7 Critical Leadership Skill Gaps and Development Strategies

Effective leadership is the lifeblood of any organization. In today’s business world, where change is constant and disruption is inevitable, leadership becomes the anchor that holds an organization steady. However, leadership skills gaps are often the Achilles’ heel that stifles growth, hinders adaptability, and curtails potential. Addressing these leadership skills gaps is vital for individual success and the sustained progression of the entire organization.

These are the seven most pressing leadership skill gaps hurting organizations. In addition, I’ll offer suggestions for closing the skill gaps to develop these competencies for a stronger, more resilient future.

1. What are change management skills?

Effectively managing change is a non-negotiable skill for leaders. Leaders equipped with this competency can usher in transitions smoothly, maintaining organizational equilibrium and ensuring sustained growth.

However, the consequences can be dire when there is a leadership skills gap for change management, such as decreased employee morale and productivity. Even worse, potential business stagnation or failure. For instance, when Nokia failed to anticipate and respond to the rise of smartphones, it experienced a rapid decline from its position as a market leader.

How do you identify a leadership skills gap in change management?

Skill gaps in change management can hinder the organization’s agility, growth, and adaptation capabilities. Here’s how to discern if a leader is facing challenges in managing change:

1. Resistance to New Ideas. A primary indicator is the leader’s reluctance or outright resistance to new approaches, technologies, or strategies. While skepticism can be healthy, an unwarranted reluctance often signifies discomfort with change.
2. Decreased Team Morale During Transitions. If team morale consistently dips during periods of change, it indicates the leader’s inability to guide, reassure, and motivate the team during transitions.
3. Feedback from the Team. Direct feedback from team members can be enlightening. Surveys, one-on-one meetings, or anonymous feedback platforms can reveal whether team members feel supported and prepared for changes.
4. Increased Turnover Rates. A pattern of increased employee turnover following changes or transitions indicates a leadership skills gap in managing change effectively, causing frustration among employees.
5. Inconsistent Implementation. Change should be executed consistently. If some departments or teams within the leader’s purview are not aligned with the new direction, it indicates a leadership skills gap in managing change.
6. Reliance on Old Metrics. A leader’s reliance on old success metrics after a change shows a lack of adaptability and understanding of measuring success post-transition.
7. Avoidance Behavior. Leaders who avoid discussing impending changes could display avoidance—a sign of a leadership skills gap in managing change.

How do you help leaders develop change management skills?

Provide change management training that offers frameworks, strategies, and best practices. For example, introduce leaders to the ADKAR model. It is a proven framework that breaks down change into actionable steps – Awareness, Desire, Knowledge, Ability, and Reinforcement.

Encourage leaders to engage in cross-functional projects to experience and oversee change from various perspectives. For example, having a marketing leader collaborating with the IT department on a digital transformation project. Their insights into the technological changes and broader organizational implications help them communicate that vision to their team.

Use scenario planning to help leaders anticipate potential changes and devise responsive strategies. For example, leaders can brainstorm different response strategies by analyzing potential market shifts, such as the rise of new technology or global economic fluctuations. As a result, they ensure the organization is never caught off guard.

2. What are strategic thinking skills?

Strategic thinking enables leaders to see the bigger picture, anticipate future challenges, and devise long-term plans to achieve organizational objectives. Leaders harnessing this skill can align their teams, resources, and actions with the company’s vision.

Conversely, organizations can drift aimlessly when there is a leadership skills gap to operate with strategic foresight. They react impulsively to market changes and lose their competitive edge. A classic example is Blockbuster’s failure to foresee the shift to online streaming and its implications, leading to its downfall in the face of competitors like Netflix.

How do you identify a leadership skills gap in strategic thinking?

