There are two kinds of leaders in modern organisations.
The first leads by being themselves. They express what they believe confidently, share their vision widely, and convince people to put their trust in them because they are strategic and decisive. They deliver results while appearing as heroes with capes. This archetype became popular as an alternative to the outcomes-focused, numbers-driven, bottom-line-obsessed leadership styles of the past.
However, organisations now need the second kind of leader. Before I describe her, let me show you the statistics from Harvard Business Publishing's Global Leadership Development Study 2025.
What is emotional and social intelligence in the context of leadership?
The first part of this new equation is human judgment.
Earlier this month, the London Business School predicted that moving on, human judgment will become a crucial trait. It described how leadership decisions would have to rely on six elements of judgment: knowledge, context, trust, feelings, choice, and delivery.
In medicine, AI can scan thousands of radiology images with remarkable accuracy, reducing diagnostic errors. But empathy—understanding a patient's fears, pain, and personal circumstances—is something only a doctor can provide. Leaders in every sector can learn from this: use AI for efficiency and insight, but never outsource the human touch.
The second is vulnerability, because AI can be many things—even more empathetic than humans—but it cannot be vulnerable.
Horton International has called vulnerability a powerful trait for the new leader. When a leader embraces vulnerability, it doesn't mean appearing weak or indecisive. It creates a culture of honesty, trust, and engagement. In another study, LeaderFactor, a leadership development platform, summarised the many ways in which vulnerability aids open communication and the psychological safety needed for innovation and growth:
By embracing vulnerability, leaders foster trust, encourage open communication, and build stronger relationships with their team members. This, in turn, creates an environment where individuals feel safe to take risks, share ideas, and contribute to innovation and growth…Developing vulnerability as a leadership skill requires self-awareness, a commitment to continuous improvement, and an emphasis on creating a culture of trust and open communication. Ultimately, vulnerability in leadership sets the stage for psychological safety, enabling teams to thrive and organisations to achieve greater success through innovation.
Before I move on to the final attribute of the new leader, let me share the state of businesses in which this need has arisen.
Employee engagement has been falling globally and reached an abysmal 21% last year, with an estimated lost productivity cost to the global economy of $438 billion. Gallup, a multinational analytics company that advises leaders and organisations, defines engaged employees as highly involved in and enthusiastic about their work and workplace. The data shows that only one in five employees feels this way. Four in five are unattached or resentful.
Gallup measures employee engagement by asking employees globally some fundamental questions to capture the truth of how organisations are managing people.
To make matters more challenging, it's not just employees but also leaders who are facing an existential crisis, as I described in the last edition of Small Truths. Development Dimensions International (DDI), an international human resources and leadership development consultancy, reported the magnitude of stress among leaders after examining responses from over 2,000 human resource professionals and over 10,000 leaders from over 2,000 organisations spread around the world.
If you haven't guessed it already, the third and final part of the answer is humanity.
It looks like a leader who manages emotions, empowers teams, encourages risk and innovation, and learns to accept failure. DDI called it "Humanity as the Leadership Edge" in 2025.
If you enjoy practical takeaways, they offer some:
The most future-ready leaders will define their value not by what can be automated, but by the human impact they create. Five capabilities—Connection, Conscience, Creativity, Clarity, and Curiosity—help leaders model openness to new ideas, foster a healthy learning environment, and maintain the trust that keeps people inspired to follow.
As intelligence becomes democratised, human emotions become the differentiator. In this new world, the new leader looks like a catalyst helping their colleagues evolve, a good listener, not at all behaving like a conventional hero.
What do you think? Are you leading or being led with humanity? Do you feel the shift? Hit reply and tell me what you'd like to read about in future editions.
Have a wonderful weekend.
Yours,
Ruhi