How to Be a Better Business Leader: 7 Essential Strategies for 2025

The world is changing faster than ever. Are your leadership skills keeping pace? Many leaders are struggling to adapt to the new demands of 2025 – from navigating economic uncertainty and technological disruption to fostering a thriving hybrid workforce. 

Discover the key strategies you need to survive and thrive in this challenging environment. We’ll explore how to inspire your team to achieve peak performance, unlock innovative solutions, and drive meaningful results in the face of constant change.

What is Effective Business Leadership?

Effective business leadership involves guiding a team or organization toward success. It involves setting a clear vision, inspiring others to achieve common goals, and fostering a culture of growth and innovation.

The role of a leader is constantly evolving. It’s no longer enough to simply give orders and expect them to be followed. Today’s great leaders need to be adaptable, empathetic, and skilled in communication and collaboration.

They need to empower their teams, encourage creativity, and navigate the complexities of a rapidly changing world.

Why You Should Focus on Improving Your Leadership Skills

Strong leadership is the backbone of any successful business. Think of it as the engine driving a train; without a powerful engine, the train won’t reach its destination.

Here’s how great leadership can impact your business:

• Increased productivity and engagement: When you inspire your team, they’re more motivated and productive. This leads to greater efficiency and higher quality work.
• Enhanced innovation and problem-solving: Great leaders encourage creative thinking and collaboration, which are essential for finding innovative solutions to challenges.
• Improved organizational culture: Positive leadership creates a positive work environment where everyone feels valued and respected. This leads to higher morale and lower turnover.
• Better financial performance: Ultimately, effective leadership drives business growth and profitability. By fostering a high-performing team, you pave the way for increased revenue and success.

In today’s competitive business world, great leadership sets you apart. It’s the key to attracting and retaining top talent, building a strong reputation, and achieving lasting success.

How to Be a Better Business Leader: 7 Essential Strategies

America is experiencing a leadership crisis. Can you imagine what it is like for other countries? A survey from U.S. News and The Harris Poll found that nearly 60% of the country’s employees don’t work under a leader they aspire to be like.

Another 76% believe that’s chiefly because older and influential business leaders refuse to pass on the torch to the next generation. Overall, the report finds that the American workforce is clamoring for change. 

If you want to be a great business leader in 2025, however, addressing the ongoing crisis in your own work should involve more than just being a better role model and training key individuals to follow in your footsteps. The modern business landscape is evolving at a rapid rate—what with the workforce becoming diverse and the use of emerging technologies becoming the norm—and, as such, you need a truly holistic strategy to adapt to the desired change and improve your leadership skills. 

Wondering where to get started? Consider the following as you work to become a better business leader in the coming year:

1. Adopt a learning mindset 

By keeping an open mind and learning as much as possible whenever and wherever you can, you’ll do more than just glean the knowledge and wisdom you need to be a better leader. That’s because, in the process, you’ll also teach yourself to be more agile. That kind of flexible leadership will give you the skills you need to adapt to any situation 2025 throws at your business, allowing you to make the necessary decisions for enhancing long-term outcomes. 

The best way to adopt a learning mindset is to upskill continuously. There are plenty of ways you can do this, such as by shadowing a mentor or attending dedicated leadership workshops.

However, ebooks may be a more accessible option for your needs—especially since you can use a subscription to save the ones you’re interested in straight to your preferred devices for future reference.

The business ebooks on Everand show how paying a flat monthly fee can give you immediate access to the works you need, including trending titles like Your Next Five Moves: Master the Art of Business Strategy and The Effective Executive: The Definitive Guide to Getting the Right Things Done. Written by seasoned entrepreneurs and management consultants like Patrick Bet-David and Patrick F. Drucker, such ebooks can provide an easier way for you to upskill as a leader without compromising on the quality of the insights you receive. 

