CEOs must do more than lead companies. They must make an impact. Leaders should impact their staff, industries, and, with the right approach, their country and the world.

A new year is upon us, and shifts in the business landscape can change how CEOs make an impact. However, tried and true methods still make a strong leader. CEOs must integrate modern and time-trusted solutions to guide their team to success and leave behind a footprint for other leaders to follow.

Grappling with the New

2025 brings unique challenges. CEOs must adjust to maintain or increase their level of impact. Here are some changes to consider.

Looming Tariffs

The new presidential administration promises an increase in tariffs, but how will these be implemented? Many companies wonder if they will affect their industry, how high they will be, and whether they will be phased in or hit immediately. Unknown factors make it difficult to strategize, but companies must prepare.

Preparation requires understanding how their business will be affected by various possible trade scenarios. They must allocate investments geographically. An unaligned approach can allow organizations to pivot quickly.

Companies must invest in intelligence to stay updated on market changes. They should build flexible strategies that adjust to varying market conditions and focus on long-term growth. This approach reduces the risk of production gaps and a possible loss of market share.

Scaling AI

More companies are integrating AI into their business strategies, but not many are seeing returns on their investment. Experts believe they may be spreading AI too thin, investing in various AI technologies rather than focusing on the few that work for their business. They may also overlook building an AI culture in their organizations.

Organizations may consider adopting a 10-20-70 principle, which puts 10% of resources in algorithms, 20% into data, and 70% in people and processes. They must also prepare for evolving AI opportunities and risks. Leaders must consider how the shifting geopolitical dynamics could impact AI use.

Preparing for Climate Change

Although environmental regulations are already loosening for 2025, business owners must continue to reduce emissions and prepare for the consequences of climate change. It increases the risk of severe storms that could shut down business. Weather events significantly impact agriculture, utilities, construction, and communications industries.

Experts believe many companies underestimate the risk of climate change. They must gain a comprehensive picture of climate change risk, work with partners that back green initiatives, and focus on customers who often appreciate companies that take an environmental approach.

The political changes could bring differences of opinion among stakeholders. Hopefully, leaders can determine conflict resolution tactics that bring favorable solutions.

Cost Management

Cost management is an ongoing task for CEOs, but it will be essential in 2025, a year that brings new economic challenges. Leaders must focus on ways to cut costs and reinvest them in growth and innovation.

However, most use a top-down approach that doesn’t address the issue at its root. A more effective approach may require transforming the organization into a lower-cost business and ensuring they stick with the plan.

Companies can achieve this goal by prioritizing productivity and efficiency rather than passing on costs to customers already fatigued by inflation. They must determine what increases expenses in their organization and eliminate complexities to lower costs. CEOs must lead a cultural change around cost management to change stakeholder mentality and gain support for cost-saving initiatives.

Embracing the Tried and True: Strong Leadership

The new year brings new challenges. CEOs must address them while focusing on the leadership approaches that helped grow their organization.

Strong leadership is necessary for a successful organization. When teams support leaders, the company works together to achieve common goals. The approach supports innovation and motivation and promotes a positive work environment.

Good leaders have strong emotional intelligence and leadership skills. They support stakeholders and promote a sense of transparency. An impactful leader will make teams feel comfortable taking risks and innovating.

They will also exhibit common traits like integrity, confidence, and accountability. Strong leaders will lead by example. They will instill their vision in all that they do.

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