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Challenges and Solutions for Leadership in 2025

Challenges and Solutions for Leadership in 2025

by MDI & ARS Academy | Jan 14, 2025 | Best Practice, Leadership in the digital transformation, Leadership Tips | 0 comments

Challenges and Solutions for Leadership in 2025

Do you prefer to listen to this article? Click below to access our AI-generated audio version!

Leadership challenges and solutions in 2025

In an increasingly complex and uncertain world, companies and their leaders face numerous challenges. In collaboration with the ARS Academy, we conducted the Management Survey 2024. It offers valuable insights into the key issues that companies are currently dealing with and will deal with in the future.

It shows how companies can address internal and external challenges, with a particular focus on talent acquisition and work-life balance. Learn more about the results of the management survey in this blog post!

Key challenges: from talent management to digitalization

1. recruiting and retaining talent

For 67% of leaders, attracting and retaining qualified employees is the biggest challenge. The shortage of skilled workers, which is further exacerbated by demographic change, also makes it increasingly difficult to find suitable talent and retain them in the company in the long term.

Smaller companies with up to 250 employees are facing particular challenges. They often have fewer resources than large companies and must therefore be more creative to be perceived as attractive employers and to compete with the offers of larger companies.

2. Economic uncertainty

More than half of the respondents (54%) cite economic uncertainty as a problem that makes their planning more difficult. Volatile markets, geopolitical conflicts and rising operating costs mean that companies need to develop more flexible strategies.

3. Technological change

52% of companies see technological change as a key challenge. While digital skills are becoming increasingly urgent, investments in new technologies are prioritized more highly by smaller companies (65%) than by larger companies (41%).

4. Sustainability and ESG

Sustainability is also becoming more and more of a priority, mainly due to issues such as climate change and new legal requirements. 43% of companies have incorporated ESG strategies into their day-to-day operations, but only 12% reward the achievement of these goals with management bonuses.

This shows that sustainability is an issue for many companies, but is not yet fully anchored for all of them.

Key challenges: from talent management to digitalization<br />

Work-life balance: aspiration and reality

Our survey makes it clear that the work-life balance of employees is a top priority for leaders: 93% consider it to be “very important” or “somewhat important”. Interestingly, only 71% of leaders see their own work-life balance as equally fundamental.

This disparity shows that some leaders need to strengthen their role model function when it comes to self-care in order to promote a sustainable corporate culture in the long term.

The most important measures for a better work-life balance

  1. Remote work and home office: 85% of companies offer alternative working methods. We see this as a clear sign that adaptable workplace designs are becoming more and more common.
  2. Flexitime models: 82% offer flexible working hours to help their employees achieve a better work-life balance.
  3. Regular appraisals: 81% of leaders also use feedback sessions to identify and adapt to employee needs.
  4. Supporting physical and mental health: In addition to fitness programs (56%), offers such as stress management courses or access to psychological counseling (47%) play a central role. These measures help to promote the long-term well-being of employees.

The 4-day week as a pilot model

It is interesting to note that 12% of companies have already introduced a four-day working week – a model that could increase productivity and employee satisfaction in the long term. This change could also serve as a forerunner for further flexible working time models.

work life balance

Strategic solutions for the challenges of continuing education and adaptability

63% of companies rely on training to prepare employees for future challenges. Larger companies in particular (over 250 employees) focus on team-building measures and employee retention programs (66%).

50% of companies also plan to adapt their strategies to be able to react more flexibly to external influences. In small companies, this figure is as high as 59%, which demonstrates their agility.

Technological innovations

In addition to the introduction of digitization strategies (40%), technical training (55%) and access to modern hardware and software (51%) are essential components of the transformation efforts. Nevertheless, only 30% of the companies surveyed have implemented an AI strategy, which indicates a great need for further development in this area.

Leadership skills 2025: humanity and technology in harmony

The leaders of tomorrow will need a wide range of skills. According to our survey, the most important skills are:

  • Communication skills (62%): Crucial for leading teams and managing crises.
  • Leadership (59%): Essential for providing clear vision and strategy.
  • Problem-solving (48%): Critical for finding innovative solutions to complex problems.
  • Emotional intelligence (43 %): This is essential for fostering empathy and trust within the team.

