#499 The State of Organisations 2026: Scientific Evidence Every Business Leader Must Understand
The State of Organisations 2026: Scientific Evidence Every Business Leader Must Understand
By Niels Brabandt
How healthy are modern organisations in 2026? Are they resilient, innovative and competitive, or are they struggling with transformation, uncertainty and shifting workforce expectations? These are not merely theoretical questions. They are central strategic concerns for every organisation that aims to remain competitive in a rapidly changing global environment.
In the latest analysis of organisational development, Niels Brabandt examines the newest scientific insights into the state of organisations and what they mean for leaders and decision makers. Drawing on large-scale international research with more than 10,000 executives, the findings reveal three decisive themes shaping the future of organisations: artificial intelligence, structural uncertainty and changing workforce expectations.
Artificial Intelligence Requires Leadership, Not Just Technology
Artificial intelligence has become one of the most prominent topics in organisational strategy. Yet many organisations misunderstand the real challenge. The problem is not the technology itself. The real challenge is leadership.
Many organisations introduce AI tools and expect employees to simply adapt. Some individuals become enthusiastic early adopters, while others react with fear, scepticism or resistance. Without clear leadership, this dynamic leads to fragmentation rather than innovation.
For organisations to benefit from artificial intelligence, three elements must be addressed simultaneously.
First, enablement. Employees must be trained to understand and responsibly use AI tools. In Europe, regulatory frameworks such as the EU AI Act already make employee qualification a necessary component of responsible AI implementation.
Second, organisational processes must be redesigned. Introducing AI without adjusting workflows leads to confusion. Employees begin using different systems independently, potentially creating compliance risks and inconsistent outputs.
Third, collaboration must be actively structured. Artificial intelligence does not replace collaboration between teams. Instead, it changes how collaboration works. Organisations must deliberately define how humans and AI interact within projects, departments and cross-functional teams.
Without leadership in these areas, artificial intelligence becomes a source of organisational friction rather than a driver of productivity.
The Age of Permanent Uncertainty
Beyond technology, organisations are also facing an environment defined by unprecedented uncertainty. Economic volatility, geopolitical tensions and societal changes increasingly influence business operations and employee expectations.
Economic uncertainty affects employees differently depending on their circumstances. For high income professionals, rising living costs may represent frustration but not existential pressure. For workers on temporary contracts or lower incomes, however, rising costs can directly affect their ability to pay rent or support their families.
Leadership therefore requires empathy and awareness of employees' real life situations. Leaders cannot simply dismiss economic pressures as external problems. The lived reality of employees directly affects motivation, productivity and loyalty.
Geopolitical uncertainty adds another dimension. Conflicts, political polarisation and democratic tensions influence how employees perceive their safety and future prospects. In such environments, organisational leadership cannot remain silent.
Employees expect clarity of values. Organisations that avoid taking any stance on fundamental principles such as democracy, equality or human rights risk losing credibility. Leadership is not about partisan politics, but about demonstrating clear ethical standards and organisational values.
Workforce Expectations Are Changing Fundamentally
The third major insight concerns workforce expectations. Modern employees approach work differently than previous generations. This shift is not a sign of declining work ethic, but a response to changing economic and social realities.
Two expectations are particularly prominent.
Meaning. Employees increasingly want to understand the significance of their work. If people perceive that their efforts lead to no meaningful outcome or improvement in their lives, motivation declines rapidly. Research in organisational behaviour describes this process as sense making. Individuals evaluate whether their work contributes to something meaningful or beneficial.
Flexibility. Flexible work models have become a major competitive factor in attracting talent. Organisations that refuse flexibility without rational justification risk disengagement and phenomena such as quiet quitting.
Importantly, meaning is not limited to salary. Compensation remains important, but employees also evaluate career prospects, learning opportunities, organisational culture and work life balance.
Leadership as the Central Integrating Factor
Across all three themes, one factor consistently determines success or failure: leadership.
Artificial intelligence requires leadership to guide implementation. Uncertainty requires leadership to provide orientation and stability. Workforce expectations require leadership to create meaning, flexibility and opportunity.
Leadership is not an innate talent reserved for a few individuals. Leadership is a skill that can be learned, developed and refined through professional training and experience.
