Trends in 2025 and What 2026 Will Demand: Transformational Leadership and Innovation.

We sat down with Rachel to see what has been trending over the last year, and one thing became clear: 2025 has been a whirlwind. Geopolitical uncertainty, rapid technological advances, and the rise of AI have made leadership more challenging than ever.

And yet, no matter how fast technology moves, people remain at the heart of organisational success. Looking to 2026, it’s not about what AI can do for us, it’s about how leaders can bring out the best in their teams. Transformational leadership and innovation will be key, helping leaders navigate complexity while inspiring their people to step up, take risks, and contribute creatively.

2025 in Review: What Stood Out

A few trends really defined the year:

1. Silos are still a problem

Despite the talk of collaboration, many teams stayed in their corners, missing opportunities to work across the business. Leaders who focus on transformational leadership and innovation can break down these walls, encourage curiosity, and spark collaboration in ways that really stick.

2. AI can’t replace human connection

AI is exciting, but it’s just a tool. It cannot replace trust, empathy, or the personal interactions that drive engagement and performance. Incremental improvements, coaching, and problem-solving all rely on human insight, making transformational leadership and innovation more important than ever.

3. The human factor is everything

Positivity, curiosity, and safe spaces for honest conversations are what keep teams energised. Leaders who apply transformational leadership and innovation see stronger engagement, more creative solutions, and better cross-functional collaboration across their organisations.

Looking Ahead: 2026 and Beyond

Change isn’t slowing down, it is accelerating. Ambiguity, complexity, and technological disruption will continue to shape the business landscape. Leaders who thrive will focus on connection, curiosity, and incremental transformation, with transformational leadership and innovation guiding the way.

1. Build trust and collaboration

Teams need to feel safe to speak up, experiment, and learn from mistakes. Creating this environment is essential.

2. Embrace change every day

The Japanese concept of Henka reminds us that transformation happens continuously. Even positive change can meet resistance. Successful leaders take small, deliberate steps to help people adapt, embodying transformational leadership and innovation in practice.

3. Balance technology with humanity

AI can analyse data and optimise processes, but human insight drives meaningful change. Leaders who pair technology with empathy and curiosity when applying transformational leadership and innovation, will see results that are sustainable and impactful.

4. Multiply energy through mindset

One plus one can make three with the right energy and focus. When leaders cultivate optimism, curiosity, and empathy, teams exceed expectations and focus innovation where it matters.

Practical Takeaways for 2026 Leaders

• Invest in people: Time spent coaching, mentoring, and listening pays bigger dividends than any tool.

  
  

• Break down silos: Encourage cross-functional collaboration to solve real problems and spark innovation.

  
  

• Lead with curiosity: Ask questions, challenge assumptions, and guide teams constructively.

  
  

• Adopt the Henka Model mindset: Focus on continuous, incremental change instead of waiting for big leaps. Find out more about the Henka Model of Transformation here.

  
  

• Use AI wisely: Let technology support human potential, do not rely on it to replace connection.

Final Thought

2026 will not be defined by technology alone. Success will go to leaders who understand the power of connection, trust, and human energy. AI and automation can help, but inspiration, challenge, and empathy will always remain human.

When applied consistently and thoughtfully, transformational leadership and innovation enables organisations to thrive amidst uncertainty. Leaders who embrace incremental, human-centered transformation will be the ones shaping the future.