Another accessible mode of learning you can try is the remote class. Fortune’s list of free business leadership courses shows that you can avail yourself of the insights offered by major institutions like Harvard and MIT at your own pace, which is perfect for balancing learning with running your business. With courses like Developing Your Personal Leadership Style and Agile Leadership Principles and Practices all available for your perusal, you’ll always have something new to learn.

By choosing an upskilling method that suits your preferences and your schedule, you can easily cement the habit of learning continuously. Ultimately, you’ll become a more agile leader, which may help you improve in the following trending areas, as well.

2. Foster inclusivity in the workplace 

As younger generations enter the workforce, increasingly more employees—around three in every four, according to Catalyst—are calling for more diverse and inclusive work environments. Catering to this preference won’t just expand your hiring pool, appeal to higher-skilled candidates that may be in short supply in your industry, and boost their job satisfaction and loyalty down the line—it’ll also help bolster your profit margins. An inclusive workplace attracts and retains top talent, improves productivity and output quality, and reduces your overall costs, which is why you may want to similarly hone your skills in inclusive leadership as 2025 approaches. 

You can always start by diversifying your workforce, which we focus on in detail in our comprehensive guide titled How to Hire Employees for Small Business. Utilizing major job boards like LinkedIn and offering perks like flexible work arrangements can be great first steps, but you’ll also want to improve on how you treat these employees once you hire them. To be a more inclusive leader, prioritize some key traits. 

For starters, be culturally intelligent and hyper-aware of how your actions will impact employees when viewed through their unique cultural contexts. It also helps to be open-minded to employee input as well as transparent about personal and organizational biases and weaknesses that may make workers feel uncomfortable in the office. That will help you outline the additional steps you need to take to lead in a more inclusive workplace—something that will benefit you, your employees, and your overall business.

3. Learn how to work with AI 

In interviewing over 500 US-based business leaders from some of the biggest companies in various industries, EY’s latest pulse survey finds that 95% will double their AI investments next year. You’ll want to follow suit for a reason—AI will soon become commonplace, and you won’t want your business left behind lest they miss out on its benefits for decision-making, productivity, and more. However, that adoption leaves one question up in the air: how can you maintain a “human touch” as a leader while simultaneously learning to work with AI?

The answer is that you should limit AI’s applications to enhancing business operations—and not replace people by making their responsibilities redundant. Even generative AI, which can better understand context and provide more detailed insights, is best used for automating repetitive tasks such as data entry. That means it’s ideal for business leaders to use AI to streamline the decision-making process. Use it as a tool to compile the relevant data and summarize it, and you’ll be able to make more informed decisions that truly benefit your business.

However, it’s also important to note that AI isn’t a one-size-fits-all business solution. The “best” decisions to make for your business depend on the industry you work in, which is why you may want to hone your skills in determining where you can use AI and where it’s wise to simply rely on the human touch.

Carefully considering the tasks that need the least input and leaving yourself the most cognitive-heavy responsibilities means you can use AI to assist in making, not finalizing, decisions that can improve everything from your business model to customer experiences in ways tailored to the niche you work in. That can help you better learn how to work and lead with AI as it becomes more prevalent in 2025.

4. Develop Emotional Intelligence

Emotional intelligence (EQ) is the ability to understand and manage your own emotions, as well as recognize and influence the emotions of those around you. In today’s workplace, EQ is just as important as traditional IQ. 

Why is EQ so important for leaders?

Imagine trying to lead a team without understanding their feelings or motivations. It would be like trying to navigate a maze blindfolded. EQ allows you to connect with your team on a deeper level, build trust, and create a more harmonious and productive work environment.

