“No quality or characteristic is more important than trust.”
- Patrick Lencioni, Overcoming the Five Dysfunctions of a Team: A Field Guide for Leaders, Managers, and Facilitators
As we move deeper into 2026, ongoing political and business uncertainty makes one thing clear: companies with strong, healthy cultures built on trust will be the ones that stay competitive and pull ahead. In Kotter, John, Heskett, and James’ study on corporate culture and performance, companies that proactively manage culture showed revenue growth over a 10-year period that was, on average, 516% higher than those that did not. According to Gartner, 93% of CEOs want to change their culture but may not know how.
The good news is that culture is not abstract. It is shaped by the priorities and decisions that leaders make every day. Leaders can succeed in creating a positive culture by rethinking how they connect, build trust, and support performance in today’s climate.
Top 5 Things Leaders Must Do Differently in 2026 to Improve Culture, Performance, and Long-Term Resilience
The following five leadership shifts can help organizations strengthen culture, improve performance, and build the resilience required to succeed in 2026 and beyond.
1. Lead for the “human moment.”
In 2026, leaders should strive for small, intentional acts of connection that help employees feel understood and appreciated. Part of connecting with employees is operating with empathy and support. As organizations accelerate AI adoption in 2026, it will be very important for leaders to acknowledge the human cost. By recognizing the fears, adjustments, and challenges employees are facing in this transition, leaders can guide their teams through change with humanity.
At Heffelfinger Co., we have long advocated for business leaders to embrace the tenets of what Renée Smith ofA Human Workplace calls the future of work: love, not fear, which reflects this approach. Workplaces that lead with love create a company culture of safety and belonging. Love activates the very best in us: empathy, innovation, problem-solving, and purpose. Through 70+ interviews and hundreds of workshop participants, Smith has learned that fear damages people and teams, while love supports and unlocks their full potential.
2. Build the conditions for trust
For businesses to thrive in the unpredictable world we now live in requires leaders to create the conditions for trust. That means being willing to follow through on promises, asking for and really listening to team input, admitting when leaders don’t yet have the answer, and sharing the “why” behind decisions that affect employees.
Forbes' research emphasizes that trust is a critical factor that directly impacts an organization's ability to communicate effectively. When trust is high, team members are more willing to share ideas, voice concerns, and collaborate. Once trust is earned, teams are more likely to follow when leaders signal a change in direction.
3. Stop making assumptions, start getting curious
The pace of change in 2026 demands adaptive leaders. Leaders who assume that everyone sees the world the same way they do will fall behind. To overcome this limitation, leaders should be open to learning about different perspectives by asking genuinely curious open questions.
Leaders should take all voices into account and remain open to changing their own minds. More problems can be solved by listening effectively and deeply because it affords a true understanding of what the problem really is.
4. Don’t just stretch people, be there for them
Sustainable performance requires support, feedback, and real presence, not just higher expectations. When “stretch work” is initiated by leaders, it can feel transactional or like an underhanded way of getting people to work harder on the same pay grade.
Employees are most likely to develop their skills when the leaders who stretch them are also responsive to their needs, emotions, and concerns. When leaders are emotionally responsive, employees feel empowered, which is an important part of the foundation for employee development and performance improvements.
5. Lead when the spotlight moves elsewhere
If companies want to attract and retain the best talent in 2026, they will need to stick to their convictions and commitments on sustainability, culture, and diversity even though the current political climate doesn’t support them and the headlines may have moved on. Today's employees, especially younger generations, often expect organizations to act responsibly, foster respectful environments, and value diverse perspectives. When people feel respected, included, and aligned with a company’s values, they are far more likely to stay engaged and build long-term careers with the organization.
Foster an Inclusive, Aligned, and Inspiring Culture
Rather than trying to scare or guilt employees into performing, leaders can unlock extraordinary potential by focusing on psychological safety built on genuine connection. In 2026, businesses will flourish by creating an environment where people want to contribute and participate in teams that innovate and adapt.
Leaders work with Heffelfinger coaches to clearly understand their current culture, determine their desired culture, reveal gaps between where they are and where they want to be, and begin to realize their ideal future-state culture. Our coaches use a variety of assessment tools and strategies, including interviews, focus groups, surveys, or validated assessments around culture, alignment, and/or employee passion to guide the work.
We will help you determine organizational strengths and opportunities, map your cultural journey, rework and implement organizational strategy (if required), and write a new playbook for your organization that champions leaders in fostering transformative strategies, culture, leadership, and teams. Book a free 20-minute assessment today.
Warmly,
James & Lori
James Jackman & Lori Heffelfinger
Sources:
Amy Bradley, Kathleen O'Connor, Selin Kesebir, Randall S Peterson, Ioannis Ioannou, Nicos Savva and Dan Cable. What you need to do differently as a leader in 2026. https://www.london.edu/think/what-you-need-to-do-differently-as-a-leader-in-2026. Accessed 3/6/2026.
Joseph Folkman. How Trust Affects Your Ability To Communicate And How To Fix It. https://www.forbes.com/sites/joefolkman/2020/04/07/how-trust-effects-your-ability-to-communicate-and-how-to-fix-it/. Accessed 3/8/2026.
