Traditional management may slow growth in 2026

As 2026 approaches, a running theme across commentary for the new year, is that the old way of running a business – with rigid plans, slow decision-making and endless hierarchy – no longer serves organisations. Tom Loosemoore, partner at Public Digital, explains that business leaders are operating in an era of relentless change, marked by rising cyber threats, AI transformation, and unpredictable markets.

Uncertainty is no longer a passing phase for British business; it is the defining condition of our era. The consulting industry, so often the bellwether for wider economic and organisational trends, finds itself at the sharp end of this reality.

Having spent years working in and alongside large and complex institutions, from co-founding the UK’s Government Digital Service to leading digital transformation at organisations like the Co-operative Group and the BBC, I’ve seen how quickly even the best laid plans can be overtaken by events. Technology is evolving at a pace that outstrips most strategic planning cycles, cyber threats are multiplying, and the aftershocks of global events continue to reshape the landscape in ways that even the most seasoned leaders struggle to anticipate.

In this context, the greatest risk facing organisations is not a lack of vision or ambition, but the temptation to cling to operating models optimised for a world that no longer exists.

For decades, the consulting sector has thrived on its ability to bring clarity and structure to complexity. The classic operating model, with neat diagrams and carefully mapped processes, has been the backbone of countless transformation programmes. These models offered comfort, a sense of control, a promise that with enough planning, the future could be tamed. Yet, as we approach 2026, it’s clear that the rigidity that once made these models so attractive has become their fatal flaw.

The consulting industry is undergoing profound change, as artificial intelligence moves from a peripheral trend to a defining force. AI is fundamentally reshaping how organisations operate, compete, and deliver value. It cannot be treated as a siloed pilot or bolt-on tool, but must be a core capability embedded across the modern operating model.

Clients now expect more than advice; they want partners who can help them adapt in real time. This is a shift I’ve observed repeatedly across both public and private sectors, where long delivery cycles and static plans simply cannot keep pace with change. The ability to learn fast, pivot confidently, and respond to change is now essential.

This is where the dynamic operating model comes into its own. Unlike the static frameworks of the past, it is built on constant adaptation, developing the organisational muscle to respond to whatever the future brings. In practice, this means robust feedback loops, empowered teams, and a willingness to learn quickly.

Shifting reality

The pandemic was a brutal demonstration of this shifting reality whereby fluidity is key to sustainable success. In working with organisations responding to crisis conditions, it became clear that organisations that had invested in adaptability, with multidisciplinary teams, outcome-based decision-making, and agile governance, were better placed to respond to the crisis, recover faster from setbacks, and spot new opportunities.

A clear example is the NHS Vaccination Service established during Covid-19, which was rapidly formed using these principles, bringing together policy, clinical, digital and operational expertise to deliver at national scale under extreme pressure. Ultimately, those who clung to the old ways found themselves outpaced and, in some cases, out of business.

The consulting industry sits at the centre of these pressures and cannot credibly advise clients without first confronting them internally. To stay ahead, consultancies must become more dynamic, modelling the behaviours and mindsets they seek to instil. In practice, this means treating AI not as an afterthought, but as a trusted team member – both within consulting teams and when supporting organisations to redesign their operating models. It also requires making deliberate choices about what AI should do, what humans must own, and putting governance in place to ensure trust and explainability at every step.

A dynamic operating model is not a theoretical construct. It is a practical approach to organising work, making decisions, and delivering value. It means structuring teams around outcomes rather than functions, empowering people at every level to experiment, learn, and adapt. It also means building multidisciplinary teams where AI augments human capability – not simply automating tasks, but surfacing insights, accelerating learning, and enabling faster, more confident decision-making.

Knowledge becomes a living asset, shared openly across teams, continuously updated, and used to inform action in real time. This requires systems that reward evidence-backed iteration rather than rigid adherence to fixed plans, and a shift in leadership from making all the decisions, to enabling people to solve problems and build new skills.

Organisations that embrace a dynamic operating model are more resilient in the face of shocks, whether those are cyberattacks, market disruptions, or regulatory changes. They are better able to break down silos, accelerate product development, and respond to changing customer needs. I’ve seen this play out in highly regulated environments like telecoms and finance, where innovation is both a necessity and a challenge. The ability to adapt quickly can be the difference between leading the market and being left behind.

This shift is not easy. It requires letting go of old certainties, accepting that not everything can be anticipated, and trusting in the collective intelligence of the organisation. It means investing in new skills, technologies, and ways of working – particularly in building internal AI literacy and confidence and fostering a culture of experimentation and continuous learning so AI can be used effectively at scale. It also demands a rethink of how success is measured – not by adherence to a project plan, but by the ability to deliver meaningful outcomes for clients and end users. And it requires honesty about the challenges.

Barriers

Resistance to change is real, and progress is rarely linear. Yet the alternative, clinging to operating models no longer fit for purpose, is far riskier.

The skills that made consultants successful in the past – analytical rigour, project management, technical expertise – are still important, but they are no longer sufficient. The consultants who will thrive in the years ahead are those who can operate in ambiguity, who are comfortable with experimentation, and who can help clients build the capabilities they need to adapt on their own. For consulting firms, the challenge is to embed these principles into their own operating models, to practice what they preach, and to demonstrate through their own behaviour the value of adaptability.

Clients, too, have a role to play. The most successful consulting engagements are those where the client is an active participant in the process of change, not just a recipient of advice. This means being open to new ways of working, willing to invest in building internal capability, and prepared to measure success in terms of outcomes, not just deliverables. It also means choosing partners who are themselves dynamic, who understand how to integrate AI safely and effectively, and can bring a willingness to learn and adapt alongside their clients.

The dynamic operating model is not just a response to uncertainty, but the foundation for long-term success. Having worked with senior leaders across government and industry to redesign organisations at scale in moments of acute disruption, I know that adaptability is the ultimate competitive advantage. The world will not become more predictable, but organisations and consultancies built to adapt will always be better placed to navigate whatever comes next.

The time for static models and false certainty has passed. The future belongs to those who are dynamic by design.