoting a culture of innovation.

Achieving your goals is one thing, but continuously and intentionally evolving with the times and exceeding expectations is another story.

Thoughtless user interfaces can be maddening. A simple task — editing photos, say — goes sour when I’m overwhelmed by navigation bars and pointless pop-ups. Maybe I turn to a Help window, and (sigh) now I’m telling my color correction problem to a glorified FAQ. Only one thing’s clear — the software has no idea what I want.

But AI changes that — or, at least, it should. As the CEO and co-founder of an AI-powered customer service platform, I’ve given this problem a lot of thought. And I believe we’re still designing software for the past instead of reimagining it for the future. We’re still thinking of our devices as brainless machines — a car you have to sit down in, buckle up and drive. Nearly overnight, that dynamic has changed.

We’re not driving a car any longer — we’re saddling up a living, breathing horse with a mind of its own — and it’s ready to ride.

Related: I Teach AI and Entrepreneurship. Here’s How Entrepreneurs Can Use AI to Better Understand Their Target Customers.

Evolving interfaces

Every leap forward in computing creates a paradigm shift in the user’s experience. The dawn of personal computers led to the graphical user interface (all those folders and icons you click on with your mouse). Mobile phones led to multi-touch techniques and app-centered home screens.

AI will shake things up again. But how? Will it lead to voice-based interfaces, where we simply talk to our computers? Spatial awareness, with software integrated into your environment through augmented reality? Will it stay mired in prompt writing, where we simply fill our fields to generate what we want? The debate is just getting started.

But here’s what I do know: Going forward, the best software will accommodate two intelligences (yours and the AI’s). Its core function will be to facilitate a genuine back-and-forth — a collaboration between two minds, each with its virtues and limitations. And it won’t look much like the software applications we know and use today.

Most software up until now responds to your commands but doesn’t have any ideas of its own. That design paradigm assumes that you’re the expert, and the software is just a way to convey your expertise. It makes the annoying assumption that the user knows what they’re doing. I think that’s dated, and it’s got to change.

AI-native software is fundamentally different and in ways that are stranger and more powerful than we’ve appreciated. I’m not talking about “co-pilots” here — the ubiquitous assistants that have popped up, powered by AI, to whisper advice to you like some grandchild of Clippy. I’m talking about genuine co-workers that anticipate your goals and guide you forward in bespoke ways. Ethan Mollick, a Professor at Wharton, has called this “co-intelligence.”

The future Mollick imagines could produce a user experience that’s radically different for each of us. Just as humans have foundational personalities and then emphasize different aspects depending on who they’re with, AI-native software will have a foundational design but customize itself to meet the user’s needs. In its most advanced form, it will literally create a new user interface on the fly based on your history and goals.

Think of that personalized interface as your own custom-made saddle. As any equestrian will tell you, horseback riding is a relationship between two minds, and that should be the goal with an AI interface, too. Your input matters, of course. But so does the energy and intellect of the platform. An ideal UI will allow for the subtlest communication between horse (the AI) and rider (you). It will enable the AI to respond to your style, intuit what you want, and ultimately take you where you need to go.

Related: You Can Fear It and Still Use It — Why Are So Many American Workers Shy About AI?

A sneak peek into two-intelligence design

Here’s how our experience with computers should feel when we’re riding in an AI saddle:

For starters, forms of input will expand beyond clicking and typing. AIs will see what’s onscreen, hear what you’re saying, and track where your eyes are focused to better understand what you’re trying to do. In my industry — customer service — this change will massively streamline the experience. A large amount of time and energy is wasted when customers have to explain what’s happening on their screen (log-in errors, order issues, etc.). Imagine all those hassles being instantly handled by an AI agent.

At the same time, AI will tap user information to understand your skill level, preferences, and goals. They’ll use that data to rebuild their own interface for each user. Customized landing pages and recommendation algorithms were just the beginning. Going forward, facial recognition technology could monitor your expressions and trigger extra help when you’re frustrated or ease off when work is flowing.

