The Reality of a Leadership Shortage
Globally, the growing leadership gap has become a pressing concern. As seasoned leaders retire, industries continue to evolve, and employee expectations shift, many organizations are left grappling with a shortage of leaders who are prepared to meet today’s challenges. This gap isn’t just about filling roles; it’s about cultivating individuals who can inspire teams, drive innovation, and lead with purpose. So, how can organizations close this gap?
The Need for Intentional L&D
Research consistently highlights a startling reality: organizations are facing a critical shortage of future-ready leaders. According to Deloitte’s 2024 Global Human Capital Trends report, 86% of business leaders view leadership as a top priority, yet only 13% feel confident they have a strong pipeline of leadership talent. This disconnect underscores a significant need for intentional leadership development. Factors contributing to this gap include:
- Demographic Shift: Older generations are retiring in record numbers after the COVID-19 pandemic, taking decades of experience and institutional knowledge with them when they leave. Critical knowledge is often lost with these subject matter and industry experts that are retiring, leaving the next generation of leaders scrambling to meet expectations and vulnerable to disruptions in workflow.
- Evolving Workforce: Younger generations, including Millennials and Gen-Z, bring new expectations for leadership that focuses on work/life balance, transparency from leadership, and knowing their work has a purpose. These new norms in the workplace can reshape company cultures, requiring organizations and leaders to be more agile.
- New and Complex Challenges: Today’s leaders face even bigger challenges than before, including impactful technological change with the introduction of artificial intelligence, a shifting market that is very competitive, and organizational restructurings. These factors create a new dynamic that require agility, innovative solutions, and a proactive approach.
Studies show that organizations implementing leadership training report an average productivity increase of 36% and a rise in operational efficiency by 42%. This gap requires more than traditional training programs to maintain a competitive advantage. It calls for in-depth development that equips leaders with the skills and mindset needed for the future.
A Solution to the Gap
One proven approach to tackling the leadership gap is through The Leadership Challenge framework. Grounded in decades of research by James Kouzes and Barry Posner, The Leadership Challenge offers a comprehensive model for developing leaders who can inspire and mobilize teams toward a shared vision.
This framework is built on Five Practices of Exemplary Leadership. The Five Practices of Exemplary Leadership are the practices and behaviors that strong leaders demonstrate, based on more than 30 years of research by The Leadership Challenge co-authors Jim Kouzes and Barry Posner. These practices are: Model the Way, Inspire a Shared Vision, Challenge the Process, Enable Others to Act, and Encourage the Heart.
But why are these important?
Increasing Effectiveness with TLC
Each of these practices of dynamic leaders contains behaviors that effective leaders regularly practice. Leaders who increase the frequency with which they exhibit these behaviors are able to increase their effectiveness and help others see them as an even better leader.
With leadership development programs like The Leadership Challenge, people can develop a clearer understanding of their leadership style, build stronger relationships, and create lasting impact within their teams. This approach not only helps individuals to lead effectively in 2025 and beyond, but also fosters a culture of leadership across the organization.
The Leadership Challenge® Workshop is a research-based, proven method to increase leadership effectiveness. Join us Thursday, March 6 & Friday, March 7, 2025 to learn how to apply The Leadership Challenge® model, The Five Practices of Exemplary Leadership®, in a variety of situations, from your current role to your future goals:
