Business Transformation Requires Transformational Leaders

As organizations pursue purpose-driven goals, true leadership requires more than bold statements — it demands rigorous measurement of real-world impact. This means shifting from tracking inputs to evaluating tangible outcomes, acknowledging unintended consequences, and staying adaptable in the face of uncertainty. As this Advisor explores, effective leaders build systems that capture both direct and ripple effects of their actions, enabling smarter decisions and more resilient strategies.

Arthur D. Little’s 2025 CEO Insights study, “Proactively Embracing Change,” reveals that today’s CEOs are confidently navigating geopolitical and economic volatility through bold, proactive strategies. The first in a series of insights, this Advisor explores five strategic imperatives and identifies seven growth areas CEOs are prioritizing, such as institutionalized innovation, ecosystem collaboration, and agile M&A strategies. The study underscores the need for CEOs to transform uncertainty into opportunity by embedding agility, resilience, and forward-thinking into their organizations.

In today’s business landscape, purpose is essential — not a side note. Yet, many purpose-driven efforts lose momentum due to common behavioral pitfalls. Drawing from the Purpose-in-Practice Community, this Advisor identifies nine traps that undermine lasting, transformative change. Avoiding these traps can help leaders embed purpose more meaningfully and sustainably across their organizations.

This Advisor argues that professional ethics education must go beyond rules and codes of conduct to truly prepare individuals for the complex, high-stakes challenges of modern professional life. It advocates for a virtue ethics approach — rooted in purpose, character, and moral reasoning — as essential to shaping a resilient, reflective, and ethically grounded professional identity. Drawing on Stoic philosophy, the article emphasizes the importance of joy, fulfillment (eudaimonia), and the cardinal virtues as guiding principles for meaningful and ethical professional practice.

Great communicators and leaders distinguish themselves by mastering the art and science of asking powerful questions — of others and themselves. Clear, purposeful questions foster trust, drive innovation, and reveal hidden insights, while empathetic, well-timed inquiry builds psychological safety and emotional intelligence. Combining strategic questioning with strong interpersonal skills transforms conversations, strengthens relationships, and accelerates learning and impact.

New global research from over 2,100 leaders reveals a critical execution gap — “digital detachment” — where senior leadership overestimates progress while failing to align culture, data use, and customer-centricity. Although many leaders express confidence and progress is evident, transformation efforts falter without a shared purpose, cultural alignment, and effective data-driven decision-making. The Advisor underscores the urgent need for leaders to shift from acknowledging challenges to taking decisive action that embeds transformation into the organization’s DNA.

As businesses navigate the fast-approaching 2030 horizon, executives and boards must confront a complex mix of digital era opportunities and risks. Emerging technologies like AI offer powerful levers for innovation, efficiency, and growth — but they also bring challenges. In this Advisor, Cutter Fellow Noah Barsky looks at effective digital leadership tactics for the next five years.

In this Advisor, we explore the vital connection between leadership and purpose, using Ukrainian President Volodymyr Zelenskyy as a powerful example. Amid the Russia-Ukraine war, Zelenskyy’s resolve, communication, and ability to inspire unity have rallied Ukrainians and earned global support. We argue that in times of crisis, deeply rooted trust and purpose-driven leadership are essential for resilience and survival.