In a world full of upheaval, managers are facing unprecedented challenges. The economy is struggling with weak growth, staff shortages and geopolitical uncertainties. A recent study by Ward Howell International (https://ward-howell.com/survey-2025-austria/) and TQS Research & Consulting shows that 83 per cent of the decision-makers surveyed rate the economic situation as poor or very poor. Personnel costs and competitiveness are particularly affected. The current economic situation makes it clear that companies must adapt their structures and processes in order to remain competitive in the long term, and the new demands on managers are central to this.

New leadership: the crisis as a catalyst for change

The accumulation of crises makes it clear that many companies have failed to make their structures fit for the future in the past, have you? The new economic environment requires a change in management culture. In addition to strategic and financial skills, social intelligence, empathy and communication are taking centre stage. Instead of authoritarian top-down decisions, participative and transformative leadership styles are gaining in importance.

Managers must not only be able to lead their teams, but also actively involve and inspire them. Companies that establish an open communication culture and focus on transparency create an environment that increases employee motivation and innovation.

The rise of the ‘new leadership’

Managers today – they need to be inspirers and mentors, are you already doing this in your company?

The results of the survey in figures:

• Emotional and social intelligence and empathy take centre stage with 53%
• Traditional management skills such as performance management are only considered crucial by less than 10%
• 94% of respondents expect managers to act as role models in dealing with mistakes

Managers are also expected to exemplify a good work-life balance and utilise flexible working models.

New leadership is defined by clear objectives, meaningful work and transparent communication, which can be felt in everyday company life. Managers must be prepared to actively engage with their teams on an equal footing and actively utilise their input. This new style of leadership is not just a moral development, but a decisive success factor. Many companies I work with have already recognised that participative and transformative leadership approaches create an environment in which employees remain motivated, innovative and committed in the long term. This visibly strengthens not only employee loyalty, but also the quality of results and competitiveness in times of change.

Supporting new leadership – what can you do? Employee participation and open communication

Transparency and open communication are crucial for successful employee participation and new leadership. Managers should regularly share important information about company goals, projects and changes and use various communication channels to reach all employees.

Open dialogue is essential to give employees the opportunity to express their thoughts and feelings. This creates an atmosphere of trust and co-operation, which is important for the successful implementation of change. Managers should actively listen, respond to concerns and involve employees in decision-making processes.

Managers should make pressure and stress transparent:

• Have regular conversations that go beyond pure project management
• Recognise the first signs of changing behaviour, declining performance or unusually high absenteeism at an early stage
• Use an anonymous ‘company safe space’ for feedback to identify difficult issues and changes in mood at an early stage
• Create a trusting framework for honest communication

Involving employees at an early stage gives managers concrete starting points for tackling conflicts at the root and defusing them quickly.

Rethinking leadership: involvement instead of top-down

The future belongs to companies that focus on participative leadership. Employees don’t just want to follow instructions, they want to actively contribute to the company’s development.

Satisfied, valued teams are more productive, creative and resilient. Companies that set the course for a new management culture now will be more successful. Use the open dialogue in an anonymous ‘corporate safe space’ as a strategic advantage and build a corporate culture that not only reacts to crises, but also proactively shapes the future.

The future belongs to the brave

Managers who have the courage to break old patterns now and establish a new leadership culture will be the winners of tomorrow.

New leadership means sharing responsibility, trust and growing together. It is the way to not only survive but thrive in a complex and uncertain world. Are you ready to rethink your leadership and make your organisation fit for the future?