Issue Flattening hierarchies raise the cost of reactive leadership

Summary

McKinsey warns that leaders who skip the inside-out work of self-reflection risk sliding into reactive decision-making. Reacting to events rather than acting from clear intent erodes their ability to lead with clarity and purpose. The report stresses that this risk grows as organizations flatten hierarchies and cut middle-management roles. At the organizational level, leaders must also create an environment where people feel safe to shape agentic organizations, addressing worries about intellectual property, room to fail fast and learn, and job losses. The recommended response is to help leaders notice when they slip into reactive patterns and return quickly to a creative mindset.