Leading into the future
The Institute of Leadership Report
John Williams, CEO
A report from the front line
Sometimes it’s good to pause and take stock. I travel regularly, meeting leaders and consultants working across a huge range of industries and sectors, and I hear a lot about the challenges and opportunities they’re facing today. Those thoughts, opinions and business strategies are in turn informed by their employees, their customers and the markets in which they operate. When it’s all added up, that’s a lot of volume. We need to ensure that we make sense of these reports from the front line of business, and cut through the noise to find meaningful and actionable insight.
This inaugural Institute of Leadership report is a way of consolidating the wide range of views of our broad leadership community in 2025. From our research, we have been able to clearly draw out the major themes that are shaping the leadership agenda today – from economic and geopolitical factors, to the onward march of technology, to staff retention and wellbeing.
The report provides a temperature check – a moment to gather our thoughts and find a focus for the year ahead. It also reminds us that we don’t need to face the challenges of leadership on our own. There is common ground between us all. We move forward and greet the future together.
Leading into the future
This first-of-a-kind report from The Institute of Leadership (IoL) provides a snapshot of what successful leadership looks like in our fast-changing world
‘Change is the only constant.’ It’s a phrase commonly attributed to the Ancient Greek philosopher Heraclitus. More than two millennia later, leaders may feel that he still has a point.
Certainly, that is the finding of the research presented in this report, commissioned by the Institute of Leadership (IoL) and conducted by Research By Design (RbD).
While the breadth of responses to these issues was wide and varied, the major common area of agreement (77%) was an anticipation of more change, happening ever more rapidly, with a further 19% expecting at least the same level of change to take place.
Beyond that top line – and perhaps expected – insight, this report looks at the drivers for change, and how leaders are equipped, or not equipped, to respond. For a more nuanced view, we have also spoken to a number of leaders from within the IoL community, who offer their own thoughts and perspectives on the research.
The three key drivers for increased levels of change, as experienced across the leadership community over the previous 12 months, are: economic factors, with many organisations fearing the impact of
global issues upon the economy (85% of respondents); geopolitical factors (64%); and technological advancement (63%), most vividly represented by the onward march of AI.
The economic landscape – covering areas such as recession, interest rates and inflation – is seen as the biggest driver of change, particularly represented among C-suiters and directors (94% as opposed to 85% across the entire respondent cohort).
With a general acceptance among leaders that change will come at an everincreasing pace, a common requirement among the most senior leaders represented in the research was for ‘an agile, flexible and cost-conscious’ approach.
The research highlighted four areas in which a new or redefined approach may need to be considered and applied across various sectors of the economy. The four areas are: AI and its implementation (see page 4); engagement among the workforce (see page 6); decision-making (see page 8); and what makes a successful leader (see page 10).
Combined, they highlight priorities for the leadership agenda in 2025, and suggest ways we can lead into the future
I am expecting less change
I am expecting the same level of change 3% 1%
Unsure
respondents
Base: Asked to all
AI and its implementation: why new tech remains a challenge
Technological advancement and its potential as a transformative power is having a major impact across IoL membership. Sixty-three per cent of respondents cite technology as being a factor in driving change over the next 12 months and said that they are adopting AI to increase efficiencies and productivity.
Despite its undoubted potential as a tool for development, there is a lot of trepidation when it comes to the brave new world offered by new technology. With 20% of respondents stating high levels of confidence, there was a group of 55% who professed to being ‘somewhat confident’, and a further 25% ranging from ‘neutral’ to ‘very unconfident’.
There is perhaps a whole other strand of research to be conducted around the fact that there is a clear gender divide, with 80% of men, compared with 68% of women, saying they felt confident when it came to leveraging new technologies. The other clear divide, when it comes to identifying those who feel highly confident in the application of new technologies, is between consultants (89%), C-suites and directors (82%), and those in less senior roles (68%).
This all suggests that a challenge exists for leaders to ensure that understanding and engaging with technology is filtered to all levels of management and across genders. While nearly two-thirds of the respondents see technology as a potential driving force, at the same time there is a lot of concern about the cost of implementing new technology. While one senior manager is quoted as saying:
“The impact of AI is going to change the way in which we currently work”, that is countered by the 41% of leaders who feel the cost of implementing new technology is just too great at the moment.
