The Failure of Traditional Leadership Development – And Why a New Leadership Framework is Needed

By Bernie Borges

As my passion for leadership development intensifies, I continue to explore the reasons why employee engagement is at an all time low — 23% globally and 30% in the U.S. As we progress through our midlife season, we either become leaders or we work for leaders who don’t inspire us. 

According to Gallup, only one in ten individuals are capable of becoming effective leaders. Why is that?

For decades, companies have heavily invested in leadership development, aiming to improve employee engagement, productivity, and retention. The global leadership training industry has grown into a $60 billion enterprise, incorporating seminars, e-learning, coaching, and corporate universities. However, despite these investments, the results have been underwhelming. Employee engagement remains stagnant, turnover due to poor management is high, and many organizations continue to struggle to cultivate effective leaders.

This article explores the shortcomings of traditional leadership development, why these programs have largely failed, and how an emerging approach anchored in a holistic view of the employee—Fulfillment-Centric Leadership™ (FCL)—offers a more effective alternative.

The Evolution of Leadership Development Programs (2005–2025)

Initially, leadership training was built around classroom-based workshops and competency models. Over time, companies adopted additional tools, such as 360-degree feedback, mentorship, and digital learning. Programs diversified, incorporating soft skills like emotional intelligence, coaching, and change management.

Despite these refinements, leadership training consistently fell short. A 2014 Deloitte study found that while 86% of organizations considered leadership development urgent, only 13% believed they were excelling at it. Even as training methodologies expanded, employee engagement remained low, and leadership pipelines continued to be weak. The fact that these challenges persist despite billions spent suggests that traditional methods have fundamental flaws.

Leadership Training’s Intended Outcomes vs. Reality

Companies invest in leadership development to achieve three core objectives:

1. Higher Employee Engagement: Well-trained leaders should be able to inspire enthusiasm and commitment among employees.
2. Better Productivity and Performance: Strong leadership should drive innovation, efficiency, and profitability.
3. Improved Retention and Talent Development: Effective leaders should foster workplace environments that reduce turnover and build leadership pipelines.

Despite these aims, the evidence shows that traditional leadership development has failed to produce meaningful improvements:

• Stagnant Engagement Levels: Global employee engagement is still abysmally low. Gallup’s most recent annual workplace study found that only 23% of employees worldwide are engaged at work. In the U.S., engagement levels have dropped to 30%, reflecting a return to levels from a decade ago.
• High Turnover: Half of employees say they have left jobs specifically to escape bad managers. Leadership issues remain a key driver of voluntary turnover, costing U.S. businesses an estimated $1 trillion annually.
• Poor Manager Effectiveness: Surveys consistently show that most managers are not adequately prepared to lead. A McKinsey study found that only 7% of senior managers believe their company develops leaders effectively.

These persistent challenges indicate that leadership development as traditionally practiced is not equipping leaders with the skills needed to succeed in today’s workplace.

The Root Causes of Traditional Leadership Training’s Failure

1. Outdated and One-Size-Fits-All Approaches

Many leadership training programs rely on standardized curricula, assuming that a fixed set of skills applies universally. However, leadership is highly contextual—what works in one environment may not translate elsewhere. Moreover, many programs still rely on lecture-based methods that fail to engage learners effectively. Studies show that people forget nearly 70% of new information within 24 hours if it isn’t reinforced, yet most leadership training lacks follow-up mechanisms.

2. Misalignment with Employee Expectations

The modern workforce, particularly younger generations, expects purpose-driven leadership. Employees today seek mentorship, personal growth opportunities, and empathetic leadership—yet many traditional programs still emphasize outdated command-and-control styles. If leadership development doesn’t align with what employees actually need, it fails to create effective leaders.

3. Lack of Focus on Emotional Intelligence

Effective leadership is built on emotional intelligence (EI)—the ability to understand, connect with, and inspire others. Yet, traditional leadership development has historically focused on technical and strategic skills rather than relational competencies. Gallup research shows that emotionally intelligent managers drive significantly higher engagement and retention, yet many leadership training programs continue to underemphasize EI.

