When was the last time you felt truly motivated at work? Were you chasing a juicy bonus, or was it something more? Maybe a leader inspired you with their vision, or perhaps they made you feel genuinely valued and supported in your role.
Now consider the flip side. Disengaged employees, sky-high turnover rates, and projects that fall flat. These aren’t just bad luck—they’re often symptoms of a leadership vacuum.
In this article, we talk about the importance of leadership for every organization and ways to help leaders succeed in their all-important roles.
What you’ll find in this article:
8 reasons why leadership is important in the workplace
Which skills do leaders need to master?
8 reasons why leadership is important in the workplace
Many organizations focus on the tactical, i.e., simpler processes, hitting targets, and chasing the latest productivity hacks. But truly successful companies understand and lean on the importance of leaders as they are the ones who wield the real power to help do these things.
1. Leadership can help companies adapt to the AI revolution
We’re living in a world where younger employees are more likely to ask a chatbot for career advice than their manager. Yes, a recent TalentLMS survey revealed that 47% of Gen Z workers get better guidance from AI than their managers.
This underscores the valuable role of leadership in managing the changing workplace dynamics brought on by AI. After all, leaders are the ones who can be aware of and adapt to these shifting expectations to keep things effective.
Great leadership in the age of AI means applying technology while still fulfilling the human need for connection and growth. It’s a delicate balance, but invaluable for this new world of work.
2. Leaders help create a culture of ownership
Forget the old “carrot and stick” approach—employees nowadays look for autonomy and a sense of ownership or they will leave.
Effective leaders cultivate a culture of ownership where employees feel valued, trusted, and empowered to take initiative without holding a carrot out in front of them or worse, a stick.
3. Leaders push beyond the bottom line
Employees and customers alike are increasingly drawn to organizations that demonstrate strong values and a commitment to ethical practices.
Leaders who prioritize sustainability, diversity, and inclusion, along with social responsibility aren’t just doing the right thing—they’re building a resilient and reputable brand that attracts top talent and builds customer loyalty.
4. Leadership turns skill sets into superpowers
Employees don’t want to feel like a cog in a machine. They all crave opportunities to learn, grow, and develop their skills, which in turn helps them innovate, upskill or reskill, and drive big results.
Effective leaders can identify their team’s strengths and weaknesses, and then give them the resources and support needed to turn those skills into superpowers.
5. Leadership navigates the choppy waters of change
In our modern age, company restructuring is a common event. As is new tech, processes and policies.
While these are inevitable and often very necessary, implementing them effectively is rarely smooth sailing. In times of uncertainty like this, effective business leadership serves as an anchor and guide for employees.
6. Leadership builds bridges, not walls
Silos are the death of productivity. You know the drill: marketing blames sales, sales blames product development, and everyone blames IT.
Strong servant leadership breaks down these barriers and focus on collaboration. Leaders understand that diverse perspectives and shared knowledge are how you solve complex problems and achieve ambitious goals.
7. Leadership allows people to fail fast
In a similar vein as the last point, leaders understand that failing often leads to success. In fact, strong leaders will encourage teams to fail fast, learn and adapt.
8. Leadership keeps the engine running smoothly
Pointless bureaucracy or outdated processes are the killers of innovation, growth and business efficiency.
Good leaders tidy up operations, ditch the red tape, and empower their teams with the tools and resources they need to excel. They understand that a well-oiled machine runs smoother, faster, and ultimately, achieves better results.
What is a leader?
A leader is more than just a title or a position of authority. It’s someone who inspires, pushes employee morale, and guides others towards a common goal.
While managers may focus on tasks and processes, leaders focus on people and vision.
Leader vs. manager
To better understand the distinction, let’s compare leaders and managers:
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What are the qualities of a great leader?
To truly excel, a leader must possess a combination of these good leadership qualities:
- Visionary thinking: The ability to see the future and chart a course toward it.
- Effective communication: They can explain complex ideas in simple terms, making everyone feel heard and understood.
- Empathy and emotional intelligence: They can walk in someone else’s shoes and understand their feelings.
- Decisive actions: They make tough calls without hesitation.
- Resilience: They bounce back from setbacks like a seasoned pro.
- Ethical conduct: They’re honest, trustworthy, and always do the right thing.
- Adaptability: They can pivot on a dime and embrace change.
Which skills do leaders need to master?
As mentioned, Gen Zers rely on AI for advice over their managers. This is why leaders need to focus on learning and developing soft skills, or they stand to lose touch with the biggest growing generation in the workplace.
These examples of strong leadership skills will help them not only be good leaders in the modern workplace, but will also have the most impact when dealing with AI in the workplace:
Growth mindset
A growth mindset is the belief that abilities and intelligence can be developed through dedication and hard work. Leaders with growth mindsets are more likely to embrace challenges, learn from their mistakes, and continuously seek improvement. Plus, 80% of executives agree that employees’ growth mindset directly contributes to revenue growth, according to TalentLMS’s 2024 Growth Mindset in the Workplace survey. Therefore, adopting a growth mindset is not only a way to inspire people and grow teams, but has tangible effects on organizational success.
Leadership in the workplace with growth mindsets inspire their teams to also adopt a growth mindset, creating a culture of continuous learning and development. In the age of AI, people need to be able to change and adapt to new technologies and ways of working.
