In a turbulent world, self-awareness and stability are leadership must-haves

What attributes do leaders need to be great in an era characterized by rapid technological shifts and complex global challenges?

In many ways, leadership is in flux. Previous generations did not have to worry as much, for example, about cybersecurity, artificial intelligence, or climate change. But in important ways, there is consistency. The fundamentals of leadership have not changed, whether for a Fortune 500 company, a startup, or a non-profit.

Of course, there are certain basic capabilities, such as knowledge of the context, whether business or social, technical skills, and a sure touch with stakeholders. But these will only get leaders so far. It is possible to be a great strategist – and utterly fail.

What sets great leaders apart, according to recent McKinsey research and what we hear from members of the Forum of Young Global Leaders, is something much more intangible: the ability to connect with their teams, their employees and their communities. And the basis of this human-centric approach is self-knowledge. In short, to lead successfully, look inside first.

“The real task of leaders,” argues Harvard Business School professor Rawi Abdelal, “is to cultivate shared purpose among the individuals who create value and discover meaning together.” That can’t be done by marching into a workplace and barking orders. It takes true self-awareness, which fosters qualities like authenticity and empathy.

And this is true across the board. The World Economic Forum’s Future of Jobs Report 2025 noted that “soft skills” such as creative thinking, resilience and curiosity are more important than ever in the workforce. Self-aware leaders understand this and weigh the implications of their words and thoughts; they trust and empower others. In other words, they lead from the inside out.

Why does this matter? Because in a fast-changing world, a stable core is essential – and that starts from within. Effective leaders develop a genuine sense of who they are, what their purpose is, and then translate this self-awareness into their actions. Leaders in organizations, whether public or private, large and small, need to demonstrate positive energy, grit, humour and a sense of service. The highest-performing leaders we’ve observed focus on making the team and others successful; in doing so, they create success for themselves and their organization. Great leaders, says Wharton School professor Adam Grant, elevate others – but that many organizations do not know how to cultivate this quality.

The rise of artificial intelligence, including generative AI, does not change any of this; if anything, it reinforces it. AI could eventually be as economically transformative as the steam engine and electricity were in the 19^th century. But technology does not operate in a vacuum; human agency is always critical. Almost half of leaders surveyed by McKinsey said employee readiness was a significant barrier to adoption. Paradoxical but true: Human-centric leadership enables technological adoption.

When Bob McDonald took over the US Department of Veterans Affairs in 2014, for example, he inherited a department with many dispirited workers and a broad sense of dissatisfaction with its services. The technology stack was also wobbly. All three problems were interconnected. So McDonald started with the same framework he applied as a US Army officer and CEO of Procter & Gamble: “Purpose, values and principles.” And when he turned to IT, he “implemented human-centered design across the organization”. Recent independent reviews rank VA hospitals higher than their peers, and trust among veterans is strong.

By taking over certain kinds of analytical and technical tasks, AI can free up more time for leaders to spend on human leadership. It can also provide analytical insights, giving constant feedback on the effectiveness of their leadership style. What AI cannot do is replicate human-centred leadership. It does not provide what employees say they want from their leaders: development, care, engagement, a sense of purpose and commitment to their well-being

As James Landay, the co-director of the Stanford Institute for Human-Centered Artificial Intelligence put it, regardless of the intention, whether that is profit or social change, “if you don’t do it in a human-centered way, if you just do it in a technology-centered way, then you’re less likely to succeed in achieving that good you set out to do in the first place.”

To become self-aware is a lifelong journey. In a sense, it can never be finished because circumstances constantly change. Still, progress is possible; it is a matter of consciously developing certain qualities.

One is humility – something that does not come naturally for many leaders. Consider the tectonic shifts that are moving the world right now, such as digital transformation, trade disruption, geopolitics, talent shortages, vulnerable supply chains, cybersecurity and climate change. No one can know everything about all of this – even the founders of startups. The humble leader accepts this and acts accordingly.

Another is introspection. Leaders who examine their inner selves can identify their own barriers, weaknesses and biases. That sets them up to manage the demands of their many stakeholders, and to ask the questions that can move their organization. When leaders open themselves to learning and listening, teams are more engaged. People believe they can tell difficult truths, are more confident about taking the initiative, and more willing to go the extra mile. The bottom line: At a time when employees are looking for connection and authenticity, leaders who don’t know themselves will be at a competitive disadvantage.

Leadership matters. In an analysis of 200 leading CEOs, McKinsey calculated that this cohort created additional economic value of about $5 trillion. For entrepreneurs, too, the stakes are high: They need to inspire others with their vision to thrive – or even to survive. That is why we believe that the art of 21st-century leadership begins with the human dimension.

The best leaders know that to lead others, the place to start is to lead themselves – and that may be the most difficult journey of all.