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% of leaders ranking each item as a top five issue impacting organizational health in the next 12-18 months
% of leaders ranking each item as a top five issue impacting organizational health in the next 12-18 months
Trade conflicts
Commodity price volatility
Populism in politics
Reputational damage
Climate change and environmental damage
Inclusion and culture
Exchange rate volatility
Taxation
Investor activism
Rising wealth inequality
Technological change is now the number one factor impacting organizational health globally, with 63% of leaders ranking it among their top five organizational health levers over the next 12–18 months. Uncertain economic growth follows at 57%, while geopolitical uncertainty experienced the largest increase of any factor in the last six months, rising 11 percentage points to 54%.
The availability of key talent and skills continues its steady decline from its peak in 2023, falling to 43% of leaders selecting it as a top-five factor. Workforce transformation has also climbed back into the top five, rising to 37% as organizations increasingly focus on how AI adoption and evolving workforce expectations are reshaping organizational structures and talent needs.
The availability of key talent and skills continues its steady decline from its peak in 2023, falling to 43% of leaders selecting it as a top-five factor. Workforce transformation has also climbed back into the top five, rising to 37% as organizations increasingly focus on how AI adoption and evolving workforce expectations are reshaping organizational structures and talent needs.
% of leaders ranking each item as a top five issue impacting organizational health in the next 12-18 months
Technological change has steadily climbed the leadership agenda over the past three years, rising from 32% of leaders selecting it as a top-five factor in late 2022 to 63% in H1 2026, making it the top organizational health lever globally for the first time since the Global Leadership Monitor launched.
At the same time, uncertain economic growth has moderated somewhat after dominating the rankings for the past several years, while the availability of key talent and skills has steadily declined from its 2023 peak. Geopolitical uncertainty has remained volatile across waves but surged sharply again in H1 2026. Workforce transformation, introduced in H2 2024, has rebounded into the top five after dipping throughout 2025, reflecting growing organizational focus on AI-enabled workforce evolution.
At the same time, uncertain economic growth has moderated somewhat after dominating the rankings for the past several years, while the availability of key talent and skills has steadily declined from its 2023 peak. Geopolitical uncertainty has remained volatile across waves but surged sharply again in H1 2026. Workforce transformation, introduced in H2 2024, has rebounded into the top five after dipping throughout 2025, reflecting growing organizational focus on AI-enabled workforce evolution.
% of leaders selecting factors as a top 5 issue vs % of leaders reporting their leadership team is prepared or very prepared
1. Uncertain economic growth
2. Technological change
3. Availability of key talent
4. Geopolitical uncertainty
5. Policy uncertainty
6. Workforce transformation
7. Changes in consumer behavior
8. Increased regulation
9. Cyber threats
10.
Protectionism
Leadership preparedness has risen for the first time in years, with nearly every factor increasing in preparedness compared to six months ago.
Preparedness to address technological change increased notably in the past six months, rising from 44% to 51%, while preparedness for workforce transformation climbed 7PP in the past six months.
Even so, four of the top five organizational health factors remain at or below 40% preparedness globally. Preparedness for geopolitical uncertainty remains especially low at 32%, despite the sharp increase in leaders identifying it as a top organizational health factor. Cyber threats continue to stand apart as the factor leaders feel most prepared to address, with 72% reporting preparedness.
Preparedness to address technological change increased notably in the past six months, rising from 44% to 51%, while preparedness for workforce transformation climbed 7PP in the past six months.
Even so, four of the top five organizational health factors remain at or below 40% preparedness globally. Preparedness for geopolitical uncertainty remains especially low at 32%, despite the sharp increase in leaders identifying it as a top organizational health factor. Cyber threats continue to stand apart as the factor leaders feel most prepared to address, with 72% reporting preparedness.
% of leaders selecting threats as top 5 issue vs % of leaders reporting leadership team is prepared or very prepared
EXTERNAL FACTORS
TOP EXTERNAL FACTORS
L6M*
% PREPARED OR VERY PREPARED
L6M*
11.
Trade conflicts
12. Commodity price volatility
13.
Populism in politics
14.
Reputational damage
15.
Climate/Environmental change
16.
Inclusion and culture
17.
Taxation
18.
Exchange rate volatility
19.
Investor activism
20.
Rising wealth inequality
Leadership preparedness has risen for the first time in years, with nearly every factor increasing in preparedness compared to six months ago.
Preparedness to address technological change increased notably in the past six months, rising from 44% to 51%, while preparedness for workforce transformation climbed 7PP in the past six months.
Even so, four of the top five organizational health factors remain at or below 40% preparedness globally. Preparedness for geopolitical uncertainty remains especially low at 32%, despite the sharp increase in leaders identifying it as a top organizational health factor. Cyber threats continue to stand apart as the factor leaders feel most prepared to address, with 72% reporting preparedness.
Preparedness to address technological change increased notably in the past six months, rising from 44% to 51%, while preparedness for workforce transformation climbed 7PP in the past six months.
Even so, four of the top five organizational health factors remain at or below 40% preparedness globally. Preparedness for geopolitical uncertainty remains especially low at 32%, despite the sharp increase in leaders identifying it as a top organizational health factor. Cyber threats continue to stand apart as the factor leaders feel most prepared to address, with 72% reporting preparedness.
% leaders reporting leadership team is prepared or very prepared to address external factor
Leadership preparedness for technological change rebounded notably in H1 2026 after several years of decline, rising 7PP in the past six months to 51%. However, preparedness still remains below earlier highs observed in 2021 and 2022.
Preparedness to address uncertain economic growth has stabilized somewhat after several years of decline, while preparedness for geopolitical uncertainty remains persistently low despite rising prioritization. Preparedness for the availability of key talent and skills improved by 5PP in the past six months but remains below historical levels, underscoring the continued gap between organizational priorities and leadership readiness.
Preparedness to address uncertain economic growth has stabilized somewhat after several years of decline, while preparedness for geopolitical uncertainty remains persistently low despite rising prioritization. Preparedness for the availability of key talent and skills improved by 5PP in the past six months but remains below historical levels, underscoring the continued gap between organizational priorities and leadership readiness.
Uncertain economic growth
57%
Technological change
63%
Availability of key talent/skills
43%
Geopolitical uncertainty
43%
Policy uncertainty
38%
Workforce transformation
35%
Changes in consumer behavior
32%
Increased regulation
28%
Cyber threats
23%
Protectionism
22%
The availability of key talent and skills continues its steady decline from its peak in 2023, falling to 43% of leaders selecting it as a top-five factor. Workforce transformation has also climbed back into the top five, rising to 37% as organizations increasingly focus on how AI adoption and evolving workforce expectations are reshaping organizational structures and talent needs.