4. Failure to Reinforce Learning on the Job

Many leadership development initiatives function as isolated events rather than continuous learning processes. Without structured reinforcement, new leadership behaviors quickly fade. Harvard Business Review has highlighted that most leadership training fails because managers return to work environments that do not support new behaviors, leading them to revert to old habits. These factors create a situation where leadership training becomes an expensive exercise in theory, with little practical impact.

A New Approach: Fulfillment-Centric Leadership (FCL)

Given these failures, it’s clear that a new model of leadership development is needed—one that directly addresses the root causes of disengagement, turnover, and poor leadership effectiveness. Fulfillment-Centric Leadership™ (FCL) offers a promising alternative.

What is FCL?

Fulfillment-Centric Leadership™ is a framework that prioritizes employee well-being and professional fulfillment as the foundation of effective leadership. It is built on five key life pillars:

1. Health – Encouraging physical and mental well-being to prevent burnout.
2. Fitness – Supporting physical abilities to maintain energy and build longevity.
3. Career – Helping employees recognize their professional growth within the organization.
4. Relationships – Fostering authentic connections between leaders and teams.
5. Legacy – Aligning work with personal purpose and long-term impact.

By focusing on fulfillment, FCL creates workplace environments where employees feel valued, engaged, and motivated—resulting in stronger performance, retention, and leadership pipelines.

How FCL Addresses Traditional Leadership Training’s Shortcomings

1. Employee-Centric Approach: Unlike traditional models that focus primarily on performance outcomes, FCL prioritizes employee fulfillment, recognizing that engaged and satisfied employees naturally drive business success.
2. Emotional Intelligence at the Core: FCL emphasizes self-awareness, empathy, and authentic leadership, ensuring that managers develop the interpersonal skills necessary to inspire teams.
3. Holistic and Continuous Learning: FCL is not a one-time training event; it integrates leadership practices into everyday work through coaching, peer support, and ongoing feedback.
4. Alignment with Workplace Culture: Rather than teaching leadership in isolation, FCL ensures that organizational values and structures support fulfillment-driven leadership behaviors, reducing the knowing-doing gap.
5. Data Driven Impact: Leaders can measure the sustained impact of this approach on indicators such as retention, productivity, recruiting, brand reputation and revenue per employee. 

Measurable Business Benefits

Implementing FCL leads to tangible improvements:

• Higher Retention: Employees in fulfillment-driven cultures are more likely to stay and grow within the organization.
• Increased Productivity: A well-led, engaged workforce is more innovative and efficient.
• Stronger Leadership Pipelines: By fostering personal and professional growth, FCL ensures that companies develop future leaders organically.
• Improved Business Performance: Organizations with engaged employees deliver 23% more profit than those with disengaged employees. 

Conclusion: The Future of Leadership Development

Valuing employees as the foundation of a healthy workforce is not a new idea—it has been widely recognized for years. Yet, history shows that many leaders have struggled or been unwilling to demonstrate authentic care for their employees in a meaningful, sustainable way. Leadership, when approached through the lens of fulfillment, provides a structured and scalable way to bridge this gap. By embedding fulfillment principles into leadership practices, organizations can cultivate a workplace culture where employees feel valued, engaged, and motivated.

Organizations that align leadership development with the well-being and fulfillment of their employees will be better positioned to cultivate engaged, high-performing teams. By shifting the focus beyond traditional performance metrics to personal and professional growth, companies can create stronger leadership cultures that drive lasting business success.

As businesses navigate the future of work, embracing leadership strategies that recognize and support the whole employee will be essential. Fulfillment-based leadership offers a practical, scalable approach—akin to a distinct leadership style—that enables organizations to create a more motivated and resilient workforce. Those that adopt this mindset will not only enhance employee satisfaction but also strengthen their performance in an increasingly competitive landscape.

Bernie Borges will be the featured speaker on this topic at the HR Tampa dinner event on April 16, 2025.

Bernie Borges

Bernie Borges is an executive coach, creator of the Fulfillment-Centric Leadership™ Framework, and host of the Midlife Fulfilled podcast. He helps midlife professionals and business leaders gain clarity, confidence, and fulfillment in their careers and leadership. Bernie delivers customized keynotes, workshops, and executive coaching to help organizations scale leadership effectiveness, drive employee engagement, and build a high-performance culture that fuels sustainable business growth.