The Future of Leadership: How to Adapt Your Skills to Stay Relevant

With the rise of remote working, digital transformation and increased awareness of psychological safety and inclusion in the workplace, leadership capabilities are rapidly shifting. To better understand the future of leadership and to help our clients successfully navigate this path in a constantly evolving business landscape, Incredible People Director Natalie Lincolne recently attended the Institute of Executive Coaching and Leadership’s two-day summit in Sydney. She came away hugely inspired and energised from presentations by leading executives and researchers across Australia, with invaluable insights into innovative thinking, digital transformation and empathetic leadership. Here she shares seven of the key take aways of the future of leadership and how the expectations and skill sets are changing.

1. Leading with vision and purpose

One of the most consistent messages from the Summit was the importance of having a clear vision and purpose. In today's diverse and complex work environment, leaders must create a shared sense of purpose to connect their teams. With so much of our lives spent at work, it's essential that this time feels meaningful. Leaders at every level should regularly communicate their team’s purpose and vision, and ensure that employees feel aligned with the overarching goals. A motivated team working towards a common purpose will always outperform a group that's disconnected.

Out: Work for work’s sake.

In: With technology taking over many jobs, people want to feel as though their work has meaning.

2. Emotional intelligence and psychological safety are essential

The best leaders understand that leadership today is about being more human. Emotional intelligence (EQ) and psychological safety aren't just buzzwords — they are critical components of a healthy, productive workplace. Leaders must develop deep listening skills, show empathy, and create an environment where team members feel safe to share ideas and make mistakes without fear of retribution. A psychologically safe workplace encourages innovation and collaboration, which are essential skills to adapt to a dynamic and ambiguous work environment. The ability to give and receive feedback and negotiate with clarity will be critical to leading teams in the future.

Out:  Traditional, transactional leadership styles 

In: Deep listening, empathy, honest feedback and a culture where people are safe to innovate and try new things

3. Shift to conscious leadership

Gone are the days when adhering to rules and codes of conduct is enough. The future of leadership requires a shift towards conscious, ethical decision-making. Leaders need to embrace transparency, confront discomfort head-on, and engage in self-reflection to understand the broader implications of their choices. This approach supports a leader being seen as authentic and builds trust within teams.

Out: Compliance based leadership.

In: Ethical leadership that can manage discomfort and conflict transparently. Need to be courageous and skilled in navigating negotiation.

4. Designing effective operating rhythms

A strong operating rhythm is the heartbeat of any team. This includes everything from how often teams meet to how they communicate progress and handle challenges. While many teams have inherited rhythms, the most effective leaders take the time to intentionally design these systems. By aligning operating rhythms across different functions, such as Finance, HR, and Operations, leaders can create a harmonious workflow that supports both productivity and well-being.

Out: Disconnected team members and business units.

In: Reliable rhythms enable diverse team members to feel safe, so they can be productive AND well.

5. Embracing learning dexterity

Leaders today need to be able to stay in touch with an ever-changing business landscape. This includes understanding emerging technologies like artificial intelligence (AI), managing remote and diverse teams, and responding to complex global challenges that impact markets and supply chains. The ability to make decisions despite uncertainty, embrace new ideas and pivot when necessary, will be key to leading successfully in a world where traditional methods may not always apply. Focus on skills AND agility to grow leadership capability for the future.

Out: Static job mentality — resistant to change.

In: Adapting to emerging technology and making all the decisions without all the information you’d like.

6. Mentoring the next generation of leaders 

By 2025 the workforce will be 77% Gen Z and Millennials. These emerging leaders have different ideologies and values to the majority of established leaders in your organisation, but may be graduating from university with little to no development or experience in the interpersonal skills that are required to succeed at work. We must mentor and empower these emerging leaders to develop the skills they need, so they can transform the organisation into one that will succeed in the future. Emerging leaders are going to be the ones who join the dots between the old way of doing things and the new ways.

Out: I’ll show you how.

In: Courage to empower your leaders and then let go. Their way may be different but it also may be better.

7. Diversity in organisational governance

The predominant skillsets of boards need to be more varied to meet today’s organisational challenges. Organisations must ensure that their boards include a variety of perspectives and skillsets, not just those with traditional governance backgrounds like finance or law. Digital expertise, human capital management, and customer-centric thinking, as well as gender and cultural diversity on boards are needed for organisations to drive innovation and make more informed strategic decisions.

Out: Boards and executives of the same gender and professional background.

In: Diversity of gender and more digital marketing, customer experience and people professions.

Investing in Leadership Growth

Leadership, much like any profession, is about constant evolution. The best leaders are those who reflect on their experiences, invest in their personal growth, and continuously adapt to the changing world around them. Coaching plays a vital role in this journey. As a leadership coach, I firmly believe that every leader needs a coach, and that leaders, in turn, should know how to coach others. 

To find out how we can help you invest in your leadership growth, whether through custom leadership training progams specifically for your teams or individual coaching, get in touch with us today.