By Jon Kaupla, President/Executive Director of the Wisconsin School of Business Center for Professional & Executive Development
Leadership has always been challenging, but today’s leaders are facing an entirely new level of complexity. The DDI Global Leadership Forecast 2025, one of the largest and most respected studies on leadership trends, confirms what many of us have sensed – leaders are under immense pressure, trust in leadership is eroding, and organizations are struggling to build strong leadership pipelines.
These aren’t just passing concerns. They’re signs of deeper shifts in leadership expectations, workplace culture, and the evolving role of technology. As I worked through the report’s findings, one thing became clear: if leadership development doesn’t adapt, organizations will struggle to compete.
So, what do we do about it? How can we prepare leaders for a workplace that’s changing faster than ever? Here are the most important takeaways from the report—and what they mean for leadership development moving forward.
1. Trust in Leadership is Declining—And That’s a Big Problem
One of the most concerning findings in the report is that only 32% of employees trust senior leadership, and confidence in immediate managers has dropped as well.
Think about that for a second. Two-thirds of employees don’t fully trust the people leading them. That’s not just a minor issue—it’s an organizational crisis.
The problem isn’t that leaders don’t care. It’s that many don’t realize how their actions (or inactions) affect trust. They believe that frequent communication equals clarity, but employees often feel they’re not getting the full picture. Leaders assume they’re approachable, yet employees hesitate to speak up.
Trust is built through transparency, consistency, and follow-through. And while many leadership programs focus on strategy and execution, far fewer emphasize how to build and maintain trust in real-world situations.
That must change. Organizations that actively develop trust-building skills—like authentic communication, ethical decision-making, and leading through uncertainty—will have a distinct competitive advantage.
2. AI is Changing Leadership Faster Than Leaders Are Adapting
We’ve all heard the conversations around AI, but the DDI report highlights something critical: leaders at different levels of an organization view AI very differently.
While senior executives tend to be optimistic about AI’s potential, frontline leaders are three times more likely to be concerned about its impact on jobs and day-to-day work.
That gap creates a major leadership challenge. If frontline leaders aren’t prepared to answer their teams’ concerns about AI, uncertainty spreads, and resistance builds. The reality is that AI isn’t just a technology shift—it’s a leadership challenge.
Organizations that want to thrive in an AI-driven world must do more than invest in the technology itself. They must develop leaders who can guide teams through AI-driven change, address workforce concerns, and create trust in the process.
Leaders don’t need to be AI experts, but they do need to understand AI’s business impact and how to lead effectively in a rapidly changing environment.
3. Leadership Burnout is Driving Talent Away
This one hit home. According to the DDI report, 71% of leaders report increased stress levels, and 40% are considering stepping away from leadership altogether.
That’s a massive issue. If nearly half of your leadership team is thinking about leaving, it’s not just an individual problem—it’s an organizational one.
Leadership burnout happens when leaders aren’t given the time, resources, or support to do their jobs effectively. Too often, companies expect leaders to be high performers without equipping them with the skills to manage their energy, set boundaries, and avoid burnout. And when leaders are burned out, their teams feel it too.
The best organizations are recognizing this and making leadership sustainability a priority. Leadership development programs need to go beyond traditional skills and address resilience, stress management, and sustainable leadership habits.
A leader who is overwhelmed and exhausted can’t effectively lead others.
4. Leadership Pipelines Are Too Weak to Support Future Growth
The numbers here aren’t encouraging. The report found that only 20% of organizations feel confident in their leadership pipeline.
That means 80% of organizations don’t have a clear plan for who will step into key leadership roles in the future.
The reasons for this are clear:
- Companies wait too long to develop future leaders.
- They promote high performers without preparing them for leadership.
- They react to leadership gaps instead of building a strong pipeline proactively.
This isn’t sustainable. Strong leadership pipelines don’t happen by accident—they require intentional investment and planning.
The most successful organizations identify high-potential leaders early, provide structured development, and create real opportunities for them to step into leadership roles before they’re needed.
And it’s not just about training—it’s about ensuring leaders are truly ready to step up when the time comes.
What This Means for Leadership Development
The DDI Global Leadership Forecast 2025 makes one thing crystal clear: if organizations don’t evolve their leadership development strategies, they will fall behind.
- Trust and communication must be core leadership skills. Leaders need to know how to build credibility, communicate transparently, and create clarity in uncertain times.
- AI isn’t just a technology issue—it’s a leadership issue. Leaders need to be trained to understand AI’s business impact, guide teams through change, and balance AI adoption with workforce concerns.
- Burnout prevention must be a priority. Leadership development can’t just focus on strategy—it needs to teach leaders how to manage stress, set boundaries, and lead without burning out.
- Leadership pipelines need real investment. Organizations that make leadership development continuous, structured, and intentional will be the ones best positioned for the future.
The DDI Global Leadership Forecast 2025 confirms what many of us have been sensing—leadership is harder than ever, and the expectations placed on leaders continue to rise. But it also offers a roadmap for organizations that are willing to invest in their leaders.
At CPED, we work with leaders who are navigating these exact challenges. We’ve seen firsthand what happens when organizations prioritize trust-building, leadership sustainability, AI adaptation, and strong leadership pipelines.
When leaders get the right support, training, and development, they don’t just survive—they thrive.
Leadership isn’t getting easier. But with the right preparation, it doesn’t have to feel impossible. The organizations that make leadership development a priority today will be the ones leading the way tomorrow.
Jon Kaupla is the executive director of the Wisconsin School of Business Center for Professional and Executive Development. He has over 18 years of human resources experience with organizations ranging from non-profits to Fortune 500 companies. Jon has led human resources strategy in the healthcare, financial services, marketing, and retail industries. Jon has a Bachelor of Science in psychology and social work from Florida State University and a Master of Arts in education from Alverno College.