Meanwhile, the notion of “user” itself will blur, and more space will be made for non-human entities. People using ChatGPT are already used to having an Avengers-style team of helpers at their beck and call (called GPTs), each with an avatar like any other remote worker. Going forward, Salesforce, WhatsApp, and all kinds of platforms will host AI agents right alongside humans — to the point where we’ll treat them both as friends and coworkers.

To lower our cognitive load, it’ll make sense for some of these AI assistants and agents to be explicitly personified: Devin, marketed as the world’s first AI software engineer, has his own online workspace and chat window, for example. And then, in other cases where human input is less important, they may work quietly behind the curtain.

That invisible labor will also mean far fewer tools and toolbars in the software that humans interact with. It’s the end product that we’re after, not the opportunity to toil. User interfaces will grow simpler and more streamlined — places to peruse and learn from finished work, rather than do work, itself. Indeed, venture capitalists are observing that AI start-ups are pivoting to sell finished work rather than software.

Likewise, as AI draws what it needs from apps and collates material for users, there will be even fewer reasons to tap on the most fundamental tools of our digital lives — the apps on our phones and tablets. Someday soon, the app-based home screens on your phone may need to be redrawn.

Nobody can perfectly imagine the future. But I do know that getting the AI revolution right means designing user interfaces with all these components in mind. It’s a “horse riding” moment. Your intentions and the AI’s work in tandem. And it’s made possible by a user interface that makes room for all the benefits that a second intelligence can bring. Giddyup!

We’ve come a long way from the days when identity verification meant simply presenting a handwritten document or a personal endorsement. The Digital ID movement signals a new era where your identity is a digital entity, stored and accessed online.

This shift promises many benefits, like positively transforming efficiency, security and fraud prevention. Yet, here is the challenge: the transition isn’t an overnight overhaul. It’s a gradual, evolutionary process.

Physical documents aren’t going anywhere – yet

Consider the reliability of a physical document – tangible, verifiable and trusted across various industries. Despite the charm of digital transformation, a 2024 Forrester Consulting study commissioned by Regula reveals that 46% of organizations still manually verify documents, including in remote setups. This reliance is even higher in sectors with stringent security demands, such as Aviation (63%) and Finance (44%).

Why the attachment to paper? It’s simple. Physical documents are trusted and familiar, and they provide unmatched authenticity. They work. For business leaders, this means a gradual transition to digital identity systems is not just sensible – it’s essential. The current systems can coexist with emerging technologies, ensuring operations remain smooth while new methods are integrated.

The barriers to a digital dream

The dream of a global Digital ID system faces significant challenges. Chief among them is the lack of universal legislative frameworks. It’s like trying to conduct a global orchestra without a shared music sheet.

According to the study, 74% of respondents highlight the need for unified global standards to ensure seamless integration and acceptance worldwide. This lack of alignment means businesses are navigating a fragmented landscape, where interoperability across borders is a complex challenge.

Furthermore, technological disparities create uneven progress. While some regions, like the UAE, are racing ahead with advanced digital infrastructures, others, including the US and Europe, are taking a more cautious approach due to stringent regulations. This disparity underscores the importance of tailored strategies considering regional readiness and capabilities.

Related: Your Face is Data — and Scammers Are Using it for Fraud. Here are 5 Tips When Using Identity Verification

Concerns and realities

As businesses examine the digital leap, several Digital ID concerns weigh heavily:

• 50% worry about increased data breaches and cybersecurity threats.
• 46% are concerned about the necessity of robust security frameworks to mitigate the risks of data breaches.
• 44% fear the implications for privacy due to surveillance and data tracking.
• 35% highlight dependence on technology potentially leading to system failures.
• 35% see the risk of identity theft and fraud with digital credentials.

These concerns are not trivial. They reflect the real and present challenges of a digital transition. But they also point to the need for robust, secure, and reliable systems that can build trust over time.

