As we settle into 2025, the need for leaders and organisations to build resilience and implement effective change management initiatives has never been more urgent. With technological advancements, such as AI, reshaping industries, shifting workplace dynamics, and an increased focus on sustainability, senior leaders must guide their organisations through constant change to stay competitive.
The UK’s ongoing economic challenges – rising energy prices, inflation, high interest rates, and increased taxes – are added changes to navigate. Though there are signs of a slowing recession, recovery will likely be uneven across sectors. In this environment, resilience is essential to weather uncertainty alongside the broader shifting business landscape.
Organisational resilience – the ability to anticipate, prepare for, respond to, and adapt to change – is essential for thriving teams. As the World Economic Forum highlights, leaders who approach change with a positive mindset will flourish, noting that “change creates opportunities – to grow and to do things better. The challenge is in how you respond.” Senior leaders are critical in fostering a culture of change, embedding a mindset that empowers teams to embrace transformation and proactively drive progress. This leadership approach sets the foundation for successful adaptation and long-term organisational success.
According to Gartner, 50% of business change initiatives fail due to a lack of commitment from the people driving them. However, research shows that when employees are engaged in the process, success rates increase by up to 24%. Engaging employees early, creating feedback loops, and addressing concerns can help reduce resistance and foster a greater capacity for change.
Building a culture of adaptability
In a world of constant change, adaptability must be a part of every company’s core culture. Leaders need to encourage a mindset where embracing new ideas, learning from failure, and remaining agile are seen as opportunities, not obstacles. This requires fostering an environment where innovation and experimentation are celebrated.
Key takeaway – inspire adaptability by rewarding innovative thinking. Lead by example by demonstrating openness to new ideas, new processes and ways of working.
From adaptability to resilience
While adaptability is about embracing change, resilience is about bouncing back when challenges arise. McKinsey highlights that resilient organisations prioritise psychological safety, adaptable leadership, and cohesive culture. They continue, “leaders who create resilient teams don’t just react when faced with change or disruption. They take the time to coach team members through the change. They catalyze new behaviors, and they develop capabilities that can help set the conditions for both a short-term response and long-term resiliency.”
Creating an environment of psychological safety is also crucial. McKinsey emphasises that “employees are unlikely to change their behaviours if failure is not an option.” Organisations that foster resilience provide a space where taking risks and learning from failure is encouraged. This enables continuous learning and enhances the organisation’s capacity to adapt and thrive.
Key takeaway – as leaders, it’s your role to foster an inclusive culture where people feel empowered and confident to overcome their obstacles, learn from failures and embrace change in their stride.
Emotive storytelling
Effective leadership hinges on the ability to communicate compelling narratives that explain the drivers of change, thereby inspiring action and fostering commitment throughout the organisation. As noted by Forbes, leaders who can share stories that draw out the emotional and practical reasons for change are more likely to align teams, motivate employees, and inspire new recruits, customers, and stakeholders.
We partnered with a leading construction company who were undergoing a period of change. The business faced the challenge of adapting to rapid growth and a shifting market, with a renewed focus on people, culture, and engagement. Their leadership teams needed to be able to tell a compelling story from evolving a small business to expanding it into a community-driven organisation.
We developed a three-phase solution over eight months:
- Re-defined their vision, mission, purpose and priorities and then helped them to craft a compelling narrative/story around it
- Delivered a leadership development programme, combining bespoke 360 tools, coaching, and workshops.
- Provided HR consultancy
The result? A highly engaged workforce rallied behind a clear case for change, achieving widespread positive feedback, and continued financial growth.
Key takeaway – to guide people through change effectively, learn to tell compelling stories of change which make a clear case for change, inspire and motivate people.
As we continue into year, the pressure on leaders to drive change and maintain resilience will only increase. By fostering a culture that prioritises adaptability and fresh ideas, and establishing a robust plan for managing change, organisations can do more than merely endure disruption – they can take charge of it and capitalise on the opportunities brought by new innovations. The key to navigating change lies in how leaders respond – by engaging proactively, fostering psychological safety, and empowering their teams to face the future with confidence.
At NKD, we’re here to help. If your key people need support to lead change effectively, explore our Leading Change solution or reach out today for a chat.