Business Growth through Leadership: Why Companies Are Making Targeted Investments in Their Managers

The shortage of skilled workers has long been a daily reality for many companies. Vacancies remain unfilled for longer, whilst the demands on teams and processes continue to rise. The typical response is well known: more recruitment, better salaries, and additional benefits.

And yet this often only works to a limited extent.

This is because one point is frequently underestimated: it is not just about attracting new employees, but also about retaining existing ones. This is precisely where leadership plays a greater role than many initially realise.

It is at this point, if not before, that it becomes clear how important it is to be able to develop leadership skills – not as a one-off measure, but on an ongoing basis. Many companies only realise in their day-to-day operations just how strongly leadership actually influences collaboration.

Leadership as a driver of growth

If you take a closer look, you’ll soon realise that the quality of leadership has a direct impact on how a company actually functions. Not just on paper, but in day-to-day interactions.

Managers don’t just make decisions about projects or budgets. They shape the way the team communicates, how mistakes are handled, and whether employees feel able to contribute at all. This cannot be measured immediately – but it makes a huge difference in the long run.

Especially when conditions change rapidly, it is no longer enough simply to make processes more efficient. Teams need guidance. And it is precisely this guidance that many team members expect from their manager.

To be successful in the long term, companies must specifically develop leadership skills. It actually sounds logical – but happens surprisingly rarely in everyday practice.

Challenges in leadership development

This is precisely where many companies fall short. Not because the issue is unimportant, but because other matters often take precedence in day-to-day operations. Leadership happens on the side – between meetings, deadlines and operational tasks.

Many managers sort of grow into their roles. They try things out, gain experience, make mistakes. That in itself isn’t the problem. It becomes difficult, however, when there is a lack of support.

In many cases, there are training sessions or workshops, but little that really has a long-term impact. Feedback is irregular, and genuine reflection is neglected. Yet that is precisely where real progress is made.

Another issue many recognise from real-world experience is this: good specialists are promoted to management roles. It sounds logical at first, but in reality it often leads to problems. Being technically strong does not automatically mean being able to lead a team well.

What is often missing here is a conscious focus on potential. Who can take on responsibility? Who really listens? And who is willing to develop themselves further? These questions are often asked too late.

How leadership development works in practice

Companies like Microsoft demonstrate that things can be done differently. A lot has changed there in recent years – particularly in terms of how leadership is understood.

In the past, much of the approach was characterised by a focus on control. Today, the emphasis is much more on supporting teams and facilitating development. This is evident not so much in large-scale programmes, but rather in small changes in day-to-day life.

What stands out is that managers are in closer contact with their teams. There is more frequent discussion about what is going well – and where things are going wrong. And not just once a year, but on a regular basis.

At the same time, more is expected of managers themselves. They are expected to be open to feedback, to question things and to admit when something hasn’t worked. This isn’t always pleasant, but it noticeably changes the way people work together.

In day-to-day life, this is evident, for example, in the fact that decisions no longer automatically come from above. Teams work more independently, get more involved and take on more responsibility. This sometimes takes longer – but often works better.

Of course, it doesn’t run smoothly everywhere. But that is often precisely where the difference lies: leadership is not seen as a finished skill, but as something that develops.