Four Things Leaders Need to Know
THE LEADERSHIP EDGE NEWSLETTER SEPTEMBER 2026 | Your Guide to Exceptional Leadership
By Don Frericks · CEO Advisor & Executive Leadership Coach
Every year, Zenger Folkman reminds us through their research that "leadership has become more—not less—critical." Their research enables us to understand which leadership behaviors will improve performance in a world shaped by AI, uncertainty, and continuous change. This summary of their annual report draws on research published in 2025, data from hundreds of thousands of leaders and direct reports, and emerging themes from HR and workforce reports shaping 2026 priorities. Their goal for this report was to "identify the leadership capabilities that consistently produce results, regardless of role, industry, or leadership style."
"There is no single best leadership style. What separates exceptional leaders are the behaviors that consistently increase effectiveness. In an AI-powered world, those human-centered behaviors become the ultimate differentiator." —Jack Zenger and Joe Folkman
1 · AI Is Driving the Need to Develop Leaders
Leadership Development Is Non-Negotiable
AI has an incredible ability to rapidly scale information. However, it cannot scale trust, judgment, or commitment. As your organization uses AI more, it will become more critical for your leaders to translate new capabilities into performance—through people. Don't fall into the trap of investing in tech while underinvesting in the leadership behaviors needed to translate tech into performance (adoption, prioritization, trust, accountability).
When AI speeds up work, leadership becomes the differentiator. The organizations that pull ahead won't standardize leaders into one model. They'll personalize development so leaders become more of who they are at their best while staying aligned with business needs.
APPLICATION FOR LEADERS
Pick one business priority that AI is changing. Consider what leadership strengths you have that can be used to achieve that priority this quarter. Address any obstacles (integrity, disrespect, chronic indecision, etc.) with your authentic strengths.
2 · AI Provides Information — Leaders Make Decisions
AI Accelerates Input. Leaders Remain Accountable for Outcomes.
AI gives leaders more data than ever before. But information abundance doesn't equal decision quality. In fact, it often slows action, increases risk aversion, and creates paralysis. In 2026, the competitive edge belongs to leaders who can convert insight into judgment—and judgment into action.
Today's leaders face information overload, shorter decision windows, higher public consequences, and more stakeholders with competing priorities.
Zenger Folkman analyzed 15,804 leaders, each rated by an average of 14 observers, comparing the top 10% and bottom 10% in decision-making effectiveness. Top decision-makers dramatically outperform peers in overall leadership effectiveness and employee engagement among direct reports. Decision quality isn't just strategic—it's cultural.
SEVEN QUALITIES THAT ENABLE GREAT DECISIONS
Anticipating Problems
Acting Quickly
Relentless Focus
Balancing Risk and Reward
Recognizing When Change Is Required
Building Trust
Clear Strategic Perspective
3 · Leaders Unlock Discretionary Effort
Discretionary Effort Is Earned, Not Demanded
People don't work harder because they have to — they work harder because they want to. Discretionary effort, the willingness to go beyond what's required, cannot be forced. It is a choice employees make based on how they experience leadership. Confidence rises when people know where they're going, why it matters, and how they contribute.
5 BEHAVIORS THAT BUILD ORGANIZATIONAL CONFIDENCE
Translate vision into personal meaning.
Maintain focus on top priorities.
Challenge people to stretch beyond perceived limits.
Create a line of sight between strategy and daily work.
Connect work to customer impact.
Zenger Folkman's research shows a clear imbalance in how leaders attempt to generate performance: pushing works—up to a point. It increases compliance. Pulling works differently. Leaders who inspire create energy rather than extract it. They connect work to meaning, recognize effort, and challenge people in ways that build pride rather than fear.
RECOGNITION IS AN ACCELERATOR
Senior leaders score lower on recognition than individual contributors — despite their recognition carrying greater weight. As work becomes faster and more automated, people need more, not less, human affirmation, clarity, and purpose. The data suggests that even modest improvements in recognition practices yield benefits, while increasing the frequency and quality of positive reinforcement can help good leaders become truly exceptional ones.
4 · Build Psychological Safety — Courage Requires a Container
Psychological safety is the belief that you can speak up, ask questions, admit mistakes, and share ideas without fear. Zenger Folkman's research from 18,000+ employees shows leaders who foster psychological safety see intent to quit drop from 37% to 20% and extra effort rise from 23% to 47%!
"Psychological safety isn't just about creating a 'nice' place to work—it directly impacts whether people stay, give their best effort, and help your organization succeed. And while you can't change everything overnight, you can start showing up differently in the moments that matter." —Joe Folkman
Tannenbaum's research demonstrated that organizations with greater total influence, where executives, managers, and employees all felt they had a voice, were significantly more successful. Zenger Folkman's data shows that success isn't about who holds power—it's about how much total influence exists across the system.
Teams with stronger total influence show significantly greater engagement and effectiveness. AI-enabled surveillance, centralized decisions, and algorithmic control may increase speed, but they erode voice, trust, and ownership. The safest strategy isn't tighter control—it's wider participation. The real question is, do you have the courage to let go and trust your teams?
PRACTICAL APPLICATION
Build an Inclusive Environment—make sure different perspectives are valued and heard.
Be Open to Diverse Perspectives—actively seek them!
Build Trust—keep your word, follow through, be authentic, apologize if needed, and resolve conflict.
Balance Tasks with People's Needs—push for results when necessary and always connect with them.
5 · Summary
Zenger Folkman's research points to a consistent conclusion: performance will depend less on tools and more on how leaders show up. The greatest risk in 2026 isn't adopting AI too slowly. It's adopting it without upgrading leadership. Leadership development must move beyond one-size-fits-all programs and content libraries.
The future belongs to organizations that personalize development around strengths and business needs. Measure leadership impact, not just participation. Equip leaders to make decisions that people trust and support. Design cultures that foster influence, recognition, and safety. The question facing organizations isn't whether leadership matters in an AI-driven world. It's whether they are willing to invest in the human capabilities that technology cannot replace. Because in 2026—and beyond—every employee still deserves an extraordinary leader.
A Final Thought
"Across 100,000+ leaders, the data points to a counterintuitive truth: unless a leader has a critical derailment risk, the biggest return comes from amplifying strengths, not obsessing over weaknesses." —Jack Zenger, Former CEO of Zenger Folkman
What this means in 2026: When AI speeds up work, leadership becomes the differentiator. The organizations that pull ahead won't standardize leaders into one model. They'll personalize development so leaders become more of who they are at their best while staying aligned with business needs. Extraordinary leaders don't excel at everything. They become exceptional by standing out in a few competencies that matter to the organization—while staying solid everywhere else.
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