It’s new leadership model season.

You know the one. The time of year when organizations quietly escort the leadership model they spent hundreds of millions of dollars developing out the back door, after years of training, posters, laminated wallet cards, and town halls, and replace it with something bold, modern, and urgently necessary.

Over the past few weeks of the new year, it seems like half the conversations I’m in are about “refreshing,” “reimagining,” or “reinventing” leadership development.

But why?

The cynic in me says this: with all the turnover in talent development and HR leadership, the safest path to job security is to declare whatever exists as “outdated,” hire a consulting firm, spend a year (or two) designing a new leadership model, and then launch a massive training initiative to roll it out.

Mission accomplished. Rinse and repeat.

But that’s not the whole story. And it’s not even the most important part.

The real reason leadership models are getting blown up is that the world leaders are operating in has fundamentally changed; economically, politically, socially, technologically, and operationally. The gap between what leaders are trained to do and what they are actually required to do has become painfully obvious.

So yes, companies do need new leadership models in 2026, but not for the reasons most decks suggest.

Here are five practical reasons that actually matter.

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Business acumen shows up everywhere.

Not just in how you read a P&L. Not just in how you allocate capital. Not just in how you talk about strategy in an offsite. And, not just how you measure business performance.

At a very practical and tactical level It shows up in how you run meetings.

And in 2026, when most work happens in a virtual or hybrid environment, meetings are no longer a “soft skill.” They are one of the most expensive operating systems inside your company.

Think about it.

Every meeting consumes:

• Fully loaded labor cost
• Opportunity cost
• Cognitive energy
• Attention (which has become the scarcest resource in business)

Yet somehow, meetings are treated as “free” or without cost and investment.

As we all hopefully know, they’re not.

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The business unit President was energized as he wrapped up a business acumen learning workshop that had run three hours a day for three straight days.

Not because everything went smoothly.

Not because the feedback scores were strong (though they were).

He was energized because the conversations were different.

They were more real. More uncomfortable. More grounded in the actual pressures his leaders were facing every day.

As he closed the session, he shared a few reflections that stuck with me. He talked about how the business environment has never been tougher. How the pressure to succeed has never been greater. And how every single person in the organization needs business acumen and the ability to make good decisions.

Then he paused and landed the message.

“This isn’t optional. This isn’t nice to have. This is serious business.”

He was right.

Business acumen isn’t an academic exercise. It’s not an abstract finance class. And it’s definitely not an “after-school activity” for people who don’t have real work to do. It’s the difference between organizations that execute under pressure and those that slowly bleed margin, talent, and credibility while everyone stays busy.

That’s why business acumen skills are serious business.

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Revenue, the “top line,” is the most visible number on the income statement and often the most misunderstood internally and externally. Investors evaluate it, executives forecast it, boards demand it, and teams around the organization are measured against it. Yet inside many organizations, revenue is treated as something Sales “goes out and gets,” rather than something the entire business system supports.

Ask a leadership team how to grow revenue, and the first answers typically point to Sales tactics. But companies don’t miss revenue targets because they lack closers; they miss them because value isn’t clear, pricing isn’t defended, products don’t perform, demand isn’t generated, customers don’t stay, or operations cannot fulfill. Revenue problems are rarely sales problems; they are system problems hiding in plain sight.

That simple misunderstanding drives expensive behaviors: discounting, promotions, quarter-end pushes, and reactive heroics that hit numbers but don’t build durable growth. Sustainable revenue comes from a broader set of forces: value creation, pricing power, product quality, customer experience, fulfillment, and organizational capability.

In other words, revenue is not just a sales number; it is the output of how well the business actually works. To improve revenue, employees must understand the system that creates it. These are the primary drivers.

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Welcome to 2026 and Happy Business Acumen!

In my opinion, there are a few recent corporate stories that offer as many business acumen lessons as what has happened to Kraft Heinz, which I think you will find fascinating and will get your brain back on the business acumen track.

In our business acumen workshops, we teach participants to understand three foundational elements of any business:

• Strategy – How the company chooses to compete and win
• The value proposition – Why customers choose one product or brand over another
• Financial management – The scoreboard that ultimately measures revenue growth, profitability, free cash flow, and shareholder value

Many of our award-winning business simulations are intentionally grounded in reality. They are not abstract exercises; they are built from real companies, real industries, and real leadership dilemmas.

One of the most classic and challenging scenarios embedded in many of our simulations cuts across industries:

How do leaders manage a large, legacy business when competitors are nipping at their heels?

When you are the incumbent, the choices are rarely simple. Do you defend margins or invest for growth? Cut costs or reinvest in innovation? Protect scale advantages or disrupt yourself before someone else does? Every option carries risk, and none come with guaranteed outcomes.

The Kraft Heinz story is not about a single bad decision. It is about years of small, defensible decisions that compounded into strategic drift. That is exactly why it is such a powerful business acumen case.

From this story, I see five critical lessons that apply far beyond packaged products and should resonate with leaders in almost any industry:

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