The Role of Emotional Intelligence in Leadership: Why It’s Essential During Restructures, Cuts and Change

In the world of BFSI, many senior leaders are stepping into roles not to maintain, but to change. Whether it’s driving transformation, delivering cost efficiencies or restructuring entire functions, the message from the top is clear: fix it.

But org restructures or technology uplifts one thing often gets lost: the people.

If you’re making changes that affect teams – cuts, realignment or absorbing functions, emotional intelligence (EQ) isn’t a nice-to-have. It’s a must.


You’re Not Just Moving Boxes on an Org Chart

Leadership during a restructure is not just about timelines and handovers. You’re dealing with individuals, often in close-knit teams, who are losing colleagues, role clarity and in some cases, their sense of safety at work.

They’re watching closely. They notice how it’s communicated. They notice how their colleagues are treated on the way out. They remember who was transparent and who disappeared when things got uncomfortable.

Restructures done without emotional intelligence don’t just impact the people leaving. They drain the energy and are the decision of people staying.

 

What Emotional Intelligence Looks Like During Change

EQ in leadership isn’t about being soft. It’s about being self-aware, emotionally attuned and communicating with intent. In periods of uncertainty and change, it’s what separates a respected leader from one who’s barely tolerated.

Here’s how it plays out in practice:

  • Anticipating team reactions before a restructure is announced, rather than reacting to the fallout
  • Acknowledging the human impact of decisions, not just the commercial logic
  • Having direct conversations with those affected, even when it’s hard
  • Clearly explaining the ‘why’ behind decisions, so the team doesn’t have to fill the gaps with assumptions
  • Following up with the team after changes land, to rebuild trust and refocus direction

These aren’t fluffy leadership hacks. These are foundational moves that protect morale, prevent passive attrition, maintain momentum and build trust.

 

Don’t Forget the Global Teams

Restructures often involve globally distributed teams – Singapore, London, New York etc. Yet too often, those outside HQ are left out of the loop or are the last to know about changes.

If you’re making structural or leadership changes, you need to lead globally, not just locally.

Best practice includes:

  • Running full team calls (Zoom/Teams) to align on changes and future direction, with time for Q&A, even the tough stuff
  • Rotating call times to avoid excluding one region from every key update
  • Following up in writing with clear takeaways for all regions, especially when time zones prevent full attendance
  • Making regional managers part of the change narrative, not just the delivery chain

You can’t retain what you don’t include. And right now, global capability is a competitive advantage, don’t lose it to poor communication.


Retention is Your Hidden KPI

You can restructure. You can reset. You can deliver change. But if your high performers quietly exit in the six months that follow, you haven’t succeeded, you’ve just shifted the problem.

  • Retention isn’t just about salary. It’s about belief
  • Belief in the direction
  • Belief in the leadership
  • Belief that people matter – even when change is hard

The best leaders keep people aligned not just through logic, but through trust. Emotional intelligence is how that trust is built and how it survives structural change.


Lead the Change, Don’t Just Execute It

You might be in the role to make hard decisions. But how you deliver those decisions is what defines you as a leader.

  • You can restructure and still retain.
  • You can deliver tough news and still build trust.
  • You can lead with accountability and empathy.

You were hired to get a job done. Maybe that job involves cuts, stepping into a team that’s burnt out, or resistant to change. Maybe it means resetting expectations after years of overwork, under-delivery or “just surviving”.

But you won’t do it alone.

If you want your role to succeed, your people need to feel safe, supported and heard.

You can be commercially sharp and emotionally intelligent.

Because you’re not just fixing processes.

You’re rebuilding trust.

Shannon Stobbs – Manager – LinkedIn

Kapital Consulting is a niche Finance Technology Recruitment Business specialising in Technology, Project Services and Data Recruitment across Australia. For more information connect with us on www.kapitalconsulting.com.au and follow us on www.linkedin.com/company/kapital-consulting

The Rise of the Strategic CTDO in Insurance: AI, Talent and Transformation

In the evolving landscape of insurance, one role is quietly but powerfully reshaping the industry’s future: the Chief Technology & Data Officer (CTDO). The CTO was once viewed as a functional leader focused on infrastructure and systems, today’s CTDO is emerging as a strategic force driving technology, data and AI innovation, modernising legacy platforms and building the talent engines that will define tomorrow’s insurance leaders.

