The pace of change in business has reached unprecedented levels, driven by geopolitical uncertainty, technological disruptions like AI, shifting markets, and a rapidly evolving workforce.
This era of "reinvent or die" demands a new generation of leaders capable of navigating complex challenges and driving transformation. While change has always been a constant, the speed and breadth of disruption today require a recalibration of the skills necessary for future CEOs.
Transformation, once viewed as a distant objective, has become a pressing priority for enterprising leaders, says Jane Edison Stevenson, global vice chair of board & CEO services at Korn Ferry. Korn Ferry's research suggests that CEOs who master the dual focus of innovation and operational delivery tend to outperform their peers.
In this new paradigm, tomorrow’s CEOs will need to be skilled in a range of enhanced competencies. These include adopting a global perspective to navigate an increasingly interconnected world, aligning strategic vision with effective execution, communicating in a manner that inspires and engages stakeholders, and building strong, diverse networks to support organizational goals.
Ash Athawale, senior managing director at Robert Half, calls this "transformative leadership," emphasizing the need for a future-focused and adaptable mindset. He asserts that future CEOs must be voracious, continuous learners who understand that their organizations will undergo significant and rapid evolution in an increasingly unpredictable world. “A future-ready CEO must look at the company and ask, ‘What do you want to achieve over the next five to 10 years?’ This vision helps craft a strategic plan for the company, its people, and its growth.”
Admittedly, no one is ever entirely prepared for the role of CEO, as the position and the broader environment are constantly evolving. “We've moved past the era where there was a formula, and checking all the boxes meant you were ready to be a CEO,” says German Herrera, who leads Egon Zehnder in the U.S. Instead, he stresses specific traits that correlate with high performance and the ability to guide an organization through turbulence. These include curiosity, a desire for relentless self-development and learning, determination, resiliency to stay focused and undeterred by obstacles, and the ability to absorb information, connect the dots, and anticipate what's around the bend.
The workforce is also undergoing a profound transformation, particularly in companies where millennials make up the majority. Their expectations and demands have rendered the traditional "command and control" leadership style less effective. While that approach may have been suitable in the past, today’s environment requires empowering a wider range of voices within organizations, inviting diverse perspectives into decision-making, and shifting from individual control to collective leadership. As Rick Western, CEO of Kotter, explains, “This is the broadest view of diversity. It’s about opening your aperture and not acting like you’ve got all the answers yourself because things are so complex.”
A recent Spencer Stuart survey underscores the high levels of uncertainty confronting today’s executives, with 79% of CEOs and 81% of board directors reporting significant unease. This environment of constant disruption demands that future CEOs combine timeless leadership traits with new capabilities suited to the modern landscape. Resilience, for instance, has become a critical attribute, not only in a leader's ability to handle setbacks and ambiguity but also in building it into the fabric of the organization. Leaders must anticipate challenges, plan for adverse scenarios, and integrate adaptability into their business strategies, says Jason Baumgarten, head of Spencer Stuart’s global board and CEO practice. “Many years ago, there was this notion that only the paranoid survive. There’s a little bit of resiliency in that mindset.” He clarifies that the focus is not pessimism but preparedness so organizations can respond effectively to disruptions.
AI's rapid advancement amplifies the need for transformational leadership, and future CEOs must be able to assess how their companies and industries will evolve as this technology develops. Athawale calls this technological literacy. While CEOs don't need to be AI experts, they must understand and have an appreciation for technology's potential and the insights it can unlock through data.
While the skills required to reach the top rung have evolved to meet the demands of the current moment, traditional competencies remain essential for aspiring CEOs, including setting strategy, leading teams, building relationships with external stakeholders, and driving financial results. These are fundamental to an executive's readiness for the C-suite, notes Erin Zolna, global assessment capability leader at Russell Reynolds Associates. However, traits that may seem contradictory—such as the ability to think innovatively and challenge norms while also being pragmatic and thoughtful—are most predictive of their long-term success, she adds.
The significance of soft skills cannot be overlooked. Sure, future CEOs must be results-oriented and willing to make tough, sometimes unpopular decisions. Yet, as Seonaid Charlesworth, a leadership advisory consultant at Spencer Stuart, points out, this decisiveness should not come at the expense of humanity. Effective leaders combine resolute decision-making with empathy, acknowledging and respecting the emotions and perspectives of those they lead.
Managing during turbulent times can be daunting, which is why one of the most critical traits of top-performing CEOs is their ability to manage strong internal reactions, such as fear and anger, adds Charlesworth. This emotional regulation underpins the "humble self-confidence" that board directors often seek in CEO candidates. Leaders with this quality remain calm and composed under pressure and project stability and resilience to those around them.
As volatility becomes the norm, says Charlesworth, this blend of decisiveness, adaptability, and emotional steadiness will help define exceptional leadership and determine who is best equipped to rise to the corner office.