While questions about the limits of data infrastructure, data privacy and security concerns, and doubts around the workforce being skilled enough to implement new technology efficiently are
all voiced in the survey, nearly a third of respondents are, frankly, just unsure about how the new tech can be implemented. In other words, they are reluctant to implement new technology until the benefits and usages are crystal clear within their company strategies. This is reflected in the survey, with just 10% of respondents envisaging significant expenditure on AI in the coming year.
Ed Monk, CEO and co-founder of the Learning and Performance Institute (LPI) – a workplace learning and performance professional body
The so-called AI ‘revolution’ is not a distant future. It is here, reshaping the way organisations learn, operate and compete. As leaders, we have a responsibility to harness AI’s potential to enhance performance, not simply to cut costs or automate tasks. At the LPI, we see AI as a catalyst for smarter decision-making, personalised learning and real-time performance support, enabling individuals and teams to adapt faster in a rapidly changing world.
However, opportunity comes with responsibility. Leaders must navigate significant pitfalls, including bias in AI models, over-reliance on automated outputs, and the risk of eroding trust if transparency is lacking. Technology alone will not deliver results. Success depends on how well it is aligned with culture, skills and ethical governance.
My advice is to approach AI adoption as a learning journey. Build awareness and capability across your workforce, encourage experimentation with guardrails, and be open about both the benefits and the limitations.
AI is not a replacement for human leadership. Rather, it is a tool to augment our ability to lead with insight, empathy and impact. The real revolution lies not in the technology itself, but in how we choose to use it.
Very confident
Somewhat confident
Neutral
Somewhat unconfident
Very unconfident
Base: Asked to all
350 respondents
How confident are you in using new technology? To what extent are you planning to invest in AI in 2025?
Base:
Workforce engagement: recruitment and retention cause strategy rethink
Attracting talent and keeping it interested are two almost equally weighted workforce-focused challenges cited by the respondents to the report. At 50% and 49% of responses respectively, this ties in neatly with the finding that only 5% of those surveyed reported no challenges when it came to managing staff.
With recruitment and retention proving tricky subjects, it comes as no surprise to discover that 72% of respondents are considering making some level of adaptation to their recruitment strategy in the next 12 months.
Aside from salary and career opportunities, it is also worth noting that leaders interviewed as part of the survey repeatedly spoke of the need to
highlight “purpose, growth opportunities and wellbeing initiatives to differentiate from competitors... and to build loyalty from within”.
One respondent who added comments to the survey spoke of “employee power” adding: “Employees can now choose to not tolerate ‘survival’ roles and poor employers. If we do not provide purpose, they will look elsewhere.”
It was also noted that AI could change that dynamic: “The power balance will shift back towards employer – rightly or wrongly – as AI removes roles and scarcity changes demand for jobs.”
While providing a career path, upskilling the workforce and creating an environment that supported employee
wellbeing were cited as challenges that leadership teams needed to meet, the biggest test was actually attracting the right recruits in the first place.
More than half the respondents identified recruitment as the primary issue and were looking at adapting their recruitment process as a result.
“It’s no longer just about salary; it’s about the full package, including how organisations are making a positive impact in the world”
Clear career progression
Investing in development and learning for staff More flexible working opportunities
Don’t know
Base: Asked to all 350 respondents
Jack Abrey, head of youth engagement for WWF-UK –an international organisation that works to restore and protect the natural world
There’s been a real shift in expectations over the past decade. People want more than just a job – they’re looking for purpose, progression and balance. In my experience, this manifests in candidates asking about development opportunities and wellbeing support right from the first conversation. It’s no longer just about salary; it’s about the full package, including how organisations are making a positive impact in the world.
As leaders, we need to be intentional about creating environments where people feel valued, supported and able to grow. That means investing in formal and informal development opportunities, flexible working and a culture that prioritises wellbeing.
