Strong leadership is often the backbone of organisational success. Yet even well built leadership teams are not immune to gradual decline.
As capable leaders move on, their successors may look impressive on paper but lack the depth and integrity required to sustain performance.
The real danger lies in how quietly this decline can begin. By the time poor leadership is reflected in financial results, culture and engagement, the damage is already entrenched.
HR professionals and senior managers must learn to detect the early signs that leadership quality is slipping.
The Overemphasis on Style Over Substance
One of the first indicators is a shift from substance to presentation. New leaders may excel at visibility, networking, or managing upwards but demonstrate little appetite for genuine problem solving. Meetings become dominated by polished slides and catchphrases rather than meaningful discussion of challenges and solutions. HR and senior managers should take note when decision making feels more about optics than outcomes (Collins, 2001).
Declining Psychological Safety
Strong leaders typically create an environment where people speak openly, challenge constructively, and admit mistakes. When leadership quality declines, employees become more guarded. Silence in meetings, reduced feedback, and increasing reliance on “safe” answers are signs that psychological safety is eroding. This shift often happens subtly before more visible turnover or disengagement occurs (Edmondson, 1999).
Increased Attribution to External Factors
When leaders lose capability, they often externalise responsibility. Market downturns, supplier issues, or flawed product designs are cited as the main obstacles. While such factors may be real, a pattern of constant external attribution, without balanced recognition of leadership responsibility signals trouble. A competent leader owns challenges, even when external factors play a role (Argyris, 1990).
Short Term Wins Over Long Term Vision
A weakening leadership group often focuses heavily on short term goals that can be easily reported and sometimes at the expense of long term sustainability. HR professionals and senior managers should watch for declining investment in people development, succession planning, or process improvements. If all energy is directed toward quarterly results while structural challenges remain unaddressed, leadership decline may already be underway (Kotter, 1996).
Subtle Erosion of Culture
Culture rarely collapses overnight. Instead, small signs accumulate: values once central to decision making are side lined, recognition becomes politicised, and informal networks of influence grow stronger than formal systems. When HR leaders notice that once consistent behaviours are eroding, it is often a precursor to larger dysfunction (Schein, 2017).
Why Early Detection Matters
By the time revenue, safety, or customer satisfaction data reveal the cost of poor leadership, intervention is late and costly. HR has a unique vantage point to observe leadership behaviour, employee sentiment, and cultural patterns before they become measurable declines. Identifying these warning signs early allows organisations to act decisively—whether through development, coaching, or making harder structural changes—before decline becomes entrenched.
Leadership decline begins in small, often overlooked shifts. HR professionals and senior managers cannot rely solely on business metrics to reveal problems. By paying attention to subtle behavioural and cultural cues such as style over substance, reduced safety, external attribution, short term decision making, and cultural erosion, organisations can protect the leadership strength that underpins long term success.
If you need assistance planning future leadership structures Linq HR has the experience and expertise to assist. Contact us in Melbourne at 1300234566.
References
Argyris, C. (1990). Overcoming organisational defenses: Facilitating organisational learning. Boston: Allyn and Bacon.
Collins, J. (2001). Good to Great: Why Some Companies Make the Leap... and Others Don’t. London: Random House.
Edmondson, A. (1999). ‘Psychological safety and learning behaviour in work teams’, Administrative Science Quarterly, 44(2), pp. 350–383.
Kotter, J. (1996). Leading Change. Boston: Harvard Business School Press.
Schein, E. (2017). Organisational culture and leadership. 5th edn. Hoboken: Wiley.