The top 7 leadership skills in 2026

As we move into 2026, the world of work is changing faster than ever. Advances in artificial intelligence, hybrid work, global connectivity and shifting values has led to a different set of skills required to be an effective leader. In 2026, the most successful leaders will be tech-savvy and purpose-driven; able to manage and foster a culture where humans and machines can work cooperatively to achieve business objectives.

Here are the top 7 leadership skills in 2026.

1. Digital fluency 

Digital fluency is the ability to understand and use technology to drive innovation and strategy. Digital fluency is about using tech for people, not replacing them. Leaders need to be able to assess the value of emerging technologies, engage in discussions about their benefits, and integrate them for business growth, the customer experience and the work environment.  

As hybrid work has become the norm, a successful leader must be able to lead teams in technological environments. This means using remote tools, digital platforms and workflows to lead projects, share knowledge, collaborate across different time zones and keep teams engaged and connected.  

How can I develop this skill?

To develop your digital fluency, you can:  

• Experiment with emerging tools such as AI tools (e.g. ChatGPT and Canva AI), Coding basics (e.g. HTML, Python), social media analytics or web design tools. Think about how they could be used in a work setting. 

• Practise collaborative document editing or use project management tools such as Asana, Notion and Trello. 

• Engage in online communities (e.g. LinkedIn groups, forums) to learn from others. 

• Follow reputable blogs on digital leadership, safety, privacy and ethics. 

• Take short courses (e.g. Coursera, LinkedIn learning). 

2. AI innovation   

In 2026, leaders need to be able to use AI to find new ways to solve challenges and drive business growth. This doesn’t mean you need extensive technical knowledge such as coding and data analytics tools, but an understanding of AI’s abilities and limitations.  

Once you have this understanding, you will be able determine which tasks should be automated and which should stay with employees as well as initiate and implement solutions on an operational scale while ensuring business objectives are met. Leaders will need to ensure the right training and tools are available for their teams to learn how to effectively work with machines and improve productivity and efficiency. 

AI can deliver great benefits but can also cause harm if the risks are not mitigated. Leaders must ensure that it is used in a way that’s transparent, secure and accountable and emphasize that it’s everyone’s responsibility to use AI safely and ethically. 

How can I develop this skill? 

To develop your AI knowledge and skills, you can:  

• Experiment with Generative AI tools (e.g. ChatGPT, Claude, DALL-E) or Data and automation tools (e.g. AI features in Microsoft Copilot) 

• Study AI short courses (e.g. Coursera, Elements of AI). You can also view relevant videos and tutorials online. 

• Join hackathons or innovation challenges. 

• Stay updated on industry trends, insights and news (e.g. AI Magazine) 

• Attend AI events and workshops to learn from experts and network with AI professionals. 

• Join online communities or follow AI / Tech professionals on social media.

3. Data literacy and protection

With the fast adoption of digital technology such as smartphones and the Internet of things (IoT), organisations now have access to vast amounts of data. By 2025, 180 zettabytes of data will be generated, and the big data market is predicted to be worth $655 billion by 2029. Over 80% of organisations have invested in big data, but 36% admit they will not be able to utilise it all. 

Executive decisions are increasingly data-driven. Leaders need to understand what data is, how it is collected, what biases it may have and how it links to business goals. They must discuss with their team of analysts the actionable insights that can be used for strategic decision-making.  

Leaders also need to have safeguards in place to ensure data is accessible and safe. The security of technology and data now spreads beyond IT departments; every employee has a responsibility to identify and prevent cybercrime. The role of leaders is to foster a culture where data protection is taken seriously and provide relevant training so that all employees are aware of threats and how to deal with them. 

How can I develop this skill? 

To develop data literacy, you can: 

• Practise with real data sets inside (e.g. Google Analytics) or outside your organisation (e.g. Kaggle) and interpret what a trend shows or what insights can be drawn. 

• Use simple data visualisation tools (e.g. Excel, Google Sheets) and write a short summary of your findings. 

• Read industry publications on privacy laws and cybersecurity fundamentals (e.g. eSafety Commissioner resources, Australian Cyber Security Magazine) 

• Take an online course such as Google Data Analytics.  

• Join relevant online communities. 

4. Learning agility

Learning agility is the ability to learn quickly, adapt and apply new skills in changing environments. In an ever-evolving world, leaders must be lifelong learners and regularly assess any gaps in their knowledge and develop new skills. By committing to continuous learning, leaders are better equipped to predict changes, adapt and uncover new opportunities for growth. 

Leaders must also encourage professional development of their employees and ensure they have access to training that can address their skills gap.  

How can I develop this skill?

To strength your learning agility, you can: 

• Identify new skills you need to meet business goals and enrol into relevant courses, attend industry or networking events.  

• Ask peers or mentors how they approach challenges.  

