Strong leadership doesn’t happen by accident. Yet many organisations only discover a leadership gap when performance dips, engagement declines, or a key leader leaves unexpectedly.
The reality is that leadership gaps exist in almost every organisation. They can appear at any level, from first-time managers struggling to lead former peers to senior leaders finding it difficult to shift from operational thinking to long-term strategy. Left unchecked, these gaps can weaken organisational performance, damage employee experience, and disrupt business growth.
So, what is a leadership gap, how can organisations identify them before they become a problem, and what can be done to close them?
What is a leadership gap?
A leadership gap is the difference between the leadership capabilities an organisation needs and the capabilities its leaders currently demonstrate. They occur when there is a disconnect between what a leadership role requires and the behaviours, skills, or mindset a leader currently demonstrates.
Importantly, leadership gaps are not always about poor performance. In many cases, leaders are successful in their current role but lack the skills required to transition into the next stage of leadership.
Leadership expectations evolve as leaders progress through their careers, which can lead to gaps in leadership development. What makes someone successful as an individual contributor is often very different from what makes them successful as a people leader, a leader of leaders, or an organisational leader.
How to identify leadership gaps
So, what should organisations look for when identifying leadership gaps? Talogy’s leadership research highlights four areas that can help uncover these gaps and identify where leadership development is most needed.
Define what leadership looks like at each level
The first step is to understand what effective leadership looks like at each level of your organization.
Too often, leaders are assessed against generic competencies without considering the unique challenges in leadership development they face as they move through the leadership pipeline. The expectations placed on a first-time manager, for example, are very different from those of a senior executive. Defining the capabilities, behaviours, and priorities required at each level creates a clearer benchmark for identifying gaps and helps ensure development is targeted to the challenges leaders actually face.
Look for difficulties during leadership transitions
One of the clearest indicators of a leadership gap is when leaders struggle to adapt after a promotion.
Leadership transitions require significant changes in mindset and behaviour. First-level leaders must shift from managing their own work to leading others. Mid-level leaders need to move from leading individuals to leading leaders. Senior leaders must broaden their focus to organisational strategy and long-term success. When leaders continue to operate as they did in previous roles, leadership gaps are more likely to emerge.
Pay attention to employee experience
Employees provide valuable insight into leadership effectiveness. Regardless of where in the leadership journey they may be, direct reports and employees who work closely with them can identify supportive leadership, constructive feedback, autonomy, trust, and effective communication as the behaviours that most enhance their performance. Conversely, employees consistently highlighted micromanagement, poor communication, unrealistic expectations, and a lack of availability as behaviours that inhibit performance.
When these negative patterns appear repeatedly in employee feedback, they often signal a leadership gap that needs attention.
Assess leadership readiness
Only 38% of leaders feel fully prepared to move to the next level of leadership.
This suggests that many organisations may not have sufficient visibility into leadership readiness. Assessing future potential, leadership confidence, and preparedness can help identify gaps before leaders take on more senior responsibilities.
How to fix gaps in leadership development
Identifying leadership gaps is an important first step, but knowing where the gaps are is only half the battle. This exercise will only prove useful if organisations take subsequent action. The good news is that leadership development can be targeted. By focusing support on the specific challenges in leadership development that leaders face at different stages of their careers, organisations can strengthen leadership capability and reduce the risk of gaps affecting people, performance, and business outcomes. Here are four practical ways to get started.
1. Define success at every leadership level
Clear expectations help leaders understand what good leadership looks like today and in the future. Organisations should establish leadership frameworks that distinguish between their varying leadership levels and clearly define requirements and capabilities.
2. Invest in level-specific development
The most effective leadership development is tailored to the challenges leaders face at their current stage.
For example:
- First-level leaders often need support with communication, delegation, and building trust.
- Mid-level leaders benefit from development focused on strategic thinking, influencing, and leading other leaders.
- Senior leaders require support in vision-setting, organisational leadership, and navigating complexity.
3. Prioritise human-centred leadership
Employees perform better when they feel trusted, respected, supported, and heard. Leaders who take a people-centred approach and create these experiences directly improve employee engagement, wellbeing, and performance.
Developing emotional intelligence, authentic communication, and focusing on relationship-building skills should therefore be a core part of any leadership development strategy.
4. Build leadership pipelines, not just leaders
The strongest organisations don’t simply develop leaders for today; they prepare them for tomorrow. This means identifying future leadership potential early, providing stretch opportunities, offering coaching and mentoring, and helping leaders understand how their role will evolve as they progress.
Closing the gaps in leadership development
Leadership gaps are not a sign of failure. They are a natural consequence of changing business demands, career progression, and evolving leadership expectations.
However, to succeed, organisations must actively identify leadership gaps, invest in development at every leadership level, and prepare leaders for future transitions before they happen.
When leaders are equipped with the right skills, mindset, and support, they are better able to engage their teams, navigate change, and drive sustainable success. And in today’s increasingly complex world of work, that may be one of the most important investments any organisation can make.
The leadership journey: Insights into effective leadership progression
Only 38% of leaders feel extremely or very prepared to move to the next level of leadership.
This executive summary uncovers the challenges and necessary changes for leaders to effectively progress, leveraging our extensive experience in leadership development.
It integrates perspectives from employees, leaders, and organisations to highlight critical mindsets and behaviours for transitioning to higher leadership roles.
We provide a snapshot of:
- Leadership impact and effectiveness at each level
- Key leadership traits by level
- Leader transition challenges and readiness
- Strategies for leader transition success and effectiveness