The 4 Key Leadership Gaps in Corporate America Today

In the high-stakes arena of corporate America, the effectiveness of #leadership defines trajectory, resilience, and ultimately, long-term success. Yet recent research highlights widening cracks in the leadership foundation—gaps that, unchecked, can cripple even the most dynamic organizations.

This week, I shared some thoughts with a former Army officer well-versed in leadership: Turknett Leadership Group CEO Tim Huff .  Together, we explored the four most critical leadership gaps facing corporate America today and what potential changes can be made by today’s senior executives.

I started this conversation by sending Tim the following insights and asking some follow-up questions:

1. Emotional Intelligence Deficit Tim, as you may have observed, despite decades of discussion about the importance of emotional intelligence (EQ), far too many corporate leaders still fall short in self-awareness, empathy, and adaptive communication. According to a 2023 Harvard Business Review (HBR) survey, over 40% of employees reported feeling that their leaders lacked the empathy needed to navigate team conflicts or individual challenges. They further mentioned that his gap erodes trust and psychological safety, vital ingredients for innovative thinking and retention. For executives, strengthening EQ isn’t “soft”—it’s a hard-edged strategy for engagement and performance in a hybrid, high-stress era.

What are some strategies you have shared with senior leaders to help them close this gap?

TIM’S RESPONSE:

Yes, emotional intelligence isn’t a “nice to have” anymore. It’s a business imperative. At Turknett Leadership Group, we view emotional intelligence through the lens of our Leadership Character Model, which balances two essential leadership dimensions, Respect and Responsibility on a foundation of Integrity. When leaders lack self-awareness or empathy, they’re missing the key element of Respect; respect for others’ perspectives, emotions, and lived experiences.

One of the first strategies I recommend is for leaders to engage in structured self-reflection. We often use 360 feedback assessments tied to character-based traits like empathy, humility, and emotional mastery to help leaders gain a clearer picture of how they’re showing up. You can’t grow what you can’t see.

I also encourage leading with curiosity. This means slowing down, asking exploratory questions instead of being defensive, and truly hearing the people around you. Trust and psychological safety, two non-negotiables for innovation, start with how well a leader listens.

Finally, we challenge leaders to model vulnerability. Sharing mistakes, asking for feedback, and being open about challenges isn't weakness, it’s courage, rooted in character. Strengthening EQ is ultimately about strengthening leadership character. And in our experience, that’s what transforms both people and performance.

2. Inadequate Change Management Skills Change is the only real constant, yet many corporate leaders are ill-prepared to guide organizations through transformation, be it digital shifts, mergers, or adapting to societal expectations. McKinsey’s 2022 State of Organizations Report revealed that nearly 70% of change initiatives fall short, with poor leadership cited as a root cause. The impact? Wasted resources, burned-out teams, and opportunity costs from stalled innovation.

Tim, do you believe that leaders who neglect modern change management competencies risk letting their companies fall behind, no matter how robust past performance may have been?

TIM’S RESPONSE:

Absolutely! Leaders who neglect change management are putting their organizations at serious risk. I’ve seen it firsthand. Earlier in my career, I led large-scale technology projects in complex organizations, and while the tech side had its challenges, it was rarely the make-or-break factor. As one of my CIO colleagues used to say, “The technology is easy—it’s the change that’s hard.” And he was right. The greatest risk to transformation isn’t bad tech, it’s human resistance.

Too often, leaders focus on systems and processes but underestimate the emotional and cultural impact of change. We coach leaders to pair strategic planning with intentional communication, listening tours, and honest conversations about fear and fatigue. Change is personal. And when leaders ignore that, they risk burning out their teams and stalling momentum.

In short: past performance can’t future-proof your business. Today’s leaders must be great at change or risk becoming a case study in missed opportunity.

3. Inclusion and Diverse Talent Development In the current social climate, diversity is now on most C-suite agendas in some form or another.  Because of this, inclusivity remains stubbornly elusive. Leaders are becoming less comfortable being perceived as simply hiring for diversity metrics. This reticence, fueled by societal pressure, is jeopardizing efforts to build environments where diverse talent feels empowered and heard.

