Harvard Business Review LogoJune 17, 2026Illustration by Vasya KolotushaThe seven shifts that define the move from functional to enterprise leadership remain similar to those introduced in a classic 2012 HBR article. But today’s dynamic business environmentThe transition from functional leader to enterprise leader has always been difficult. But the nature of the difficulty has both changed and increased. The executives I work with today face challenges that barely existed a decade ago: governing AI systems they only partially understand, operating across borders where the regulatory and political ground shifts quarter to quarter, and arriving in enterprise roles with fewer of the preparatory experiences that once eased the leap. The skills that matter most in these transitions have quietly but substantially shifted.
3 Forces Are Redefining the Transition from Manager to Leader
The seven shifts that define the move from functional to enterprise leadership remain similar to those introduced in a classic 2012 HBR article. But today’s dynamic business environment means that the shifts now require different capabilities. Generative AI, geopolitical instability, and a compressed leadership pipeline have made organization-spanning jobs more complex, forcing leaders to exercise judgment amid algorithmic uncertainty, regulatory volatility, and less preparation. As a result, they must do more than broaden their business perspective: they must govern human-AI decision systems, practice dynamic rather than static strategy, design hybrid operating models, and cut through noise to set a few priorities. Organizations must also change their development and assessment practices to give high potentials more exposure to AI governance, geopolitical complexity, and enterprise-level trade-offs.
