Leading in times of change: 9 realities for decisive leadership

It’s become a cliché to say that change is the only constant—but it’s true. The United States has a new president, a newly appointed European Commission is in place, and global trade policies are undergoing a major shift. At the same time, we’re witnessing new ways of interacting with technology and profound demographic transformations.

In some countries, the average company now employs as many Generation Z workers as Baby Boomers. Decision-makers cannot afford to ignore these changes because they influence every aspect of human activity and behavior—consumer habits, workplace dynamics, political ideologies, environmental responsibility, and core values. 

Faced with this landscape, LLYC has developed a strategic roadmap outlining the key realities that every decision-maker should consider—from CEOs to finance, marketing, and talent management executives. In short, for anyone responsible for managing risk. Our LLYC experts have shared their insights on these challenges and how to navigate, overcome, and capitalize on them. Decisions are never made in a vacuum.

1. Brace yourself for permanent change—this time, it may be more radical. We have just witnessed a “super-election cycle.” In 2024, 1.6 billion people participated in free elections. Citizens demanded radical change in several countries, including the U.S. and the UK. In others, such as India, France, and South Africa, voters signaled dissatisfaction, forcing new coalitions and welcoming new political actors. This widespread global discontent means that newly elected officials will push to implement the changes people demand. But political change is just one part of a broader technological, cultural, and economic transformation. This will lead to significant instability—but also, possibly, new opportunities. Change has always been part of our world, but this time, it may be more drastic than ever before.  “How open are we to collaborating with start-ups that can contribute new technologies or unexplored solutions? How open are we to participating in regulatory and normative changes or developments?” asks María Esteve, Partner and General Director of Strategy for Corporate Affairs at LLYC.

2. We’ve been talking about AI for a while—soon, we’ll see the full extent of its impact. We are entering a pivotal moment to determine what we can expect from AI’s evolution. According to The Economist, an unprecedented $11 trillion is currently invested in AI data centers. This investment surge is coupled with intense competition among AI firms and models, exemplified by DeepSeek’s push for open-source, low-cost alternatives in China. AI is already reshaping talent management, pattern detection, and process automation. Businesses that embrace AI early will likely gain a significant advantage. It is all but inevitable to join this massive transformation. “AI is not a fad; it is the basis of the next industrial revolution, those companies that adopt it in their model will be the ones that lead the next decade,” says Miguel Lucas, Global Director of Innovation at LLYC.

3. There’s a backlash against values worth defending. Amid shifting political climates, many companies are backrolling their DEI (diversity, equity, and inclusion) and ESG (environmental, social, and governance) frameworks. This trend is particularly evident in the U.S., where political forces shape corporate behavior. However, this shift will likely clash with the European perspective and regulatory framework, as DEI remains strategically valuable. As long as customers, employees, suppliers, shareholders, and society at large remain diverse, defending diversity remains an asset. And, as resources remain scarce and the climate crisis persists, sustainability will be a winning strategy. DEI and ESG have never been mere trends—they represent long-term commitments and strategic differentiators. For Luisa García, Partner and Global CEO of Corporate Affairs at LLYC:  “Progress is possible, but it requires a comprehensive analysis. The resulting narrative must have the support of senior management and be fully integrated into leadership teams.”

4. Inaction is the worst enemy of lasting success. In his bestseller Think Again, organizational psychologist Adam Grant argues that people prefer the comfort of certainty over the discomfort of doubt. In economics, this phenomenon is called path dependency—”if this has worked for me so far, why change?” A classic example is the transition from analog to digital photography: companies that dominated the analog industry struggled to embrace innovation and shift their business models. Today, without realizing it, many businesses may be falling into the same inaction trap.

5. Disinformation is no longer an occasional nuisance—it’s the new ecosystem. The World Economic Forum identifies misinformation and false narratives as one of the top risks of 2025. Meta has rolled back content controls, Elon Musk has altered X’s algorithm, TikTok’s workings remain opaque, and new platforms like Bluesky and Rednote are emerging. This increasing fragmentation means that people will gravitate toward networks that reinforce their existing views while ignoring others. Misinformation, false narratives, and ideological fragmentation will dominate public discourse. In this landscape, corporate values are vulnerable to distortion or manipulation, often making formal responses or fact-based clarifications ineffective. Companies must carefully strategize how they navigate this environment.

6. Regulation is changing faster than ever. Who wouldn’t want to influence it? Brussels has unveiled its flagship initiative for the next five years: the Compass for Competitiveness, which introduces highly disruptive regulatory changes for any company operating in the EU. In Spain, 53% of the laws passed between 2019 and 2024, for example, stem from EU directives and decisions. Meanwhile, in the United States, regulatory shifts are unfolding rapidly and drastically. In Latin America, the rules of the game continue to change, driven by new trade agreements and governments seeking to reshape the status quo. Securing a seat at the regulatory decision-making table is becoming more critical than ever in this landscape. Policymakers increasingly recognize the need to engage with economic stakeholders, while businesses are refining their strategies to ensure their voices are heard—transparently and effectively.

7. People’s relationship with technology is becoming more ambiguous. Tech leaders such as Elon Musk and Mark Zuckerberg, as well as Silicon Valley investors like Peter Thiel and Marc Andreessen, are exerting increasing influence over global politics. Their success in business and investments has given them direct access to policymakers—but it has also fueled skepticism about the concentration of power in the tech industry. Around 90% of people in developed countries use the internet daily, yet trust in online information continues to decline. Today, our relationship with social media and digital spaces is more conflicted than in recent years, and businesses must acknowledge that consumers are not mindlessly addicted to digital life.

8. A Gen Zer could be your boss. And a silver could be your best customer. There are 250 million people born between 1997 and 2012 in the developed world—members of Gen Z. In the U.S., there are now more Gen Z workers than Baby Boomers. This generation is redefining consumption and workplace expectations: they prioritize sustainability, care about climate change and diversity, and do not see career success as life’s ultimate goal. Meanwhile, the global population is aging. In Spain alone, 20 million people are over the age of 65, and seniors are becoming an increasingly significant market segment.

9. The world is splitting into blocs: welcome to bi-globalization. Since the 1990s, we have assumed that globalization would continue to accelerate endlessly, making trade and investment easier and cheaper. That assumption is now in crisis. The world has not fully de-globalized, but connectivity is slowing and becoming more erratic, introducing a new risk: fragmentation. More specifically, a bipolar world order. If this trend continues, the U.S. and China will lead two competing global blocs, forcing other nations to choose sides. Supply chains, trade strategies, foreign investments, and consumption patterns will all be deeply affected.