With a new year comes new opportunities but also major shifts in the industry that could alter how leaders should navigate the landscape.
The threat of high tariffs could upend retailers’ operations, DEI and ESG initiatives continue to be downsized, and sales and investor activity have continued to lag in some sectors. This series of complex challenges could bring high demand for a new set of skills needed to succeed.
Retailers had historically opted for more technical skills like machine learning, data analysis, and supply chain management. But the shifts in the industry could make soft skills — including agility, intellectual curiosity, and adaptability — critical for leaders who want to drive their careers forward in the year ahead.
While the business environment may be challenging, there are a few measures leaders can take to prepare themselves for the new year.
Staying committed to the long-term goal
While flexibility amidst downturns can be beneficial, leaders should avoid reactive decisions toward external pressures because it shows a lack of commitment to the long-term business strategy. In other words, leaders must balance their focus on the bigger picture with the need for short-term actions and results.
For instance, companies who have backed out of their DEI promises might suffer in the long run as customer loyalty becomes harder to secure and trends such as conscious consumption persist. Companies will likely double down on customer centricity and focus heavily on their connection with shoppers in the new year to avoid losing them to competitors.
Waffling away from the initiatives that drew in customers can make a company appear performative and insincere. In this climate, these types of reactive behavior cannot withstand the current level of competition and headwinds.
Areas experiencing waning demand will eventually pick itself back up and leaders must learn not to lose sight of the company’s values in the process.
Being agile in the face of adversity
From the emergence of new shopping destinations to the slump of historically resilient categories like luxury, back-to-back disruptions flooded the industry following the pandemic. These disruptions -- along with new challenges like tariffs, geopolitical uncertainty and the looming TikTok ban -- cross-functional leaders will continue to be highly sought-after in this climate.
As rapid changes and new crises emerge, a leader’s ability to expand beyond their own area of expertise is becoming immensely valuable. In fact, leaders who seek to break down silos within the organization will find it easier to make smart decisions in the long run. Leaders must have a complete view of the company, regardless of what their role might be, in order to help their firm quickly pivot and set new targets.
Ultimately, a leader’s ability to rapidly adapt to macro factors will set them apart from the rest of the pack. But this agility must be coupled with a steady hand and the ability to process rapidly changing insight into decisive leadership.
Willingness to learn unfamiliar areas
Intellectual curiosity is the key element underpinning agility and flexibility.
To effectively identify new opportunities and shield against potential downturns, leaders must be knowledgeable of external trends impacting the business and proactively learn unfamiliar areas in the organization, whether that’s AI, legal, finance, or any critical functional role outside of their core skill set. This quality is essential in an immensely competitive environment where companies are constantly seeking differentiation to gain or defend market share.
Much like leaders, team members should also seek new skills. Execution is critical in a tough economic climate and good leaders should be able to inspire their team members to upskill in order to maximize their impact. Leaders must learn how to motivate their teams to elevate their performance as well as encourage them to innovate.
Bottom line:
While the new year can be daunting, leaders can stay prepared by quickly adapting to changes, having a strong desire to learn new concepts, and avoiding reactive short-term distractions. Playing the long game will give leaders a stronger foundation for success.
When it comes to skills, executives should have a persistent desire to break down knowledge barriers for themselves and their team. This will allow companies to stay relevant in a year full of uncertainties.