These skills are crucial for overcoming the challenges of an increasingly complex and dynamic working environment and inspiring employees. Leaders must not only be technically competent, but also able to guide their teams through change and uncertainty.

Conclusion: A new balance between people and technology

The results of the 2024 management survey show that leaders need to prepare for a world in which both technological innovation and employee needs are important.

Successful leadership means remaining flexible, promoting talent, and always putting employees first. Striking the right balance between efficient work processes and a sustainable corporate culture will make all the difference – for your company and for your employees.

MDI Management International

MDI Management International

MDI is a global leader in leadership development with 60 years of experience. With offices worldwide and a network of over 250 international consultants and trainers, MDI offers training and consulting services in various languages. The company designs and implements customized programs for leaders at all levels, high potentials, experts, project managers, and salespeople – locally, internationally, and globally.

ARS Academy

ARS Academy

The ARS Academy is Austria’s largest private provider of professional seminars and is represented in all federal states. Around 1,000 selected top experts from business, practice and law pass on their knowledge in around 1,200 different events to around 18,500 participants per year.

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Challenges and Solutions for Leadership in 2025

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The Right Questions at The Right Time – Thinking From Within!

The Right Questions at The Right Time – Thinking From Within!

by Marcin Swierkocki | Dec 9, 2024 | Leadership Tips, MDI Inside, Training Insights | 0 comments

The Right Questions at The Right Time – Thinking From Within!

Do you prefer to listen to this article? Click below to access our AI-generated audio version!

The Right Questions at the Right Time – Thinking From Within!

It is not easy to find oneself in a world based on chaos, noise, and incoherence of values. Out of the needs flowing in one’s mind, it seems impossible to choose the one the most hidden, most needed, most personal, most genuine, and authentic. For what reason is it so difficult to delve into oneself?

Year-End Reflections: Embracing Change and Uncertainty

The end of the year makes us reflect and think about what we’ve done and achieved. However, it’s also a time for conclusions and a summary of our activities. The current times have made us realize that everything can change in the blink of an eye.

The image of the reality we perceive has been distorted in one way or another – AI applications, globalization, integration, or maybe decentralization. Who knows? And what can you do about that?

Finding Purpose: A Grounded Start to the New Year

Today’s times have catalyzed, often ground-breaking, changes in the way we communicate both internally and with our customers. Therefore, in order not to ‘go crazy,’ it is helpful to have your answer to the question – ‘why’ do I do what I do? For me, it gives me coherence between how I think and what I do, the inner peace and joy that comes from feeling that I can use the potential I have been given for worthy causes.

Hence, let’s not just focus on the what and the how because this allows neither reflection nor having the right perspective. Without this, life just seems to be shallow! And that’s not the right way to start New Year…

Unveiling Purpose: Integrating Models for Lasting Impact

Discovering your “why” can truly transform your life and work. It provides a sense of clarity and purpose that fuels real motivation and helps you stay authentic, even through challenges.

It’s not just a path to personal success; it’s the heart of building something meaningful and lasting – a business or career that feels deeply fulfilling and genuinely worthwhile.

I will take a moment below to zoom in on how the two models I know from the training setup can work together. This is my interpretation, and any comments or feedback will be highly appreciated.

Unveiling Purpose: Integrating Models for Lasting Impact

The Dilts Logical Levels framework and Sinek’s Golden Circle

are both correlated, as they address the layers of meaning/purpose of human actions. Each of these models explores the why, how, and what of human actions, albeit with a slightly different focus.

Here’s how they work together:

1. Why (Sinek) ↔ Identity and Purpose (Dilts)

The Golden Circle – Why, in Sinek’s case, is the purpose and cause that drives individuals and organizations. It is the reason behind our actions, beyond the outcome, and provides us with a sense of what we do!

Logical levels – Identity and Purpose. At Dilts’, the Identity level represents ‘Who’ we are, encompassing our beliefs about ourselves and our deeper purpose. At the top of his pyramid, purpose extends to a relationship with vision and mission (in the organizational context), often linked to our contribution to a larger system.