The research discussed by Niels Brabandt confirms a fundamental principle of organisational success. When leadership fails, organisational change fails. When leadership is professional, evidence based and value driven, organisations become resilient, innovative and attractive employers.
For business decision makers, the message is clear. The state of organisations in 2026 will not be determined solely by external conditions. It will be determined by the quality of leadership within those organisations.
Executives who invest in leadership capability, strategic AI integration and meaningful employee engagement will shape the organisations that thrive in the years ahead.
Niels Brabandt
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Mehr zu diesem Thema im dieswöchtigen Podcast und Videocast: mit Niels Brabandt: Videocast / Apple Podcasts / Spotify
Das Transkript zum Podcast und Videocast befindet sich unter diesem Artikel.
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Niels Brabandt ist Experte für Nachhaltige Führung (Sustainable Leadership) mit mehr als 20 Jahren Erfahrungen in Praxis und Wissenschaft.
Niels Brabandt: Professionelles Training/Seminare/Workshops, Speaking/Vorträge, Coaching, Consulting/Beratung, Mentoring, Projekt- & Interim-Management. Event Host, MC, Moderator.
Podcast and Videocast Transcript
Niels Brabandt
Which state is your organization? Would you say you're top of the game, you're somewhere mid-tier, or you're not? And the important point here is that it's not about opinions; it is about science. The state of organizations is the new study which was just published by McKinsey. When you say now, "Oh come on, McKinsey, really?" say, "Wait, we all know last week wasn't great for McKinsey. The AI chat, the AI bot that, that, that got hacked." That was not their best moment. However, when we see a study where you can say more than 10,000 people were interviewed, that is representative. And we have to look into scientific evidence. When we see there is a scientific study which is valid and reliable, we have to talk about that.
Niels Brabandt
So hello to today's episode, and we need to talk about state of organizations research 2026. And besides that, I really don't like the bashing of big brands in consultancy. They might have their ups and downs, but let's face it, there are some brilliant people working there. And I can tell you from my experience, many, many brilliant moments I had with them, some of them not so great; however, some of them were truly amazing.
Niels Brabandt
So the state of organizations research 2026, what are we going to talk about? Very important is I'm going to show you the results of a real-world study here. So the disclaimer: I can use it under Fair Dealing Act, Fair Use Act, and CTR Recht Quotation Rights in Germany. So very important is the state of organization. You can download the whole study, by the way, by McKinsey, so feel free to do so. I'm just quoting here.
Niels Brabandt
Of course, when you now say, "What is it that organizations at the moment, let's say, drive, or what are the worries and the fears of the people where the development's going?" and of course, the first aspect here needs to be, and that goes without saying, of course, AI. When we talk about AI, many organizations are dealing with AI. Some even have policies where they say, "AI everywhere." The question is, how do you enable people to deal with AI? When you simply say, "Here is AI, hear the news, this is not how anything's going to work," because then you have one group, they are totally fascinated about it, they're going to use it, the other group is going to be very, very, very, very scared, frightened about it, probably people who do not use technology much in their private lives or who are simply not interested in it, and say, "Is, is my, is my job gone by next week?" and then suddenly you have a group that goes against AI.
Niels Brabandt
So the number one needs to be enablement. But when you are within the European Union, the EU AI Act already tells you that you need to qualify people in one way or the other. It's a rather very vague statement how to qualify them. So you see that some some organizations deliver training sessions of a whole day or even two days. Some organizations rather go for the one-hour online class, which is not as efficient as you think it is, at least not when it's not done by a by a professionally qualified person.
Niels Brabandt
So very important is the processes that you have here need to be in place because the enablement alone is not going to make the cut. When you say, "Hey, we need to put people into seminars, workshops, or put a coach in there," great, but what are the processes around that? When you simply say, "Here is AI, we train you on it," the result will be—and that happened in organizations where people simply said, "Look, I got this Copilot training, but I really prefer ChatGPT or Claude or Perplexity," and then they start to go on the internet browser they have in your office and then they use their own subscription, most likely violating GDPR rules in your country, especially when you are in Europe, almost guaranteed when you are in Germany.