Key Components of Emotional Intelligence

• Self-awareness: This is the foundation of EQ. It’s about understanding your own strengths, weaknesses, values, and emotions.
• Self-regulation: This involves managing your emotions effectively, especially in stressful situations. It’s about staying calm under pressure and avoiding impulsive reactions.
• Motivation: This is about having a passion for your work and a drive to achieve success. It’s also about inspiring and motivating others.
• Empathy: This is the ability to understand and share the feelings of others. It’s about putting yourself in someone else’s shoes and seeing things from their perspective. 
• Social skills: This involves building and maintaining strong relationships. It’s about communicating effectively, collaborating with others, and resolving conflict constructively.

Practical Exercises to Improve Your Emotional Intelligence

• Practice mindfulness: Take time each day to focus on your breath and observe your thoughts and feelings without judgment. This can help you become more self-aware.
• Reflect on your reactions: When you experience a strong emotion, take a moment to reflect on why you’re feeling that way. This can help you identify triggers and develop better self-regulation strategies.
• Seek feedback: Ask trusted colleagues or mentors for feedback on your emotional intelligence. This can give you valuable insights into areas where you can improve.
• Practice active listening: When someone is speaking to you, really listen to what they’re saying and try to understand their perspective. This can help you develop empathy.
• Observe body language: Pay attention to nonverbal cues like facial expressions and body posture. This can help you better understand the emotions of others.

You can become a more effective and inspiring leader by developing your emotional intelligence. You’ll be better equipped to build strong relationships, motivate employees, and navigate the challenges of the modern workplace.

5. Cultivate a Purpose-Driven Approach

Think of purpose as your North Star. It gives you direction and helps you stay focused on what truly matters. As a leader, it’s crucial to cultivate a purpose-driven approach, both for yourself and your team.

Aligning Personal and Organizational Values

Start by clarifying your own values and aspirations. What are you passionate about? What kind of impact do you want to make? Then, see how those values align with the organization’s mission and goals. When your personal values resonate with your professional endeavors, you’ll find greater meaning and fulfillment in your work.

Techniques for Creating a Compelling Vision

• Think beyond profit: While financial success is important, a truly compelling vision goes deeper. Consider how your work contributes to something larger than yourself. How does it benefit your customers, community, or world?
• Involve your team: Don’t create a vision in isolation. Engage your team in the process. Ask for their input, ideas, and aspirations. This will create a sense of shared ownership and commitment.
• Make it tangible: A vision should be more than just words on paper. Paint a vivid picture of the future you’re striving to create. Use storytelling, imagery, and real-life examples to bring your vision to life.

Communicating Purpose Effectively

• Be authentic: Don’t just talk about purpose; live it. Let your actions and decisions reflect your commitment to your vision.
• Connect with emotions: Purpose is about passion and inspiration. Share your enthusiasm with your team and connect with them emotionally.
• Reinforce the “why”: Regularly remind your team why their work matters. Help them see the connection between their daily tasks and the bigger picture.

You’ll create a more engaged and motivated team by cultivating a purpose-driven approach. You’ll foster a sense of shared purpose and inspire everyone to work together towards a common goal.

6. Develop Resilience and Adaptability

To be a truly resilient and adaptable leader in 2025, embrace change as an inevitable force and foster a growth mindset within your organization, viewing challenges as opportunities for learning and innovation. 

Encourage flexibility and psychological safety, allowing your team to experiment and learn from mistakes without fear of repercussions. Build a resilient organization by decentralizing decision-making, promoting cross-functional collaboration, and investing in robust infrastructure that can withstand disruptions. 

Finally, cultivate a culture of learning from setbacks by conducting thorough analyses of failures, encouraging feedback and reflection, and viewing mistakes as valuable learning experiences that can drive future growth and innovation.

7. Lead with Authenticity and Integrity

Authentic leaders inspire trust and loyalty. They create a culture of openness and honesty, where people feel comfortable speaking their minds and taking risks. This fosters a more engaged and productive workforce.

Building Trust Through Consistent Ethical Behavior

Integrity is the foundation of authentic leadership. It’s about doing the right thing, even when it’s difficult. By consistently demonstrating ethical behavior, you build trust with your team and create a sense of psychological safety.

