The new rules of leadership

A 2025 study by global analytics firm Gallup found that 34% of employees say workplace leaders shape their lives more than anyone else.  

That’s a powerful reminder that leadership is no longer just a role; it’s a responsibility.  

“Leadership used to be all about results, hierarchy and climbing the career ladder – more command-and-control than collaboration,” says Xavier Mercade, CEO of Baker Tilly in Spain.   

“But that’s shifted. Today, great leadership is rooted firmly in emotional intelligence. It’s about authentic communication, listening before making decisions and leading with humility. Trust, empathy and adaptability matter just as much as results. It’s not only about motivating performance but supporting wellbeing and building teams ready to grow.” 

Amr Barbarawi, senior director at Baker Tilly in Saudi Arabia, believes the best leaders aren’t those with all the answers. 

“Leaders today don’t need to be the smartest person in the room; they need to be the most self-aware. 

“The best leaders are dynamic guides: humble enough to admit what they don’t know and confident enough to lean on those who do.” 

Jodie Farris, senior manager at MHA in the UK, highlights the importance of flexibility and trust. 

“The ability to create environments where people can work in ways that align with their strengths and circumstances, while still maintaining high standards, is what distinguishes truly great leaders. 

“Great leaders empower people to perform at their best and ensure they feel genuinely valued for their contributions.” 

For Francesca Lagerberg, CEO of Baker Tilly International, one leadership quality rises above the rest: agility. 

“In a world defined by disruption and constant change, leadership must be just as agile as the environment it operates in. That means adapting strategies swiftly and smartly, without losing sight of the organisation’s 'north star' values. 

“In times of uncertainty, there’s power in consistency.  

“Principles like quality, authenticity and being a trusted adviser shouldn’t waver. They’re the anchors that guide agile leadership.”

Balancing results with humanity is one of the defining challenges of modern leadership. 

And the answer may surprise those still clinging to the old ‘tough boss’ stereotype, says Donal Laverty, consulting partner at Baker Tilly Mooney Moore in Northern Ireland. 

“Look at today’s workplace: burnout is rising, younger generations want real connection and purpose, and global teams are struggling to stay aligned. These aren’t just human resource issues – they’re leadership challenges that directly impact performance and the bottom line. 

“The truth is, while many leaders are great at driving results, far fewer have mastered genuine empathy. 

“Modern leadership demands both. Empathy builds trust and psychological safety. Accountability drives progress and performance. The best leaders don’t choose between them, they integrate them. 

“That balance starts with a holistic approach: set clear expectations, so people know how success is measured, and keep communication open and honest. 

“Something as simple as regular one-on-one check-ins can make all the difference. They create space to spot when someone’s under pressure, offer support and keep goals on track. 

“Empathy and accountability aren’t opposites. Together, they’re the foundation of high-performing, human-centred workplaces where people thrive.” 

For Kate Ypinazar, chief people officer at Pitcher Partners in Australia, balancing empathy and performance starts with one simple truth: people are at the heart of performance. 

“Leading with empathy builds trust. Trust drives accountability. And that’s how we create a culture where high performance isn’t just possible, it’s sustainable.” 

“Mission statements offer a polished one-liner, but purpose runs deeper,” says Mrs Lagerberg. 

“Purpose is about what your organisation truly stands for – what you’re trying to achieve beyond the obvious. It defines your non-negotiables, your ‘north stars’, and guides not just what you do, but what you choose not to do. 

“Unlike a vision statement, purpose is more personal, more complex. It reflects what drives you. And when it’s real, you don’t just write it – you live it. Purpose is the beating heart of any organisation.” 

But as Mr Laverty explains, it’s one thing to recognise the importance of purpose and another to embed it in your leadership culture. 

“Few people would argue that purpose doesn’t matter. But if leading with purpose was easy or intuitive, we’d see a lot more of it in practice.” 

So, how do leaders bring purpose to life? 

According to Mr Laverty, it starts with consistent and authentic communication. 

“Leaders need to talk regularly – and meaningfully – about the organisation’s mission, vision and values. But more importantly, they must help people see how their day-to-day work connects to that bigger picture. 

“Embedding purpose also means weaving it into the organisation’s existing rhythms – not creating separate initiatives but infusing it into what already exists. Performance reviews and feedback sessions can include moments to reflect on how individual contributions align with core values. After big projects, leaders can hold debriefs focused not just on outcomes, but on how the work was done and what values guided the team. Team meetings can offer space for people to share what gives their work meaning. 

“Beyond process, purpose-driven leadership is deeply relational. It’s about creating genuine connection – to the mission, to the culture, and to each other. 

“That happens through empathy, curiosity and consistent, values-based communication. When leaders talk openly about where they find meaning in their work – and ask others to do the same – they strengthen shared purpose. 

“Ultimately, purpose-driven leadership is about aligning personal and organisational values. And when that alignment is real, the benefits ripple across the business: stronger culture; improved engagement and retention; greater trust and clarity; more sustainable performance. 

“Purpose-led leadership makes an organisation more attractive to talent, more resilient in times of change, and better equipped to achieve its long-term goals. 

“It’s not just inspiring – it’s strategic.” 

