The winds of change are blowing fiercely. With policy shifts emerging from Washington, economic uncertainty, and technological disruptions transforming entire industries, leaders across sectors are feeling the pressure. The sheer velocity of change is leaving many executives overwhelmed and anxious, unsure of how to respond.
Yet, in the face of uncertainty, the most critical factor determining success is not strategy, resources, or even intelligence—it is courage. The mindset leaders bring to change dictates whether they will merely weather the storm or harness its power to propel their organizations forward.
A Leadership Imperative: Managing Fear in Times of Uncertainty
Leadership has always required courage, but never more so than today when the level of change is outpacing people’s ability to process it, leaving many overwhelmed, anxious and with a distorted perception of risk. According to McKinsey & Company, the leaders who outperform in volatile environments are those willing to make bold moves—choosing strategic action over paralysis. They take decisive steps forward, even when the path is uncertain, rather than retreating into risk-averse, incremental decision-making.
Conversely, fear-driven leadership extracts a silent but significant cost. In my book, The Courage Gap, I explore how fear can create a chasm between potential and action, causing leaders to hesitate, delay, and ultimately miss critical opportunities. This hesitation comes at a steep price: reduced agility, slower innovation, and, over time, the erosion of competitive advantage.
Companies that move quickly and decisively during periods of uncertainty are more likely to emerge as market leaders. The difference often comes down to leadership courage—the willingness to make tough calls, challenge conventional thinking, and embrace risk in pursuit of long-term growth. However, it’s not enough for leaders to act boldly; they must also cultivate an environment that empowers employees to contribute their most innovative ideas continuously. This involves fostering a culture where bold thinking is encouraged, and innovation is an ongoing process, integral to the organization’s commitment to continuous improvement. Harvard Business Publishing’s 2022 global leadership study emphasizes that leaders must be prepared for a volatile and uncertain global environment to maintain a competitive edge.
Fear’s Hidden Cost: The Slow Leakage of Value
The absence of courage in leadership is rarely immediate obvious in so far as there is rarely a single, catastrophic failure that signals the cost of fear. Instead, like a small leak in a car tire, it manifests as a slow, steady leakage of value:
- Missed opportunities: When executives delay key decisions out of fear, competitors seize the advantage.
- Loss of innovation: When employees fear failure, creativity is stifled, and bold ideas never make it past the whiteboard.
- Erosion of agility: Organizations that avoid change become sluggish, unable to adapt to shifting markets.
This is how once-dominant companies fall behind. Nokia’s reluctance to fully embrace the smartphone revolution, due to fear of cannibalizing existing products, cost them their market leadership. Kodak’s failure to adapt to digital photography led to its decline. Fear-based decision-making rarely looks like failure in real-time—but in hindsight, it becomes clear that the real risk was inaction.
The Courage Mindset: A Key Differentiator in Leadership
Courage is not just a trait—it’s a mindset that can be cultivated. During my tenure at Korn Ferry, our research found that the highest-performing enterprise leaders operate from a “courage mindset,” enabling them to both drive results today and transform their organizations for the future. These leaders don’t avoid risk; they strategically embrace it. They recognize that stagnation is often more dangerous than failure.
Consider Walmart’s approach to digital transformation. Rather than retreating in the face of Amazon’s dominance, Walmart invested heavily in e-commerce, automation, and AI-driven retail experiences. This bold approach positioned them for long-term success, proving that companies willing to take strategic risks can rewrite their trajectory.
Elon Musk is no stranger to disruption—both as an architect of groundbreaking innovation and as a source of anxiety for many, particularly in light of his efforts with DOGE and other ventures that challenge traditional systems. Yet, his risk-taking mindset is precisely what has propelled his companies to reshape entire industries. SpaceX, under Musk’s leadership, took extraordinary risks to revolutionize the space industry. Despite multiple launch failures that would have deterred most leaders, the company persisted, ultimately securing NASA contracts and proving that commercial space travel is not only viable but inevitable. Musk’s approach exemplifies the power of bold, decisive leadership—one that embraces risk, defies conventional thinking, and redefines what’s possible, even amid uncertainty and criticism.
Bridging the Courage Gap: How Leaders Can Strengthen Their Resilience
If courage is the differentiator, how can leaders cultivate it?
- Challenge fear-based thinking: Recognize when fear is driving decision-making. Question whether the risk of inaction is greater than the risk of moving forward.
- Encourage a culture of boldness: Create an environment where employees feel safe to challenge the status quo and take calculated risks.
- Reframe failure as learning: Fear of failure holds many leaders back, but setbacks often provide the best opportunities for growth.
- Make decisive, forward-looking moves: As McKinsey’s research shows, organizations that act boldly in uncertain times outperform those that take a cautious, wait-and-see approach.
In today’s volatile landscape, courage is not a luxury—it’s a leadership necessity. The greatest risk leaders face is not making a wrong decision, but failing to make one at all. Those who cultivate courage—who are willing to step into the unknown, embrace discomfort, and make bold moves—will not only survive the storm but emerge from it stronger than ever.
As I wrote during the early days of the COVID-19 pandemic, when fear runs high, the need for courage runs higher. Those who can reframe risk through a larger lens, reign in fear and show up with teh courage the moment requires will be those who seize the opportunities that always emerge from disruption.
A former Senior Partner in Board & C-Suite Advisory at Korn Ferry, Dr Margie Warrell is a leadership advisor and keynote speaker focused on equipping leaders cultivate and scale courage across their organizations. Her latest book is https://www.amazon.com/Courage-Gap-Steps-Braver-Action/dp/1523007249/?&_encoding=UTF8&tag=wwwmargiewarr-20&linkCode=ur2&linkId=87e5f56f343199473bb33b81bc003f0c&camp=1789&creative=9325″>The Courage Gap. Follow on Linkedin.