In the business world, we often hear about the importance of organizational health: a thriving, productive company with engaged employees, innovative solutions, and consistent growth. But for many organizations (more than I would like to admit), it seems like something is always missing even after decades of effort. Why do some organizations still struggle to achieve the health and success they envision? Many organizations navigate persistent challenges, but with intentional shifts in leadership and strategy, they can unlock their true potential.
An unpopular opinion--the answer often lies at the top—leadership.
The Link Between Leadership and Organizational Health
Leaders set the tone, establish the vision, and define the culture within an organization. Their decisions (or lack of decisions) shape everything—from the way employees feel about their work to how efficiently teams collaborate. Leadership isn’t just about making high-level strategic decisions; it’s about setting a behavioral example and fostering a climate where employees feel valued, heard, and motivated to contribute.
When leaders lack the skills, vision, or awareness to address key issues, it leads to a stagnation in the organization’s development. The same problems can persist for years, affecting employee morale, innovation, and overall productivity. You may see minor improvements, but the deeper, systemic issues remain unresolved.
Not to mention—the old saying “what got you here, won’t get you there.” New ideas, innovation, and outside perspectives (consultants) all bring value if you embrace them.
What Holds Organizations Back from Sustained Improvement?
If leadership is so critical, why do we continue to see organizations struggle with the same challenges year after year? Several factors contribute to this ongoing cycle:
- Leadership Blind Spots One of the primary reasons organizations don't improve over time is that leaders often have blind spots—areas where they lack awareness or insight into how their decisions, behaviors, or strategies impact the organization. These blind spots might stem from a lack of feedback, a limited perspective, or the comfort of long-established routines. When leaders don't recognize or acknowledge these issues, they perpetuate problems that hinder organizational growth. Leaders can benefit from stepping back, seeking external perspectives, and embracing new approaches that align with their organization’s goals.
- Resistance to Change Human nature tends to resist change, especially when it challenges deeply ingrained habits or systems. Some leaders (think founders, successful CEOs, etc.) and employees might be reluctant to embrace new ways of thinking, doing business, or approaching problems. Long-standing routines can create resistance to change, even when new approaches could unlock growth and innovation. Leadership anchored in past successes without adapting to current industry, technological, or societal changes may struggle to sustain growth. In such environments, leaders may struggle to make the necessary strategic shifts to improve the organization’s health in the long run.
- Lack of Accountability Leaders are often responsible for ensuring accountability permeates the organization. However, when leadership itself is not held accountable for the outcomes of its decisions, it creates a culture of complacency. Establishing a culture of accountability at the top ensures efforts to improve are sustained and enables the entire organization to take ownership of growth and areas for improvement. Accountability doesn’t have to be punitive. Instead, it can empower teams and leaders alike to achieve their goals while driving results that benefit the organization.
How Can We Foster a Culture of Leadership Growth?
As a society, we have a role to play in encouraging more open, reflective, and growth-oriented leadership. Here are some ways we can foster openness and support leadership that promotes long-term, sustainable change:
- Encourage Lifelong Learning and Self-Awareness: Today, the expectation should be that leaders are lifelong learners—constantly evolving in their knowledge and leadership style regardless of age OR experience. Societal support for ongoing education, mentorship, and feedback is essential in helping leaders grow beyond their current limitations. Leadership programs and coaching focused on emotional intelligence, conflict resolution, and organizational behavior can help uncover blind spots and create more adaptive leaders. If leaders are not open to growth and change, it raises important questions about how we can support them in developing the skills needed for today’s challenges.
- Foster Open Dialogue: Honesty (as much as you can be!) and open communication are vital for organizational health. Societal attitudes can help normalize vulnerability in leadership. Leaders should be encouraged to share their challenges, admit mistakes, and seek input from others. Publicly endorsing leaders who embrace transparency, even in failure, helps others understand that openness leads to growth—not weakness.
- Create a Culture of Accountability Across All Levels: Accountability should not only be a top-down directive—it must be woven into the fabric of the entire organization. When everyone is accountable, from the CEO to entry-level employees, it’s easier to identify where things are going wrong and address them in real-time. Society can play a role by supporting initiatives that promote workplace integrity, personal responsibility, and constructive feedback---regardless of their role.
- Support Leadership Diversity and Inclusion: A homogenous group of leaders tends to think alike, which can lead to stagnation. Diversity of thought, background, and experience within leadership teams promotes innovation and adaptability. Society can encourage greater diversity in leadership roles by advocating for equal representation and challenging traditional ideas about who can lead organizations.
It’s Time for a Leadership Evolution
If organizations are to experience real and lasting change, we must focus on transforming leadership. It’s not enough to keep doing the same thing year after year, hoping for different results. We need to cultivate leaders who are open to feedback, committed to self-growth, and willing to embrace change that benefits everyone in the organization.
As a society, we can help foster these leaders by promoting accountability, openness, and focus on long-term, meaningful growth. By addressing leadership challenges head-on, organizations can build a healthier, more engaged workforce prepared to navigate the future with confidence and results that matter.
Experienced HR Consultant & Leadership Coach | Navigating Business Turbulence: Tailored Solutions for People Challenges in Small to Medium Businesses | Helping leaders, teams, and businesses THRIVE!
7moWell said Erin Spencer
I simplify high performance so you can do less of what feels familiar to experience more in life without sacrificing your health or relationships. | Retired Pro BMX Athlete | 🧠 Tumor Warrior | Golf Enthusiast
8moThis nails it: "Leadership isn’t just about making high-level strategic decisions; it’s about setting a behavioral example and fostering a climate where employees feel valued, heard, and motivated to contribute." Leadership is about how you show up, not just the decisions you make. Without awareness, there’s no opportunity for real change. 👏