Niels Brabandt
So the processes around that need to be carefully designed. You cannot simply say, "Here is AI," and good luck with that. So be sure that you have proper processes in place where you say, "Hey, maybe we start with write that email for me, or check that proposal, or give us input on that kind of session for the project management team." You have—you, you need to have a process where you can simply say, "This is how we're going to implement it in this organization," because as soon as people don't know how to collaborate, people will most likely not collaborate on anything except what they think is important. And then you have Department A doing something, Department B doing something, and when you're unlucky, you have three, four different departments and they all do the same in different ways. So you suddenly have four versions of the same thing, and then they pass it amongst each other, and anyone just reduces the whole thing with AI, making it worse and worse and worse, not better and better and better.
Niels Brabandt
Change and leadership are interconnected here. And I can tell you because just on Saturday—and that's why I'm in a good mood—just on Saturday, I filed my Master of Science thesis for the management and management for—sorry—for the Master of Science in Management Research, which I'm doing right now, which I'm—which, which I now have finished. Let's wait for the marks. And I did lots of interviews. Thank you very much for the support of the people who were part of that study. Very important here is as soon as leadership fails during change, the change fails as well. And there are—there's a quite complex set of tools you need to have today to make change work. And simply telling people, "Here is the new piece of software called ChatGPT or Claude or Perplexity or Copilot," is not what collaboration is going to be. You need way more than that.
Niels Brabandt
Of course, you need champions or leaders within departments, but that do not necessarily have to be the department leaders who probably have a very different specialization. Just because you are the department lead doesn't mean that you maybe have someone within your team who's way more knowledgeable on AI than you are, so that is the leader on AI in your department, and there is nothing wrong with that. So be sure that the calibration—the collaboration—is actively enhanced, actively ignited in your organization.
Niels Brabandt
Because the next aspect, especially when AI goes around and people think, "I'm not sure how—where, where this is going, I'm not sure about my job, I'm not sure about the future, I'm not sure about anything," and that's exactly the next aspect, people have to deal with a lot of uncertainty at the moment. And the first uncertainty is economic uncertainty. And let me tell you one aspect, because as someone who lives in Zurich and London, I can tell you that at the moment we have way too much of that talk where people say, "Yeah, you know, petrol's becoming more expensive. That was foreseeable, wasn't it? So why not take public transport?" Hmm.
Niels Brabandt
Let me think, because when someone lives in a rural local village somewhere and you live in London, you probably have no clue about their situation. That's why. I come from a small village in northern Germany, Barmstedt, in the district of Pinneberg, which you probably have never heard about. Feel free to look it up: B-A-R-M-S-T-E-T-D. That is the city's name, Barmstedt, in northern Germany. Small village. Today, roughly 10,000 people live there. When I grew up, basically half of that lived there. And the bus that goes in this village even today—I mean, they now have a train line, and their train line goes roughly once per hour during the weekend, a bit more often during the week to transport people back and forth. Hardly any trains after 11:00 PM at midnight, hardly anything before 5:00 AM, so there are huge gaps. There's no night service, and the bus within the city is usually only there for school children, so you roughly have four buses a day. If you want to connect to the other cities, suburbs, and villages around that, you sometimes only have two buses a day, and you're sitting there telling them, "Oh yeah, simply go by public transport."
Niels Brabandt
Economic uncertainties, of course. When you are a highly skilled engineer and you do your second master's degree, you're probably making six digits anyway, so £50 at the petrol station is not going to harm you significantly. Of course, you're angry about that, and many people are. However, it's not going to change your life significantly. When you work via a job agency in temp work and you are lent to someone on a temporary contract and you basically work on minimum wage, so does your partner, and you try to make ends meet with children, family, rent, and whatnot else somewhere in a rural area, and you say, "£50 more or less is the difference between being able to pay the bills? Just about, and not being able to pay the bills."
Niels Brabandt
So as employers, we need to take care that people can make ends meet. And I know how frustrating this is. When you say everything becomes more and more expensive, why is this my job? Well, because if you don't do that, people will simply say, "Look, this is so stressful. I'd rather call in sick, not go to work, and live off benefits, because then my rent is paid, electricity's paid. Of course, I'm a bit poorer, probably, but I have no stress. I get up at 11:00 AM in the morning, watch TV, don't do much. I don't have to struggle because that money, at least, comes in every month."
