Busting the top 10 myths of business

Disruptive forces demand an updated leadership blueprint for 2025 and beyond

Business leadership today is all about navigating constant disruption.

Geopolitical tensions and economic fragmentation are radically changing global supply chains. Artificial intelligence (AI) and other new technologies are transforming entire industries. Climate change is forcing leaders to completely rethink their operations. A widening skills gap means we must urgently invest in people. As we look toward the future, business leaders everywhere must rapidly adapt if they are to shape the future with confidence.

The forces of disruption we face today, and will face in the future, are vastly different to those faced by leaders in the past.

This means that the traditional myths of business management — focused on stability, control, and linear growth — are being turned on their head. The MBA thinking from thirty years ago isn’t what is being taught in forward-thinking business schools today.

As we start a new year, I’d like to reflect on some of the age-old myths of business that no longer hold true and that every CEO, founder and business leader should bust, one by one. Here’s my top ten:

Myth #1: “Big is beautiful” For decades, scale was seen as the ultimate measure of success — bigger companies had more resources, brand equity, and market influence. But today, technology has enabled smaller, niche players to compete effectively by focusing on agility, purpose, and innovation.

Myth #2: “Great ideas lead to great businesses” There used to be a common belief that great products or ideas automatically translate to success. But execution, adaptability, and timing are the factors that ultimately differentiate visionary companies from failed startups. Who still has a MySpace profile in 2025?

Myth #3: “The customer is always right” While customer feedback is of course vital, blindly following it can prevent businesses from innovating or disrupting existing markets. Successful companies balance customer insights with bold innovation, leading their customers to embrace new solutions. Steve Jobs famously disregarded focus groups, instead focusing on creating products that customers didn’t even know they wanted.

Myth #4: “Technology equals innovation” In the past, a common assumption was that simply adopting the latest technology equaled ?innovation. But true innovation comes from the intersection of technology, strategy, and culture. Technology is a tool, not a solution – and businesses must adapt their processes, people, and strategies to unlock its potential.

Myth #5: “Customers come first” Traditional management often used to prioritize customers over employees. However, businesses are increasingly recognizing that treating employees as their top priority actually leads to better customer outcomes. A strong focus on employee wellbeing fosters a culture of trust and innovation that directly benefits customers. When employees are motivated and empowered, they deliver exceptional customer experiences.

Myth #6: “Growth equals success” Rapid growth is often celebrated, but unsustainable expansion can lead to operational failures, brand dilution, and financial instability. Sustainable growth requires a focus on profitability, adaptability, and long-term value creation.

Myth #7: “Leadership is about control” In the past, the traditional view of leadership emphasized hierarchy, authority, and control. But the complexity of today’s environment requires leaders to embrace collaboration, empowerment, and distributed decision-making. Effective leaders enable teams to act autonomously while aligning with the organization’s broader purpose.

Myth #8: “Short-term wins build momentum” A focus on quarterly results and short-term profitability can undermine long-term success. Sustainable businesses prioritize long-term strategy, balancing immediate needs with investments in innovation and resilience.

Myth #9: “Financial metrics are the ultimate benchmark” Traditional management of the past prioritized financial metrics like revenue and profit as the ultimate indicators of success. However, businesses today are evaluated on a broader set of criteria. Patagonia measures success by its environmental and social impact, helping it earn customer loyalty and market leadership.

Myth #10: “Failure is a sign of weakness” Failure used to often be stigmatized, but in today’s world, it is a necessary step toward innovation and learning. Organizations that embrace failure foster experimentation, resilience, and continuous improvement.

A new leadership blueprint

The current landscape demands moving beyond the old myths toward a new leadership style, characterized by a new set of essential skills.

Leaders must adopt systems thinking to anticipate unintended consequences and navigate interconnected crises.

Ethical decision-making will be crucial for building trust and credibility by addressing privacy, data usage, environmental impact, and social equity concerns.

Human-centric leadership prioritizing empathy, collaboration, and inclusion will be critical for attracting and retaining people.

Adaptive resilience will also be required so leaders can swiftly adapt, recover, and emerge stronger from crises.

Geo-economic awareness will be needed for managing regional strategies within global frameworks and for staying ahead of shifting trade and tariff policies.

Next week, business leaders around the world will gather in Davos for the 2025 World Economic Forum Annual meeting, the theme of which will be “Collaborating in the Intelligent Age”. This could not be more timely - collaboration will be absolutely vital as we navigate the complexities of an increasingly interconnected and technologically advanced world.

Leadership success by 2030 will not be measured by quarterly profits or the size of an organization alone. New metrics incorporating people and culture, sustainable growth, stakeholder value and innovation – all underpinned by a spirit of collaboration - will need to be adopted to capture the broader challenges that modern businesses face. In 2020, the World Economic Forum’s International Business Council (WEF-IBC) proposed a new set of common metrics for measuring long-term value creation. I believe these can and should be used by more organizations to help guide the transition from a focus on short-term financial performance toward the creation of long-term value for all.

Because ultimately, the leaders who succeed will be those who balance their organizations’ needs with the wider responsibilities they hold toward people, communities, and the planet.

What are your false myths of business?

The views reflected in this article are the views of the author and do not necessarily reflect the views of the global EY organization or its member firms.