Driving Lasting Change: Inclusive Leadership and the Power of Influence

When I look back over my 27 years in the financial services industry, I have witnessed and often been part of, a tremendous amount of change. Such changes included two major acquisitions and mergers, setting up a new banking entity, cultural change initiatives as well as smaller scale changes through local project implementations.

What I learned is that not all change is created equal. As has been the experience of many other organizations, we didn’t consistently implement our change effectively. According to McKinsey and Deloitte, about 70% of workplace change initiatives fail. It will come as no surprise, therefore, that I can recall many instances where there was a lack of alignment between leadership and the teams implementing change, something that also undermines corporate well-being and makes it far more challenging to embed and sustain the change as time progresses. 

Where leadership took an inclusive approach, however, openly and transparently communicating the importance and the benefits of the changes to everyone, showing their wholehearted commitment to the change, inspiring others, and taking on feedback, as well as effectively collaborating to achieve the outcomes, that change was easier to implement. These outcomes were also the most successful by far.  

In today’s workplace, change is a constant. It’s a continuous current that shapes how organizations operate, compete, and evolve. The rapid rise of AI, demographic shifts, new business models, and the aftermath of global disruptions have accelerated the pace of transformation across every sector. Navigating this dynamic environment requires so much more than issuing directives from a position of authority when leading change. It calls for influential leadership that is built on an ethos of inclusivity, empathy, and the power to influence rather than merely command. Here we’ll examine how organizations can drive and sustain meaningful change through the principles of inclusive leadership and the art of influence. We’ll discuss why command-and-control models are no longer relevant, examine inclusive leadership principles, and explore practical ways leaders can inspire their teams to adopt sustainable change.

The Magnitude and Pace of Change in Today’s Workplace

Change is occurring at an unprecedented rate. We live in a volatile, uncertain, complex, and ambiguous (VUCA) workplace and world, as evidenced by a few recent statistics and trends:

Disruption Index

The 2025 AlixPartners Disruption Index, which measures the magnitude and complexity of challenges that businesses are facing, was at 73 this year, reflecting a high level of complexity and challenge for businesses globally. CEOs across various industries recognize the need for speed and adaptability to keep pace with technological advancements and shifting demographics.

AI’s Impact

In 2024, JP Morgan’s Global research report estimated AI could add 10% to global GDP in the near future, fundamentally altering roles and skills in all industries.

Reskilling – A Core Expectation 

Over 40% of executives believe businesses must reskill staff to meet evolving demands. The Google Cloud AI Business Trends Report, 2025, states that emerging technologies are expected to create 11 million jobs and displace 9 million globally within the next five years. More change is inevitable, and its sheer scope demands new strategies that employ different forms of influential leadership, especially when balancing power vs. influence in practice.

Power vs. Influence: Which Delivers Change More Effectively?

Firstly, these social concepts are distinct in nature and effect.

Definition of power

Power can be defined as the capacity to direct action or enforce compliance based on authority or position. This is typically done via formal authority, rules, and hierarchies that command results and may well generate resistance and disagreement.

Definition of Influence

Influence is the ability to shape others’ thoughts, behaviors, or choices through building relationships, inspiring, and persuading people. It is created by building trust, establishing credibility, fostering collaboration, and setting an example for others, which can inspire voluntary commitment, higher levels of engagement, and greater creativity.

Leaders who rely solely on positional power may be able to achieve short-term compliance, but those who build influence lay the foundation for adaptive and sustainable organizations.

The Command-and-Control Structure: Outdated and Counterproductive

Historically, organizations operated with rigid hierarchies where authority flowed from the top. The command-and-control model provided stability, clarity, and predictable processes. But the same attributes now inhibit the agility and innovation essential in today’s world by:

• Eroding Trust: When decisions are made in isolation and passed down, frontline employees feel undervalued, disconnected, and less likely to buy into change.
• Stifling Creativity: Strict compliance with established rules and resistance to new ideas limit innovation. Employees lack the psychological safety to experiment or voice dissent.          
• Generational Shift: Millennials and Gen Z demand purpose, collaboration, and inclusion; they quickly become disengaged in rigid hierarchies.

Organizations that fail to shed the old paradigm often find themselves losing talent, missing opportunities, and falling behind more adaptable competitors.

The Principles of Inclusive Leadership

Inclusive leadership is the powerful alternative that is needed to effectively implement change, unlocking the full potential of teams by making everyone feel seen, heard, and valued. Core principles include:

1. Active Listening and Empathy

• Leaders listen deeply to understand concerns, motivations, and aspirations.
• Empathy builds trust, enabling people to speak honestly and contribute their best.

2. Ensuring Every Voice is Heard

• Diverse ideas and perspectives are intentionally solicited and valued
• Team members feel psychologically safe to share new solutions or constructive dissent.

3. Creating a Sense of Belonging and Appreciation

• Individuals are recognized for both their unique talents and their collective contribution.
• Regular feedback and appreciation reinforce a culture of value and support.

4. Collaboration and Mutual Support

• Teams are encouraged to work together, leverage their differences, and build on each other’s strengths.
• Collaboration elevates creativity and problem-solving abilities.