Related: Deepfakes Are on the Rise — Will They Change How Businesses Verify Their Users?

The hybrid solution

In this complex landscape, a hybrid approach to Digital IDs emerges as the most pragmatic path forward. This strategy embraces both digital and physical verification methods, allowing businesses to transition at a manageable pace. By maintaining physical documents alongside Digital IDs, organizations can leverage the strengths of both systems, ensuring reliability while gradually adopting new technologies.

For business managers, this hybrid model offers a reassuring compromise. It minimizes disruption to existing processes and provides the flexibility needed to explore and integrate digital solutions incrementally.

At the same time, to adopt digital IDs into the current IDV (Identity Verification) process, a business must undertake several steps. First, it should assess the compatibility of its existing infrastructure with digital ID technologies, ensuring it can seamlessly integrate the new system. This involves upgrading or adapting current software and hardware to support digital ID functionalities. Next, the business must select a reliable digital ID provider, prioritizing those with strong security measures and compliance with regulatory standards. Implementing digital IDs requires employee training to effectively manage and operate the new system. Additionally, the business should develop a clear strategy for data privacy and protection, addressing potential cyber threats and ensuring compliance with data protection laws. Finally, a thorough testing phase is essential to identify and resolve any issues before fully deploying the digital ID system, ensuring a smooth transition and maintaining the integrity of the IDV process.

Standard issue

The development and adoption of Digital ID systems will require collaborative innovation from authorities, businesses and stakeholders in the IDV market. Key players like the International Civil Aviation Organization (ICAO) and the International Organization for Standardization (ISO) are working to establish frameworks for Digital ID adoption. Their efforts foster interoperability, security and privacy across different systems. However, creating comprehensive standards is a meticulous, time-consuming process.

However, even if all standards are prepared and fully verified, the next stage involves implementing software according to these standards. This is not just a single module but a comprehensive suite of systems for each vendor, and there will be many vendors. Each vendor may interpret the standards differently, leading to inevitable compatibility issues.

This brings us to the necessity of having process standards as well as testing and certification standards. However, even if vendors pass certification, questions about the completeness and reliability of the software will remain, especially when used by end-users. For example, an SDK might be fully functional, but during integration, developers might cut corners and not utilize all necessary components.

Who will handle the certification? Laboratories will be needed to prepare testing software, and these labs will charge significant fees for conducting time-consuming tests. Not all vendors will be eager to invest in certification. Given that each country might have multiple vendors, the scale of the problem is immense.

Currently, passports function without any online infrastructure, but digital IDs will need online services capable of handling massive volumes of requests, potentially from around the world. Imagine 300 million simultaneous requests in the USA alone. This feels like the scale of Facebook, Instagram or Google, with dedicated data centers and more. The cost could be astronomical. Poorer countries might decide they don’t need such systems or opt for minimal implementations.

As a result, we will have many document variants: not only paper documents, paper documents with chips, and digital IDs but also many different types of digital IDs.

Related: U.S. State Will Now Accept Digital Driver’s License on iPhone

A marathon, not a sprint

The journey to widespread Digital ID adoption is indeed a marathon. Even after the development of comprehensive standards, global adoption will take time. The initial issuance of Digital IDs will still require physical passports or ID cards, underscoring the ongoing relevance of traditional identification methods. Moreover, the implementation costs and the need for robust infrastructure further slow the transition.

For business owners and managers, introducing Digital ID is best viewed as a gradual evolution. After all, in this long road to digital transformation, patience and pragmatism will be your greatest allies.

The process for exiting a business is about so much more than numbers and contracts; it’s about the people in your organization, from the front-line employees and executives who have created the business’ value to the leadership team that lands the deal at the most favorable terms. Your people have been at the heart of your organization, but their involvement in the exit process needs to be thoughtful and delicate – requiring trust and discretion. Here’s how to support them throughout the transaction.

Before the sale — say nothing

When should the owner inform employees that the business is being sold? Not until the sale is final and the buyer has officially taken possession. That’s the number one rule: Only the owner, their transition team and possibly one critical team member should know about it until after the transaction is complete.