Niels Brabandt
When you're sitting somewhere on a zero-hour contract, you do not even know at the end of the month if you had enough hours together to make ends meet. And beginning of next month, you have no idea if you make any money at all. Which is why, by the way, the Association of Employers in Germany spoke up against zero-hour contracts. And we're not going to discuss the pros and cons of zero-hour contracts here. However, economic risk, and especially entrepreneurial risk, is based on you taking a share of the risk, or you get external suppliers in, pay a bit more, and they do it for you. Another part of entrepreneurial risk is hiring self-employed people for your business. You need to be aware that economic circumstances are an incredibly important part, and they're becoming more crucially important minute by minute, hour by hour.
Niels Brabandt
On top of that, we have the geopolitical aspect of that. And the geopolitical aspect is something where you simply cannot sit there and say, "I have no position on the matter." When you say, "In com in, in, in countries where especially marginalized communities say, 'I don't know how people are going to deal with me,' or 'if they chase me through the street by tomorrow,' 'I don't know if my rights will be taken away,' 'I don't know if democracy's going to be limited or taken away,' and you as a leader say, 'Look, we stay politically neutral,' that is spineless. Nothing else, nothing short of spineless.
Niels Brabandt
It does not mean—and of course you don't have to go to the other end where you say you can only vote for that party, anything else is wrong—but when you have leaders in your team who openly say—and we had that in Germany in projects where I worked—and someone said he openly votes for a far right-wing extremist party, for a far right-wing extremist party, because he wants to get and then a certain group out of the country, and then got even worse from there, it was a very good act that the CEO of that company said that leader is taken out of their job the same day. Because as soon as someone says, "I deny someone equal in human rights," or people say, "Oh no, we are neutral on that," you're neutral on human rights. You're neutral on democracy. And then you wonder why people don't follow you. How very surprising.
Niels Brabandt
If you have never learned leadership, you need to learn it. It's a skill that anyone learns. However, geopolitical positioning—what's happening around the world and what's your position on that—is part of the game. And there is never a 100% this or that, right or wrong. However, when we look within the political spectrum and how companies deal with different scenarios, prosperous countries usually are somewhere in the middle ground between left-wing parties and right-wing parties. And I mean something in between labor, liberal, conservative, somewhere there. As soon as you go far left-winged, the economy dips. As soon as you far right, usually you have anything in between dipping economy and civil war. So—and of course the civil war can also happen on the far left end, no pro—no question about that. So when people stay neutral on these aspects, your people will say, "You are not a leader. You are simply opportunistic. You just put your flag in the wind and see what direction going."
Niels Brabandt
Ah, okay. I, I, I, I just go the wind direction. I just go with the wind direction. The geopolitical positioning—in any kind of statement, "I am a self-employed entrepreneur," and surprise, surprise, "I am a liberal." Some call me neoliberal, which I disagree with. I'm not libertarian. I am liberal, and that is my position. And I can accept other positions. But when, when someone says, "We want to have 75% taxes on income," I will massively disagree with them. When someone says, "Get these kind of people out of the country because I'm a racist and I love it," I will disagree with them. And I will openly do so, which any reasonable human being will do. Any positioning—having a position—attracts people to work for you because they feel safe and sound. They know what they sign up for.
Niels Brabandt
When you, as just a leader, recently did on my LinkedIn channel, say, "Oh, I think it's quite okay when a bit more extremist parties get in," mixes things a bit up, stirs a bit of a pot, makes people feel how things can go. That, of course—and of course it escalated negatively for that leader immediately within his own company—because people said, "We're not going to follow you anywhere anymore because with that position we just think you're unsuitable for leadership." When you think that people's life could get worse and should get worse—nothing gets better. You only want others to feel worse. This destructive kind of approach, having no position except anything worse for anyone else—that will fire back at you very quickly.
Niels Brabandt
So leadership is a crucial part in times of uncertainty. And you often—when you faced uncertainty and you saw that leaders stood up—you might—when, when, when some leaders stand their ground and say, "Look, it's a tough time. We have to cut 15% of all jobs. 15% every eighth person goes within four weeks' time." People will not applaud that, probably, but probably the people who stay said, "At least he saved the company for 85% of the people better than the whole business going down." That is leadership. And it's a skill that you have to learn.
