Leadership in Volatile Times: What Leadership Means Today and Why a Culture of Trust Is Crucial for Transformation

Change is no longer an exceptional situation. For many organizations, it has become a permanent task. Strategies lose relevance more quickly, predictability becomes relative, and decisions increasingly have to be made under uncertainty. Leadership therefore takes place in an environment where clear answers are becoming rarer—making orientation all the more important.

What does this mean for leadership? How can stability be created when everything is in motion at the same time? And what mindset is needed to lead people through times in which certainties are eroding? Christiane Pietsch, Partner at Odgers, discusses these questions with Julia Palte, Board Member for Sales and Executive responsible for Transformation at Concordia.

Ms. Palte, what currently challenges you most in your role as a leader?

The greatest challenge is our business transformation. At Concordia, we are future-proofing our business model—this affects processes, products, and our IT application landscape and also has major cultural implications. And it’s truly end-to-end: from pricing and product development to claims, commissions, and policy administration.

What challenges me most as a leader is balancing day-to-day business with transformation. We have to keep the core business stable while at the same time delivering a highly demanding program with numerous projects. Often, it is the same people who have to do both. Both are equally important—and that is precisely where a key leadership task lies.

What does this balancing act mean in practical terms for your leadership work?

Above all, it means prioritization, communication, and a great deal of clarity. Employees need to understand why they are under additional pressure right now—and for what purpose. Added to that is the fact that we don’t have all the required skills at the necessary depth in-house. Who has ever completely replaced a 30- or 40-year-old core system or modernized an application landscape with numerous components?

Leadership in this context also means being open about skills gaps, bringing in external expertise, and enabling learning—while at the same time not overburdening the organization. It’s a constant balancing act.

A key challenge is taking people along on the journey. Change only succeeds through clear communication—and through making the “why” understandable. Expectations and needs differ, both among employees and among sales partners. This makes it all the more important to tell a shared story that provides orientation and makes the purpose of the transformation tangible.

How do you succeed in leading employees through this transformation process and keeping them motivated in the long term?

It’s the result of a combination of many measures. It starts with a clear commitment from the entire Executive Board. As a board and leadership team, we need to be fully aligned and committed to our future path and clearly articulate why we are taking this path.

Purpose is a central element. Our mandate is to remain successful as an independent Concordia. To achieve that, we cannot rely solely on what made us successful in the past. This story—this “why”—has to be told again and again.

In addition, we invest specifically in leadership development, have built a network of ambassadors, and actively involve employees in the transformation—for example through our business transformation committee. Motivation emerges where people are able to shape the future themselves.

Has your own understanding of leadership changed during the transformation?

Today leadership skills are essential and much more relevant compared to traditional management leadership styles. This applies to leadership in general, but it is even more relevant for those directly accompanying change. It’s less about managing day-to-day business efficiently and more about providing orientation, creating meaning, and guiding people through periods of change and the VUCA world.

In transformation processes, other values become more important: empathy, resilience, empowerment. Leaders must create spaces in which employees can grow—even beyond their comfort zones. Change is no longer the exception; it is the new normal.

How do you make decisions when planning certainty is lacking?

Numbers, data, and facts are an important foundation for me—but of course, they are not sufficient on their own.
I involve people to interpret these facts together. Different perspectives, backgrounds, and experiences lead to better decisions. And, naturally, personal experience plays a role—I make different decisions today than I did ten years ago.

And how do you communicate decisions that are unpopular?

That’s a good question. I believe transparency is essential—putting all the cards on the table: Why is this decision reasonable? What alternatives exist? What would happen if a different decision were made?

At the same time, empathy is crucial. Facts alone are not enough when decisions affect people. Leadership also means showing understanding for the impact of decisions—without relinquishing responsibility.

Are there shared values that guide you as a board?

We want to remain independent as Concordia—while becoming more digital. That is what we are working toward.

Beyond that, personal integrity is very important to me. I want to make decisions that I can still stand behind in the long term. Leadership always has a moral dimension. This inner clarity is especially important in uncertain times.

What role do learning and development play in this context?

A very significant one. Transformation only works through learning—both individually and organizationally. That’s why we have established a comprehensive leadership development program in which “leading through change” is a core component.

At the same time, we place strong emphasis on learning on the job. Employees work in transformation projects, learn new methods such as agile working, and develop their professional skills. This is complemented by clear signals from the board, such as firmly anchored training days.

Our goal is to create a culture where lifelong learning is simply part of how we operate. Change is no longer an exception—it is part of everyday reality.

From your perspective, which leadership competencies will become particularly important in the future?

Empathy and resilience will remain core competencies. In addition, openness, curiosity, and the willingness to continuously develop oneself are essential. Collaboration and involving employees are also extremely important. Leadership no longer takes place in an “ivory tower.” Decisions must be explained, discussed, and jointly supported. This distinguishes today’s leadership from earlier models.

What importance does trust have in this context?

A decisive one. Trust is the foundation of good leadership. I consider the concept of psychological safety to be central—a culture in which employees feel safe to express their honest opinions, even when they are critical.

Only in such an environment can good decisions emerge. Cultures of fear may work in the short term, but they prevent learning and the ability to change in the long run. That’s why it is our responsibility as leaders to consciously create spaces where openness is possible.

Has this culture of trust always been so strong at Concordia—or is it part of the current transformation?

I have been with the company for four years. The leadership teams before me operated in a different era with different conditions and therefore set different priorities. That shaped values and a culture that were less focused on readiness and capability for change than is necessary today.

Today, we are in a different phase of the company, with new goals and a comprehensive transformation underway. Against this backdrop, certain values have gained greater priority—especially psychological safety, empowerment, and trust. Strengthening these deliberately is now part of our leadership agenda. This is what distinguishes the current situation from that of five years ago.

Ms. Palte, thank you very much for this insightful conversation and your inspiring perspectives.