A skills gap in strategic thinking can impede an organization’s growth, alignment, and adaptability. To discern if a leader has a strategic thinking skills gap, consider the following indicators:

1. Short-term Focus. If a leader consistently emphasizes immediate results at the expense of long-term planning, it shows a leadership skills gap in strategic foresight. While immediate tasks are essential, a strategic leader will balance them with long-term goals.
2. Lack of Vision. Leaders without strategic thinking skills might struggle to articulate a clear and compelling vision for the future or to align their team’s efforts with that vision.
3. Reactivity. If a leader is consistently caught off-guard by events, changes, or challenges rather than anticipating them, it indicates a reactive stance rather than a proactive, strategic one.
4. Resistance to Feedback. Strategic thinkers are open to feedback, recognizing its value in refining strategy. If a leader dismisses or avoids feedback, especially regarding long-term planning, it indicates a leadership skills gap.
5. Isolation from External Changes. Leaders should be attuned to industry trends, competitors’ moves, and global events. If leaders seem unaware or dismissive of external changes that could impact the organization, they may lack strategic insight.
6. Failure to Allocate Resources Efficiently. Strategic thinking involves deploying resources (time, people, and money) where they can have the most significant impact. Misallocation can indicate a strategic thinking leadership skills gap.
7. Overemphasis on Tactics. While tactics are essential, they should feed into a broader strategy. There’s likely a strategic disconnect if a leader is bogged down in day-to-day tactics without connecting them to a larger plan.
8. Lack of Adaptability. The business world is dynamic. A leader holding rigidly to a plan even when circumstances have changed suggests they have a strategic skills gap.

How do you help leaders develop strategic thinking skills?

Organize strategic retreats to discuss long-term vision, objectives, and industry trends to close this leadership skills gap. For example, hosting annual or bi-annual retreats that pull leaders out of their daily grind can help them focus on industry analysis, SWOT assessments, and vision mapping, fostering a long-term strategic mindset.

Encourage participation in industry conferences and think-tank sessions to improve this leadership skills gap. For example, attending events like the World Economic Forum or industry-specific seminars exposes leaders to global trends, innovative ideas, and expert insights, refining their thinking and planning ability.

Close this leadership skills gap by fostering a culture of continuous learning promoting courses on strategic management and foresight. For example, enrolling leaders in courses such as the “Blue Ocean Strategy” or programs offered by the Harvard Business School can equip them with tools and frameworks to think beyond current market conditions and anticipate future shifts.

3. What are decision-making skills?

Effective decision-making is the cornerstone of successful leadership. Leaders must not only make informed choices but often need to act with urgency, especially in high-pressure scenarios. This balance of rapid response and judicious analysis can be the difference between seizing opportunities or facing losses.

A leadership skills gap in decision-making can result in missed chances, decreased team confidence, and severe financial and reputational repercussions in some cases. For instance, Yahoo’s delayed decision to buy Google in its early days, and subsequently Facebook, due to various internal hesitations, meant they missed out on monumental growth opportunities.

How do you identify a leadership skills gap in decision-making?

A leadership skills gap in decision-making can inadvertently introduce inefficiencies, reduce team morale, and hinder growth. Here’s how to identify if a leader may have a decision-making skills gap:

1. Procrastination in Decisions. A significant indicator of a leadership skills gap is consistent decision-making delays. While thorough consideration is vital, excessive procrastination can indicate indecisiveness or fear of taking responsibility.
2. Frequent Decision Reversals. If a leader often reverses decisions, it could indicate a lack of thorough analysis or be easily swayed by external opinions.
3. Reliance on Others for Decisions. Over-reliance on consensus or delegating critical decisions can indicate a lack of confidence in one’s own judgment.
4. Avoiding Accountability. A leader who doesn’t take responsibility for their decisions, especially when they lead to undesirable outcomes, struggles with accountability and has a leadership skills gap.
5. Lack of Transparency. If team members frequently express confusion about how or why certain decisions were made, the leader may not be considering all essential factors or effectively communicating their rationale.
6. Emotional Bias. While intuition can play a role in leadership, decisions based solely on emotions, without objective analysis, indicate a leadership skills gap.
7. Not Seeking or Considering Feedback. A leader who doesn’t seek feedback from relevant stakeholders or dismisses contrary opinions might lack a comprehensive decision-making approach.
8. Ignoring Data and Facts. In the information age, dismissing or not using available data to inform decisions can indicate a leadership skills gap in decision-making.
9. Outcomes are Often Misaligned with Objectives. If the outcomes of a leader’s decisions frequently diverge from the intended objectives, it might indicate a misjudgment or lack of foresight.
10. Feedback from Peers and Subordinates. Direct feedback can be illuminating. If team members, peers, or other stakeholders consistently express concerns regarding the leader’s decisions, it indicates a leadership skills gap.

How do you help leaders develop decision-making skills?

