Organisations rarely struggle to define strategy. Where they struggle is execution.
The difference between the two is leadership.
A fact underscored by research from Gallup, which finds that managers and leaders “account for at least 70% of the variance in employee engagement scores.”
In practical terms, more than any system, policy or initiative, it is the leader who shapes engagement — and, in turn, performance.
And performance is not abstract. Engaged teams deliver stronger productivity, profitability and retention outcomes, forming a direct link between leadership capability and commercial results.
Moving from expert to leader:
Within many organisations, Chartered Accountants already sit at the centre of decision-making. They bring rigour, judgement and credibility — the foundations of what Chartered Accountants Ireland defines as trusted business leaders.
Yet in many cases, that potential remains underutilised.
Technical expertise does not automatically translate into leadership impact. Without deliberate development, capable professionals can remain constrained in roles that undervalue their broader commercial influence.
The result is a missed opportunity — not just for the individual, but for the organisation.
The commercial case: performance, not perception
There can be a tendency to view leadership development as a “soft” investment.
The evidence suggests the opposite.
Highly engaged teams consistently deliver:
- higher productivity
- stronger customer outcomes
- increased profitability
At the same time, they experience significantly lower absenteeism, turnover and operational risk.
McKinsey reaches a similar conclusion from a different perspective, noting that leadership is “crucial to organisational performance, transformational impact, and organisational health.”
In other words, leadership capability is not a supporting factor; it is a primary driver of results.
In this context, the role of the Chartered Accountant is evolving. Increasingly, organisations need individuals who can operate not only as technical experts, but as trusted business leaders; influencing performance across the organisation, not just reporting on it.
Why leadership development matters now
The case for investing in leadership is not new. What has changed is the context:
- Roles are more complex
- Expectations of leadership are higher
- Organisations are flatter and more dynamic
- Technology is accelerating decision-making cycles
At the same time, many leaders — particularly within technical disciplines such as accountancy, are promoted based on technical expertise rather than leadership readiness. This creates a structural gap.
Harvard Business Publishing’s global research highlights the scale of this challenge, pointing to the growing need for leaders who can navigate complexity, drive performance and support people through change.
Left unaddressed, this gap has real consequences: reduced engagement, weaker performance and avoidable turnover.
Retention is a leadership issue
There is a widely cited adage that people leave managers, not organisations. The data supports this. Gallup’s research on voluntary turnover found that 42% of employees who left said it could have been prevented by their manager or organisation.
This is a striking insight. It suggests that a significant proportion of attrition is not market-driven, but management-driven, a direct consequence of how people are led, supported and developed.
Given that replacing an employee can cost between half and twice their annual salary, this is not simply a cultural issue. It is a commercial one.
From insight to action
If leadership capability is such a powerful lever, the question becomes: how do organisations build it systematically? The evidence points to one clear answer: intentional, structured leadership development.
McKinsey’s research is unambiguous, organisations that treat leadership development as a core capability are better positioned to sustain performance and navigate disruption.
One response to this challenge is targeted investment in structured leadership development — such as the Executive Leadership Programme.
The role of the Executive Leadership Programme
The Executive Leadership Programme is designed to help high-potential professionals’ step fully into the role of trusted business leader, addressing the exact challenges highlighted in the research.
It focuses on:
- bridging the gap between technical expertise and leadership capability
- equipping managers to lead, not just manage
- developing judgement, influence and decision-making in complex environments
- enabling leaders to translate strategy into sustained performance
Crucially, the programme is not theoretical.
It is built around application, ensuring that participants test, refine and embed their learning within the context of their own organisations.
This matters because leadership capability only creates value when it changes behaviour and, through that, outcomes.
For many organisations, the challenge is not identifying high-potential individuals. It is enabling them to fully realise that potential in a way that delivers measurable business impact.
A commercially grounded decision
Viewed through this lens, sponsoring employees on leadership programmes is not a discretionary investment.
It is a deliberate decision to:
- strengthen execution capability
- improve team performance
- reduce avoidable attrition
- build a pipeline of future leaders
Or, put more simply: to improve how the organisation performs.
Conclusion
The research from Gallup, Harvard and McKinsey points to a consistent conclusion.
Leadership capability is one of the most powerful levers available to organisations seeking to improve performance.
Those that invest in it systematically build stronger, more resilient and more effective organisations. Those that do not leave one of their most important drivers of success to chance.
For organisations considering whether to sponsor employees on the Executive Leadership Programme, the question is not whether leadership capability matters.
The evidence is clear — it does.
The real question is whether you are actively developing it or leaving it to chance?
The Chartered Accountants Ireland Executive Leadership Programme starts in September and is delivered in partnership with the Queens University Business School. Find out more about the programme here.
LOADING...