HomeBUSINESS9 Compelling Reasons Why Leadership Is Important In The Workplace

9 Compelling Reasons Why Leadership Is Important In The Workplace

Leadership. It is a term widely used, but only a few understand the real meaning behind it.

What is leadership, and why does it matter? Especially in a world that’s constantly changing and full of uncertainty, what weight does leadership carry?

Without strong and adaptable leaders, organizations (no matter how big or small) struggle to keep up. Just look around, and you can see examples of companies falling behind everywhere when they lack effective leadership.

Take Nokia, for instance. In 2007, Nokia had a 49.7% market share in mobile phones. Just six years later, in 2013, that number had plummeted to only 3%. What happened?

Nokia failed to respond quickly enough to rapid innovation in the smartphone market. Management clung to an outdated operating system and resisted adopting Android. Arrogant leadership lacked vision and couldn’t see how much the iPhone would transform consumer expectations. Meanwhile, their own smartphone offerings lagged with inferior technology.

The Nokia case perfectly illustrates how even industry giants can quickly fall from grace without agile, forward-thinking leadership guiding the way.

The thing is, it isn’t just important at the very top of an organization. We need good leaders at every level for an organization to really thrive – be it frontline supervisors or all the way up to the C-suite, leadership drives success.

But why exactly is leadership so crucial? What does it do that makes such a big impact? Let’s discuss nine compelling reasons why leadership matters in the modern workplace.

1. Leadership Drives Innovation:

Leadership is essential for fostering a culture of innovation, an increasingly vital capability in today’s disruptive environment. Leaders encourage employees to challenge the status quo, take risks with new ideas, and learn from failure. 

They create psychologically safe environments where people feel comfortable suggesting unconventional concepts. This kind of innovative thinking is a core component of the MBA in Organizational Leadership program offered by Youngstown State University, equipping future leaders with the skills to nurture creativity and innovation in their teams.

Effective leaders also allocate resources to support innovation initiatives. They connect people across disparate parts of the organization to combine diverse perspectives. Leaders support testing and iterating so promising ideas can evolve. 

An organization’s capacity to innovate ultimately depends on leadership establishing innovation as a priority and providing the support systems to make it happen.

2. Drives Strategy and Vision:

An organization without leadership lacks direction and purpose. Leaders develop long-term strategic plans for their company’s growth and success. They create a vision for the future that provides meaning and mobilizes people. Rather than reacting to change, great leaders proactively shape the future.

Leaders understand the competitive landscape and position their companies to capitalize on emerging opportunities. They set ambitious goals and craft strategies to achieve them. 

Leaders also recognize when strategies need to pivot to account for shifting market dynamics. Their vision and strategic thinking give an organization a roadmap for where it’s going and how it will get there.

3. Leadership Aligns and Engages Employees:

Leaders connect employees to the organization’s vision and goals. They communicate priorities clearly and concisely so everyone understands how their role ladders up to big-picture objectives. Leaders align people and resources to focus collective energy in the same direction.

Effective leaders also motivate and inspire employees to put forth their best efforts. They create an engaging work culture where people feel energized and excited to come to work. 

Leaders connect employees to the deeper purpose behind their tasks. When people find meaning in their work, they become more passionate, dedicated, and productive.

4. Develops People:

Exceptional leaders develop the capabilities of their employees. They understand that organizations rely on having top talent in critical roles. Leaders invest in people by mentoring, coaching, and providing access to development opportunities.

Leaders support employees in acquiring new skills and expanding their experience. This not only grows individual employees but also strengthens the organization by building bench strength. Leadership that nurtures people leads to more engaged employees, higher retention rates, and better succession planning.

5. Facilitates Change:

Organizations must continually adapt and transform to create value, serve customers, and compete. The rapid pace of technological advancement makes change a business imperative. Leadership is indispensable for driving successful organizational change.

Leaders understand the need for change and can articulate the rationale behind it. They thoughtfully plan and spearhead the execution of change initiatives. Leaders also support employees through the uncertainty and discomfort that often accompanies change. 

They maintain morale and productivity while realigning people, processes, and technology. Leadership is the catalyst that mobilizes an organization to embrace change.

6. Builds Strong Culture:

Leaders play an integral role in shaping organizational culture through their behaviors and priorities. The values leaders embody and the actions they take signal what is acceptable and essential in an organization. Employees look to leaders when determining cultural norms.

Leaders who model transparency, integrity, and appreciation create cultures centered on trust. Leaders who encourage collaboration foster teamwork and information sharing. The culture leaders cultivate serves as the foundation for how employees interact, make decisions, and treat customers. 

It directly impacts everything from engagement to turnover. Leadership is essential for creating a healthy, high-performing organizational culture.

 7. Boosts Employee Performance:

Leaders have a profound ability to unlock employees’ potential. They set clear expectations and provide constructive feedback to help people continuously improve. Leaders also ensure employees have the resources, tools, and support to do their jobs effectively.

When employees feel empowered and set up for success, their performance reaches new heights. Leaders who recognize strong performance and address underperformance motivate employees to bring their A-game. 

Leadership elevates individual and collective performance to deliver better business outcomes. 

8. Improves Communication:

Leaders are responsible for facilitating productive communication across the organization. They break down silos by building relationships between teams and ensuring information flows where it needs to go. Leaders also communicate with clarity, purpose, and transparency.

Clear communication from leadership results in alignment around goals and greater collaboration. When leaders actively listen, they also gain valuable input to make better decisions. 

Leadership that fosters open, multi-directional communication enables the organization to operate more effectively.


Leadership is no longer optional in today’s complex business environment. Organizations require skilled leaders up and down the management chain to navigate change, rally employees, and position the company for the future. 

It establishes direction, ignites passion, develops people, drives change, and delivers results.

While an organization’s capabilities stem from the collective skills and talents of its people, leadership sets the conditions for success. Great leaders create purpose, facilitate progress, and enable people to thrive. 

Without leadership, organizations lose their way. That is why cultivating strong is a strategic imperative for every company that aims to compete and prosper in the years ahead. 

Investing in leadership development through programs like an MBA in organizational leadership pays dividends across the entire organization.

I'm Bipasha Zaman, a professional author with vast experience in the research field. Presently, I work for many sites. Also, I have a strong passion for writing creative blogs.


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