Provide data analytics and critical thinking training to base decisions on evidence to improve this leadership skills gap. For example, equip leaders with tools like Tableau or courses on data-driven decision-making. With this knowledge, a leader can, for instance, rapidly analyze customer behavior data and decide on a new marketing strategy.

Close this leadership skills gap using case study-based learning to simulate complex decision-making scenarios. For example, analyzing Apple’s decision to enter the mobile phone market with the iPhone can help leaders understand the intricacies of making bold moves in unfamiliar terrains.

Promote a culture of reflection, allowing leaders to analyze past decisions without fear of blame to close this leadership skills gap. For example, conducting monthly or quarterly review sessions where teams discuss successful and less successful decisions, like Amazon’s ‘Autopsy reports,’ can foster a learning environment. This practice helps leaders recognize decision-making patterns and areas for improvement without punitive repercussions.

4. What does it mean to take the initiative?

The ability to take the initiative underscores a leader’s proactivity and vision. Leaders who step forward, anticipate needs and act decisively cultivate an environment of progress and innovation. Their teams are also inspired to be proactive, leading to a collective push towards excellence.

Conversely, a leadership skills gap with taking the initiative means leaders are passive or overly cautious. As a result, they cause organizational stagnation, missed opportunities, or even leave room for competitors to overtake. The famous adage, “A stitch in time saves nine,” resonates here – proactive measures can prevent larger issues. A notable example is how Netflix took the initiative to pivot from DVD rentals to streaming while many of its competitors remained static and eventually lost market relevance.

How do you identify a leadership skills gap in taking the initiative?

A leadership skills gap to take the initiative might miss significant opportunities and allow small issues to burgeon into more significant challenges. Here’s how to identify if a leader has a “taking the initiative” skills gap:

1. Reactivity Over Proactivity. If leaders consistently respond to issues only after they’ve become problematic rather than anticipating and addressing them early on, they may lack initiative.
2. Over-reliance on Direction. If a leader frequently waits for instructions or approval before taking action on tasks that fall within their purview, they might lack initiative.
3. Consistent Delegation of Challenges. While delegation is an essential leadership skill, consistently passing challenges to others without ever taking them on might indicate a skills gap.
4. Avoidance of Responsibility. Leaders who shy away from taking responsibility, especially in challenging situations, may not proactively address issues as they arise.
5. Lack of Innovation. Leaders with initiative often seek better and more efficient ways of doing things. A stagnant approach, with no new ideas or process introduction, might suggest a leadership skills gap in taking the initiative.
6. Feedback from the Team. Direct feedback from team members can be invaluable. If the team feels that their leader doesn’t step up when needed or fails to act without being prompted, it’s a clear sign of an initiative gap.
7. Low Engagement in Continuous Learning. Leaders who take the initiative often engage in continuous self-improvement. A lack of interest in learning or self-development can signal complacency.
8. Performance Metrics. It might indicate an initiative gap if performance metrics or key performance indicators (KPIs) consistently show missed targets, delays, or unmet goals.

How do you help leaders develop taking the initiative skills?

Empower leaders with autonomy and trust in their capabilities to close this leadership skills gap. For example, at 3M, researchers and developers are allowed a degree of ‘free time’ to pursue innovative ideas outside their regular projects. This trust and autonomy led to groundbreaking products like the Post-it Note, resulting from a proactive initiative.

Improve this leadership skills gap by celebrating and rewarding proactive behaviors and innovative ideas. For example, at companies like Intuit, there’s a practice of “Innovation Awards,” which acknowledges and rewards teams or individuals who’ve shown outstanding initiative in coming up with breakthrough ideas or solutions. Such accolades recognize proactivity and inspire others to take the initiative in their domains.

Provide platforms where leaders can pitch new projects or solutions, fostering entrepreneurial thinking. For example, companies like Adobe have “Innovation in a Box” kits, encouraging employees to brainstorm and present fresh ideas. Leaders engaging in these platforms are more likely to spot and act on new opportunities proactively.

5. What does it mean to inspire commitment?

Leaders aren’t just tasked with directing their teams—they are the driving force that fuels motivation, passion, and commitment. Leaders can enhance productivity, cultivate loyalty, and foster a shared sense of purpose by genuinely inspiring their teams. A leader can inspire by conveying a compelling vision and recognizing individual efforts to lead by example.

