Leadership team performance

AI is reshaping how work gets done—automating tasks, accelerating decisions, and raising expectations for speed and precision. Strategy is shifting faster than structures can adapt, leaving many leaders operating in systems that weren’t built for what’s being asked of them now. Employees are asking more of their managers—while the business is asking more of them, too. And leaders are stuck navigating it all with development priorities, operating norms, and support systems that weren’t designed for this level of speed, ambiguity, or stretch.

As expectations rise, leadership capability is under scrutiny.

But are development efforts evolving fast enough to meet the moment?

Where priorities and expectations diverge

Most leadership development programs today emphasize foundational strengths:

• Executive presence
• Personal purpose
• A growth mindset
• Empowering others
• Stretching others

In contrast, senior executives in the BTS study identified a different set of capabilities as most critical for leaders right now:

• Accountability
• Transparency
• Enterprise thinking
• Divergent thinking

The contrast reveals a disconnect between what development programs are building—and what executives believe their organizations need most from their leaders today.

How did we get here?

The expectations placed on leaders—especially at the middle—have always evolved alongside the business landscape.

In the 1990s, leadership development focused on emotional intelligence and team empowerment. The 2000s brought globalization and lean operating models, with a sharper focus on efficiency and agility. Then came digital transformation, agile ways of working, and flatter, more matrixed structures.

Each wave expanded the leadership mandate—asking leaders to become connectors, coaches, and change agents.

What’s different now is the pace and proximity of change. Strategy no longer shifts annually—it flexes monthly. And mid-level leaders are no longer simply executing someone else’s vision. They’re expected to interpret it, shape it, and deliver results through others—in real time.

At the same time, the psychological contract of work has changed. Employees want more meaning, flexibility, and support—and they often look to their managers to provide it. Add in the rise of AI and the frequency of disruption, and the expectations placed on leaders have outpaced what many development efforts were designed to support.

What’s driving the disconnect?

What we’re seeing isn’t disagreement—it’s a difference in vantage point, shaped by the distinct challenges each group is solving for. This isn’t about misaligned intent—it reflects different priorities and pressures.

Talent and learning teams often prioritize foundational capabilities because they’re proven, scalable, and critical to developing confident, human-centered leaders. These programs are designed to grow potential over time.

Executives, meanwhile, are focused on the immediacy of execution—strategy under strain, shifting priorities, and the need for alignment at speed. Their focus reflects where progress is stalling now.

Both perspectives matter. But when they remain disconnected, development risks falling out of sync with business reality—and the gap is most visible at the middle, where expectations are rising fastest.

What’s the takeaway for talent leaders now?

This moment offers more than a gap to close—it offers insight into how leadership needs are evolving.

What if the differences between these two capability lists aren’t in conflict, but in sequence? Foundational strengths help leaders show up with purpose and empathy. Enterprise capabilities help them lead across systems and ambiguity. The opportunity isn’t to choose between them—it’s to connect them more intentionally.

What’s uniquely now is the acceleration. The stretch. The pressure to reduce friction and support faster alignment. Talent leaders aren’t just being asked to build capability—they’re being asked to build momentum. That means designing development experiences that reflect complexity, enable cross-functional thinking, and help leaders decide and adapt in real time.

It also means listening more closely. The capabilities executives are calling for aren’t just wish lists—they’re signals. Signals of where transformation slows, and where leadership must evolve for strategy to move forward.

This isn’t about shifting away from what works—it’s about expanding it. To connect what leaders already do well with what the business needs next—and to do it in ways that are grounded, human, and built for today’s pace.

Shifting momentum

Leadership development isn’t just a pipeline priority. It’s a strategic lever for how your organization adapts, aligns, and accelerates through change.

This research doesn’t just reveal a skills gap—it surfaces a systems opportunity. The disconnect between talent priorities and executive expectations highlights where momentum gets lost, and how leadership development can close the space between vision and execution.

Talent leaders are uniquely positioned to reconnect the dots—between individual growth and enterprise outcomes, between what leaders learn and how they lead, between what the business says it needs and how that shows up in behavior.

So the next question isn’t just: What should we build?

It’s: How do we enable leaders to build it into the business—faster?

Every organization is navigating this differently. If you’re revisiting your development priorities or rethinking what leadership looks like in your context, let’s connect. We’re happy to share what we’re seeing—and learning—with others facing the same questions.

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