Findings from the Kestria Global Leadership Barometer 2025 show that over 80% of organisations have leaders directly driving or supporting digital initiatives, with the highest involvement in Asia Pacific. Yet fewer than 4% globally report no leadership-led digital strategy, a figure that rises to nearly 10% in the Middle East and Africa—highlighting both progress and persistent gaps. Kestria interviewed executives from around the globe to highlight how leadership-led digital transformation is enabling organisations to adapt, innovate and grow in an increasingly digital economy.
Digital transformation has become a defining test of leadership in today’s economy. It is not just a technical exercise but a strategic shift that reshapes how organisations create value, compete and engage with stakeholders. When leadership is visible and committed, digital initiatives move beyond isolated projects to become drivers of long-term competitiveness and resilience.
For Fabian Ringwald, Chief Information Officer (CIO) at SWICA, Switzerland, digital transformation is much more than automating processes or introducing new tools. ‘It involves strategically rethinking the value proposition and potentially changing how customers’ needs are addressed, as well as how the organisation presents itself and its products or services within the current or desired market. This may be supported by introducing digital solutions, digital products and digitally delivered services. Such transformation requires not only leadership involvement, but active direction and deliberate shaping of the company’s future by those responsible for the overall strategy. This responsibility lies primarily with senior leadership, which is why digital transformation must be embedded as a central strategic priority.’
Mike Herenberg, President & COO of Kerr Group of Companies, Canada, likewise considers leadership involvement to be critical to digital transformation, which should be framed as a core element of company strategy rather than as a technology project. ‘With employees already managing multiple priorities, clear and consistent leadership messaging is essential to maintain focus and engagement. By linking transformation directly to strategic goals (improving customer experience, driving efficiency or enabling growth), leaders show that digital initiatives are not isolated IT upgrades but enablers of long-term success.
Equally important is showing how transformation benefits everyone: customers gain better service, the company strengthens its position and employees focus on higher-value work. This builds motivation and shared purpose. Alignment across the leadership team is essential, as mixed messages or weak commitment quickly erode confidence and stall progress.
Leaders must acknowledge that change is difficult, bringing uncertainty, new skills and disrupted routines. By addressing these challenges with teams and guiding them through the change curve, they build trust and resilience while signalling that transformation is a company-wide priority. Ultimately, leadership involvement turns strategy into execution and ensures digital transformation delivers lasting impact.’
Anne Gnanapragasam, Head of People at HSBC GSC Malaysia, reinforces this perspective, emphasising that leadership involvement is not optional. ‘It is essential, as transformation requires institutional change that can only be driven from the top. The pace of change demands continuous innovation and the ability to adjust course when obstacles arise. Organisational inertia is a death knell that distinguishes companies able to survive digital evolution from those that will not.’
Andreas Meier, Vice President Guarantees and Documentary Instruments at Siemens Energy, Germany, agrees with this view, stating that digital transformation is essential - first, to enhance internal productivity; second, to develop tools, services and products for an increasingly digital world; and third, to achieve all this at unprecedented speed. ‘None of these objectives can be realised from the bottom up. Leadership must drive the process by motivating staff to adopt digital tools, by reviewing and accelerating innovation cycles and by clearly communicating the purpose of transformation to employees who may fear being replaced. The message must be unambiguous: people are not replaced by digital tools, they risk being replaced by others who know how to manage and apply them.’
How do you ensure leaders actively drive or support digital initiatives?
According to Andreas Meier, digital transformation can follow several parallel paths. ‘The more challenging path is to link digital innovation indirectly to targets, making economic goals achievable only through the use of digital tools, as quality and speed would otherwise be unattainable. A softer path is to spark curiosity by involving leaders and employees in engaging activities that demonstrate the potential of these tools. Finally, leadership must set the tone by example: being visibly curious and engaged, thereby encouraging others to follow.’
From Mike Herenberg’s perspective, a clear strategy is essential, but success ultimately depends on leaders taking ownership of digital initiatives. ‘They must be accountable for understanding, sponsoring and tracking each project, ensuring visibility into timelines, budgets and scope. Their role goes beyond oversight to active support, stepping in quickly when risks or resource needs arise.
Equally important is fostering a culture of transparency and early risk-raising. Too often, organisations discourage this, mistaking it for weakness. In fact, surfacing challenges early is a strength that prevents escalation. Leaders must model and reward this behaviour, showing that openness and honesty are vital to keeping projects on track.
