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Leadership, by its very definition, means empowering people to achieve shared goals. Over recent years, one aspect has come sharply into focus: good leadership starts with the leader themselves – with how they manage their own energy, maintain focus on a clear goal and cultivate inner stability. It is precisely because so many managers find themselves exhausted that self-management is becoming such a key competence, with one of our recent surveys revealing that more than 50% of managers consider themselves worn out.

The demands placed on leadership have changed dramatically. We are experiencing a period of profound transformation – driven by factors such as digitalization, increasing disruption, and a shortage of skilled workers, among other things.

Today's managers not only find themselves under increased pressure, but also have demands placed on them that often seem contradictory, diffuse or difficult to grasp. Many pass this pressure on to their teams. Some 75% of companies now find themselves caught in an “acceleration trap”: a sense of overheating, depleted energy or working at the absolute limit is becoming the norm. And much of this has to do with leadership.

Healthy, high-performance companies, by contrast, are able to deal positively with upheaval and increased pressure. They foster a leadership culture that combines commitment, success, identification and well-being, providing the basis for consistently high performance over the long term.

An important aspect of modern leadership is transformational leadership, which is emotion-driven and a source of inspiration. It motivates people to achieve the company’s goals. It helps them to see the purpose behind their work. In this way, it offers direction and stability, even during uncertain times. At its core, it is about transforming the employees’ perspective so that they identify with the overarching goals, feel valued and are empowered to surpass themselves.

We consider two things to be essential prerequisites for good leadership: energy and focus. In addition to having a clear vision of where you want to go and what your priorities are, what is needed above all are energy and emotional intelligence.

These form the foundation of a modern leadership style. We have already spoken about the importance of positive emotions and the ability to inspire. However, leaders also require the ability to help their employees in overcoming negative situations.

Hybrid working is here to stay – and that is a good thing. It offers greater flexibility and allows for a better work-life balance.

However, hybrid work must be approached in a deliberate manner. Innovation and a vibrant corporate culture primarily emerge as a result of genuine interaction between people on site – not through their mere presence. At the same time, working from home can significantly increase both productivity and efficiency.

In the hybrid working world, leadership is a key factor in ensuring a healthy balance between efficiency and innovation. It also has to foster an emotional connection, respond to needs and give employees greater autonomy – because traditional control mechanisms, authoritarian leadership styles and conventional ways of exerting influence simply no longer work in a hybrid setting.

Leadership culture is built on clarity, role models and dialogue. Leaders and managers have to consciously ask themselves what kind of leadership they want to stand for. Three perspectives are central: what has been key to our success story to date and our leadership DNA? What do we need to achieve the common strategy or vision? And thirdly: what does current research suggest in this regard?

It is also important that managers develop this understanding of leadership in close dialogue with leaders and employees across the organization. In order for leadership guidelines to be put into practice, a kind of empowerment is needed in which philosophy and tools are communicated. And regular constructive feedback so that leadership can be developed in a targeted manner throughout the company.

I strongly recommend it. Many managers believe that they have to be able to do everything themselves – but this stifles innovation. Diversity is a strength, particularly in dynamic environments. Different perspectives make companies more resilient and creative.

This area of tension can be addressed by adopting the ambidexterity approach. Ambidextrous leadership is about leading differently depending on the situation at hand: at times, efficiency is the focus, while at others, innovation takes center stage. What is crucial is that it is clearly communicated which mode you are currently working in – implementation or experimentation. Otherwise, misunderstandings can arise. I like to use Porsche Motorsport as an example: on the racetrack, error prevention and efficiency are paramount, whereas vehicle development is all about creativity, learning processes and innovation. Both require different leadership styles.

To embrace feedback as something positive, having a growth mindset is very helpful: the attitude that feedback does not equate to criticism, but rather an opportunity for development. Psychological safety or a protected space in which honest dialogue is possible is also helpful for establishing a feedback culture. This can be fostered through regular, open reflection sessions in which management figures also receive feedback. What is crucial is that feedback is welcomed, taken seriously and leads to visible change.

This is indeed a problem. And it is due to the fact that leadership is often viewed as a burden – with a lot of responsibility, little room for maneuver and high expectations. Moreover, attitudes towards work have changed, with it now being less self-evident that work will take center stage in our lives.

Traditional career ladders no longer hold the same appeal for many people. This is why we also need to rethink and reshape leadership. Leadership must become more attractive: with meaning, genuine participation and more development opportunities. This requires new models such as shared leadership roles, coaching programs or flexible areas of responsibility into which young talented individuals can grow one step at a time. We need new cross-generational role models who encourage and inspire others to take on leadership positions.

The world of work is changing faster than many organizations can keep up with – due to technological innovation, changing values and social upheaval. Leadership has to become more flexible, more human-centered and, at the same time, clearer. Those who want to thrive as leaders will not only need to adapt to change, but rather also actively shape it. Where exactly we are headed is hard to say, as we are only at the beginning of a transformation process. But one thing is certain: this transformation will be far-reaching.