Niels Brabandt
Because if you don't, then you're never going to meet the third aspect. And the third aspect now is what are the newest and the most up-to-date workforce expectations? And when you now think, "Come on, we just talked about economic uncertainty, geopolitical uncertainty, all of it, and now you come with expectations," yes. Yes, I come—no, basically not I come with—I do not come along with that. The study comes along with that. And the first aspect is I'm not going to come along with the term purpose here, but with the term meaning. People need to know what is the meaning of what they do.
Niels Brabandt
And when, when you now say, "It's, it's money, isn't it?" Money is part of the game, but not just that. Maybe you had this one moment where you thought, "Hmm, I have the feeling that young people aren't as engaged in work anymore as they were back in the days." So first, that's just a feeling. There's no science to that. There's a different approach to work. There's a different attitude towards working hours. Clearly, we can definitely define that by science. However, there is a context to that.
Niels Brabandt
I give you a very simple context. And I know some people have entitlement thinking. Some people think they leave school, they should have their own flat, preferably they own it, and they live in the best area of town, in a very central location, in a mega metropolis. That, of course, is entitlement thinking, and that cannot happen. At least I don't know any society that could work that way.
Niels Brabandt
Still, when you look at—and I, I just give you my story here as an example, which does not mean you have to do it that way—just as a reflection point. Look at the time—look back at the time when you were younger. When I was younger back in the days, not even the euro existed. The euro what we, we had the predecessor, which was the Deutsche Mark in Germany. And when I went to work as a student, I roughly needed 18 hours of work—18 hours of work—to cover the rent. 18 hours of my work—let's say I work 40 hours a week, 160 a month, very roughly. We have more than four weeks, 4.3, 4.5 weeks per month. That, that's a different story. Let's go with 160. So 18 hours out of 160, or a bit more, 18 hours are the rent.
Niels Brabandt
When you now look at what people make and you take 18 hours of their work, can they pay the rent? Most likely not. So when people say, "Look, the deal was when you work really hard, every day, every tomorrow will be a tiny, tiny, tiny bit better than the work today, and you work yourself somewhere and things will get better." And today we have people who say, "Look, I'm working my off. I'm working everything off that I have, but the inflation rate and everything getting more expensive happens quicker than any kind of salary deduction I could ever think of."
Niels Brabandt
So people think, "I work, work, work, work, work, work, work, and while work becomes more, more, more, more, more, my income doesn't even remain stable. It goes down because due to inflation rate and things becoming more expensive, my net income realistically declines while at the same time working more." And that feels, surprise, pointless. Who could have thought?
Niels Brabandt
So the very important part here is that when meaning is not there anymore, we as leaders have to step up and tell them, "This is what we can do for you." You can either pay them more, offer them more bonus hours, offer them bonus for additional work, or you give them flexibility and you say, "Hey, you can work a bit less so you can have time off. It's less stressful." You have to cover that gap.
Niels Brabandt
And I know that you say, "Isn't that the dot of politics?" And of course it should be in certain countries, or in many countries, if not all. But when politics doesn't cover the gap, you cannot sit there and say, "Look, not my problem. That's politics' problem. You have to work yourself to death. You have to work very hard, even when it doesn't really make sense."
Niels Brabandt
We had generations who did that. And I was part of that generation as well. As a young person at the age of 14, I started to work during every single holiday I had in a factory building, three-shift system, day and night, whatever I could get to work for my first PC. However, I worked long hours. Some of these jobs were horrible, very, very physically challenging, mentally challenging. I didn't like it. It was very monotonous. Some of them utterly stupid tasks. However, I knew at the end of all that work, I got a personal computer. And that was my reward.
Niels Brabandt
So as soon as you have this—because people try to make sense—it's called sense-making in science. People try to make sense of what they do when they don't find any sense, when they don't see any meaning, when there is no purpose. They will simply say, "Look, this is pointless. And when it's pointless, I do something else." And that is something which will harm organizations very quickly.
Niels Brabandt
When you say we have good or average pay, we have good or average working hours, we offer maybe a couple of benefits, and we offer a decent career, and also we offer an amazing community, social activities, maybe a couple of extras which others do, do, do, do not have. We also offer education, personal development, fully qualified, and we offer you the option to be promoted every other year. Then people will most likely say, "Hey, I see this is going somewhere."
