From managing to inspiring: How business leaders can drive effective change

In our current business landscape, continuous change is the new reality – and the pace is only accelerating. Organizations are no longer reinventing themselves once every few years, they’re managing multiple business transformations, often all at once. In fact, 95% of organizations we surveyed in 2024 have gone through more than two major transformations in the past three years, and 61% have gone through more than four.

Traditional change management models that worked well in the past are no longer enough to support organizations through the types of changes they face today. Today’s leaders are taking on a new set of challenges when it comes to the change process.

Beyond simply managing change processes, they must deeply engage their people, drive bottom-line improvements and lay the groundwork for continuous business transformations. This means using artificial intelligence (AI) to enhance experiences in the workplace and developing learning and reskilling strategies that position people as an engine for growth.

It also calls for a reimagining of leadership itself. For instance, how to engage and inspire, how to adapt teams and structures, how to build a more diverse workforce and how to shift legacy mindsets to prepare the entire organization for the future of work.

Navigating these complexities has become critical to staying competitive, but only 30% of C-suite executives we surveyed last year express confidence in their ability to drive successful change across their organization. Even fewer (25%) believe their teams are prepared to embrace it.

Our research dives into the critical role that leaders play as “architects of change” and explores the direct link between change practices and tangible business results. We found that successful change is measurable and attainable, but only if leaders are intentional with their actions.

Here’s how:

Develop a compelling change vision that’s aligned to your company’s core values and long-term goals. Communicate this strategic vision consistently so everyone understands that change is not just a reaction to external pressures, but a proactive, purposeful move towards growth. Anchoring your change process in vision and purpose is far more effective than simply managing to a fixed set of business transformation goals and roadmaps.

As a leader, it’s essential to embody the change you want to see in the organization. Demonstrating commitment to change will help build credibility and trust, empowering others to follow suit. When executives lead by example, they show that change is a shared journey that everyone takes together, inspiring the entire organization to embrace new ways of working. For instance, by openly sharing the challenges and benefits of using a new AI reporting tool, the CEO champions experimentation and sets the expectation that everyone in the organization should invest time in learning new AI tools.

Identify trusted, authentic voices who will help inspire people and legitimize the change process, fueling widespread adoption and enthusiasm across the organization. For example, imagine a well-known sustainability expert being brought in to help a manufacturing company shift towards more eco-friendly practices. Their credibility and expertise will inspire people and help them see the benefits of sustainable operations.

Employees need to be equipped with the right learning and training opportunities to take on new roles and responsibilities with confidence. Continuous upskilling and reskilling prepares people for workforce changes and equips them with the skills they need to thrive in their roles today, tomorrow and for years to come. For example, a financial services firm can invest in training programmes so employees can stay ahead of regulatory changes and build useful skills in emerging career fields like fintech and cybersecurity.

Everyone experiences change differently. Using insights from behavioural science and AI, leaders can deliver personalized communication, training and support. By adapting to people’s unique learning styles and readiness, executives can intelligently adjust the pace of change based on individual needs.

A leader rolling out a new AI-powered tool, for example, can customize learning journeys based on employee skillsets, so tech-savvy employees receive self-guided learnings and those less familiar receive dedicated one-to-one coaching and extra support sessions. Content can also be tailored so it resonates more with the learner. Visual learners may receive infographics, for example, while auditory learners could access podcasts and others would receive bullet point summaries.

By using robust feedback loops to track the effectiveness of change initiatives, leaders can pinpoint areas that need improvement and refine strategies in a timely manner. This iterative process not only ensures that changes are working, but also keeps your organization agile and responsive to new disruptions that may come your way.

Imagine a hospital implementing AI agents to assist medical staff with patient scheduling and record keeping. Leaders can track change adoption through usage analytics and review performance dashboards to show time saved on admin tasks.

They can also shadow interactions with patients during visits to see the human plus agentic workforce in action. If data reveals issues with certain workflows, leaders can then refine the AI tools and provide targeted training for their people to work better with the new technology.

Change, done well, is a powerful source of growth, productivity, motivation and new potential. The organizations getting it right are outperforming their peers and enjoying significant benefits, including higher annual revenue growth and 40% more cost savings. Non-financial benefits include meeting employee needs more effectively, improving on sustainability targets and becoming more than twice as likely to achieve successful business transformations.

Continuous change is a core competency that can be developed and strengthened to deliver consistent, measurable results. The future of your organization starts with the choices you make today. Seize this opportunity and position your people, and your business, for lasting success.