Navigating the new dawn of talent strategy: 5 shifts reshaping work

We have more tools, technologies, and data than ever, yet talent challenges are only growing more complex.AI is reshaping how work gets done, shifting roles and the skills required. Remote and hybrid models continue to redefine how teams collaborate, lead, and build culture. Economic pressure is forcing organizations to do more with less, making talent efficiency a business necessity. And employee expectations are rising people want more purpose, growth, and flexibility than ever before.These shifts aren’t just complicating the landscape; they’re rewriting the rules.For years, talent operated one step removed, supporting strategy, but not shaping it. That worked when business was linear and predictable. Strategy was set at the top, cascaded down, and talent filled the gaps.But that world is gone.Today, strategy shifts in real time. You can’t launch a new go-to-market plan, integrate an acquisition, or drive cultural change without people who are aligned, capable, and ready to deliver. And that readiness can’t be an afterthought, it has to be future-back.That’s why a new kind of talent leadership is emerging, one that moves beyond standalone programs and focuses instead on building integrated systems. It’s a shift from reacting to problems to anticipating what the business will need next; from patching broken processes to designing for performance from the start.In this model, talent strategy is no longer fragmented. It becomes a connected ecosystem where hiring, development, performance, and culture work in sync, aligned to business priorities and built to deliver results. In this environment, integrated talent strategy isn’t just good HR, it’s how business gets done.

The AI revolution and its real-world talent application

AI is revolutionizing how organizations attract, develop, and retain talent. From automating performance reviews and job descriptions to enabling personalized career path development, the promise of AI is clear. However, many warn of a trough of disillusionment. Reality often falls short due to insufficient data, immature infrastructure, and misaligned objectives between business leaders, talent leaders and across functions. Without a clear problem definition, technology risks accelerating misalignment instead of solving meaningful challenges.Organizations must first define the outcomes they seek whether efficiency, insight, engagement, or growth before deploying technology solutions. As AI adoption expands, success will depend on whether organizations match the right tools to the right problems. Having the discipline to make this evaluation will be game-changing when it comes to delivering impact.

Skills-based organizations: substance or semantics?

The rise of skills-based models reflects both a desire for innovation and a rebranding of long-standing HR practices. While the framing may have shifted, the underlying work—job analysis, development planning, and performance alignment remains constant. Many of today’s talent challenges aren’t new; they’re longstanding issues being reframed under new labels.To move the conversation forward, leaders must avoid fixating on language and instead focus on what truly drives performance when it comes to talent models: clear role expectations, relevant development paths, and contextualized application of skills. Prioritizing the right core activities will deliver the talent performance you need, regardless of what it’s called.

Manager capability as the linchpin

The most innovative talent strategies still rely on a critical success factor: the people manager. Whether it’s performance enablement, development conversations, or cultural reinforcement, execution hinges on manager capability.. The success of most talent initiatives ultimately depends on whether managers are equipped to implement them effectively. Manager enablement is the operational layer that determines whether talent strategies deliver impact or stall. Managers also shape the day-to-day experiences that influence engagement, growth, and retention . Investing in scalable, practical, and embedded manager development is essential to unlock the potential of any talent system. Currently this remains a challenge to plan and execute in many companies, while some at the leading edge have leaned into this and are making progress. Looking forward, organizations that prioritize preparing their managers for delivering what’s next will yield more rapid results for the business.

Integrated talent management: moving from silos to systems

Gone are the days when talent functions could operate in isolation. Today’s organizations require an integrated approach that connects succession planning, workforce strategy, learning, performance, and employee experience. For business leaders, the structure of HR functions is secondary to receiving actionable guidance that accelerates hiring and performance outcomes.Achieving true integration means moving beyond siloed initiatives and building a connected system where talent strategies reinforce one another across data, design, and delivery. It’s not about where each piece sits, but how well they work together to deliver consistent, business-relevant outcomes. For example, when identifying successors for executive roles, the best organizations take a systemic approach. They leverage business leader input to nominate high-potentials based on a consistent set of standards. They add rigorous assessment of people and business capability (often using external support) to reduce bias, confirm potential for more complex roles, and identify gaps. They then employ tailored development, run in partnership among the business, talent, and learning with external support, to address identified gaps. This multi-faceted approach incorporates perspectives from the business and HR while leveraging best practices from inside and outside the company, and ties outcomes to business imperatives.

