Redefining leadership in the age of business transformation

Written by Ian Nicholls

The business world is constantly changing and, to keep up and achieve sustained success, as a leader you must be willing to lean into these transformations.

From digital advances and the rise of Artificial Intelligence (AI) to flexible working and shifting employee expectations, business leaders have a lot to contend with when it comes to balancing productivity and team fulfilment. The UK AI economy is expected to be valued at £2.4 trillion by 2027, so it’s clear that these shifts cannot be ignored.

By remaining flexible and embracing change, you can set your business up on the path to success.

Trust is key

In times of transformation, it’s essential to build trust with both your employees and customers.

This all comes down to effective leadership – one of the fundamental building blocks of business success. If you don’t take the time to develop and nurture these relationships, cracks can begin to show.

Our experiences of work and business are increasingly digital and, while embracing technology has undeniable benefits, you shouldn’t underestimate the importance of human interaction for building rapport.

Of course, emails and messages are convenient communication tools, but taking a more human approach and carving out the time to speak to your teams in person or via video is crucial for developing a connection and making people feel valued.

We know employees who feel appreciated are more likely to be driven to succeed, and this can only be a positive for your business. The 2025 Global Culture Report by O.C. Tanner found that employees are eight times’ more likely to feel a strong sense of belonging and five times’ more likely to want to stay with a company for two years or more when they are recognised at work.

Acknowledging the person behind the job

Building relationships and trust also involves having a degree of empathy and understanding of your employees’ needs, always remembering there is a human behind the job title.

All teams are made up of people with busy lives and conflicting priorities and taking the time to understand this can have a huge impact on employee loyalty and retention.

One example of this is honouring flexible or working from home requests from team members who may be juggling other responsibilities alongside their work, for instance.

Trusting team members to take charge of their own time and workload helps build a mutual respect and can also break down the relationship barriers we often see with more top-down leadership styles.

The importance of upskilling

Investing in upskilling and training is key for navigating business transformation and being open to learning new skills and passing this knowledge on is important if you want to build a resilient, well-equipped team.

The market is constantly shifting and there is always more knowledge to brush up on, and embracing this fact will set the most successful leaders apart from the rest. Learning about the latest developments in technology, for example, will not only help future-proof your business but may also spark business development opportunities.

You should also give your wider team opportunities for training and development to expand their skillset and/or strengthen existing knowledge. This is key for nurturing adaptable, resilient employees.

The latest World Economic Forum Future of Jobs Report 2025 found that 39 per cent of people believe their existing skillsets will be transformed or outdated in the next five years, so it’s crucial team members are given the opportunity to broaden their capabilities.

Proving to your employees that you are willing to invest in their progress is also a fantastic way to strengthen a sense of belonging and loyalty.

Evaluate and adjust

Adopting an adaptable and flexible mindset is perhaps the most important element of all for successful leadership, especially when navigating business transformation.

Rigid and outdated practices and ways of thinking not only harm progress and profit but are likely to have a detrimental impact on team morale and staff retention. Being part of a forward-thinking business will give your team a sense of confidence and excitement – something all business leaders should be striving to achieve.

Sticking to working practices that are no longer beneficial or don’t suit the needs of your business may be purely down to habit but could also be the result of resistance to change. Tackling new challenges can be intimidating but being flexible and spotting where processes can be improved will help you build overall resilience.

One obvious way to stay agile is by embracing technology developments. For instance, using an AI tool to help tackle admin tasks may result in improved efficiency and productivity across the team. This in turn could improve employee satisfaction by freeing up time to spend on more rewarding creative tasks that would otherwise be spent completing repetitive admin.

Introducing new tools may seem like a simple step, but the rewards can pay dividends.

Anticipating that your business needs and the wider economic environment are likely to change at any given time will keep your business ahead of the curve and is likely to pay off in the long run.

Final thoughts

At times of uncertainty and change it’s more important than ever for your business to embrace transformation. Those who stay stuck in their ways run the risk of being left behind.

Strong leadership should be the foundation, and working with your employees, not against them, is the best route to success. Building trust, committing to training and upskilling, and staying flexible are just some of the ways to improve resilience and long-term success.

Developing these relationships and practices may take time, but the reward of a strong, dedicated and flexible team is worth the effort.

Ian Nicholls is CEO of Explic8