The pressure on senior leaders has rarely been greater. Digital disruption, cybersecurity threats and the rapid advance of AI are redefining what transformation means – and how it’s led.
Our 2026 Transformational Leadership Report, gathering the opinions of over 800 UK-based senior leaders operating globally, shows that technology change and cybersecurity now sit at the top of the C-suite agenda, with 73% of leaders viewing AI as the main driver of transformation in the years ahead. Change has become constant, and adaptability has overtaken technical expertise as the most critical leadership skill.
Against that backdrop, senior leaders Paul Rodgers, M&A Transformation Director, Magdaline (Madi) Pistola, Business Transformation Director, and James Hayward, Senior Finance Operating Partner at H.I.G. Capital, joined us for our Transformational Leadership webinar to unpack our latest report findings and explore what it takes to deliver lasting transformation.
This article shares their insights on the growing pressure of digital and cyber change, the real drivers of success, and how AI is reshaping the leadership agenda. Overall, their collective message was clear: technology matters, but it’s people who make the difference.
Every organisation is now a digital business in some form – and that brings both opportunity and risk.
Cyber threats have become a daily leadership concern rather than an occasional IT issue. As one panellist warned, the impact can extend far beyond your own walls; if your suppliers are hit, you’re hit.
Yet while the urgency around cybersecurity is growing, the wider technology conversation needs more balance. Many leadership teams are still chasing solutions before defining the problems they’re trying to solve. Our research found that leaders now see digital skills as the second most important capability for the future but acknowledge a widening gap between the skills they have today and those they’ll need tomorrow.
That gap isn’t just about technology. It’s about confidence, fluency and the ability to link digital decisions to business outcomes. As James put it, senior leaders don’t need to be “technical gurus”, but they do need to be curious and informed enough to challenge and guide the debate.
For many boards, however, that mindset shift still feels daunting. Madi sees it regularly when she joins large ERP or digital programmes where fear, not technology, is often the real blocker. “Each client believes their business is unique,” she explained. “That fear of stepping away from customisation and embracing what technology can do is what slows progress.”
The most effective organisations approach digital change as part of business strategy, not a side project. As Paul noted, leaders must “answer the why and the what before the how.” Technology should serve commercial purpose, not define it.
Almost every leader we surveyed expects the pace of change to accelerate over the next five years. The differentiator is not how fast organisations move, but how aligned they remain while moving.
Paul described transformation as “a mindset” – one that should flow from the boardroom to the front line. It relies on alignment, clarity and consistent communication; without them, transformation quickly splinters into disconnected projects.
Adaptability is the other defining factor. The pandemic proved that when the purpose is clear and sponsorship visible, people can pivot at remarkable speed. As James reminded us, organisations often underestimate just how adaptable they already are. The challenge now is to make that capability permanent.
Along with adaptability, transformation also demands honest governance. James cautioned against the “echo chambers” that form when leaders only hear what they want to hear. Successful sponsors, he said, listen and look for early warning signs – staying close enough to the business to sense when something feels off.
Risk appetite plays a part too. Madi noted that boards often stall progress by focusing on short-term cost over long-term value. She advises bringing data as well as conviction, making the risk of inaction as visible as the cost of investment.
For Paul, it comes down to transparency. Boards will always see risk – the task is to show why the potential upside outweighs it.
Underlying all of this is experience. Transformation rarely follows a straight line, and pattern recognition is invaluable when navigating the grey areas. As James observed, “Most people will only go through one major transformation in their career. Those who’ve led ten or twenty bring perspective others can’t.”
That experience is driving a shift in how organisations resource change. Three-quarters of leaders in our report plan to use more interim solutions and specialist agencies in the next five years. Interim managers often bridge the gap between technical and commercial thinking, helping organisations keep transformation anchored to strategy.
No force is reshaping transformation faster than AI, or generating more uncertainty about where to start.
Our research shows that 73% of leaders see AI as the main driver of transformation, yet many are still working out what that really means in practice.
Paul took a pragmatic view, describing AI as “an evolution of advanced data analytics and automation” – a tool rather than a strategy. Its real value, he said, lies in how it’s used to solve specific business problems, supported by reliable data.
James drew a parallel with the early days of the internet, a time of huge promise but also inflated claims. His advice was to stay practical and focus on proven use cases, learning from what already works. “If a process takes more than three or four hours,” he noted, “there’s probably a better solution, whether that’s AI or automation. Don’t road-test it at your expense.”
Madi described AI as the next phase in the pursuit of efficiency, following earlier waves of offshoring and automation. While enthusiasm is high, she warned that the human element remains irreplaceable. “AI is never going to take away that human interaction, which is the emotional connection to change the business,” she said.
As businesses move from experimentation to adoption, they’ll need to balance opportunity with disruption. Paul believes AI’s influence will reach far beyond systems and processes, reshaping roles, cultures and the way organisations operate. “AI will be a major focus because it’s going to have a big impact on how we transform a business’s operational delivery, its people and culture,” he said. “But like any technology, it will require an approach to ensure it’s supporting the overall business strategy and objectives.”
The leaders who succeed will blend digital understanding with human judgement, knowing when to automate and when to intervene. AI may change the mechanics of work, but leadership will still depend on clarity, courage and connection.
The discussion also looked ahead to how organisations are structuring themselves for constant change. Transformation is no longer a project with a clear start and finish; it has become a continual state of adaptation.
Some businesses are responding by creating dedicated Transformation Offices to sustain focus, track progress and keep change aligned with strategy. But structure on its own isn’t enough. Lasting success depends on building a culture that treats change as part of everyday business, not an interruption to it.
As James put it, “You’ve got to be in the weeds of the business. Have good governance, listen to what’s going on – because some things will go wrong, and you need to adapt quickly.”
This mindset is especially vital in a volatile economic climate. While some organisations have become more cautious, others are investing selectively in programmes that clearly link transformation to growth or resilience. As Madi explained, when the purpose is clear and the return evident, leaders remain willing to invest. It’s about understanding why you’re transforming, not just doing it for its own sake.
For many, the answer is flexibility. Bringing in experienced interims or cross-functional teams to deliver at speed without adding permanent cost. As Paul said, “With the right people, you get the right results.”
Across every theme – technology, transformation and AI – one conclusion is clear. The defining capability of the next five years will be adaptability, powered by human intelligence.
Digital capability is now a board-level essential, but technical skill alone isn’t enough. The leaders who thrive will pair data fluency with curiosity, empathy and the courage to face complexity, moving confidently between the commercial and the human, and bringing people with them.
Across our broad expertise at BIE, covering HR, Finance, Technology, Transformation and Supply Chain, we are firm believers that success comes when experience and clarity are matched with humanity. Interims often play that catalytic role, turning strategy into action and helping organisations emerge more capable and connected than before.
Technology will keep evolving. AI will accelerate it further. But it’s people – leaders who stay curious, connected and clear on purpose – who will turn disruption into performance.
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