Strong leadership is the backbone of any successful organisation - but despite heavy investment, many leadership development programs are falling short of delivering the results your business truly needs. Most programs fail to produce meaningful improvement in leaders’ actual capabilities or business outcomes. Many organisations settle for positive feedback or short-term knowledge gains instead of measurable skill growth or lasting behavioural change. This widening gap is reflected in the fact that fewer than one-third of organisations rate their ability to develop effective leaders as “good” or “excellent.” This disconnect raises a crucial question: why are billions spent annually on leadership development with so little tangible return? Understanding the root causes is essential for any CEO or HR leader committed to cultivating leaders who can navigate today’s complex business environment.
The Foundations for Effective Leadership Development
Research and experience show that quality leadership development is grounded in three crucial components: the goal, the approach, and the impact. The goal clearly defines the specific leadership capabilities the program aims to develop and why they matter to your organisation’s objectives. The approach includes the content and learning activities designed to build these capabilities through relevant, effortful experiences. Finally, programs need to be evaluated based on their actual impact - specifically, behavioural changes and business-relevant outcomes, rather than merely participant satisfaction or attendance.
Avoiding Common Pitfalls: Choose Substance Over Style
Too often, leadership programs prioritise convenience, entertainment, or participant comfort over meaningful growth. Programs that are easy, flashy, or enjoyable may boost participation but rarely drive sustained leadership ability. Rigorous development requires challenging, complex learning experiences that push leaders beyond their comfort zones and connect directly to on-the-job application through coaching, reflection, and ongoing feedback. Ensuring accountability for real-world impact means leadership development funds are a worthwhile investment.
How to Fix the Problem: Partner for Impact and Accountability
Leadership development needs to be a strategic partnership between senior executives, HR leaders, and program providers focused on real results. Together, they must ask tough questions about the program’s goals, methods, and expected outcomes before committing resources. Programs should align closely with organisational strategy, be rigorously evaluated for their impact on leaders’ behaviours and team performance and be continuously improved based on data and feedback. Only then can leadership development fulfil its promise of building the leaders organisations truly need.