A leadership skills gap to spark inspiration causes teams to become disengaged, directionless, and lack the drive to go beyond their basic responsibilities. A team without inspiration is like a ship without a compass, drifting aimlessly and vulnerable to challenges. Consider the impact of leaders like Steve Jobs, whose ability to inspire his team at Apple led to some of the most innovative products of our time.

How do you identify an inspirational leadership skills gap?

When there’s a gap in this leadership quality, it can impact the team’s overall cohesion, drive, and output. Here’s how you can identify an inspirational leadership skills gap:

1. Low Team Morale. If the team seems demotivated, disengaged, or consistently lacking enthusiasm, it might be due to an inspirational leadership skills gap.
2. Lack of Clear Vision. An inspirational leader often communicates a clear and compelling vision. If team members are unsure of the organization’s direction or purpose, the leader might not provide that guiding vision.
3. High Turnover Rate. Employees frequently leaving the team or organization could indicate dissatisfaction with leadership. People often leave managers, not companies.
4. Reliance on Authority Over Influence. Leaders who consistently resort to their positional authority rather than inspiring voluntary commitment have an inspirational leadership skills gap.
5. Minimal Personal Stories or Connections. Inspirational leaders often connect with their teams by sharing personal stories or experiences. A lack of personal connection might suggest a skills gap in this leadership quality.
6. Feedback from the Team. Direct feedback from team members can provide insights. If team members express that they don’t feel motivated, encouraged, or understood, there might be a skills gap in inspirational leadership.
7. Lack of Recognition. Leaders who rarely acknowledge or celebrate team achievements might miss the inspirational mark. Recognition is a potent motivator.
8. Reactive Rather Than Proactive Approach. Leaders who respond only to issues as they arise rather than proactively addressing potential challenges and rallying the team might lack inspiration.

How do you help leaders develop inspirational leadership skills?

Close this leadership skills gap by investing in emotional intelligence and leadership charisma training. For example, Satya Nadella, CEO of Microsoft, often credits his leadership success to his training in emotional intelligence. Under his leadership, Microsoft underwent a cultural transformation that reinvigorated its commitment to innovation and collaboration.

Organize regular team-building activities to forge stronger connections to improve this leadership skills gap. For example, team-building isn’t just an annual event at companies like Zappos. Regular outings, workshops, and even simple team lunches strengthen bonds and foster a unified commitment toward common goals.

Offer platforms for leaders to share their vision, ensuring transparency and alignment. For example, through open sessions and town hall meetings at SpaceX, Elon Musk shares the larger vision of making life multi-planetary. By providing insight into this grand vision, he inspires his team to work towards a cause bigger than themselves.

6. What are relationship-building skills?

Effective leadership transcends hierarchy; it fosters an environment where ideas flow freely, silos are broken, and collective goals are prioritized. When leaders cultivate collaborative relationships across all levels and departments of the organization, they tap into diverse perspectives, drive innovation, and ensure streamlined operations. Connecting various pieces of the organizational puzzle drives the company forward as a united force.

On the other hand, a leadership skills gap causes them to operate in isolation or allow departmental walls to grow unchecked, creating disjointed strategies, stifling innovation, and fostering internal competition. For instance, BlackBerry’s downfall was partly attributed to internal silos that prevented timely and cohesive innovation.

How do you identify a leadership skills gap in building relationships?

Here’s how to identify a leader with an organizational relationship-building skills gap:

1. Silos and Fragmentation. When there’s little to no collaboration between departments or teams, and each unit operates in isolation, it often points to a leadership skills gap in building relationships across the organization.
2. Lack of Cross-Functional Projects. If the leader seldom initiates or supports projects that require collaboration from multiple departments or teams, there might be a skills gap in organizational relationship-building.
3. Poor Stakeholder Management. Difficulty managing or communicating effectively with external stakeholders, like partners, suppliers, or clients, indicates a gap in broader relationship-building.
4. Limited Network. If the leader has limited connections or interactions outside their immediate team or department, they might miss opportunities to build organizational relationships.
5. Conflict Between Departments. Frequent conflicts, misunderstandings, or competition between different departments can arise from a leader’s inability to foster a sense of unity and collaboration.
6. Feedback from Other Leaders. Feedback from peers, other department heads, or senior leaders about difficulties collaborating with the said leader can be a clear indicator.
7. Resistance to External Ideas. Resistance to adopting best practices or insights from other parts of the organization indicates a leadership skills gap in building the relationships necessary to share and integrate such knowledge.
8. Missed Opportunities for Synergy. If there are frequent instances where two departments work on similar projects without the knowledge of the other, or if resources are redundantly used, it might suggest a leadership skills gap because the leader isn’t fostering connections to leverage organizational synergies.

