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Relevance Leadership Survey 2025

What European Organizations Reveal About Future-Proof Leadership

New research uncovers how leaders balance four critical dimensions — Performance, People, Progress, and Principles — and what sets the most effective organizations apart.

15+ industries European study November 2025
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In November 2025, Relevance conducted a qualitative study into the state of leadership across European organizations. The findings are built on the Needs-Driven Leadership framework: a practical model that helps leaders determine where to direct their efforts based on what the organization actually needs, not what feels comfortable or familiar.

At its core, the framework maps leadership across four dimensions: Performance, People, Progress, and Principles. The goal isn't to maximize each one individually — it's to balance them dynamically, responding to context rather than defaulting to autopilot.

Scroll through the findings below to see how the leadership shape shifts across different scenarios — and where the balance breaks down.

Performance People Progress Principles

How to read this: Each axis = one leadership dimension. The blue shape shows actual emphasis. The dashed diamond = perfect balance.

Daily Practice

Performance dominates. Principles trail behind.

When organizations rank the 4Ps by actual emphasis in day-to-day leadership, Performance consistently takes the top spot — 49% rank it #1. Principles trails at the bottom, with only 14% giving it top priority.

The dashed diamond on the model represents perfect balance. Notice how far the actual shape pulls upward toward Performance.

#1
Performance
(mean rank 1.91)
#4
Principles
(mean rank 2.94)
Under Pressure

In crisis, leaders reach for Performance

A leader's default becomes most visible under pressure. During organizational stress, 60% steer toward Performance — including 19% who focus exclusively on KPIs and short-term results.

Only 9% report a deliberate shift toward People. Watch the People axis nearly disappear from the shape.

60%
lean toward
Performance
9%
shift toward
People
"In times of crisis, anything seems acceptable as long as it helps deliver the numbers. But the real damage shows over time." — Respondent, Retail Sector
The Toxic Performer

Results trump behavior — 1 in 5 look the other way

The classic test: a top performer delivers results but damages team morale. 45% of organizations lean toward tolerating the behavior. 1 in 5 explicitly state leaders overlook it as long as goals are met.

Only 13% would prioritize team health at the risk of losing results.

45%
tolerate
the behavior
13%
prioritize
team health
Progress vs. Principles

Speed wins over stability

Now we shift to the other axis. When a disruptive market opportunity challenges established procedures, 53% choose Progress — pursuing speed and innovation even at the cost of instability.

Only 5% say procedures always come first. Watch the shape rotate: the tension now runs left-right instead of top-bottom.

53%
lean toward
Progress
5%
would miss
the opportunity
The Closest Call

Ethics: where the balance almost holds

Faced with an ethically ambiguous opportunity, the results are more nuanced. 41% lean toward Progress to capture the market, while 36% prioritize Principles and reputation.

This is the most evenly distributed scenario in the entire study. The shape approaches the balanced diamond — but contextual leadership is still the exception.

41%
lean toward
Progress
36%
lean toward
Principles
The Central Paradox

They see the problem. They perpetuate it anyway.

When asked which dimension needs the most development for the future, 48% say People — nearly five times more than Performance (10%).

The shape flips completely: now People dominates. Organizations know where the gap is. But as you just saw in every pressure scenario, they keep defaulting to Performance.

48%
say People needs
most development
10%
say
Performance
"We invest heavily in systems and processes, but we tend to forget about the human behind the employee." — Respondent, Dutch Public Sector
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Senior Leadership Effectiveness: Room for Growth

When asked to rate how effectively their senior leaders navigate the tensions between all four dimensions, respondents are candid: the average score is just 3.06 out of 5. Nearly a quarter of organizations lack sufficient confidence in their leaders' ability to manage these trade-offs. Only 4% rate their leaders as highly effective.

This appears to reflect not a lack of intent, but rather the absence of a practical framework and the skills needed to consciously adapt to different demands.

The Central Paradox

Organizations acknowledge that People needs the most development for the future (48%), yet the most common leadership derailment comes from overemphasizing Performance at the expense of People (49%). They see the problem. They perpetuate it anyway — especially when the pressure rises.

The Challenges of Tomorrow

There is no clear consensus on the most pressing leadership challenges for the next five years, but several recurring themes stand out: managing AI and technological change, keeping employees motivated and engaged, attracting and retaining talent, developing high-quality leaders, and avoiding short-term thinking.

"The challenge is to retain good people while leaders continue to learn and do not assume they automatically have all the answers."

— Respondent, Manufacturing Sector

Moving Forward: From Awareness to Lasting Change

The survey data points to a concerning pattern: while organizations recognize the importance of developing People, they tend to fall back on a one-sided focus on Performance when pressure rises. In doing so, they reinforce the very imbalance they themselves identify as their greatest leadership challenge.

Needs-Driven Leadership offers a way through this paradox by enabling leaders to respond to context rather than defaulting to autopilot. At its core lies a simple but powerful question: What does this organization — or this team — truly need right now?

The first step toward improvement is recognizing this tension. Only 4% of respondents rate their senior leaders as highly effective in navigating the four dimensions of leadership. This points to the need for both a clear framework and the practical ability to respond consciously to the changing needs of the organization and its people.

Diagnose Your Leadership Balance

Take the free interactive assessment to see where your organization stands on the 4Ps — or download the full research whitepaper.

Take the Diagnostic → Download Whitepaper

About the research: In November 2025, Relevance conducted a qualitative leadership survey among organizations across Europe, spanning 15+ industries. Respondents included senior leaders, HR professionals, and L&D specialists. Full methodology is available in the whitepaper.

Hero photo by Sean Pollock on Unsplash