Niels Brabandt
But when you tell people, "Look, you're here via an external temp agency. Just do your job. Shut up. Do your job. That's all you have to do." Then please do not be surprised that people are not motivated at work.
Niels Brabandt
The workforce expectations today—because we have a shortage of talent and we have a shortage of workforce—the shortage is more demanding than ever. And it will not get better, at least not in most countries, within the next four to five years. Most countries listening—most people from countries listening here today—will look at the demographic in their country where they say, "We're overaged, and everything is very problematic." Very few countries say, "Look, we have a ton of young people here. It's going to be amazing during the next years." Most countries do have a demographic problem, do have a problem with their demographics.
Niels Brabandt
So the meaning and the flexibility is extremely important. And who needs to step up here? Leadership. So we see leadership is a massive part of almost every aspect here, no matter if it's AI with collaboration, if it's having a position on uncertainty economic-wise or geopolitical-wise, or if it's workforce expectations, meaning, purpose, organizing work, and leading people properly, and hopefully learning professionally, learning how to work. All of that is leadership. And when you put it in place in the good way, as I just told you, and as science also in this study tells you, then you will have an amazing organization. You will be a very attractive employer, and you will not struggle in the future because you, you can then say, "AI, uncertainty, workforce expectations, we got that. And by the way, we got a job here for you. You want to sign?" And most people will say, "Yes." And I wish you all the best implementing this in your organization.
Niels Brabandt
And when you now say, "Whoo, I have a couple of things to discuss here," I'm very happy, very happy to discuss that with you. So first, of course, when you're now watching on, let's say, LinkedIn Live, or you watch on YouTube or wherever, feel free to leave a like here. Thank you very much for doing so. Of course, you can also subscribe to my channel on YouTube or on my podcast channel, Apple Podcasts or Spotify. And of course, I'm always happy to see comments. Please leave comments here. I'm looking forward to our discussions here. Of course, when you like to leave a review here, five stars, thank you very much for doing that as well. We had a couple of five-star reviews recently. Thank you very much for that. Much appreciated. And of course, recommend this channel to friends, family, anywhere, online and offline, so we grow strong and stable. We are now growing constantly. The rankings are doing very, very well. Thank you very much for tuning in every single week and recommending this to anyone you know. And of course, when you recommend it somewhere on social media, feel free to tag me in it so I can just chip in a bit of a nice comment. Thank you very much for doing so as well.
Niels Brabandt
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Niels Brabandt
You can also go to my website, nb-networks.biz, or simply drop me an email, nb@nb-networks.com, and then we just chat via email because some people say, "Hey, I got something, but it's too confidential. Can't put it into the comment section." Very happy to do that as well. Looking forward to hearing from you there. And of course, when you say, "Do we have live sessions?" Yes, we have live sessions. And I'm looking forward to our next one, which is quite soon. When you go to expert.nb-networks.com, because we only announce our live sessions via the leadership letter. So I'm looking forward to seeing you there. When you sign up, by the way, you only receive one email every Wednesday morning, full access to all the articles, podcasts, everything else in two languages—English and the, the English and German language—and in every single email, you see date, time, and the access link for the next live session. So I'm looking forward to seeing you there.
Niels Brabandt
In addition to that, in addition to that, of course, you can follow me on social media connect with me on LinkedIn, proper connecting, not the follower thing. Do a proper connect there. Follow me on Instagram, like me on Facebook, and of course, subscribe to my YouTube channel. I'm looking forward to seeing you there. When you contact me, by the way, you can do that. Maybe you need something very specific where you say, "Hey, we need a trainer, a coach, a mentor, anyone who can help us with project interim management, a coach, consultant, anything." Very happy to discuss that. When you say, "Hey, I'd just like to have a chat," very happy to do that as well. I'm answering every single message within 24 hours or less, so I'm looking forward to hearing from you.
Niels Brabandt
However, the most important thing always is the last bit that I have to say: apply, apply, apply what you heard in this podcast and videocast because only when you apply what you heard, you will see the positive aspects that you obviously want to see in your organization. I wish you all the best doing so. Feel free to contact me anytime. I'm looking forward to hearing from you. I'm answering every single message within 24 hours or less. And at the end of this podcast, as well as at the end of the videocast, there's only one thing left for me to say: thank you very much for your time.