Leadership Wellbeing and Performance in a Complex Business World
Tue 31 Mar 2026 | Professor Elinor O’Connor
Leadership has always been a hugely complicated, multifaceted discipline. In business, it requires technical, emotional and operational intelligence, not to mention commercial nous – it demands a huge amount of any individual.
In the past five years, however, business leadership has become markedly more complex, as we recently uncovered in some new research commissioned by Alliance Manchester Business School (AMBS) and carried out by Censuswide.
We surveyed 500 senior decision-makers within UK businesses. The overwhelming majority (73%) said their leadership roles have become more complex since 2020.
Set against this backdrop of increased complexity – and I will come onto the contributing factors behind this shortly – there are important questions to consider regarding leaders’ wellbeing and performance. In particular, the data brings to life the challenges of leading well in today’s business world, while at the same time underlining the need to recognise and manage the impact of leadership responsibilities on leaders’ wellbeing.
A Perfect Storm of Pressures
So, what is making business leadership more complex? This question was put to the survey respondents, and AI and digital transformation initiatives were the most commonly cited issue (31% said these had made their role more complicated in the past five years). Close behind were heightened cybersecurity and data privacy risks (28%), the performance of the UK economy (27%) and new regulation and legislation (27%). A quarter also cited the rise of remote and hybrid working, and the same proportion pointed to growing expectations around diversity, equity and inclusion.
Put simply, there is a confluence of multiple factors – tech, working practices, regulation, macroeconomics – that have transformed how, where and why businesses operate, and have naturally brought significant implications on how people lead.
For example, 59% of leaders say navigating policy, regulation and legislation has become more difficult. Over half report that attracting and retaining top talent (56%) and maintaining a competitive advantage (56%) are now more challenging. A similar proportion (54%) says that creating a long-term strategy for growth and achieving consistent growth have become harder.
The cumulative effect is clear: leaders are being asked to deliver more, in a context that is less predictable and more demanding.
The Human Toll of Complexity
So, there is the context. But the more interesting and important part of this debate is the impact it is having on managers and leaders across the UK. After all, complexity does not only affect organisational outcomes; it also affects the individuals charged with delivering them.
The data bears this out: two-thirds (67%) of senior decision-makers report experiencing work-related stress at least once a week. Further, 40% say they regularly doubt their own judgement at work, while 55% worry about remaining relevant and competent as the business world evolves.
The research adds further nuance. Of those who feel their role has become more complex, 54% say this has negatively impacted their mental well-being in the past year. Moreover, 29% do not feel well supported by senior colleagues when making critical decisions, and 31% have received no formal training to help them manage effectively in their roles.
Stress and responsibility have always accompanied leadership. What is different today is the breadth of competencies required and the speed at which they must be acquired. Leaders are no longer simply setting strategy and overseeing performance; they are expected to interpret AI, manage digital transformation, navigate ESG imperatives, respond to geopolitical shocks and shape hybrid cultures – often with limited formal training.
Culture is Not Enough
Amidst such rapid and significant change that leaders are contending with, there was one stark statistic to come from the survey: almost one in three senior decision-makers within UK businesses (29%) has not received any formal training for their current role. In an environment defined by technological disruption and structural change, this represents a material risk.
There is often an assumption that senior leaders will “learn on the job”, lean on the expertise of others, or that a strong organisational culture will provide sufficient support. Culture undoubtedly matters. So too does peer-to-peer learning. But goodwill and resilience alone cannot compensate for capability gaps in areas such as AI deployment, digital transformation governance or regulatory navigation.
Indeed, when asked what training would most benefit them, 40% of leaders selected understanding AI and how best to leverage it. Managing digital transformation projects (32%) and combatting stress while improving resilience and mental well-being (32%) followed closely behind.
The message is unequivocal: leaders recognise their own development needs. They are not resistant to learning. Rather, they are seeking targeted, practical support that addresses the specific challenges they face.
From General Development to Targeted Capability
There are clearly some implications for companies of all sizes and sectors. Namely, that if they are to develop and support their senior managers, they cannot rely solely on broad, generic programmes. Instead, a more targeted and customisable development programme is required, built around focused interventions that equip leaders with immediately applicable skills in areas of acute relevance.
For some, this may mean intensive courses on AI strategy and implementation. For others, it may involve programmes focused on regulatory complexity, ESG integration, data-driven decision-making or leading hybrid teams. Equally important are offerings that address the psychological dimensions of leadership – topics like resilience, decision-making under uncertainty and sustaining wellbeing within high-pressure environments.
The research demonstrates that increased complexity is already affecting core business outcomes, from talent retention to strategic growth. Moreover, it is affecting leaders’ well-being and decision-making. Inaction risks exacerbating these problems.
Indeed, the business world is not going to revert to a simpler state. Technological advancement will continue, regulatory landscapes will constantly evolve, and workforce expectations are ever shifting. The question, therefore, is not how to eliminate complexity, but how to equip leaders to navigate it with confidence.
Balancing well-being and performance is essential for leaders to perform well, and in turn allow businesses to succeed. Our new research demonstrates that this balance has become harder to strike as the world of business leadership becomes more and more complex – and this is the challenge that all organisations must address, ensuring they have a strategy for empowering their people to lead both today and into the future.