Bringing “Integrated Talent” to life in your organization

Integrated talent refers to the intentional alignment and coordination of all talent-related functions such as hiring, learning, succession, performance, rewards, and workforce planning under a unified strategy that directly supports business goals. Instead of fragmented programs running in parallel, integrated talent strategies are designed and executed as a cohesive system, with shared data, consistent language, and a focus on outcomes that matter to the organization. It’s about designing for the whole employee lifecycle, not just optimizing parts of it in isolation.The most effective partnerships, including those with consultants and external experts, often blur internal and external boundaries, delivering seamless support to business leaders.

Key recommendations for talent leaders to move to an integrated talent approach

So what does it take to lead effectively in this environment? Several key priorities are emerging:

• Understand the evolving business context: Start with a clear understanding of the organizational environment, where the business strategy is going, and the role of culture in supporting growth, before proposing solutions.
• Customize with purpose: Balance tailored approaches with scalable standards to drive consistency.
• Build your internal base: Credibility is built by understanding internal politics, brand sensitivities, and cultural norms.
• Elevate the employee experience: Amid ongoing disruption, meaning, purpose, and psychological safety are essential stabilizers. Make this a priority, and the business will follow.
• Build meta-skills: Leadership development must focus on adaptability, resilience, empathy, and systems thinking; the capacities needed to lead through complexity.
• Develop an enterprise mindset: Today’s talent leaders must be business-centric, fluent in financial and strategic conversations, and capable of integrating disparate talent functions to construct a coherent whole. They must translate data into compelling narratives and foster strong partnerships both within HR and across the enterprise.

Most importantly, talent leaders must see themselves not just as HR professionals, but as organizational architects, designing the systems, cultures, mindsets and experiences that enable growth.

Conclusion: Talent strategy integration isn’t a trend. It’s your edge.

The world of work is not simply changing. It is being fundamentally redefined. Integrated talent strategy is no longer a future aspiration; it is a current imperative. To deliver on this mandate, talent leaders must: align their strategies tightly with business priorities; build managerial capability at scale; and use technology with precision and discipline. They must create strong, trusted partnerships across internal and external boundaries, and focus on clarity over complexity. The siloed HR model has reached its limits. The future belongs to those who embrace integrated talent strategy as a core business driver.

In a world where transformation often feels complex and distant, real progress is often sparked at the community level, through leaders who create change from within.

In Senegal, a partnership between BTS Spark and Tostan, a nonprofit dedicated to community-led development across Africa, is bringing this idea to life. It’s a reminder that sustainable leadership isn’t built by imposing new systems. It grows when people are equipped to lead themselves.

A ground-up approach to lasting change

Since 1991, Tostan—whose name means "breakthrough" in Wolof—has partnered with rural African communities to advance human rights, health, literacy, and economic development. Its Community Empowerment Program (CEP) weaves together practical knowledge and human rights education, enabling communities to define and pursue their own visions of progress.

Across eight countries and more than five million lives, Tostan’s approach has led to deep-rooted changes, including the voluntary abandonment of harmful traditional practices. Not by directive, but by choice.

It’s an approach that shows leadership capacity isn’t something to be delivered from outside. It’s something to be nurtured from within.

Meeting communities where they are

In 2024, BTS Spark deepened its collaboration with Tostan through an in-person leadership workshop, led by a BTS Spark consultant, following a year of virtual engagement.

The visit coincided with a leadership transition at the executive level—a pivotal moment requiring clarity, continuity, and resilience. Through targeted coaching and workshops, BTS Spark worked alongside Tostan’s leaders to support the transition and strengthen leadership capacity at every level of the organization.