For example, a leader with a growth mindset will view AI not as a threat, but as a tool to further improve their team’s productivity and effectiveness, and will likely seek ways to upskill themselves and their team in using AI.
Adaptability and agility
Adaptability, or agility, is the ability to adjust quickly and efficiently to changing conditions and new information. In a fast-paced business environment and company culture, leaders need to be able to pivot strategies, reprioritize tasks, and make decisions with incomplete information.
Agile leaders can also guide their teams through periods of uncertainty and disruption because they can thrive under change. For example, if a new AI tool disrupts current workflows, an adaptable leader can quickly assess the situation, identify potential benefits and challenges, and guide their team through the implementation process.
Relationship building
Relationship building is about connecting with people on a human level. It requires active listening, empathy, and clear communication.
Leaders who invest time in building those bonds create a more collaborative and supportive environment where people feel valued and heard. In turn, this leads to increased productivity, better communication, and a stronger sense of team spirit.
A leader who’s good at building relationships can also easily handle tricky situations like conflict resolution or having those tough conversations. They can create a space where everyone feels comfortable sharing ideas and working together effectively.
Provide leadership skills training with employee training software
There’s a lack of proper leadership skills training from companies. In fact, TalentLMS’s 2024 Leadership survey shows that for 45% of managers, their company is not adequately investing in the development of future leaders.
But this neglect has real consequences. Without a strong pipeline of capable leaders and the right new manager training processes, organizations struggle to innovate, adapt to change, and inspire their workforce.
To address this challenge, companies need to take a proactive and structured approach to leadership development. Investing in dedicated employee training software is a valuable first step in the right direction.
These platforms offer a centralized system for delivering, tracking, and managing leadership development programs. They support the creation of targeted programs that focus on building core competencies like those we’ve discussed—a growth mindset, adaptability, and relationship building—alongside other key leadership skills.
The beauty of these platforms is that they offer a high degree of personalization. You can tailor learning pathways to people’s needs and aspirations, which helps to make the development programs relevant and engaging. And with powerful analytics tools, you can gain valuable insights into the effectiveness of your training, which helps you to continuously refine your approach.
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Expand leadership training to a wider audience
Leadership positions aren’t just confined to the corner office. It’s about influence, initiative, and the ability to inspire, regardless of your position on the org chart.
That’s what Neena Newberry, leadership coach discussed with us in the Keep it Simple podcast episode about Future Leaders. Organizations can move beyond the traditional view of leadership as something reserved solely for those in leadership and management roles or high-potential employees.
True leadership potential can be found throughout the workforce—in the project leaders who drive key initiatives, the team members who champion new ideas, and the individuals who consistently step up to guide and motivate their colleagues.
Foster a culture of vulnerability
Creating a space where leaders feel comfortable expressing vulnerability means moving away from the outdated image of the infallible leader and embracing a more human-centered approach.
Newberry stated that leaders who are willing to admit “I don’t know” create an environment where learning and growth are prioritized over the illusion of perfection.
When vulnerability is embraced at the top, it cascades throughout the organization, creating a culture where employees feel safe to take risks, learn from their mistakes, and bring their authentic selves to work.
Develop future leaders
Developing future leaders isn’t about churning out cookie-cutter managers or simply promoting high-performers. It’s about growing a group of people with the skills and attitude to inspire, create, and handle the challenges of the modern workplace.
As we learned from Newberry, effective leadership development requires a shift in perspective.
Firstly, we need to challenge the myth of the “born leader.” She states, “Another [myth] that’s been out there for a while is that, you know, leaders are born and not made, and I think that’s been evolving over time.”
Secondly, leadership development shouldn’t be confined to an elite few. Another myth according to Newberry is that “Leaders must be outgoing or extroverts.” In fact, she goes on to explain that some of the most successful leaders are introverted, highlighting that an outgoing personality is not a prerequisite for effective leadership.
Finally, effective leadership development goes beyond simply delivering content. It’s about creating opportunities for practical application, encouraging role-playing, and fostering real-world experience. Newberry adds, “Learning comes from doing. So you need exposure. You need exposure to content as well as the opportunity to practice because I mean, even think about it in sports, think about all the practices you have, right?”
Therefore, organizations need to understand that leadership isn’t an inherent trait reserved for extroverts or those who seem to effortlessly command a room. It’s a set of skills that can be learned, honed, and nurtured in anyone through practical means.
The leadership ripple effect
You’ve likely heard of the butterfly effect—the idea that a small action, like the flap of a butterfly’s wings, can trigger a hurricane on the other side of the world. While the concept might seem exaggerated, it speaks to the interconnectedness of things and the power of seemingly insignificant actions.
Leadership development has a similar ripple effect, albeit with far more positive consequences.
When you invest in developing strong leaders, you’re not just impacting individuals—you’re setting in motion a chain reaction that elevates your entire organization. Those leaders, equipped with the skills and mindset you’ve nurtured, will inspire their teams and drive innovation.
This effect touches every facet of your company—from increased employee engagement to a boost in productivity and a pervasive culture of growth and learning.
Therefore, invest in your leaders, nurture their potential, and watch the transformative power of leadership ripple through your organization.
