Leadership matters. More than ever.
At a retail conference on Sunday, I was struck again by how weak the answers were
when two senior executives, each managing budgets of hundreds of millions, were
asked about their leadership approach.
The question came last, and so did the weakest responses of the entire panel. That
alone says a lot about the priority given to leadership.
Meanwhile, luxury retail sales have plateaued, if not declined, over the past year. Nine
of the 15 major luxury fashion brands replaced their creative directors to offset declining
interest from aspirational consumers. Economic and political uncertainty is high. Brands
talk once again about experience over product. Yet, as a customer, I see no meaningful
improvement in service, energy, or passion on the sales floor.
So, how will brands convince high spenders to keep buying products rather than
experiences such as travel, hospitality, or even music festivals?
One of the most immediate and underused levers is leadership. Developing senior and
frontline managers increases drive, accountability, and motivation. This energy directly
translates to the client experience and, ultimately, revenue.
Leadership is hard and often unsupported
Most managers step into their first leadership role with little to no training. Some learn
on the fly. Others struggle quietly. Without support, weaknesses get hidden, habits
harden, and asking for help becomes embarrassing. People are promoted for technical
strengths, only to earn reputations as micromanagers (58%, the most common
complaint) or poor communicators (38%).
Last year, 90% of employees who quit said their manager played a role in their decision
to leave.
People leadership is demanding, emotionally taxing, and fundamentally different from
individual contribution. In Japan, over 70% of employees no longer want to become
managers at all, rejecting what was once the default path to success.
Why training alone doesn’t work
Despite widespread investment, 75% of organizations rate their leadership training as
ineffective. Training delivers information, but information doesn’t change behavior. If not
applied, 90% of what is taught is forgotten within a week. And behavior change is even
harder when actions are driven by outdated beliefs that once served us but now hold us
back.
Exposure to bad leadership doesn’t make us better leaders. Being a “people person”
isn’t enough either. Leadership requires a rare combination of backbone, accountability,
communication, and agility.
These qualities must be embodied by business unit leaders whose role, at its core, is to
develop others. When organizations fail to invest in their managers, studies show they
leave up to 15% of revenue on the table.
Improving how we lead is often the most direct path to better results.
The business case for leadership development
Leadership development works because it drives performance. It increases revenue,
retention, engagement, and well-being while reducing burnout.
In partnership with my leadership advisory work and support, my luxury retail clients
increased sales by 30% last year by doing three things well: identifying their leadership
gaps, setting clear goals and execution strategies, and providing individualized support
across teams. Several are now seeing top-line growth for the second year in a row.
The untapped potential in teams remains one of the most significant missed
opportunities in business. Development creates recognition. Recognition builds
confidence. Confidence fuels motivation.
And motivation, consistently, is what moves performance.
If this resonates, contact me. One focused conversation is often enough to identify
where leadership is limiting performance and where growth can begin.