Both frameworks represent an overarching vision and motivation, guiding everything else.

WHY WHAT HOW

2. How (Sinek) ↔ Beliefs, Skills and Behaviors (Dilts)

The Golden Circle – How, in Sinek’s case, defines the process and methods. It is how we bring purpose to life, often through unique processes, values, or distinctive characteristics.

Logical levels – Beliefs, skills, and behaviors. In Dilts’ model, Beliefs inform what we believe is possible or worth the effort (shaping the How), while skills refer to our capabilities and strategies used to implement actions. Behaviors are the actual actions taken, representing the translation of beliefs and our skills into something tangible!

This Dilts level relates to Sinek’s How as it defines our approach, skillset, and actions that make the goal achievable. Beliefs drive motivation, skills enable action, and behaviors embody these values in practice.

3. What (Sinek) ↔ Environment and Results (Dilts)

Golden Circle – In Sinek’s terms, What is the outcome, the actual product, service, or result achieved? It is what people see and is often the most tangible aspect of the organization or person’s work.

Logical levels – Environment and results. Dilts places the environment as the lowest level where the activities that shape outcomes occur. It is the place where the results are observed, evaluated, and adjusted.

Both models represent concrete, visible output experienced by others. In both frameworks, the What is a visible manifestation of deeper levels shows how purpose and beliefs are ultimately realized.

Conclusions:

Sinek’s Golden Circle

Dilts’ logical levels

Why    

Purpose and Identity

How

Beliefs, Skills, and Behaviors

What

Environment and Results

Aligning these models allows us to understand not only the outcome (What) but also the deeper motivations standing behind our actions (Why) and processes (How) that drive our behavior. This synergy is particularly useful for leaders to properly guide their co-workers and organizational development.

Marcin Swierkocki

Marcin Swierkocki

Trainer, Coach & MDI Partner

Marcin Swierkocki works as an HR business consultant who has specialized in L&D, change- and project management. He brings over 25 years of international experience in change management and operational development with him. His personal motto is influenced by Viktor Frankl: ‘Between stimulus and response there is a space. In that space is our power to choose our response. In our response lies our growth…’. His personal inspiration comes from his optimistic and positive character and by draining the energy that successfully supporting others gives him.

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8 Eternally Human Leadership Competencies

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by Vladimir Novac | Jan 29, 2024 | Impuls series, Leadership and AI, Short Knowledge Bits | 0 comments

8 Eternally Human Leadership Competencies

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While artificial intelligence (AI) is advancing rapidly and can perform many tasks, certain leadership competencies are likely to remain essential. Eternally human. Our MDI trainer and partner Vladimir Novac shares his insights as he tells us about the leadership skills that are needed in today’s fast-developing world. Read this article to find out more!

1. Emotional Intelligence (EI):

Understanding and managing one’s own emotions and the emotions of others is a crucial aspect of effective leadership. This includes empathy, self-awareness, and the ability to navigate complex social dynamics.

2. Adaptability and Flexibility:

Leaders often need to navigate ambiguous and rapidly changing situations. The ability to adapt to new circumstances, think on one’s feet, and make decisions in uncertain environments is a skill that relies heavily on human intuition and experience.

3. Ethical Decision-Making:

Leaders are frequently faced with ethical dilemmas that require moral reasoning and judgment. While AI can process data and provide insights, ethical decision-making involves a deep understanding of values, and principles, and the ability to consider the broader impact on individuals and society.

4. Creative Problem-Solving:

Creativity involves thinking outside the box, generating novel ideas, and finding innovative solutions to complex problems. While AI can assist with data analysis and pattern recognition, the ability to think creatively and develop new approaches is a uniquely human skill.

Becoming a Compassionate Leader in 3 Steps

5. Effective Communication

Leadership often requires clear and persuasive communication. This includes not only conveying information but also inspiring and motivating others. Understanding context, tailoring messages to diverse audiences, and interpreting non-verbal cues are elements of communication that can be challenging for AI.

