Disengaged employees and misaligned workforce goals are signs of a deeper leadership challenge. For small and medium businesses (SMBs), this challenge is often compounded by limited resources and the need to prioritize daily operations over long-term growth strategies. However, solving this issue starts at the top—with CEOs, department heads, and senior leaders reimagining leadership for turbulent times. Here’s why it matters and how you can make meaningful progress today.
The Problem: Where Leadership Development Falls Short
Many leadership programs fail because they are reactive, disconnected, and overly complex. For SMBs, the problem is exacerbated by competing priorities and smaller budgets. Too often, leaders talk about growth and development without modelling it, creating a disconnect that employees quickly notice. This erodes trust and engagement.
For example, in one small business, leaders claimed to prioritize development but rarely invested time in their learning. The result? Employees grew disengaged and skeptical of leadership’s commitment to growth. In contrast, engagement and alignment improved significantly when another CEO actively participated in workshops and mentored employees.
The key takeaway? Growth starts with leadership modelling the behaviours they want to see.
The Opportunity: Leadership as a Growth Driver
Upskilling is no longer optional. According to the World Economic Forum’s Future of Jobs Report 2025:
- 85% of employers plan to prioritize upskilling as a workforce strategy.
- 63% cite “skills gaps” as a barrier to transformation.
- Skills like leadership, curiosity, talent management, and resilience rank among the top 10 for 2025.
For SMBs, this means aligning leadership development with strategic goals and embedding growth into the organization’s DNA. Leaders who actively participate in development initiatives show employees that learning is a priority, creating a culture of engagement and innovation.
The Solution: A Practical Approach to Building a Learning Culture
Creating a sustainable learning environment doesn’t have to strain your resources. Here are some ideas to consider:
Define Growth for Your Organization
Decide what growth means for your business. Is it about enhancing technical skills, leadership abilities, or both? Embed this vision into your company’s values and communication.
Quick Win: Host a team meeting to co-create a definition of growth that resonates across the organization. For example, “Growth means adapting quickly, learning constantly, and leading with curiosity.”
Clarify Accountability
Ensure everyone understands their role in fostering growth:
- Leaders: Drive and model development efforts.
- HR Teams: Facilitate and support learning initiatives.
- Employees: Own their growth journey with the tools provided.
Start Small, Think Big
Begin with a single, high-impact action. For example, conduct a skills audit to identify gaps and align them with business goals.
Reflective Questions for Leaders:
- “What skills do we need to drive the business forward?
- How am I modelling those skills today?”
Leverage Cost-Effective Strategies
Growth doesn’t have to break the bank. On-the-job learning, peer mentorship, and stretch assignments are highly effective and resource-friendly approaches.
Example: Pair emerging leaders with seasoned mentors to transfer institutional knowledge.
Align Training to Business Objectives
Every development effort should directly support your strategic goals. If resilience is critical for navigating uncertainty, train managers to lead with adaptability and curiosity.
Use the 70-20-10 Model
Focus 70% of development on experiential learning, 20% on mentorship, and 10% on formal training. Leaders play a crucial role in enabling this approach by creating opportunities for hands-on learning.
Measure Progress Without Overcomplicating It
Track the impact of leadership development through simple metrics, such as:
- Engagement surveys.
- Retention rates.
- Internal movement.
- Achievement of key performance indicators (KPIs).
Practical Steps to Get Started
1. Start Small, Think Big
Begin with an achievable step, like identifying one critical skills gap that aligns with your growth strategy. For example, if innovation is a priority, focus on training managers to foster creative thinking.
2. Build a Culture of Curiosity
Host informal knowledge transfer sessions or team discussions about industry trends. Encourage leaders to ask questions that spark new ideas, like:
- “What’s one process we could simplify this month?”
3. Communicate the Strategy
Help employees see how their development aligns with organizational goals. Share regular updates on progress and celebrate milestones.
4. Partner Strategically
Leverage external expertise. Whether it’s a consultant or a curated development program, outside perspectives can help you see blind spots and prioritize initiatives.
Why “Growth Leadership” Matters Now
Investing in leadership development isn’t just about future-proofing your business. It drives immediate benefits, including:
- Higher Employee Satisfaction: Growth-oriented workplaces are where people want to be.
- Increased Productivity: Engaged employees contribute more discretionary effort.
- Enhanced Innovation: Teams that value curiosity and adaptability are better equipped to solve complex problems.
In turbulent times, effective leadership is your competitive advantage. Equip your leaders, foster a culture of continuous learning, and watch your business thrive.
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