The pace right now feels relentless. That can be unsettling, especially when people don’t feel they have control or clarity about what’s changing and why. I think the key leadership qualities needed are empathy, adaptability and clear communication. Leaders need to be visible, honest about what’s happening and open to feedback. It’s about creating psychological safety, so everyone feels they can ask questions, raise concerns and contribute to solutions.
Change doesn’t have to be destabilising if it’s handled with care and clarity. In fact, it can be a real opportunity to increase our personal and organisational impact.
Everything starts with trust. You can’t build engagement, or a positive culture without it. In our team [at WWF-UK], we focus on being transparent, consistent and values led. We involve people in decisionmaking, celebrate successes, adopt a no blame culture and make space for reflection and learning.
Decision-making: how the hurtling pace of change gives self-reflection added value
Whether it is recruitment policy, tech implementation or another area altogether, the workplace is a dynamic place. As has already been stressed, this is unlikely to get any less dynamic in the future with so much change precipitated by multiple factors, such
Nicole
as government policies, global upheaval, market volatility and climate change. At times like these, the ability to lead with a steady hand becomes ever more vital.
At such a moment, creating time and space for personal development and self-reflection is key to success. This
Horsman, director of Embed, an educational and business training provider and consultancy, providing career development coaching and corporate training
The research shines a spotlight on something we’ve long believed at Embed: that self-reflection and continuous improvement are not just ‘nice to haves’ for leaders, they’re essential. In fact, 79% of leaders in the study said these behaviours have the biggest impact on how they make decisions. That feels right, especially when you consider that 63% also pointed to technology as a major driver of change in the coming year, with more than half investing in AI.
However, we see a challenge in navigating this; while leaders know self-reflection matters, very few feel like they have the space to actually do it. In our work with managers and senior teams, developing learning that supports navigating digital transformation, the same thing comes up again and again: “I’m flat out. There’s no time to stop and think.” Leaders are being pulled in a dozen directions, reacting to change, firefighting cultural shifts and trying to keep pace with tech that’s moving faster than their people can absorb. This is where the risk lies. Without space to pause, digital change risks becoming surface-
was the view of 79% of respondents to the survey, although most also conceded that making time for self-reflection was a challenge in itself.
level. New platforms and tools may be introduced, but the same problems remain.
Real transformation – the kind that sticks –comes from leaders who reflect with their teams, not just for them. That means carving out small, intentional moments to ask: what’s working, what’s not, what are we learning? We call these ‘transformation checkpoints’, not big strategic reviews, just brief, honest chances to re-orientate and reconnect.
What we also see – and the IoL research backs this up – is that digital confidence isn’t evenly spread. Embedding reflection into leadership culture helps level the playing field. It gives people at all levels permission to be curious, to ask better questions, and to grow with change, not be overwhelmed by it.
The pace of change is relentless in digital transformation. But if we want digital leadership to mean more than keeping up, we need to build in time to look up. Reflection isn’t what slows us down, it’s what helps us move forward with purpose.
What’s informing your decisions right now?
Mary Eniolu, founder and CEO of the Can Do Academy – an organisation that focuses on leadership strategy, navigating middle and senior leaders through complex challenges
In my experience as a leadership coach, while most leaders acknowledge the value of selfreflection, few consistently make time for it. Under pressure, it’s often treated as a luxury – not the strategic necessity it truly is.
However, the most effective leaders I work with are those who intentionally create space to reflect, knowing that self-
awareness is the foundation of strong leadership. I encourage all my clients to prioritise this habit, as it leads to better decisions, stronger emotional intelligence, and healthier team cultures.
Data is essential for spotting trends, guiding decisions and measuring impact – but it’s not the whole picture. The most effective leaders balance data with intuition,
Base:
context and emotional insight. Instinct, when grounded in self-awareness and experience, is often the key differentiator – especially in fastchanging environments. Through coaching and reflection, leaders sharpen this instinct, turning it into informed judgement, rather than unconscious bias.
Successful leadership: a fine balancing act
One word that features in responses throughout the research is ‘adaptability’. With change comes the need for flexibility. However, with change also comes the need to offer stability. All of which suggests that the most successful leaders are those with a gold medal in gymnastics: an ability to bend and twist while maintaining a solid foundation.