6. Building and Nurturing

Relationships: Leadership involves building trust, fostering collaboration, and creating a positive team culture. Developing authentic relationships with team members, stakeholders, and partners requires interpersonal skills, social awareness, and the ability to connect personally.

7. Strategic Vision and Long-Term Planning:

While AI can process vast amounts of data to inform decision-making, the ability to develop a strategic vision and plan for the long term involves a combination of analytical thinking, intuition, and a deep understanding of organizational dynamics.

8. Resilience and Emotional Stamina:

Leadership often comes with challenges, setbacks, and high-pressure situations. Leaders must exhibit resilience, remain composed under stress, and motivate their teams during difficult times. These qualities are deeply rooted in human emotional and psychological resilience.

While yes, some skills can be replaced by AI, many leadership competencies are now more important than ever. As a leader, you should pay attention to implementing these skills in your daily work life.

Vladimir Novac

Vladimir Novac

MDI Trainer & Partner

Vladimir Novac is based in Bucharest, Romania, and works as top-executive leadership trainer and coach around the globe. He is certified NLP Practicioner and Change Indicator Analyst and especially dedicated to the topics of team development, self leadership, performance management and change. Inspired by a big personal mission, he is enriching the MDI world since many years with knowledge and passion.

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AI-Enhanced Leadership: Maximizing Potential with Intelligent Tools

The integration of artificial intelligence (AI) into the world of work presents new challenges and opportunities for leadership development. As AI revolutionizes the landscape of learning and people development, questions arise about the role of leadership in a technologically advanced environment.

In an exclusive interview with Niels Cimpa, learning coach and AI expert, we explore how AI can be integrated into leadership development and what new skills will become increasingly important in an AI-driven world.

How can artificial intelligence AI be used in leadership development and training?

I believe that artificial intelligence (AI) is playing an increasingly important role in leadership training and development, both in formal educational institutions and in continuing education programs. In my opinion, AI can teach complex models and content better and in more detail than humans because it has access to a huge database.

In a leadership seminar, for example, a human could present the basic content, but individual exercises or questions could be answered more effectively by AI. I also see great potential for AI in self-study, such as online learning. As a leader, for example, I could train with an AI to practice non-violent communication and receive individual feedback and explanations.

Thanks to its extensive database, AI can explain content to me in a wide range of scenarios and variations that go beyond the knowledge of a trainer. I therefore believe that AI can contribute a lot to leadership development, especially in terms of content.

Which skills and competencies do you think will become increasingly important for leaders in a working world shaped by AI?

I think that the role of the leader will change in a working world characterized by AI. As AI can increasingly take on content-related tasks, the focus of leaders in the 21st century is shifting away from pure specialist knowledge towards interpersonal skills.

In the future, it will be more important for leaders to think about how they motivate their team, how they set goals, and how they promote a positive culture of discussion and corporate culture. It’s about taking on a supportive and communicative role that focuses on social skills.

I also see problem-solving skills, particularly in the interpersonal area, as increasingly important. Skills such as coaching, i.e. working with people on specific topics, and guiding them through problem-solving processes are becoming increasingly important.

AI can take on many tasks, but it cannot coach or respond individually to personal problems. I therefore believe that, in addition to social skills, shaping interpersonal relationships is becoming increasingly important for leaders.

 

team meeting

This brings me to my next question: what challenges and opportunities does the integration of AI in leadership development present?

I see mostly opportunities in the integration of AI into leadership development, although there are also challenges. One of the biggest challenges I see is the initial skepticism and the need to find out what is feasible with AI in the company.

Leaders first have to embrace the new possibilities and try out many things. Despite initial rejection, companies that are already working with AI have significantly increased their productivity, particularly in the area of training and leadership development.

The opportunities lie primarily in the fact that leaders can focus more on leadership and developing social skills. This can make the corporate culture more human and approachable and potentially flatten hierarchies to a large extent.

Another challenge for leaders is to hand over certain tasks to AI, as they are used to being in control and being informed about everything. This requires a rethink and allowing AI to be more “competent” in certain areas. The advantage of this is that it frees up resources, both for the leader and for the company as a whole.