• Find new challenges or skills outside your main responsibilities.  

• Identify key learnings from different projects and apply to new contexts. 

• Try different problem-solving approaches. 

• Review your learning goals regularly and track growth.

5. High emotional Intelligence (EQ) 

While technology has become essential, it cannot replace the value of human skills such as communication, empathy and emotional intelligence. Emotional intelligence is the ability to regulate and express your emotions in a socially acceptable way. Around 90% of senior leaders’ success is attributed to EQ. Employees who had managers with high emotional intelligence were 4 times less likely to leave than those who had managers with low emotional intelligence.

People managers say emotional intelligence is most important when leading teams through times of change (44%), addressing personal issues of employees (37%), giving feedback or performance reviews (31%), and spotting talent (25%).  

~ Lee Hecht Harrison Penna

Leaders with a high EQ have good interpersonal skills and build strong relationships. They can inspire a shared vision and collaboration, tailor their communication styles, see things from other people’s perspectives, know how to resolve workplace conflict and give opportunities to their staff to grow and develop confidence.  

Emotional intelligence along with other human-centric skills such as creativity, critical thinking and adaptability will be higher in demand in 2026 as more work gets automated. The demand for emotional skills is projected to increase by 26% by 2030. 

How can I develop this skill? 

Here are ways to strengthen your emotional intelligence: 

• Self-awareness – Reflect on your strengths, weaknesses, motivations and values. Are there topics or situations that trigger tough emotions? How do emotions factor into your decisions? The more self-aware you are, the more you can practise self-control.  

• Use EQ assessment tools to identify strengths and areas for development.  

• Listen to other people’s perspectives and use feedback to improve. 

• Join workshops or leadership programs that focus on communication, empathy and teamwork. 

• Keep a journal – record what triggers strong feelings, how you responded, and areas of EQ you want to improve on. 

• Practise mindfulness and stress management to help regulate your emotions. 

6. Sustainability 

Leaders today need to balance business growth and sustainability. People are increasingly holding organisations accountable for their ethical and sustainable practices. Around 75% of Australians weigh sustainability in their shopping decisions and 57% in their employment choices. Research by McKinsey revealed that companies with strong Environmental, Social and Governance (ESG) performance achieve 10-20% higher employee satisfaction. 

Australians want sustainability, but brands aren't always telling their story in the right way. First and foremost, they need to start by doing something worth talking about and then use accessible, everyday language to be as transparent as possible and bring consumers on their sustainability journey." 

~ Ben Peacock, South Pole Global Creative Director

For companies, the ability to show both growth and sustainability is increasingly being seen as a competitive advantage. To adopt this balance, you can: 

• Link sustainability to value creation – selecting sustainability investments that accelerate cash flows.  

• Adopt a ‘circular economy’ - reduce waste, reuse materials and design products for longevity or recycling. 

• Embed growth and sustainability in new products, services or markets (e.g. eco-friendly products, clean tech). 

How can I develop this skill?

To develop sustainability skills you can: 

• Learn the three pillars of sustainability – environmental, social and economic (e.g. the UN Sustainable Development Goals) 

• In your personal and work life, try to reduce waste, save energy and water, be mindful of consumption or choose sustainable transport (e.g. public transport).  

• Read how sustainability applies to your field or study real-world cases such as sustainable city projects or renewable energy systems.  

• Follow credible sources (e.g. WWF Australia)  

• Join sustainability initiatives or volunteer for community clean-ups or recycling programs (e.g. Clean Up Australia, Planet Ark) 

7. Inclusivity

According to the Diversity Council Australia, inclusive leadership refers to the “capabilities that ensure a diversity of employees feel included and that their perspectives improve an organisation’s strategy, work and values for success.” 

Diversity and inclusion affect innovation and retention. Workforces are becoming more diverse, and leaders need cultural agility and inclusive practices to help teams thrive. Everyone wants to work in places that value equity and fairness. Deloitte’s 2024 Human Capital Trends report found that 74% of organisations view Diversity, Equity and Inclusion (DEI) as a driver of business performance. 

How can I develop this skill?

To strengthen your inclusivity skills, you can:  

• Learn about cultural norms – explore how communication styles vary across cultures.  

• Invite and highlight different perspectives during discussions. 

• Celebrate diversity – recognise cultural events, respect Indigenous perspectives. 

• Be mindful of accessibility – make spaces accessible to people with disabilities, add captions to videos.  

• Follow thought leaders and organisations that promote inclusion such as the Diversity Council of Australia or Workforce Australia.  

Develop your leadership skills and invest in your career. Our MBA is the most popular MBA course in Australia* and will provide you with the expertise and practical skills to succeed in the world of business. Read our Ultimate Guide to doing an MBA in Australia to discover how an MBA can help advance your career.

*MBA News 2022