The focus wasn’t on delivering a model. It was on listening, amplifying existing strengths, and equipping leaders to navigate complexity with confidence.

Practical tools for complex challenges

As part of the ongoing collaboration, BTS Spark also provided custom-designed micro-simulations focused on sectors vital to community sustainability: climate resilience, microfinance, and agriculture.

These micro-sims offer leaders a chance to engage with real-world decision-making challenges in a safe, practical environment—an approach that mirrors how leadership development increasingly happens: not through theory alone, but through repeated, real-world application.

It’s a reminder that growth is rarely linear. It’s built through practice, reflection, and adaptation over time.

Building leadership that endures

The work between BTS Spark and Tostan reflects a broader truth:

Leadership isn’t confined to titles, industries, or regions. It emerges where people are given the tools, trust, and space to act.

Sustainable change, whether in communities or organizations, happens when leadership capacity is strengthened closest to where challenges are lived every day.

The partnership also highlights the power of investing in local capability: focusing on what’s already working, building resilience from within, and preparing leaders not just to meet today’s challenges, but to shape tomorrow’s opportunities.

Moving forward: Scaling with purpose

The work in Senegal is continuing to evolve. BTS Spark and Tostan are exploring ways to extend leadership development to more communities, deepen their impact, and continue supporting transformation through shared expertise and partnership.

It’s a model rooted in respect, collaboration, and the belief that leadership is most powerful when it reflects the realities and aspirations of the people closest to the work.

AI is reshaping how work gets done—automating tasks, accelerating decisions, and raising expectations for speed and precision. Strategy is shifting faster than structures can adapt, leaving many leaders operating in systems that weren’t built for what’s being asked of them now. Employees are asking more of their managers—while the business is asking more of them, too. And leaders are stuck navigating it all with development priorities, operating norms, and support systems that weren’t designed for this level of speed, ambiguity, or stretch.

As expectations rise, leadership capability is under scrutiny.

But are development efforts evolving fast enough to meet the moment?

Where priorities and expectations diverge

Most leadership development programs today emphasize foundational strengths:

• Executive presence
• Personal purpose
• A growth mindset
• Empowering others
• Stretching others

In contrast, senior executives in the BTS study identified a different set of capabilities as most critical for leaders right now:

• Accountability
• Transparency
• Enterprise thinking
• Divergent thinking

The contrast reveals a disconnect between what development programs are building—and what executives believe their organizations need most from their leaders today.

How did we get here?

The expectations placed on leaders—especially at the middle—have always evolved alongside the business landscape.

In the 1990s, leadership development focused on emotional intelligence and team empowerment. The 2000s brought globalization and lean operating models, with a sharper focus on efficiency and agility. Then came digital transformation, agile ways of working, and flatter, more matrixed structures.

Each wave expanded the leadership mandate—asking leaders to become connectors, coaches, and change agents.

What’s different now is the pace and proximity of change. Strategy no longer shifts annually—it flexes monthly. And mid-level leaders are no longer simply executing someone else’s vision. They’re expected to interpret it, shape it, and deliver results through others—in real time.

At the same time, the psychological contract of work has changed. Employees want more meaning, flexibility, and support—and they often look to their managers to provide it. Add in the rise of AI and the frequency of disruption, and the expectations placed on leaders have outpaced what many development efforts were designed to support.

What’s driving the disconnect?

What we’re seeing isn’t disagreement—it’s a difference in vantage point, shaped by the distinct challenges each group is solving for. This isn’t about misaligned intent—it reflects different priorities and pressures.

Talent and learning teams often prioritize foundational capabilities because they’re proven, scalable, and critical to developing confident, human-centered leaders. These programs are designed to grow potential over time.

Executives, meanwhile, are focused on the immediacy of execution—strategy under strain, shifting priorities, and the need for alignment at speed. Their focus reflects where progress is stalling now.

Both perspectives matter. But when they remain disconnected, development risks falling out of sync with business reality—and the gap is most visible at the middle, where expectations are rising fastest.

