09 Jun WHY CHANGE IS ACCELERATING FASTER THAN CONFIDENCE
As transformation accelerates, a leadership capability gap is beginning to emerge.
Markets shift, technology advances and AI is reshaping roles, workflows and expectations of leadership itself. Change is no longer something organisations navigate periodically. For many, it has become the operating environment.
Yet the latest IC Index 2026 reveals a troubling paradox. As the pace of change increases, employee confidence in leadership is moving in the opposite direction. Trust is falling, confidence is weakening and many employees feel less clear about where their organisation is heading and what change means for them.
For organisations focused on growth, transformation and performance, that should be a wake-up call.
More change, less confidence
The report paints a familiar picture for many leaders. Organisational change continues to accelerate, yet fewer than half of employees believe the reasons behind change are clearly communicated and only 42% feel their organisation is good at helping people adapt to it.
Change only delivers its intended impact when people understand it, believe in it and are able to adapt their behaviour accordingly. Yet too often, organisations focus heavily on the technical aspects of transformation while underestimating the leadership capability required to bring people with them. The result is a growing gap between organisational intent and employee experience.
In an environment where change is constant rather than occasional, that gap becomes increasingly difficult to ignore.
Trust is becoming harder to earn
Confidence is not the only area moving in the wrong direction.
Trust in CEOs and senior leadership teams has fallen significantly, with only around half of employees saying they trust their senior leaders. At a time when organisations are asking more of their people than ever before, maintaining trust becomes increasingly important.
Trust is often discussed as a cultural outcome. In reality, it is a performance enabler.
It influences whether people speak up, embrace change and contribute discretionary effort when organisations need it most. It shapes how people interpret uncertainty and whether they focus their energy on solving problems or protecting themselves.
When leaders create clarity, consistency and confidence, people are more willing to engage positively with change. When those things are absent, uncertainty quickly fills the space.
At a time when organisations are navigating unprecedented levels of complexity, trust may be one of the most valuable assets leadership can build.
The leadership reality gap
The report also highlights a disconnect between leadership perception and employee experience.
Senior leaders consistently report higher levels of clarity around strategy and organisational direction than employees further from decision-making. Employees in non-management roles are significantly less likely to believe the organisation’s strategy is clear or even the right one for success.
There is perhaps an inevitable reason for this disconnect. Leaders spend far more time discussing strategy, understanding the context behind decisions and debating what comes next than most employees ever will. As a result, what feels clear and obvious in the boardroom can feel distant or ambiguous on the front line.
The real challenge lies in translating strategy into something meaningful for people across the organisation, helping them understand not only what is changing, but why it matters and how they contribute to success.
As organisations become larger, more complex and more dispersed, that capability becomes increasingly important. Strategy rarely succeeds because it is announced. It succeeds when it is understood, interpreted and brought to life through thousands of decisions and actions across the organisation.
Leadership capability as a strategic advantage
Perhaps the most revealing insight from the research is what actually drives confidence in an organisation’s future.
The strongest drivers of confidence identified in the report have less to do with programmes and processes, and more to do with trust, clarity, connection, psychological safety and confidence in leadership.
The findings on AI are particularly telling. Only 35% of employees believe their organisation is using AI to solve the right problems, while fewer than a third feel their employer has clearly communicated how they are expected to use AI in their role.
As organisations invest heavily in AI, the technology itself is only part of the equation. Employees want to understand how it will be used, what it means for their role and whether it is genuinely helping the organisation move in the right direction.
Keeping capability ahead of complexity
More broadly, the research challenges a common assumption about transformation. Many organisations still approach it as a programme to be delivered, focusing on technology, structures, processes and milestones.
Yet the findings suggest that confidence is shaped less by transformation programmes themselves and more by how people experience them. Trust in leadership, clarity of direction, meaningful connection and confidence in the future all have a significant influence on whether employees feel able to adapt and perform.
As strategy, technology and organisational ambition accelerate, employees are looking for greater clarity, stronger connection and more confidence in leadership, not less. Leaders who can translate strategy into meaning, help people navigate uncertainty and create environments where questions can be asked openly are better placed to sustain performance through change.
Few organisations expect the pace of transformation to slow any time soon. The more important question is whether leadership capability is keeping pace.
The organisations that thrive are unlikely to be those experiencing the least change. They will be those whose leaders are best equipped to help people navigate it. In a world of constant transformation, that may prove to be one of the most important strategic advantages an organisation can build.