Prematurely revealing this information can have several adverse results:

• Early departure: Hearing about a pending sale can cause fear and uncertainty. Employees often assume the business is for sale because it’s failing, or they worry that they’ll be let go by the new owner. They may leave before the sale is finalized, hurting the company’s value.
• Legal challenges: The seller must certify to the buyer that the staff is in good standing. Early departures could make this look like a misrepresentation, and the buyer could sue, try to back out or otherwise undermine the transaction.
• Delayed transition: A strong, stable team can be a significant value driver. Buyers often write contingencies into the transaction to ensure key staff members stay. If there isn’t a strong team, the owner might need to stay on temporarily to facilitate the transition.
• Demand for compensation: Knowing their value in the deal, employees who learn of the sale might demand bonuses or raises as inducements to stay. Granting them can affect profitability and sale value, not to mention the discomfort of feeling like the deal is being held hostage.

Without adequate precautions, keeping your plan under wraps could be easier said than done.

Related: 7 Preparation Essentials for Selling a Business

Maintaining confidentiality

Your company may have such a well-cultivated grapevine that you sometimes feel you’re the last to hear your own personal news. Most breaches of confidentiality occur when owners try to handle everything themselves without professional guidance. Keep your in-the-know list small by recruiting a team of experienced advisors who will ensure discreetness and protect sensitive information about company operations, customers and employees.

Sometimes, you may have to inform a key employee about the sale early in the process — a top salesperson, the CEO or someone else. Do this as the last step of due diligence, and be sure it’s handled with strict confidentiality agreements.

What if someone finds out despite your best efforts? Your response depends on where you are in the sale process. If it’s early, you can say you’re exploring partnerships or considering offers without actively shopping the business. “Everything is for sale if the right offer comes along” is truthful but vague enough to quiet rumors. If those strategies don’t work, you may have to get transparent and insist they sign a non-disclosure agreement.

Announcing the sale

Once it’s final, communication should be strategic and focus on the positive. If you’ve handled the sale proactively, you should have no trouble presenting it as good news – because it will be good news:

You’re finally retiring and found the right person to continue your legacy. Other life changes are taking you in new directions, and the new owner understands the team and mission. The business is so successful it has attracted an owner who can take it to the next level.

Start by informing the management team first. Provide talking points to help their teams navigate the transition. Then, have a full team meeting with both the seller and the buyer present. Celebrate the event, express gratitude to your staff—they’re the ones whose work attracted the perfect buyer—and highlight the opportunities that the new owner brings. For smaller companies, individual meetings with each employee can address personal concerns and questions.

One of the first questions will be whether the new owner will let people go or make other significant changes. This shouldn’t be a concern unless you’re a large company or corporation. Contrary to popular belief, employees are rarely let go in small to mid-sized business sales. Buyers typically want to retain the staff because they are integral to the business’s success. The goal is to maintain a stable and strong team post-sale.

Related: I Specialize in Exit Planning — You Need to Make These 5 Moves Before Selling Your Business

Training and transition

The seller usually trains the buyer in business operations. This transition period can last up to a year, depending on the complexity of the business. Employees can see this as an opportunity to demonstrate their value to the new owners.

New owners should avoid making significant changes for the first six months. Stability helps employees adjust to the new ownership without additional stress. Small, positive changes, like new benefits, can help build trust.

At least during the transition, an open-door policy is essential. It allows employees to voice concerns and feel heard, which builds trust and can prevent minor issues from escalating into major problems.

Believe in your team

People are one of the top value drivers in a small-to-mid-sized organization, and this holds true in a sale. Building a solid team and demonstrating their value through proper documentation and reporting can significantly enhance your business’s value. Planning and managing the transition carefully ensures a smoother process and preserves the company’s integrity and performance.

Thoughtful preparation, strategic communication and professional guidance are the keys to successfully supporting staff when exiting a business.