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Leadership is evolving at breakneck speed.

Today’s CEOs face unparalleled challenges:

• Uncertainty from economic and political instability.
• The rapid integration of AI and other technologies.
• Pressure to create cultures that deliver more than profits.

Despite these challenges, many leaders fail in one critical area:

Building human capability to create lasting stakeholder value.

In my recent podcast episode with Dave Ulrich, the Rensis Likert Professor at the Ross School of Business, University of Michigan who has published over 200 articles and book chapters and over 30 books (called "The Father of Modern HR") we explored why this happens and how to fix it.

The 3 Biggest Leadership Challenges

Uncertainty dominates the business landscape. CEOs are constantly navigating volatility while trying to anchor their organizations in a steady direction. Ulrich’s advice? Focus on what remains certain—values, purpose, and long-term commitments. These are the pillars that endure, even in chaos.

Technology, particularly AI, is another major force. Yet many leaders treat it as a checkbox rather than a tool to amplify their teams. The key is to integrate technology in ways that empower people and enhance customer value.

Finally, there’s the human factor. Leadership, talent, and culture are often delegated to HR, but Ulrich makes it clear: CEOs must take direct ownership of these priorities. Delegating culture is the first step toward failure.

Why CEOs Struggle

Many CEOs come from technical or operational backgrounds where metrics and strategy dominate. Few are naturally skilled in leading people, which leads to a dangerous habit: focusing only on what feels comfortable.

Delegating the human agenda to HR might seem efficient, but it disconnects the CEO from what truly drives value. This gap often results in disengaged employees and missed opportunities to build organizational resilience.

The Path Forward

Leadership isn’t about what the CEO knows; it’s about what they enable others to achieve. Ulrich shared a key question every CEO should ask:

"What do my customers need from my people, leadership, and culture?"

This shift—from internal focus to customer-driven outcomes—changes everything. It moves the organization closer to its purpose and creates alignment at all levels.

Here’s how CEOs can lead differently:

1. Think Externally: Align talent and leadership strategies with the promises your brand makes to customers.
2. Commit to Listening: True listening isn’t about understanding others—it’s about making them feel understood.
3. Take Full Ownership: Culture starts with the CEO. It’s a daily commitment, not a task to delegate.

A Final Word: Take Care of Yourself

Burnout among CEOs is real. Last year, over 40% of U.S. CEOs who left their roles cited stress as a major factor.

Leadership comes with immense responsibility, but it’s unsustainable without self-care. Ulrich’s parting advice is simple but profound:

"What are you doing to take care of yourself?"

Your well-being fuels your leadership. Whether it’s spending time with family, maintaining your health, or reconnecting with what inspires you—make it a priority.

Leadership isn’t about doing more. It’s about focusing on what matters most.

Watch the full episode here​

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Andrea Petrone

CEO Whisperer | Top 2% Executive Coach and Speaker in the UK | Founder of WCL.

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