Poverty takes place behind closed doors

Companies that invest in leadership development see real returns. According to Brandon Hall Group, organizations with strong leadership development programs are 1.5 times more likely to be financially high-performing, reinforcing the clear connection between leadership strength and business success (Brandon Hall Group, 2015). For small to mid-sized businesses, this risk can be especially high. As teams expand and complexity increases, the informal leadership structures that worked early on can start to crack. That’s where proactive leadership development and risk mitigation go hand-in-hand. The Leadership Gap Is a Hidden Business Risk According to a recent CPHR Alberta report, talent development and leadership gaps remain one of the top five organizational risks (CPHR Alberta, 2023). The consequences are rarely immediate, but they compound over time: • Missed growth opportunities • High-potential employees leaving due to lack of career clarity • Poor team morale when unprepared managers struggle to lead • Strategic drift from lack of alignment at the top A growing company without a leadership pipeline is like a car without a spare tire, it might keep rolling, but one unexpected bump can send the whole operation into a tailspin. Risk Mitigation Starts with Leadership Insight The first step in mitigating leadership risk is to move from guesswork to clarity. That means using structured tools like leadership assessments, succession planning frameworks, and targeted coaching to surface the actual capabilities of current and emerging leaders. In professional services firms, for example, it’s common to see technically strong employees promoted into management roles. While they excel in their areas of expertise, they often lack key leadership capabilities like delegation, feedback, and emotional intelligence (Gallo, 2016). Without proper development, this can lead to stalled projects, disengaged teams, and higher turnover. Leadership assessments and focused coaching are essential to identify these gaps early and build the skills needed to lead effectively. Common Leadership Risks in SMBs Every organization faces different risks, but these are some of the most common leadership vulnerabilities seen in growth-stage companies (SHRM, 2022): • Lack of succession planning: Only one person knows how to run a key function, creating bottlenecks and burnout. • Unclear decision-making authority: Teams waste time waiting for approvals or duplicating efforts due to ambiguous roles. • Promotion without preparation: High performers are promoted into leadership roles without training, leading to micromanagement or misalignment. • Poor feedback culture: A lack of honest dialogue means small issues snowball into bigger people problems. • Leadership misfit: A leader’s natural style may clash with the culture or needs of a specific team or situation. Mitigating these risks requires more than a one-time workshop. It takes intentional development, structured tools, and reinforcement over time (SHRM, 2022). What Effective Mitigation Looks Like The most successful companies don’t wait for a leadership crisis to take action. They build leadership strength proactively. Here’s what that looks like: • Leadership assessments are used during hiring and promotions to identify fit, style, and potential blind spots. • Customized coaching programs help leaders build the exact skills they need in real time, tied to their actual challenges (International Coaching Federation, 2022). • Leadership training cohorts (such as PowerUp Leadership’s “Coaching Skills for Managers” or “Authentic Leadership” programs) create a shared foundation across the organization. • Succession maps identify who is ready or could be ready for key roles in 12–24 months, creating a proactive development plan (SHRM, 2022). As companies grow, the complexity of people management increases exponentially. Systems, tools, and strategy all matter but none of them work without effective leadership behind them (McKinsey & Company, 2018). Investing in leadership development isn’t a “nice to have” for big companies, it’s a risk management strategy for every business serious about sustainable growth. 

Author : Ada Tai Over the past month, I spoke with three professionals who had recently been laid off. April , a former schoolmate, has over 20 years of experience and has held management roles at several organizations. Most recently, she led a team at a large oil and gas company, where she was instrumental in building out a new service area. Despite her accomplishments, a combination of economic challenges and a lack of connection with her new boss led to her dismissal. Having been involved in layoffs before, she understood the process, but when she called me, she admitted it was much harder to be on the receiving end. She felt overwhelmed by a mix of emotions: denial, anger, betrayal, and a deep sense of failure. Carol , once a mentee of mine, built a strong foundation in the finance sector, and her persistence earned her a team lead role at a competitive mid-sized firm. Therefore, her call caught me off guard; she was trying to make sense of being included in a round of layoffs that affected 12 others. Having just been promoted, she struggled to understand why she had been chosen. She reached out for support as she navigated both the practical and emotional aftermath. Joe had been a student in one of my classes. With a master’s degree and excellent communication skills, he established a respected career in the regional non-profit sector. We maintained contact and often crossed paths through work. Joe was frequently involved in launching new initiatives and was recognized by both his boss and the board for his contributions. However, when the sector faced financial strain, he and his manager were among the 15% let go. He contacted me a month after the layoff; he had taken time to process everything and was now reflecting on what direction to take next. These stories are not uncommon. In fact, with ongoing economic uncertainty, many professionals, regardless of their experience or performance, are facing unexpected career changes. While layoffs are always challenging, the way they are handled can significantly impact both the individuals affected and the organization. This highlights a critical challenge for organizations: how can companies manage necessary workforce changes with both strategic foresight and genuine care? In addition to engaging the Human Resources department early in the planning and execution process, many businesses are increasingly recognizing the value of utilizing third-party outplacement services. Outplacement services are employer-sponsored programs designed to support both the business and departing employees during layoffs or organizational restructuring. Typically included as part of a severance package, these services offer more than just logistical support; they help individuals navigate a difficult transition with confidence. Outplacement services can be customized based on the needs and budget of the employer. Offerings often include planning for workforce reductions in collaboration with the business, delivering termination messages, and providing one-on-one career transition coaching and emotional support to affected staff. More importantly, these services help affected employees regain focus by offering practical job search guidance, resume coaching, and career direction tailored to their experience and industry. For employers, outplacement services can deliver a clear return on investment. Companies that provide structured transition support often experience fewer legal disputes and benefit from a stronger employer brand, which can positively influence talent attraction and retention. Showing care during a difficult time speaks volumes to internal teams, affected employees, clients, and the broader market. Having worked closely with businesses and professionals throughout this process, I’ve witnessed the significant difference that experienced, neutral third-party support can make. In fact, a 2023 CBIZ report, referencing Bureau of Labor Statistics data, noted that individuals who received outplacement assistance secured new roles 40% faster than those who did not receive support (CBIZ, 2023). Just imagine if April had access to a coach experienced in private sector transitions, or if Carol had received immediate help with processing her layoff and planning her next steps; the positive impact would have been immediate. In today’s environment, outplacement isn’t merely a nice option; it is a strategic necessity. How will your organization ensure a respectful and supportive transition for its workforce? When selecting an outplacement partner, consider factors such as industry experience, the ability to customize services, the quality of career coaches, and the integration of digital tools for job seekers. Not all providers offer the same level of support or results, so thorough vetting is essential.