CEOs Are Obsessing Over ‘Permacrisis’ Problems But Ignoring Frontline Leadership, Warns Former AT&T Executive

 

In an era dominated by overlapping global disruptions—from inflation and climate change to geopolitical instability and rapid technological change—corporate leaders are increasingly focused on navigating what experts are now calling a “permacrisis.” But according to a former AT&T executive, this top-down obsession with macro-level problems is causing a major blind spot: failing to lead and support the people closest to customers—the frontline employees.

What Is ‘Permacrisis’ and Why CEOs Are Focused on It

The term “permacrisis” refers to a prolonged period of instability and uncertainty in which multiple crises overlap, compound, and evolve. This includes economic volatility, political unrest, the fallout of pandemics, supply chain disruption, technological upheaval, and environmental risks.

As boards and C-suites work overtime to ensure their organizations remain resilient, many CEOs have become preoccupied with long-term survival strategies. While this high-level planning is essential, former AT&T president of business solutions, John Donovan, believes it’s leading to a dangerous imbalance in executive focus.

Frontline Neglect: The Cost of Crisis Preoccupation

Speaking at a recent business leadership summit, Donovan said, “CEOs are spending hours in war rooms mapping out AI disruption scenarios and global trade realignments, but they’re not walking the floors, listening to employees, or understanding customer pain points.” According to him, this disconnect is weakening company culture and reducing the effectiveness of execution on the ground.

Donovan added that during his tenure at AT&T, the most meaningful improvements came not from boardroom strategies, but from empowering and listening to those working directly with customers. “If you want transformation, don’t start at the top. Start where the customer lives—at the frontline,” he emphasized.

Employees Feel Abandoned Amid Crisis Leadership

A recent global survey by PwC found that while 75% of CEOs say they are focused on navigating long-term systemic threats, only 41% of employees feel supported by their company’s leadership. This gap has led to lower morale, reduced engagement, and slower implementation of innovation.

The frontline, often made up of retail workers, service agents, delivery drivers, and field technicians, are bearing the brunt of real-world volatility. These roles require adaptability, empathy, and real-time decision-making—skills that are often undervalued when executive energy is spent mostly on hypothetical future challenges.

Why Rebalancing Leadership Focus Matters

Experts warn that a failure to balance high-level strategic focus with day-to-day operational leadership is creating a fragile business environment. “Companies that ignore their frontline leaders in times of crisis risk burning out the very people who keep them afloat,” said Rachel Card, a workforce strategy analyst at Deloitte.

Donovan suggests that CEOs recalibrate their approach by:

  • Spending time with frontline teams weekly.
  • Creating feedback loops between employees and executives.
  • Rewarding local innovation and customer-focused problem-solving.
  • Embedding frontline insights into long-term planning.

Leadership Lessons from the Permacrisis Era

While the world demands visionary CEOs, Donovan reminds us that leadership during a permacrisis must be dual-layered: visionary and present. “The next generation of CEOs must be just as fluent in listening to a delivery driver as they are in briefing the board about geopolitical risk.”

In a world that isn’t getting simpler anytime soon, companies that prioritize frontline engagement alongside future-proofing strategies may find themselves not just surviving the permacrisis—but thriving through it.

 

Shweta Sharma