Could courage be the essential differentiator in 2026?

That’s the question on my mind as we enter this new year.

I’ve been thinking about it after reading How to Be Bold by Harvard Business School professor Ranjay Gulati — and more broadly, in conversations with leaders over the past year. Volatility no longer feels episodic. It has become a given, both in life and in business. Decisions feel heavier. The consequences of action and inaction feel more visible.

What’s striking is that this isn’t because leaders care less or are less capable. In many ways, the opposite is true. They’re more thoughtful, more aware of trade-offs, more conscious of impact. And yet, many find themselves waiting — not because they don’t know what to do, but because taking the decision doesn’t feel safe.

I was first drawn to Prof Gulati’s earlier book, Deep Purpose, because it treated purpose not as aspiration or storytelling, but as discipline — the ability to stay anchored when convictions are tested by real trade-offs. Much of his work on scaling organisations and startups examines a related challenge: why growth so often stalls not due to a lack of opportunity, but because leaders hesitate at precisely the moments when forward movement is most needed.

How to Be Bold builds on this thinking – an excellent and timely book. Instead of asking what leaders should do differently, it explores what leaders need internally to keep moving when outcomes are uncertain and fear is present.

One idea from the book stayed with me.

That distinction matters. Many capable leaders today aren’t paralysed; they’re cautious. They’re waiting to feel more confident before acting. And in the meantime, energy dissipates and opportunity passes quietly by.

Courage is what unlocks movement — for individuals and for organisations.

Which raises a useful question as we begin 2026.

What if the most important leadership habit this year isn’t productivity or optimisation, but practising courage — one intentional action at a time?

Every January, leaders reach for familiar resolutions: be more strategic, communicate better, execute faster. All worthy goals. Yet “be braver” rarely makes the cut. Maybe it feels too abstract. Maybe we assume it’s an inborn trait — you either have it or you don’t.

Prof Gulati’s research suggests otherwise. Equipped with courage, leaders can shift from hesitation to action, from retreat to forward momentum. His work shows that companies that make bold moves during recessions — cutting costs where needed, but still investing in growth — tend to emerge stronger in the long run, even when every instinct tells them to play it safe.

So as we step into 2026, it feels worth exploring courage more closely.

What does it actually look like to lead with courage?
How does it show up in everyday decisions?
And how can leaders build this habit deliberately, rather than waiting for it to appear?

Courage as a daily choice

When you hear “courage”, what’s the first thing that comes to mind? Most people, I suspect, picture a dramatic event – perhaps running into a burning building to save lives or fighting off a gang of thugs.

But is that the only form of bravery?

In his piece for the Harvard Business Review, Alex Budak challenges the notion that courage is a heroic trait reserved for crises or extraordinary people. Instead, he reframes it as something far more practical and learnable: a set of daily, values-aligned behaviours, practiced consistently in the face of pressure and uncertainty.

This “everyday courage” doesn’t announce itself with loud speeches or grand gestures. It reveals itself in smaller moments: how a leader speaks an uncomfortable truth, owns a mistake or responds to dissent. How willing they are to try something potentially risky – or to stand by their values when it would be easier not to. Over time, these small choices compound, shaping not only the leader’s individual credibility but also the culture of the company itself.

Budak breaks down “everyday courage” into six categories, showing how routine actions invite leaders to strengthen this skill:

• Moral courage is acting on your values, even when it costs you. Build it by naming your values and making them visible. Budak advises making a moral pre-commitment; for example, drafting if/then statements for high-stakes scenarios.
• Social courage is speaking up when the room prefers silence. Nurture it by sharing your convictions and inviting others to do the same. Reward team members who raise principled dissent and go against the grain.
• Emotional courage is staying present with discomfort instead of dodging it. Cultivate it by being honest about your feelings and taking accountability for them. Instead of deflection or avoidance, learn to sit with negative emotions.
• Intellectual courage is questioning your own thinking to get better answers. It means admitting doubt, upturning assumptions and inviting opposing perspectives. Separate identity from ideas to create an environment of trust and innovation.
• Creative courage is expanding your vision of what might be possible. Enhance it by being curious and creating space for risks. Lower the stakes for bold ideas by running small-scale experiments to drive rapid learning and progress.
• Physical courage is showing up when conditions are uncomfortable or even risky. Foster it by putting yourself in tough situations – from unsettling meetings to cliquey social gatherings. Carve out time for visits to the frontline.

