As we step into 2026, leaders face familiar challenges but in a world shaped by hybrid work, AI, and shifting expectations, old problems demand new approaches. At IML, we see this as an opportunity: to rethink leadership and set the agenda for the year ahead.
At our recent Leadership Outlook 2026 webinar, we invited Jacqueline Parekh CPMgr CMgr FIML, Head of Transformation at Asahi, and Sharon Pollard CMgr MIML, General Manager of Offshore and Remote sector at Compass Group Australia to join IML CEO Sam Bell CPMgr FIML and GM – Learning, Development and Membership Scott Martin CPMgr FIML to join the conversation and provide their unique perspectives on the key topics shaping leadership in the year ahead.
Hybrid is here to stay
We opened the discussion with a topic that has been a constant in recent years of our Leadership Outlook sessions – hybrid and flexible working.
From its necessity for some in the Covid-era, to adapting to and implementing work/home balances, the focus on the right to disconnect legislation, to now, what are the views on this ever-present issue as we move into 2026?
Jacqueline discussed the evolution of hybrid work practices, noting that in New Zealand, around 65% of organisations have adopted permanent hybrid practices. She continued to say that hybrid work is no longer an experiment but is now a permanent mainstream employment model. Leaders must integrate this into their employee value proposition, but true success requires consultation and customising for different teams and departments. Jacqueline also suggested that hybrid work arrangements can and have enhanced cross-regional collaboration in her experience by leveraging time zone differences.
Sharon added that, despite her workforce being spread far and wide across multiple sites nationwide, quarterly in-person meetings for senior leaders remain essential to maintain culture and relationships.
Audience participation brought further insights. One attendee pointed out that hybrid working simply does not work for everyone – it depends on the person, their work ethic and motivation.
All panellists agreed that leaders need to focus on outcomes rather than presence where job responsibilities permit flexible work. By setting clear instructions and expectations up front, hybrid working can flourish sustainably and with trust. Jacquie called it the ‘changing paradigm’ – trust the team and verify their output by results. Broad mandates, she cautioned, simply do not work.
Artificial Intelligen-tly does it
No conversation on emerging trends would be complete without a healthy dose of AI, and our Leadership Outlook was no exception.
AI has been on our radar over many formats over the past few years. As Scott Martin noted, we have moved through the hype and excitement. Now what? Practically speaking, where is your organisation at with AI?
Sharon Pollard is a self-confessed lover of AI tools and as an early adopter, couldn’t praise the technology enough – “anything that makes life easier, I am all for it.”
However, it was noted from all panellists that AI is not a shortcut, it requires considered input, review and oversight. Humans remain accountable, and what we feed into AI systems must be accurate and relevant to ensure outputs are meaningful and tailored to the organisation, project or situation.
Jacqueline also highlighted the importance of ethics, governance and duty of care and cautioned leaders to avoid greenwashing or overpromising AI’s capabilities.
The group highlighted there is still hesitancy internally with departments, teams and individuals in their organisations. “Do I have job security?” and “Will AI take over my role?” is still very common. Asking the group what they have done to manage fear of implementation of AI, it was noted the importance of framing AI as an additional tool in the kit rather than a replacement. Crucially, communication should focus on personal benefits as well as organisational value, helping teams understand how AI can make their work more effective and meaningful.
Productivity gains
IML CEO Sam Bell addressed the continuing decline in productivity rates, highlighting the importance of workplace-level factors in driving productivity growth. While we explored leaders’ influence on productivity in 2025 through specific events here at IML, Sam emphasised that further development in this area remains crucial for 2026.
He stressed the role of managers and leaders is central in motivating, holding people accountable, and aligning employees with the organisation’s overall strategic purpose and vision. Strong management and leadership practices are key for improving productivity, alongside potential policy reforms.
Jacqueline reinforced the importance of ongoing 360 team feedback as a crucial pulse-point for leaders. Sharon added that leaders are the reducers of noise and pressure, reminding us that surface-level productivity often reflects discretionary effort. You need to really look at your workload – are you working on the correct outcomes or are you busy for the sake of being busy?
Safety in numbers
The final topic of the event focused on psychological safety, how legislation is evolving, and what leaders need to prioritise in the year ahead.
Sharon Pollard opened by emphasising that physical and mental safety are distinct but interconnected, particularly in remote and hybrid workforces where the lines can blur. The group agreed that legislative obligations around psychological safety are a responsibility for all leaders. While progress has been made, both employees and leaders still need robust support structures to create genuinely safe workplaces.
Creating a psychologically safe environment starts with safe spaces and cultural change. Leaders can’t simply tell people how to behave—they must share guidelines, allow interpretation, and reinforce expectations through regular, corrective communication.
Sam Bell highlighted IML’s Workplace Mental Health for Leaders module from the Black Dog Institute, embedded in our learning and development courses, which equips leaders with practical strategies to spot issues early and take effective action when needed.
Jacqueline Parekh shared a practical approach from her organisation: monthly lunches dedicated to connection and discussion, where nothing else is scheduled. These gatherings foster a culture of wellbeing and signal that employee support is a top priority.
Sharon also stressed the importance of reward and recognition, noting that leaders must “walk the talk” to maintain trust. Even small gestures, like asking “Are you okay?” or offering a simple smile, can have a meaningful impact on team morale.
The conversation also covered WorkSafe compliance across ANZ, with leaders reminded to review all aspects of psychological safety and tailor approaches by team or department. Ultimately, the session reinforced that human-centred leadership is key: treat people as individuals, recognise their unique needs, and avoid a one-size-fits-all approach.
We concluded the session with a thoughtful question from facilitator Scott Martin.
What challenges will you be facing and what are you excited for as we head into 2026?
Jacqueline shared her excitement for leading transformation in her organisation, drawing on her extensive experience and knowledge. She also emphasised the importance of responsible leadership and prioritising employee wellbeing.
Sharon focused her thoughts on the succession planning she will be excitedly working on this year, lifting her team’s strategic thinking capabilities and placing the right people in the right roles.
Sam highlighted IML’s mission to enhance management and leadership capacities, urging openness to new ideas and carving out reflection time for leaders. In a world full of noise, it is essential to step back and recognise achievements – both individually and collectively.
As we wrapped up this year’s Leadership Outlook session, it was clear that while many themes felt familiar, the conversations had evolved, shaped by refined processes, sharpened practices and lived experience.
We at the Institute maintain our commitment to continue these discussions and exploring the issues that impact managers and leaders on a daily basis. We look forward to your engagement in these programs, events and sessions as we move through 2026 and beyond.