A 2023 report from Deloitte found that only 35% of employees from underrepresented backgrounds felt they had equal growth opportunities. The impact is subtle but staggering—a loss of fresh perspectives and unrealized innovation, risking not just reputational harm but decreased competitiveness.

Tim, while diversity is a key topic of interest, there is less conversation about the positive business impacts of diversity in leadership.  Do you have examples of how diversity in leadership impacts tangible business metrics beyond helping employees “feel better” at work, or any suggestions on how to navigate such a socially polarizing issue?

TIM’S RESPONSE:

In my experience, especially in executive coaching and leadership development, we’ve often seen that diverse leadership teams make better decisions. They ask different questions, see more angles, and avoid groupthink. Additionally, Inclusion is grounded in Respect, truly valuing the perspectives of others, especially those different from our own, and Integrity, which requires consistency in doing what’s right, even when it’s uncomfortable.

For leaders navigating this socially polarizing topic, my advice is simple: focus on fairness, curiosity, and business outcomes. You don’t need to have all the answers, but you do need to listen, ask questions, and create systems that reward merit and ensure access. Avoid making it political; make it practical. Inclusion isn’t about checking boxes, it’s about widening the lens so you can see the full picture. And that’s just smart leadership.

4. Technology Fluency and Adaptability A Gartner 2022 study found that less than half of senior leaders felt confident in their ability to make core business decisions involving artificial intelligence, data analytics, and cybersecurity. The digital revolution isn’t new, but the tempo and complexity have accelerated, catching some leaders flat-footed. Since leaders set the tone for digital adoption, when they are behind the curve, so is everyone else.

Tim, based on your experience, do you agree that this is one of the most important gaps for corporate leaders to close?  If so, why…but if not, what gap is most important to your clients that has not been mentioned so far?

TIM’S RESPONSE:

Yes, I absolutely agree this is a critical gap, and one that’s becoming more urgent by the day. When leaders lack fluency in emerging technologies, they don’t just slow progress, they stall innovation.

That doesn’t mean every executive needs to become an AI expert, but they do need to be curious, informed, and strategically engaged. Leaders must be able to ask smart questions, evaluate risk, and connect the dots between tech investments and business impact.

What matters most, though, isn’t having all the answers, it’s being agile enough to experiment, learn, and pivot quickly when things don’t work. The pace of change is too fast for rigid plans and slow reactions. The most effective leaders create cultures where it’s safe to test, fail fast, and adjust on the fly. That’s where real transformation happens.

5. Closing the Gaps: These leadership gaps are not abstract—they echo in missed KPIs, disengaged teams, and stalled innovation. I’ve witnessed firsthand, through years in corporate coaching, how even small shifts—a senior leader taking time for candid feedback, or sponsoring a rising talent from an overlooked group—can ripple outward to reshape culture and performance.

So Tim, as you and I were both former military officers, can you please share some insights from your military leadership experience for C-level leaders and VPs ready to move from awareness to action, making leadership development a priority right now?

TIM’S RESPONSE:

One of the clearest lessons I took from my time as a military officer is this: leadership is a daily practice, not a title. In the Army, we couldn’t afford to separate leadership development from operational success, they were inseparable. You trained hard, you took care of your people, and you stayed ready to adapt. That mindset translates directly to the boardroom.

In corporate America, I see too many senior leaders treat leadership development like a nice-to-have or a once-a-year retreat. But here’s the truth: organizations don’t rise to the level of their strategy, they fall to the level of their leadership habits.

For leaders ready to move from awareness to action, I suggest starting small and personal. Make time for real feedback conversations. Sponsor someone who doesn’t look or think like you. Block space on your calendar for reflection. And above all, model the behaviors you want your culture to embody. Your people are always watching.

In the military, we led from the front. That still holds. If you want a culture of accountability, growth, and trust, it starts at the top… with you. Leadership development isn’t extra work, it is the work!

References:

• Harvard Business Review, “Leaders Still Aren’t Showing Enough Empathy,” August 2023
• McKinsey & Company, “The State of Organizations 2022”
• Deloitte, “2023 Diversity, Equity, and Inclusion Report”
• Gartner, “CEO Survey: The Year of Digital Ambition,” 2022