Strain from artificial intelligence (AI) and geopolitical uncertainty continue to test organisations globally. But leaders who are more “reflective” — the word used in a recent McKinsey report — could be better positioned to handle those pressures, with many already taking the lead in AI adoption.
“As leaders seek to balance multiple pressures … they need to take an ‘inside out’ approach focusing on personal growth,” McKinsey’s The State of Organisations 2026 report said. “Individuals, teams, and organisations need to redefine leadership in more human-centric terms, with leaders reflecting on the ‘why’ to inspire meaningful change.”
Overall, two-thirds of leaders currently make time to reflect monthly, and two in five reflect on their purpose as leaders at least weekly.
Leaders who self-identified as more reflective were often more decisive. They showed more awareness of the broader business environment, a sharper focus on and greater confidence in navigating recent changes, and more active leadership in AI, the report said.
Leaders who are more inclined to look inward were also more likely to say that geopolitical shifts are significantly affecting their organisations (22%), compared with leaders whose level of reflection is rare or unchanged (10%) and those who say they reflect less often than before (4%).
The report surveyed more than 10,000 organisational leaders in mid-2025.
Handling pressure with confidence
When it comes to motivating workforces, reflective leaders tend to be more human-centred, McKinsey said. They thrive through fostering trust and inspiring teams to be bolder in their goals and actions, and they feel more pressure to meet productivity goals than their peers.
Seventy-four per cent of reflective leaders cited feeling increased pressure to deliver further productivity gains, compared with 61% and 54% of leaders who reflect rarely or less, respectively.
Simultaneously, reflective leaders were also more confident in their organisation’s ability to adapt to meet those goals (30% vs. 18% of leaders who reflect rarely or 17% who reflect less).
McKinsey’s research found that leaders who are more self-reflective and self-aware can capture opportunities for reinvention and growth through periods of volatility by recognising when to intervene and when to be clearer about the right configuration of teams.
Human-centric leadership in focus
Failing to engage in an “inside-out” approach can lead to reactive decision-making by leaders, undermining their ability to lead with clarity and purpose, according to McKinsey.
“Leaders who learn openly, model curiosity, and help their organisations do the same will define the next era of human-centred leadership,” the report said. This approach allows companies to “unleash decision-making velocity” as operating models evolve.
Furthermore, 56% of leaders reported increased employee satisfaction and retention as a main organisational benefit from adopting a human-centric leadership style.
Human-centric models are becoming harder to nurture in practice. According to respondents, time pressure (47%), fear of failure or judgement (42%), and hierarchical organisational culture and unclear expectations (both 38%) are obstacles to creating psychologically safe environments at a team level — challenges emphasised more by reflective leaders.
— To comment on this article or to suggest an idea for another article, contact Steph Brown at Stephanie.Brown@aicpa-cima.com.
MEMBER RESOURCES
Articles
“Accountability the ‘No. 1 Thing’ and Other Reflections From Bill Reeb”, Journal of Accountancy, 22 January 2026
“Ways Managers Can Deal With Their Team’s Stress”, FM magazine, 21 January 2026
“Practical Psychology: Tips for Effective, Influential Leadership”, FM magazine, 14 January 2026
“Adaptive and Open-minded: Two Key Traits for Resilient Leaders”, FM magazine, 24 October 2025
“Looking Inward: A Mindful Approach to Regulating Stress, Uncertainty”, FM magazine, 10 September 2025
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