Techniques for Developing Your Unique Leadership Position Style:

• Self-reflection: Take time to understand your values, strengths, and weaknesses. What makes you unique as a leader or as a co-founder?
• Seek feedback: Ask for honest feedback from your team, peers, and mentors. This can help you identify blind spots and areas for improvement.
• Be vulnerable: Don’t be afraid to show your human side. Share your challenges, your doubts, and your learnings. This creates a sense of connection and builds trust.
• Embrace your strengths: Identify your leadership strengths and leverage them to your advantage.
• Be adaptable: While it’s important to be true to yourself, it’s also crucial to be adaptable and flexible. Different situations may require different leadership approaches.

Leading with authenticity and integrity is not just about being a good person; it’s also good for business. It creates a more positive and productive work environment, fosters strong relationships, and ultimately drives success.

Key Considerations for Successfully Implementing Leadership Strategies

Putting these leadership strategies into action requires careful consideration and a commitment to ongoing growth. 

One of the biggest challenges you may face is resistance to change, either within yourself or your team. It’s important to acknowledge this resistance and address it proactively through open communication and a willingness to adapt. 

Self-reflection is crucial throughout this process. Regularly evaluate your progress, identify areas for improvement, and seek feedback from your team to gain valuable insights. 

Finally, remember to balance short-term goals with your long-term vision as a great leader. While it’s important to achieve immediate results, don’t lose sight of the bigger picture and the long-term impact you want to create as a leader.

Taking it to the Next Level: How to Become an Influential Business Leader

While being a good leader is essential, becoming an influential leader can significantly amplify your impact. This involves expanding your sphere of influence beyond your immediate team and establishing yourself as a thought leader in your industry.

Here are some key strategies to consider to be one of the best leaders out there:

• Expand Your Influence: Look for opportunities to mentor others, share your expertise through workshops or presentations, and actively participate in industry events.
• Build a Strong Personal Brand: Cultivate a strong online presence, contribute to industry publications, and consistently demonstrate your expertise and values.
• Network Strategically: Build relationships with other leaders in your field, attend conferences, and engage in online communities to expand your network and learn from others.

By focusing on these strategies, you can elevate your leadership to new heights and make a lasting impact on your organization and industry.

Alternatives to Traditional Leadership Models

Traditional, top-down leadership structures are becoming less relevant in today’s evolving workplace. Many organizations are finding success with more fluid and adaptable leadership models.

Let’s explore some of the most popular alternatives: 

Servant Leadership

This philosophy emphasizes putting the needs of your team first. A servant leader focuses on empowering and developing individuals, fostering a culture of trust and collaboration. Think of it as leading by example and prioritizing the growth of those around you. 

Transformational Leadership

Transformational leaders inspire and motivate their teams to achieve extraordinary outcomes. They challenge the status quo, encourage innovation, and create a shared vision for the future. This style is particularly effective in driving organizational change and growth. 

Collaborative and Distributed Leadership

These approaches decentralize leadership, empowering individuals at all levels to take ownership and contribute their unique perspectives. Collaborative leadership encourages teamwork and shared decision-making, while distributed leadership allows leadership responsibilities to be shared across the organization. 

By exploring these alternative models, you can discover leadership approaches that better suit your personality, team dynamics, and organizational goals.

Final Thoughts on Becoming a Better Business Leader

Becoming a better business leader is a journey, not a destination. By focusing on adaptive leadership, emotional intelligence, purpose-driven strategies, and continuous learning, you’ll be well-equipped to navigate the challenges of the modern business landscape.

Remember, great and successful leaders aren’t born—they’re made through dedication, practice, and a willingness to grow. As you implement these strategies, you’ll see improvements in your own performance and the success of your team and organization. 

So, what are you waiting for? Start your journey to becoming an exceptional business leader today, and watch as your influence and impact soar to new heights. Your business’s future depends on it!