As a leader, it is therefore very important to think carefully about what role and tasks AI should take on in the company. It is recommended that AI is used to expand knowledge and facilitate work processes. Data protection is a key aspect of this.

I hear a lot that it is a challenge for the leaders of today and tomorrow to concretize the use of AI and to really hand over competencies and tasks so that this can also be achieved.

Yes, I agree that it is a major challenge for leaders to concretize the use of AI in the company and to effectively hand over certain skills and tasks to AI. It’s about managing this change. I would like to add that there is a lot to define, especially the strengths, weaknesses, and dangers of AI.

It is important to set clear rules about what AI can and cannot do, and what tasks it should and should not take on. Defining these guidelines for the use of AI in the company is crucial, especially in the current phase, which can seem somewhat chaotic.

Yes, and I know this myself from our company, it’s simply a matter of trying, trying, trying, as you mentioned earlier. In other words, really engaging in discourse, testing things together, and concluding yourself and your own company.

What do you think about the assumption that AI can largely affect our business in the sense of “Is it even necessary to send leaders on training courses”?

I think that the personal component in terms of learning is indispensable. The experience of seeing a person on a stage, feeling their energy, and being inspired by them is something that AI cannot replace. So I think AI will take over certain areas of training; for some people, it may even be able to do most of the training work.

However, some people prefer interpersonal contact and need the emotion and energy of a physical presence. So I don’t think AI will make the training business completely obsolete, as human interaction will continue to be important. However, there will be areas and target groups that prefer to learn with AI.

Similar to social media or YouTube, where some people prefer to learn via online courses. But I wouldn’t want to learn everything online, even if it were possible. Sometimes I just want to go to an event for the experience, the education, the networking, and that’s something that AI can’t offer me.

 

generational management

That’s why I think it’s really important to see AI as a complementary tool to the existing training opportunities that we use today.

Exactly, it’s about finding a balance and not competing with AI. In terms of knowledge transfer, I probably can’t compete with AI, as it is superior in this area. However, when it comes to charisma, AI can’t compete with me because it simply doesn’t have these human qualities.

Now I’d like to come to an end and talk about your book “Learning Successfully with ChatGPT”. What can leaders learn from your book for dealing with ChatGPT?

My book “Erfolgreich mit ChatGPT lernen” (Learning successfully with ChatGPT), which is mainly aimed at pupils and students, is about effective learning methods with ChatGPT. The book not only conveys specific factual knowledge but also general learning strategies on how to learn quickly and actively. Although the book is primarily aimed at younger learners, the content is useful for anyone.

The ability to quickly familiarize yourself with and understand a topic is extremely valuable. The book shows how to quickly grasp a topic and talk about it, which is especially important in interpersonal interactions. Learning is and remains an important skill, and my book provides guidance on how to acquire knowledge and learn languages efficiently. It also describes how AI can be used as support, for example as a digital assistant or mentor.

Conclusion

In summary, it can be said that the use of AI in leadership development offers the opportunity to convey complex content in a more detailed and individualized way. It is clear that AI not only serves as a tool for more efficient learning but also helps to direct leaders’ focus on social skills and team dynamics.

The challenge lies in integrating AI into existing structures in a meaningful way without neglecting the human component. The integration of AI represents a balance between technological support and the preservation of essential human interactions.

It is about using AI as a complementary tool that enriches the development of leaders without replacing the personal component of learning and leadership. AI thus serves not as a substitute, but as a valuable extension that allows leaders to focus on their core competencies while developing their skills in a technologically advanced environment.

Alina Helmlinger

Alina Helmlinger

L&D Consultant, MA

Alina has been an L&D Consultant at MDI since 2021 and supports clients from various industries in the tailor-made design of various leadership development programs and training courses. In addition to her practical knowledge and the experience she has already gained in further training, she draws on her sound theoretical knowledge from her Bachelor’s degree in Human Resources Management and her Master’s degree in Organizational and Personnel Development, which she completed in June 2022. Alina keeps calm, especially in challenging situations and leaders to reconcile the interests of different stakeholders in complex projects, thereby designing tailor-made HR solutions geared towards customers’ needs.

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