Two-way communication is vital. Leaders should stay engaged with customers, employees, vendors and stakeholders throughout projects—not just at the start and end. This reinforces shared goals, surfaces diverse perspectives and keeps alignment strong. When leaders are visible and approachable, people feel safe sharing both progress and obstacles.
Recognition matters too. Celebrating wins, highlighting contributions and linking initiatives to the broader strategy builds pride and energy. It underscores that transformation is a connected portfolio of efforts, creating value greater than the sum of its parts.
The key is balance: leaders must be accountable stewards of results while also supportive partners to teams. With accountability, transparency and consistent engagement, transformation is executed effectively and embraced across the organisation.’
For Anne Gnanapragasam, the key to leaders supporting digital initiatives is accountability. ‘Creating and sustaining a culture of accountability cannot be delegated. Leaders must personally engage with AI and emerging technologies, setting an example of continuous learning and integration as part of vision and goal setting. They should also support their teams’ momentum and development, ensuring accountability becomes embedded across the organisation.’
Fabian Ringwald highlights the need to make digital initiatives an integral part of the bigger picture. ‘If your company’s future success depends on them, driving digital transformation will be a natural course of action. If they are not part of your anticipated success, however, it is better to stop these initiatives and return to the drawing board to determine how best to execute your strategy.’
What risks do organisations face without a clear leadership-led digital strategy?
Anne Gnanapragasam points out that there has been a decline in the number of organisations adopting AI initiatives, as success is difficult to measure and integration into existing structures remains challenging. ‘This does not diminish the importance of digital initiatives, which remain central to productivity as AI is repurposed to address today’s problems. Leadership must live, breathe, and actively support these efforts. Ultimately, it is about maintaining a competitive edge. Without genuine leadership, most digital transformations will fail, becoming costly experiments that deliver little value. The competitive landscape has fundamentally shifted.’
Fabian Ringwald observes that in many industries digital has already become the new normal, while others are rapidly moving towards a new digital era. ‘This shift may take the form of classical digitalisation or a full-scale, strategically driven and potentially AI-powered transformation. Customers increasingly expect products and services to be digitally accessible as a matter of course. Ignoring the impact of a growing digital world may only be viable in a few dedicated niche markets—and there are likely far fewer non-digital niches than many assume or hope.
Andreas Meier warns that without a leadership-led digital strategy, organisations face significant risks. ‘These include reduced productivity, slower time to market and a failure to harness employees as multipliers in the digital revolution. Even in highly artistic or artisanal fields, digitising administrative tasks can release more time for the craft itself. In short, the consequences are severe—companies that do not embrace a digital strategy risk being left behind.
‘When leadership is not deeply engaged in digital transformation, risks escalate rapidly and extend beyond individual projects,’ adds Mike Herenberg. ‘The immediate dangers are executional: initiatives exceed budgets, miss deadlines or deliver reduced scope. Without clear ownership, focus is lost, outcomes disappoint and frustration builds—employees lose confidence, customers notice inconsistency and partners question reliability.
The deeper risk is cultural. Failed or under-delivered projects erode momentum, weaken accountability, and fuel cynicism. Employees deprioritise new initiatives, assuming they will falter, while customers perceive instability and turn to competitors executing their digital strategies more effectively. What begins as missed milestones soon becomes a cycle of declining trust and relevance.
Strategic drift compounds the problem. In the absence of leadership alignment, digital initiatives remain siloed technology projects rather than part of a cohesive strategy. This results in duplication, wasted resources and disjointed customer experiences, leaving the organisation fragmented and without a unifying direction in a fast-moving market.
Ultimately, the greatest danger is loss of competitiveness. Competitors that scale digital transformation effectively will outpace those without strong leadership engagement. The safeguard is visible, consistent ownership: leaders must champion transformation, not merely endorse it. When they do, initiatives deliver tangible value, confidence builds and the organisation strengthens its long-term position.’
Summary
The Kestria Global Leadership Barometer 2025 highlights the critical role leaders play in ensuring digital transformation delivers lasting impact. The findings show that leadership engagement is the difference between initiatives that drive real organisational change and those that fail to deliver value. To succeed, digital transformation must be anchored in strategy, reinforced by accountability and supported by a culture of transparency and adaptability. Organisations with visible, committed leadership are best positioned to harness digital change as a source of resilience, innovation and long-term competitiveness.