What’s the takeaway for talent leaders now?

This moment offers more than a gap to close—it offers insight into how leadership needs are evolving.

What if the differences between these two capability lists aren’t in conflict, but in sequence? Foundational strengths help leaders show up with purpose and empathy. Enterprise capabilities help them lead across systems and ambiguity. The opportunity isn’t to choose between them—it’s to connect them more intentionally.

What’s uniquely now is the acceleration. The stretch. The pressure to reduce friction and support faster alignment. Talent leaders aren’t just being asked to build capability—they’re being asked to build momentum. That means designing development experiences that reflect complexity, enable cross-functional thinking, and help leaders decide and adapt in real time.

It also means listening more closely. The capabilities executives are calling for aren’t just wish lists—they’re signals. Signals of where transformation slows, and where leadership must evolve for strategy to move forward.

This isn’t about shifting away from what works—it’s about expanding it. To connect what leaders already do well with what the business needs next—and to do it in ways that are grounded, human, and built for today’s pace.

Shifting momentum

Leadership development isn’t just a pipeline priority. It’s a strategic lever for how your organization adapts, aligns, and accelerates through change.

This research doesn’t just reveal a skills gap—it surfaces a systems opportunity. The disconnect between talent priorities and executive expectations highlights where momentum gets lost, and how leadership development can close the space between vision and execution.

Talent leaders are uniquely positioned to reconnect the dots—between individual growth and enterprise outcomes, between what leaders learn and how they lead, between what the business says it needs and how that shows up in behavior.

So the next question isn’t just: What should we build?

It’s: How do we enable leaders to build it into the business—faster?

Every organization is navigating this differently. If you’re revisiting your development priorities or rethinking what leadership looks like in your context, let’s connect. We’re happy to share what we’re seeing—and learning—with others facing the same questions.

Each business revolution has reshaped not only how businesses operate, but how they organize themselves and empower their people. From the industrial age to the information era, and now into the age of artificial intelligence, technology has always brought with it a reconfiguration of authority, capability, and judgment.

In the 19th century, industrialization centralized work and knowledge. The factory system required hierarchical structures where strategy, information, and decision-making were concentrated at the top. Managers at the apex made tradeoffs for the greater good of the enterprise because they were the only ones with access to the full picture.

Then came the information economy. With it came the distribution of information and a need for more agile, team-based structures. Cross-functional collaboration and customer proximity became competitive necessities. Organizations flattened, experimented with matrix models, and pushed decision-making closer to where problems were being solved. What had once been the purview of a select few, judgment, strategic tradeoffs, and insight became expected competencies for managers and team leads across the enterprise.

Now, AI is changing the game again. But this time, it’s not just about access to data. It’s about access to intelligence.

Generative AI democratizes access not only to information, but to intelligent output. That shifts the burden for humans from producing insights to evaluating them. Judgment, which was long the domain of a few executives, must now become a baseline competency for the many across the organization.

But here’s the paradox: while AI extends our capacity for intelligence, discernment, the human ability to weigh context, values, and consequence, is still best left in the hands of human leaders. As organizations begin to automate early-career work, they may inadvertently erase the very pathways and opportunities by which judgment was built.

Why judgment matters more than ever

Deloitte’s 2023 Human Capital Trends survey found that 85% of leaders believe independent decision-making is more important than ever, but only 26% say they’re ready to support it. That shortfall threatens to neutralize the very productivity gains AI promises.

If employees can’t question, challenge, or contextualize AI’s output, then intelligent tools become dangerous shortcuts. The organization stalls, not from a lack of answers, but from a lack of sense-making.

What organizations must do

To stay competitive, organizations must shift from simply adopting AI to designing AI-aware ways of working:

• Build new learning paths for judgment development. As AI replaces easily systematized tasks, companies must replace lost learning experiences with mentorship, simulations, and intentional development planning.