Practical strategies to build courage

Going beyond the popular image of courage – fearless, instinctive, almost genetic – Prof Gulati’s work draws on decades of research across psychology, economics and neuroscience to reach a different conclusion: courage can be learned.

What separates daring leaders from hesitant ones isn’t always temperament. It’s often preparation. Bravery grows when we cultivate the capacity to act despite ambiguity and risk. That capacity is strengthened through repetition, not personality.

Prof Gulati shares five strategies that help leaders be bolder under pressure. Together, they form a practical, modern playbook for everyday courage.

1. Rewrite the Story.

The first step is changing the narrative. Puncture looming fears by naming potential threats and planning for them. Reduce the mystery around the unknown to make it more manageable. Many leaders also choose to ground their decisions in moral principles or personal belief systems, which helps them persist when outcomes are unclear or unpopular.

2. Build Confidence Before You Need It.

Spontaneous bravado will only carry you so far. Prepare in advance to create the self-confidence you’ll need to act decisively during disruptive events. Leaders who develop deep expertise in their domain – to the point where it becomes second nature – trust themselves to respond competently when plans fall apart. Just as important, a diverse problem-solving toolkit equips you to handle complex challenges when standard playbooks fall short.

3. Take Small, Reversible Steps.

Courageous leadership doesn’t require giant leaps. It often starts with low-regret moves that reveal clarity and meaning. When a crisis hits, Gulati advises leaders to tune into mindfulness and ask sense-making questions like: What am I facing here? Whom can I call in to help and advise me? What immediate steps can I take to better understand what’s going on?

Seek out information, develop a hypothesis and continue to refine it as the story unfolds. But remember: progress comes from motion, not certainty. So go ahead and take that first step, even if you don’t know everything yet. Move forward while staying curious and being ready to pivot.

4. Borrow Strength from Others.

Despite the mythology, courage is rarely a solo sport. Leaders who surround themselves with trusted allies and mentors act more decisively. Moral and emotional support reinforces confidence; practical support expands resources and options. Gulati also notes the importance of having constructive critics around you:
When you allow others to judge your choices and point out contradictory signals, you’ll have more confidence in your ultimate course of action.

5. Stay Regulated.

Fear narrows thinking by triggering the “freeze, flight or fight” instinct. Leaders who learn to regulate their emotional state – through rest, rituals and reframing – make better decisions under stress. Limit fear’s grip by reconsidering uncertainty over a longer horizon. Map a range of possible futures to see more than just worst-case outcomes. This approach doesn’t deny risk. It puts it in context, helping you respond with perspective rather than panic.

If there’s one idea worth sitting with as we head into 2026, it’s this: courage isn’t something you either possess or lack. It’s something you build.

Let’s accept that we now live in a volatile world. Feeling uneasy in the face of these shifting realities isn’t a leadership failure; it’s a human response. The real question is what happens next.

Courage shows up in those small moments after fear appears. Not as bravado or recklessness, but as a willingness to move when waiting feels safer. When leaders consistently choose to act in values-aligned ways, they strengthen courage – not as a dramatic gesture, but as a daily habit.

These leaders inspire others not by urging them to “be brave”, but by how they embody courage themselves – taking ownership, making thoughtful bets and acknowledging uncertainty without surrendering to it. That’s how confidence returns. That’s how teams move from protecting ground to playing to win again.

The invitation here isn’t to take bigger risks. It’s to take more intentional ones. To notice when fear is stalling decisions – and to choose one small step forward instead. Do that often enough, and courage stops feeling exceptional. It becomes cultural.

And in a world that rewards motion over hesitation, that may be the most durable advantage a leader can build.

PS For those who want to explore this topic more deeply, I strongly recommend getting a copy of Prof. Ranjay Gulati’s How to Be Bold.