5. Courage to Challenge the Status Quo

• Inclusive leaders speak up for equity, address bias, and champion inclusive practices.

The Importance of the “Why”: Connecting Meaning with the Change

Change is rarely adopted successfully if people don’t understand its purpose or relevance to them. Simon Sinek’s “Start With Why“ philosophy is echoed in change management research: meaningful transformation begins when leaders communicate not just what is changing, but why it matters.

Clarity of Purpose: Articulating a positive vision and intended impact anchors change in shared values and purpose.

What’s In It For Me (WIIFM): Employees need to understand personal and collective benefits, from skill development to greater organizational relevance, to embrace change willingly.

Inclusive Communication: Effective leaders tailor messages and channels to different audiences, ensuring everyone feels acknowledged and informed.

Communicating for Inclusion

Communication is at the heart of inclusive change leadership:

• Leaders who use clear, jargon-free language and multiple channels: town halls, one-on-ones, and feedback loops will be better able to reach everyone.
• Messaging should acknowledge diverse perspectives, invite input, and transparently address concerns.
• Language that intentionally avoids assumptions and jargon and models respect for all roles and backgrounds is vital.

Robert B. Cialdini is an expert on influence, and in his book, “Influence,” he discusses seven principles of persuasion. Arguably, all leaders leading change would do well to apply many of these principles as part of their change leadership strategies.

Robert Cialdini’s research into persuasion reveals that people are motivated not by orders, but by social and psychological triggers that inclusive leaders can leverage as they lead and implement change:

• Reciprocity: People respond positively to generosity and genuine support.
• Commitment & Consistency: Publicly stated intentions increase follow-through.
• Social Proof: People are influenced by the actions and buy-in of their peers.
• Authority: Expertise (not just title) boosts credibility.
• Liking: Leaders who are inclusive and authentic, approachable, and show empathy, naturally inspire.
• Scarcity: Opportunities perceived as unique or urgent focus attention and motivation.
• Unity: Shared identity and vision foster alignment and loyalty. Inclusive leaders who harness these principles by building trust, creating a sense of team, and modeling behavior worth following through authentic, values-based influence, not by wielding their status, will significantly increase their chances of successfully leading change.

Inspiring With a Compelling Vision: The Role of Inclusive Leaders

Change is often very unsettling for many. Successful leaders offer hope and purpose:

• Painting a Positive Future: Leaders describe a future worth striving for, linking organizational goals with personal growth and meaning.
• Modeling Optimism: By showing confidence and resilience, leaders reassure teams through uncertain times.
• Inviting Co-Creation: When employees help build the vision, they are bought in and become champions of change.

Navigating Emotion: The Kübler-Ross Change Curve

Change can also be deeply emotional. Professor Elisabeth Kübler-Ross’s Change Curve describes the stages people typically move through when faced with major transitions:

1. Shock: Disbelief and uncertainty.
2. Denial: Pretending nothing has changed.
3. Anger: Resentment about disruption or loss.
4. Bargaining: Attempting to regain control or reverse change.
5. Depression: Feeling overwhelmed and powerless.
6. Acceptance: Coming to terms with the new reality.
7. Problem-Solving: Engaging constructively to adapt and thrive.

Inclusive leaders recognize and support their team at every stage of the change process, listening actively, providing reassurance, and offering space to process change. This empathy accelerates progress toward acceptance and creative adaptation.

Why Inclusive Leadership Is Critical for Sustainable Change

The benefits of inclusive and influential leadership are many, particularly in a multi-generational, diverse workforce, and include building:

• Greater Trust: Open, empathetic leadership forges stronger relationships and loyalty.
• Higher Engagement: Inclusion creates buy-in, amplifies motivation, and reduces resistance.
• Faster Adoption: People support what they help build.
• More Innovation: Diverse perspectives fuel creativity, adaptiveness, and resilience.         

Conversely, relying on power vs influence as a framework may secure temporary compliance but has the potential to breed resentment, stifle initiative, and undermine long-term results, especially in today’s fast-moving, highly competitive world.

Inspiring Sustainable Change Through Inclusive Leadership

In a world defined by volatility, uncertainty, complexity, and ambiguity, sustainable organizational change can’t be commanded into existence, it must be inspired, co-created, and nurtured. Inclusive leadership, grounded in empathy and influence, is now an operational imperative. It is essential for organizations seeking to thrive in a rapidly changing business landscape to have effective leadership training.

By listening to and valuing every voice and building genuine buy-in, leaders empower teams to innovate, adapt, and thrive amid disruption. Organizations that foster inclusive cultures not only achieve their change goals, they build workplaces where people want to stay, grow, and thrive by contributing their best work every day.

Positional power is yesterday’s answer to yesterday’s challenges. The leaders of today (and tomorrow) will succeed not by exerting control, but by cultivating trust, fostering a sense of belonging, and inspiring their teams by sharing a vision for a better future.

How will you trade your positional power as a leader for a more inspiring form of influence this week, to support the change happening in your organization? If you’re looking for a place to start, WORKWELL Labs is the place to be.