• Design workflows that require human input. Treat AI as a co-pilot, not an autopilot. Embed review checkpoints and tradeoff discussions. Just as innovation processes have stage gates, so should AI analyses.

• Make judgment measurable. Assess and develop decision-making under ambiguity from entry-level roles onward. Research shows the best learning strategy for this is high-fidelity simulations.

• Start earlier. Leadership development must begin far earlier in career paths, because judgment, not just knowledge, is the new differentiator.

What’s emerging is not just a flatter hierarchy, but a more distributed sense of judgment responsibility. To thrive, organizations must prepare their people not to outthink AI, but to out-judge it.

P R E S S R E L E A S E
Stockholm, May 5, 2025

STOCKHOLM, SWEDEN – BTS Group AB (publ), a leading global consultancy specializing in strategy execution, change, and people development, has agreed to acquire Nexo Pesquisa e Consultoria Ltda., Nexo, a boutique consulting firm headquartered in São Paulo, Brazil.

Nexo has been growing continuously since it was founded in 2017. With revenues of approximately 12 million Brazilian Reales (approx. 2.1 million USD) in 2024, and a highly capable team of 21 members, Nexo has built a strong reputation for delivering transformative projects in strategy, innovation, leadership, and culture.

Nexo collaborates with a great portfolio of clients across sectors such as financial services, consumer goods, and technology, assisting both local and global companies in navigating uncertainty, unlocking creativity, and activating strategy through people. Their work encompasses culture transformation, leadership development, employer value proposition, innovation culture, and vision alignment – supported by proprietary methodologies and frameworks.

BTS currently operates in Brazil servicing both local and multinational clients with a team of 13 employees. By acquiring Nexo, BTS not only increases the Group’s footprint in Brazil but also adds significant capabilities in culture and transformation services. Nexo’s client base has limited overlap with BTS, creating strong growth potential and synergy opportunities.

“Nexo is known for helping leaders and organizations tackle some of the most complex, human-centered challenges with creativity, empathy, and strategic clarity and the Nexo team is loved by their clients,” says Philios Andreou, Deputy CEO of BTS Group and President of the Other Markets Unit. “Their products and services complement and elevate our existing offerings, especially in culture transformation, and we are thrilled to welcome the Nexo team to BTS.”

“We’re excited to join BTS. We’ve long admired BTS’s approach and unique portfolio to support large organizations and leaders in connecting strategy with culture across the organization,” says Andreas Auerbach, co founder of Nexo. “Becoming part of BTS, allows us to scale our impact and bring more value to our clients while staying true to our values and culture,” adds Mariana Lage Andrade, co-founder of Nexo.

Upon completion of the transaction, Nexo’s business and organization will merge with BTS Brazil. Nexo’s founders will assume senior management roles in the joint operation.

The acquisition includes a limited initial cash consideration. Additional purchase price considerations will be paid between 2026 and 2028, provided Nexo meets specific performance targets. A limited portion of any such additional purchase price considerations will be paid in newly issued BTS shares. The transaction is effective immediately.

BTS’s acquisition strategy continues to focus on broadening our service portfolio, expanding our geographic reach, and enhancing our capabilities to support future organic growth in a fragmented market.

For more information, please contact:
Philios Andreou
Deputy CEO
BTS Group AB
philios.andreou@bts.com

Michael Wallin
Head of investor relations
BTS Group AB
michael.wallin@bts.com
+46-8-587 070 02
+46-708-78 80 19

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Work today is too complex for individuals to succeed in isolation. Almost every critical decision, innovation, or transformation depends on teams working effectively together. Leaders rely on their teams to deliver results. Teams, in turn, rely on their leaders to create the conditions where performance is possible. This exchange, what leaders need from their teams, and what teams need from their leaders, sits at the heart of what we call teaming.

When teaming is strong, leaders get what they need from their teams [creativity, resilience, execution] and teams get what they need from leaders [direction, support, and the conditions to thrive]. It’s how strategy becomes action, how uncertainty becomes opportunity, and how businesses stay competitive in a fast-changing world.