Are Leadership Pipelines a Cause for Concern?

Leadership pipelines

The survey highlighted a significant shift in the attributes and skills required for future leaders. Today’s leaders are markedly different from those of the past, and this trend is set to continue. The data revealed that organisations are increasingly recognising the need for leaders who are not only technically proficient, but also possess a blend of digital capabilities, global orientation, and the agility to navigate complex ecosystems.

Over the past five years, leaders were asked if their organisations had a robust pipeline of future leaders, considering the rapid industry changes and evolving workplaces. Between 2020 and 2023, more than twice as many respondents disagreed with this statement. However, the most significant shift occurred in 2024, where four times as many leaders disagreed.

Key areas of focus:

1. Technical and digital skills: The survey revealed a persistent gap in technical and digital skills within leadership pipelines. As organisations continue to digitise, the demand for leaders who can seamlessly integrate AI and SaaS products into their strategic vision is paramount. This digital fluency is no longer a nice-to-have but a critical component of effective leadership. 
2. Global mindset and diversity: Leaders with a global mindset and the ability to lead across regions and territories are increasingly valued. The emphasis on diversity, both in terms of demographic representation and thought, is crucial. Organisations are seeking leaders who can bring new ideas and create inclusive cultures that leverage different perspectives. 
3. Enterprise-wide thinking: The ability to think and operate at an enterprise level is becoming a key differentiator. Leaders are expected to have a holistic understanding of the business, encompassing strategy, commerciality, and the ability to lead through change. This enterprise-wide mindset is essential for driving performance and ensuring long-term sustainability. 

Carl Clarke, Director of Talent, Learning, Leadership, Skills, People Performance & Talent Acquisition, Vodafone, added: “All organisations strive to have the best people in their most critical positions, which requires ongoing assessment, development, and proactive pipelining both internally and externally to ensure talent is available when and where needed. The human capital risks of not doing so are stark, making it essential to focus on and proactively manage succession. It’s not just a process; it’s a vital business lever to manage human capital risks”.

The evolving nature of leadership and embracing change

In 2024, a significantly higher number of respondents believed future leaders are materially different to today’s leaders. The future of talent is inextricably linked to an organisation’s ability to embrace change and foster a culture of continuous learning. Leaders must be agile, adaptable, and committed to personal and professional growth.

These capabilities are essential for navigating the complexities of today’s business environment. 

Commenting on these trends, Jig said: “There has been a lot of discussion around the future skills agenda, yet the demand for human centred skills such as leadership remains as strong as ever. What we are seeing is a razor-like focus on leaders being able to navigate change and transformation for their organisations and more broadly within their sectors too. Leadership has always been a critical asset for any organisations, the evolving nature of the future of work, means it is more critical than ever”. 

Carl added: “The role of the leader continues to evolve and must adapt to a rapidly changing external and internal context. While the fundamentals of leadership remain, the context in which leaders operate is shifting quickly, necessitating a focus on learning agility and experimentation."

The challenges and opportunities in leadership pipelines underscore the need for organisations to continuously adapt and evolve their strategies with proactive leadership development. The focus remains on ensuring leaders are prepared to meet the dynamic demands of their roles, driving success and resilience within their organisations.

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