From Operational Oversight to Strategic Orchestration

Historically, the CTO’s remit was rooted in IT governance, business-as-usual operations and technological risk mitigation. The data function, often siloed, was tasked with reporting and compliance of data flows and customer data. As insurers grapple with digital disruption, rising customer expectations around speed, accuracy and the transformative power of GenAI, the convergence of technology and data leadership has become mission critical. We have already seen the emergence of the CTDO (Chief Technology and Data Officer) in our Superannuation, Investment Management and Funds Management clients.

The modern CTDO is now expected to:

  • Architect AI-driven transformation across claims, underwriting, fraud detection and customer service.
  • Modernise legacy systems to enable agility, scalability and real-time decision-making.
  • Balance innovation with governance, ensuring ethical AI deployment in a highly regulated environment.
  • Lead talent strategy, building high-performing teams that blend engineering, analytics and business acumen.
This is not a theoretical evolution, we have heard first hand how this is playing out in boardrooms, seen in our clients hiring strategies and transformation roadmaps across the insurance sector.
 

GenAI: The Catalyst for Change

Artificial intelligence is no longer a future consideration, it’s imperative. GenAI, in particular, is redefining what’s possible in insurance operations:
  • Claims Acceleration: AI-powered platforms like Guidewire are being reimagined to process claims faster, flag anomalies and reduce manual intervention.
  • Fraud Detection: Machine learning models are identifying patterns and outliers with unprecedented accuracy, protecting both insurers and customers.
  • Policy Optimisation: “GenAI is reducing our policy setup times and increasing opening rates by up to 35% a huge turning point in our customer onboarding experience”.
But with great power comes great responsibility. CTDOs must navigate the delicate balance between experimental speed and ethical compliance. This requires not just technical fluency, but strategic foresight and stakeholder alignment.

The Talent Imperative: Building the Future Bench
Technology alone doesn’t transform businesses, the people do and the race for top-tier data and technology talent is intensifying across the entire financial services industry not just insurance.
We have seen firsthand how insurers are rethinking their hiring strategies to attract the next generation of CTDOs, data engineers and AI specialists.

The key question for GMs and hiring managers is clear: How do we attract, retain and grow the talent needed to modernise legacy systems and build scalable, future-ready platforms?

The answer lies in three strategic pillars:
1. Vision-Led Leadership
Top talent is drawn to bold missions and interesting initiatives. Organisations must articulate a clear transformation agenda, one that positions technology and data as strategic levers, not simply support functions. This can include exec sponsorship of AI initiatives, transparent modernisation roadmaps and continuous learning.
2. Collaboration
Strategic CTDOs build bridges across engineering, analytics, product and compliance driving collaboration rather than silos. They invest in internal capability, empower teams through agile operating models and create clear pathways for leadership development.
3. Strategic Recruitment Partnerships
In a competitive talent market, insurers must go beyond reactive hiring. Strategic partnerships with specialist recruitment firms, those who understand the nuances of insurance, technology and transformation, can unlock access to passive talent, salary benchmarks, market positioning and accelerate time-to-hire.

Looking Ahead: The Insurance Enterprise of Tomorrow

The insurers that thrive in the next decade will be those that treat technology and data not as cost centres but as growth engines. The CTDO will be at the heart of this transformation, orchestrating change across people, platforms and processes.
For boards, GMs and transformation leaders, the mandate is clear:
  • Elevate the CTDO role to a strategic function
  • Invest in AI capability and ethical governance
  • Build talent pipelines that reflect the future of insurance
Kapital has been partnering with insurers on this journey placing transformative leaders, designing future-ready operating models and helping organisations unlock the full potential of technology and data.
The rise of the strategic CTDO is not just a trend. It’s a turning point.
If you’re navigating this transformation or looking to build a future-ready tech and data leadership team, let’s connect.

Sean Turner – Founder – LinkedIn

Kapital Consulting is a niche Finance Technology Recruitment Business specialising in Technology, Project Services and Data Recruitment across Australia. For more information connect with us on www.kapitalconsulting.com.au and follow us on www.linkedin.com/company/kapital-consulting