Picture a company heading for a period of great transition. There may be restructuring and redundancies, there may be new technologies put in place, a volatile market may be adding increased financial risk. A leader at this time must instil confidence within the team by showing clarity and confidence in the direction of travel, but with the ability to flex and adapt if that becomes necessary.
At a more pragmatic level, a working knowledge of new technology is essential. The boss may not be a coder but they certainly need to know their way around the technology and understand its potential applications.
From the survey, leaders highlighted three measures of success:
• Employee engagement
• Team productivity
• Team development
This suggests a balance of human-centric and performance-based metrics, with the ability to empower and upskill teams as important as the ability to direct the team.
Mary Eniolu – founder and CEO of the Can Do Academy
Authentic leadership is about alignment – between words and actions. For decisions to be viewed as ethical, leaders must be transparent, involve others and clearly communicate the ‘why’ behind the ‘what’.
Trust isn’t built through perfection, but through presence, humility and consistency. Leaders who admit mistakes stay open to feedback and model emotional intelligence, fostering deeper connection and credibility.
In my work, organisations that invest in emotionally intelligent leadership development see significant gains in trust, retention and performance. Ethical leadership requires values that are not just stated but lived. When values consistently guide behaviour – from hiring to strategy – ethical decisions become second nature.
Leadership today demands a redefined skill set. The world has changed, and so must our expectations of those who lead it.
I see three core capabilities that should be in every leader’s tool box or skill set:
• Adaptability: navigating uncertainty, embracing change and modelling resilience in the face of uncertainty
• People-centredness: leaders who connect meaningfully with their teams build trust, unlock motivation and create environments where people thrive
• Digital awareness: while not tech experts, leaders must confidently leverage digital tools to empower performance. These aren’t optional – they’re business-critical. Leaders shape culture, and culture shapes performance. To drive innovation, engagement and inclusion, we must invest in the inner work – developing self-aware, values-led leaders who lead with clarity, purpose and empathy. The global challenges we face demand no less.
Base: Asked to all 350 respondents
What does success look like to
you?
None of the above 1%
Jack
Abrey, head of youth engagement for WWF-UK
There is no room for any complacent ‘business as usual’ if a leadership strategy is to succeed. We know that the future is going to be volatile, uncertain, complex and ambiguous. We also know that as a species, we can’t carry on with ‘business as usual’ – we all need to play a role in creating a world in which people and planet can thrive. Preparing future leaders means giving them the tools to navigate the challenges ahead, lead with authenticity and be resilient. That
includes exposure to different experiences, opportunities to lead projects, and space to reflect and grow. We must learn from the past and make bolder, courageous decisions that ensure people and planet are paramount in every decision. For me, being open and vulnerable as a leader is incredibly powerful too. Just because you’re in a leadership position, you don’t stop being human at the (virtual/physical) door. Of course you must manage your
own shadow, but showing (and celebrating) your human side can really boost positive connections. We invest in and prioritise development, whether that’s through mentoring, formal training, or opportunities to work on new projects. When people feel valued, invested in and integral to the journey, they’re far more likely to go the extra mile and bring their best.
About this research
This report is based on research commissioned by the Institute of Leadership (IoL) and conducted by independent research agency Research By Design (RbD) between 9 April and 12 May 2025.
For the research, a survey was conducted among 350 respondents from across a range of organisations – from small and medium enterprises through to national and international corporations – and reflecting roles that spanned C-suite and CEOs through to junior roles.
The research was designed to give insight into three key areas that underpin leadership, namely:
• real-life workplace challenges faced by leaders
• emerging trends in leadership
• the development priorities of current leaders
The result is a snapshot of the key challenges facing the leadership community today. The report also offers insight from a range of IoL members who are experiencing the challenges and opportunities facing leaders.
“Leadership today is about navigating uncertainty while staying grounded in people. This research offers invaluable insight into the pressures leaders face and the skills they need to thrive. At Netex, we recognise the power of learning to build not just capability, but confidence and clarity – and reports like this ensure that support is aligned with real, lived leadership experiences.”
Simon Riddlesden, UK Business Director, Netex Learning
