Last year, as we were saying farewell to 2024 and welcoming 2025, there was a fair amount of questioning, worry, and anxiety about leadership at all levels.
Geopolitical concerns, wars, and world conflict had anyone with a phone, TV, radio, or newspaper (yes, they are still available) wondering at the future of our society and, indeed, the planet. We’re still wondering, and most of these questions remain open. But let’s take a meaningful pause to recognize the perseverance and hard work of countless leaders making a difference in their organizations, communities, and the world! I draw hope from the strength of those who choose to fight the good fight, even in the face of long odds and stiff opposition.
I personally think the #1 challenge we face is the need to eliminate debate and replace it with deliberation. We are so mired in debate that we can’t even agree on what the problems are! Imagine a world in which we could accept a few basic and universal issues to address–war, poverty, climate change, you name it–and then deliberate on them to work towards real solutions. That’s what the functional leadership of 2026 must do in my opinion: diligently manage polarities so we can get un-stuck from debates and make real progress.
Let’s turn our focus to our immediate sphere of influence: the business world. We must start by agreeing on the most important challenges leaders face today. Here’s Emergent’s short-list for 2026:
Technological Integration and AI:
Yes, this is a repeat from 2025. But it’s obvious that AI is not going anywhere, and equally clear that it’s an extremely powerful tool which most of us barely comprehend. We must continue to learn, practice, and experiment with a balanced application of this new technology while remaining cognizant of ethical concerns and data privacy.
Talent and Workforce Stability:
Honestly, I wanted to call this one “instability,” but that’s not the challenge. The challenge is getting our workforce back on stable footing. Attracting and retaining talent will remain a challenge for most organizations through 2026. Reskilling an aging workforce, shifting career paths for many, and becoming more creative and less rigorously structured will pay dividends.
Work Model Evolution:
Yup…the word “hybrid” will keep showing up in the news, magazines, blogs, and podcasts through 2026. Leaders will continue to be required to lead remote teams in many organizations, even as others demand on-site workers. But it will not remain polar. We will see creative and integrative solutions, including shared talent, nomadic workers, and new ways to adjust work environments and culture to maximize the benefits and minimize the costs of hybrid work.
Eroding Trust:
Trust is the Big Kahuna, as Stephen Covey put it. Building trust is the best way to counteract declining employee engagement. Mission misalignment and gaps between organizational expectations and employee understandings will need to be bridged. More human-centered approaches will win talent, while appropriate transparency will inform where the better places to work and contribute are.
The antidote to most of the challenges we face in 2026 is managing these dilemmas and matrixed problems with creative solutions. This requires agility, and an acknowledgement that everything is in motion; there are no “permanent fixes” to these challenges. And it all starts with the leadership mindsets of curiosity, growth, and responsibility.
I’ll note that all this is happening amidst a growing leadership crisis. Fewer young people are aspiring to leadership roles than ever before. That’s a big pipeline to fill. But by modeling the leadership mindsets, coaching young talent, and staying on mission, I’m confident we can make progress this year.
Reach out to me directly at [email protected] if you want to discuss the challenges faced by your organization in 2026.
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