“Purpose-driven leadership to me means connecting our people to our purpose, aligning around our shared values and being here for our clients,” explains Kate. “This comes to life through our leaders being visible, values led, consistent and listening to our people to create a collaborative environment where care for our people is genuine.” 

Artificial intelligence (AI) can bring incredible changes and enablers to how we work.  

And while it can spark fear by threatening traditional roles and creating uncertainty, Deepak Upadhyaya, partner, digital technology and risk advisory at Baker Tilly in Canada, believes it also opens doors. 

“By taking over-repetitive, data-heavy tasks, AI frees people to focus on what really matters: creativity, connection and growth. But the real magic happens when we blend the power of AI with the power of people. 

“AI is a force multiplier. It enhances leaders’ ability to drive impact, cultivate talent and make future-focused decisions. Its ability to rapidly analyse vast volumes of data across domains uncovers patterns and insights no human could surface alone. That means smarter, faster, more strategic choices. 

“But here’s the key: technology can’t lead people – people lead people. And that’s where human skills come in. Emotional intelligence, empathy, adaptability, ethical judgement and authentic communication. These are the capabilities that set great leaders apart. 

“As roles evolve and automation accelerates, leaders must guide their teams through change with confidence. That means more than rolling out new tools; it means making sure teams feel comfortable using them, they receive the support and training they need, and operate in a culture where continuous learning and experimentation are the norm. 

“It’s not just about keeping up with technology – it’s about helping people thrive in a tech-powered world.”

“Our approach to diversity and inclusion is about being authentic and caring for our people,” explains Ms Ypinazar.   

“It’s not just a policy on a page. It’s everyday actions. Creating safe spaces for diverse voices and ensuring inclusion is felt in every interaction.” 

“Leaders who truly champion diversity, equity and inclusion go beyond ticking boxes or ensuring compliance. By actively modelling inclusive behaviours, they foster belonging and embed fair, equitable practices across the organisation,” says Mr Laverty. 

“This means leading by example – shaping inclusive policies, providing training, promoting diverse hiring and working to eliminate bias. Leaders must see diversity as an asset to embrace, not an obstacle to overcome. Inclusive leaders seek out different perspectives, make space for diverse voices and ensure everyone has a seat at the table. 

“When leaders take this approach, they create environments where employees of all backgrounds feel welcomed, valued and empowered to bring their authentic selves and unique viewpoints – driving innovation and stronger outcomes. 

“Embracing this role requires conviction and courage, but cultivating a culture where diverse talent thrives unlocks immense potential.”

“Until recently, organisations relied on a fixed set of competencies to define effective leadership. But in today’s dynamic world, those models, like many technical skills, can become outdated almost as quickly as they’re learned,” explains Mr Laverty. 

“The demands on leaders have expanded far beyond traditional boundaries, driven by digital transformation, globalisation and a changing workforce demographic. Modern leaders must adapt quickly, think differently, and lead with both agility and emotional intelligence.” 

“The future belongs to leaders who can blend technological fluency with human insight,” says Mr Mercadé. 

“We must equip them with technical skills, nurture their capacity for change and elevate those with the soft skills needed to inspire resilience and innovation. The most successful leaders will navigate uncertainty, embrace diversity, and lead with generosity.” 

Mr Upadhyaya agrees, pointing to the transformative power of AI and innovation. 

“The best leaders will be those who can harness the potential of technology while staying deeply human. It’s not a choice between one or the other – it’s the fusion of both, where empathy meets innovation, that defines the future of leadership.” 

“That human-centred approach remains essential,” says Ms Farris. 

“Successful leaders will balance high expectations with genuine support, clear communication and trust. They’ll create environments where people can do their best and feel valued for it.” 

Mutual respect and team trust are foundational, adds Clifford Marcus-Roberts, senior manager at Baker Tilly in Sierra Leone. 

“Tomorrow’s leaders must be deeply invested in their teams’ growth and wellbeing. They’ll understand what motivates people, they’ll keep teams engaged with purpose, and they’ll build lasting performance through clarity and connection.” 

While high-profile leaders often dominate headlines, Mrs Lagerberg reminds us that some of the most impactful leadership happens quietly, day to day. 

“The most inspiring leaders are committed to continuous learning and to helping others grow. Leadership isn’t one-size-fits-all — it’s about knowing when to step up, when to support from behind, and when to walk alongside as a trusted ally. 

“Stretch assignments, mentoring, coaching – they all matter.  

“But at its heart, great leadership is about caring deeply and creating the conditions for others to thrive.” 

So how do we prepare the next generation of leaders? 

“Leadership must be lived and practiced,” says Mr Barbarawi.  

“Future leaders need the chance to step into the arena. They must be supported as they face challenges, learn from mistakes, and grow with guidance from mentors. Experience matters just as much as theory.” 

Mr Marcus-Roberts echoes this, emphasising the need for structure and support. 

“To shape the leaders of tomorrow, we need more than classroom learning – we need real-world insight.  

“That means robust training, mentoring and a culture of continuous learning. Future-ready leaders must be adaptable, analytical and strategic – equipped not just to manage change, but to anticipate it and guide their teams with confidence.”