How do you help leaders develop relationship-building skills?

Promote inter-departmental projects and team collaborations to close this leadership skills gap. For example, at Pixar Animation Studios, the concept of a “Braintrust”—a cross-disciplinary team of experts—meets regularly to review movie projects. This collaboration ensures diverse inputs and has been integral to their consistent success.

Improve this leadership skills gap by offering training in conflict resolution and effective communication. For example, employees at companies like Valve are encouraged to communicate freely across hierarchies and teams. This open culture has allowed Valve to innovate in the gaming and software sectors seamlessly.

Host networking events and cross-team brainstorming sessions to close this leadership skills gap. For example, General Electric’s leadership program emphasizes the importance of collaboration through exercises like group problem-solving sessions and team challenges, equipping emerging leaders with the mindset to prioritize organizational unity over isolated successes.

7. What does it mean to identify and develop future talent?

The longevity and dynamism of an organization largely hinge on its ability to nurture the next generation of leaders. Leaders play a pivotal role in spotting potential early on and investing in its growth. When prioritizing talent identification and development, they ensure a continuous flow of skilled individuals ready to take on leadership roles, safeguarding the organization’s future.

However, this leadership skills gap leads to talent drains, reliance on external hiring, and a potential misalignment with the company’s core values and vision. Kodak, despite its legacy, faltered because it couldn’t pivot to digital quickly enough—a shortcoming that could’ve been addressed with forward-thinking talent development.

How do you identify a leader with a skills gap for developing future talent?

Here’s how to identify a leadership skills gap in developing future talent:

1. High Attrition of Promising Talent. If talented individuals frequently leave the organization or transfer to other departments for growth opportunities, there is a leadership skills gap to nurture and develop them.
2. Lack of Succession Planning. If there’s no clear succession plan or backup for critical roles within the leader’s team, it suggests a lack of forward-thinking in talent development.
3. Stagnant Roles. When employees remain in the same roles for extended periods without growth or new challenges, it indicates a leadership skills gap in talent development.
4. Limited Professional Development Opportunities. If team members aren’t provided with opportunities for training, courses, or workshops, it can signify a gap in the leader’s commitment to talent growth.
5. Feedback from Team Members. Direct feedback from team members about feeling unsupported, not challenged, or unsure about their career path can be an indicator.
6. Low Internal Promotions. If most higher-level positions or new roles are filled by external hires rather than promoted from within, it highlights a leadership skills gap in developing internal talent.
7. No Mentorship or Coaching Initiatives. The absence of mentorship programs or one-on-one coaching sessions highlights a leadership skills gap in nurturing talent.
8. Resistance to Employee Autonomy. Leaders who fail to delegate significant responsibilities or resist giving team members autonomy might hinder their development.

How do you help leaders improve how they identify and develop future talent?

Invest in talent management and succession planning programs to close this leadership skills gap. For example, Cisco’s “Connected Women” program provides mentorship opportunities, fostering a culture where seasoned professionals guide and develop the next generation of company leaders.

Improve this leadership skills gap by encouraging mentorship and coaching initiatives within the organization. For example, companies like IBM have integrated talent development metrics into their leadership evaluation processes, ensuring that nurturing talent isn’t just a side task but a core responsibility of leaders.

Provide platforms for high-potential individuals to lead smaller projects or initiatives, giving them exposure and experience. For example, using platforms like Workday or SAP SuccessFactors, organizations can gain insights into employee performance trends, skill growth, and potential leadership aptitudes, allowing leaders to make informed decisions on talent development.

Leadership is not static. As the challenges and landscapes evolve, so should the leaders. Addressing these leadership skill gaps is essential for both current and future success. Organizations that prioritize and invest in developing these skills will be better positioned to thrive in a constantly changing world.