The next decade will bring several technical and organisational challenges to the electrical distribution grids, which are becoming an important pillar of the energy transition. Distribution system operators will play a crucial role and thus need to find innovative solutions that will prepare them for these changes. Acknowledging large differences between European distribution grids, this paper presents pathways for distribution system operators developed within the scope of the UNITED-GRID project, in close cooperation with distribution grids in the Netherlands, France and Sweden. Investment decision tools based on future scenarios and future-readiness assessment form the first step to steer the distribution system operators towards the necessary technical and digital innovations that increase the observability and controllability of the grid. Secondly, new types of business models are introduced that can be integrated into the operators’ portfolios. Thirdly, a workshop methodology is proposed to define the new internal requirements that make distribution system operators more agile to face the fast impacts of the energy transition. Case studies from the demonstration sites in the three countries are used as examples in the paper. © 2022 The Authors