Innovation, Learning Agility and Future Leadership

Most leadership development programmes teach what good leadership looks like, but fewer ask why so many capable leaders struggle to practise it when conditions change. The Covid-19 pandemic showed how quickly the assumptions underpinning a five-year strategy can unravel, forcing leaders to rethink priorities almost overnight. Geopolitical shifts, economic turbulence, technological innovation and evolving workforce expectations continue to test leaders’ judgement and adaptability. The sources of disruption may change, but the need to respond remains. For CHROs, preparing leaders for uncertainty means developing their ability to question assumptions, learn from experience and guide people through unfamiliar situations.

This month’s newsletter explores five connected themes: the behaviours that make leaders effective; agility in leading change; psychological safety as a foundation for innovation; learning through experience; and building the next generation of leaders . Drawing on research, case studies and practical examples, we consider how CHROs can help strengthen leadership today while preparing people for tomorrow’s responsibilities.

. What Effective Leaders Do Leadership requires aligning people and guiding them towards a shared goal. Effective leadership is defined by the ability to influence people, being aware of people’s strengths and using them to lead. Research from Gallup shows that effective leadership is the greatest factor in how well a team performs. Further, it finds, managers account for up to 70% of variance in team engagement. A great leader/ manager is self-aware, committed to growth, shows curiosity about people and is consistent.

Gallup identifies 7 core behaviours for effective leadership : building relationships; developing people; leading change; inspiring others; thinking critically; communicating clearly; and creating accountability

For organisations navigating change, these behaviours have practical implications. Leaders must involve employees in change, connect daily responsibilities to a shared purpose and evaluate risks before acting . Leaders should identify individual strengths and form complementary teams based on assessments of people in their teams.

. Leading through Change In a fast-paced world marked by rapid technological disruptions, and with global events reshaping work processes, leadership must stay agile and adapt to continuous change. Agile leadership combines clear direction with a willingness to revise decisions as new information emerges. Leaders remain closely involved in implementation, seek employee feedback and adapt their approach through repeated cycles of planning, action and review. This makes learning part of the change process.

A recent study examined how agile leadership played out an Italian manufacturing company undergoing digital transformation. The paper identifies 5 core values of agile leadership : engagement, direction, innovation, integrity and urgency and offers 4 recommendations for leaders :

Understand agile principles: Learn the thinking behind the approach before applying it

Develop peer learning: Coach employees, listen to their concerns and take their suggestions seriously.

Participate directly: Get involved in implementation, including routine tasks

Review existing practices: Decide what to retain, improve or replace

In sum, leaders should set the initial direction, then use employee feedback to develop a shared vision and refine implementation.

. Creating a Culture Where People Can Experiment An invitation to innovate means little if employees hesitate to question how things are done. Psychological safety, a concept popularised by HBS Professor Amy Edmondson, gives employees the confidence to share ideas, challenge existing approaches and discuss mistakes without fear of humiliation or punishment. These conditions help people experiment and learn from one another. Drawing on a keynote address by Dr Edmondson, this article explores how fear of speaking up can leave valuable insights unheard, preventable errors unaddressed and opportunities for improvement overlooked. It outlines 4 ways leaders can strengthen psychological safety within their teams .

. Developing Leaders Through Experience Experiential learning helps people develop skills through practical experience and reflection. A 2026 study in The International Journal of Management Education examines this approach through a simulation based on a mountaineering tragedy. Across more than 40 sessions, senior professionals faced uncertainty, communication breakdowns and ethical dilemmas. The authors report that participants questioned their assumptions about leadership, became more aware of how they responded to stress and considered the consequences of their decisions more carefully. The exercise also encouraged psychological safety, allowing participants to examine their actions openly. The study illustrates how simulations, supported by deep reflection and open discussion, can give leaders opportunities to practice judgement and learn from difficult decisions.

. Building Tomorrow’s Leadership Pipeline Building a leadership pipeline begins with asking what someone has the potential to become.

The article sets out 4 priorities :

Assess potential against the organisation’s future needs

Give employees challenging assignments across functions

Make development part of everyday work

Ensure senior leaders remain involved

Michael Fiddelke’s progression from finance intern to Target CEO over two decades illustrates the value of developing talent internally and giving people experience across divisions. This requires managers to let strong performers move into new roles and accept that learning will involve mistakes. Developing future leaders should be part of managers’ responsibilities, reflected in their incentives and regular discussions about who is ready for greater responsibility and what experience they still need. CHROs have a central role in ensuring executives commit their time and attention to this process.