Leading When It's Messy

TL;DR – What Board Leaders Are Seeing and Saying

• Predictability is off the table. Volatility, policy swings, and geopolitical shifts are driving widespread reassessment.
• Agility is key. Scenario planning is becoming the core operating mode.
• No return to the old normal. Certain structural shifts are looking permanent.
• Cost pressure is relentless. Tariffs, inflation, labor, and supply chains still dominate board agendas.
• Values meet complexity. DEI, ESG, and stakeholder expectations are tough to align across public, internal, and contractual lines.
• AI is the budget exception. Even with cuts elsewhere, boards are greenlighting investment in AI.
• Leadership changes are accelerating. CEO fatigue and evolving board priorities are driving refresh cycles.
• One-size-fits-none. Industry dynamics and regional exposure demand tailored responses.

Perspectives On the Current Business Environment

Persistently Murky With No End in Sight

Board leaders across all sectors are frustrated by the ongoing climate of unpredictability: continued sudden shifts in government policy, regulatory whiplash, and geopolitical friction. Tariffs, materials & labor costs, the possibility of inflation, and more are challenging pricing and customer loyalty, squeezing margins, and altering sourcing strategies. Thus, many organizations are managing expectations about their performance and the lack of predictability. Some companies are cautiously holding expense plans in place, while others are rethinking investments, trimming spending, or outright changing their cost structures. Many are using this environment and its lack of clarity to make cuts they probably should have made anyway. 

"You can’t plan much when tariffs, labor policy, and contracts change so fast... we’re building in optionality rather than betting on consistency."

Concerns About Fatigue are Well Founded

CEO turnover was already high going into 2025, and the challenges of the current environment do little to quell that. Simply said, it is exhausting to lead in this business climate and that holds true for the entire C-suite and their reports as well. Further up the chain, board leaders recognize the challenge of fending off today’s slings and arrows while trying to plan for the future. The question that people find tiring on many levels is how to plan for the long term when getting through the near term is uncertain.

Nevertheless…the Sun Rises on AI

AI is influencing every business at almost every level. No one wants to miss the trend yet very few know how to catch the wave, thus far. All agree that this now commonly available technology will affect how companies execute much less strategize around their business. Opportunities and risks are in abundance for operations, products, data mining, and much more. Boards leaders are starting to recognize the many ways AI will affect their organizations from internal process efficiencies to enhanced customer experiences to revolutionary new use cases. It is no wonder that pursuing AI, even in this complex environment, is the area that continues to get managements’ investment and board members’ attention, with a fervent conviction in its power to reshape the future.

Outlook

More of the same: Expect to wake up to new challenges daily

 Topic du jour. Constantly changing headlines tempt many board leaders and executives to second guess their decisions, no matter how informed they were at the time. Surprising moves by third parties make it difficult to anticipate market conditions. For example, an economic slowdown that seemed likely a couple of months is much fuzzier now; it may still happen however the ability to predict the timing and severity is uncertain. The silver lining is that people are developing a “live with uncertainty muscle” and are finding ways to always have a few different plans in their back pocket, if needed. Scenario planning is a common refrain from experienced board members. Most advise their management teams to expect this current environment to last well into 2026 as few can see any reasons why things may change. And they are also mindful to not yearn for the old ways, as many past policies and practices may stay in the history books.  

"We’ve become numb to uncertainty. That could either be good (resilience) or dangerous (complacency)."

Be Intentional about Thriving in the Chaos

Confusion can create opportunity. Some board members see these uncertain times as a moment for bold decisions: M&A in a friendlier regulatory environment, new product ideation to address others’ challenges, and reshaping workforces in response to the geopolitical tumult. Given that the bar for audacity has gone way up, what used to seem like a moonshot may seem less scary in this environment and the right time for the courageous to go for it. Granted, that is not popular sentiment among all board leaders although a few have that twinkle in their eyes.

"This is another crisis that shouldn’t go to waste. It’s a moment to revisit priorities and lean into innovation."

Get Good at Navigating the Crosscurrents in a Polarized Landscape

DEI, ESG, and stakeholder priorities have created significant tension for leadership teams to navigate complex and sometimes conflicting demands. This will persist for the foreseeable future. Public statements must be balanced against values, culture, employee expectations, and legal obligations, to name a few factors that bear consideration. Every decision and indecision can carry reputational and operational risk. Boards encourage management teams to avoid the crossfire, while continuing to make principled decisions that are consistent with their long-term goals. Being a sounding board to the CEO is especially valuable on this topic — owning these decisions underscores your priorities and establishes trust.

“Lead with their mission, fly below the radar, don’t break the law, and remain non-partisan.”

Specific Advice From Board Leadership 

To Management: Balance Discipline with Boldness

Board leaders are advocating for budget control to mitigate financial risk and capital deficiency exposure, strategic scenario planning to have options, pruning initiatives that can’t deliver near-term results with certainty and saving dry powder to invest selectively in “must-do” areas, namely AI.

"Avoid overreaction. But don’t be caught flat-footed either."

To Themselves: Provide Strategic Governance While Remaining Supportive

Turning the mirror, board leaders are reminding themselves and colleagues that staying closely aligned with the CEO and working through the tough decisions is critical. They uniformly intend to focus on resilience and avoid being reactive. Many note the importance of thinking broadly and creatively, bringing diverse perspectives grounded in business fundamentals. To wit, the majority recognize this is a good time to consider board refreshment and long-term board succession planning.

"Boards can’t just be watchdogs—they have to help guide the plane through         turbulence."

Conclusion: Board Leadership in a Disrupted World

Board members are guiding leadership teams as they navigate the most unpredictable business climate this generation has ever encountered. Balancing short-term execution and performance expectations while charting a long-term course is fraught with challenge. Add to that the unexpected twists and turns that are entirely out of everyone’s control and it is clear that the twin competencies of resilience and agility have never been more important in governance.

Some Closing Thoughts From Your Friends at Boardspan 

While it’s inarguable that we’re in uncharted territory, our conversations give us confidence that the vast majority of organizations remain in highly capable hands. Board leaders recognize that governance has gone beyond its cornerstones of oversight and accountability. To address risk, deliver strategic insight, and stay committed to thriving in the future, courageous and adaptive leadership has become the new norm.

For our part, sharing how board leaders are meeting the moment and bringing new energy to their roles benefits everyone. Boardspan remains committed to serving as thought partners and sounding boards to directors leveraging our data, insights, and governance frameworks to support best-in-class governance in all environments.

About the Author

Abby Adlerman is CEO and founder of Boardspan. She brings more than 25 years of governance and board experience and is widely recognized as a leading authority in the field. Her background includes leadership roles as CEO and Managing Partner in digital commerce, investment banking, and executive search companies. She has advised boards, C-suite executives, and PE firms on a global basis.

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