Leadership

The $8.9T Leadership Crisis

Leadership team misalignment is devastating global productivity—but the solution delivers extraordinary returns

$8.9 Trillion lost annually to leadership dysfunction – equivalent to 9% of global GDP.

  • The Crisis is Accelerating
  • The Financial Devastation
  • Workforce Performance is Cratering

The Crisis is Accelerating

The most recent research reveals leadership dysfunction is getting worse, not better. Organizations worldwide are experiencing an unprecedented leadership alignment crisis that threatens their very survival.

Global Employee Engagement in 2024

21%

Gallup, 2025 State of Global Workplace

CEOs believe their company won’t survive the next decade

42%

PwC, 2025 Global CEO Survey

The Financial Devastation

Leadership misalignment creates cascading financial losses that devastate organizational performance. The numbers are staggering and the impact is accelerating.

At the individual level, disengaged employees cost approximately 34% of their annual salary in lost productivity—a burden that compounds across every level of the organization.

McKinsey & Company; Gallup State of Global Workplace; PwC Research

Workforce Performance is Cratering

The human cost of leadership dysfunction extends throughout organizations in measurable ways, creating a retention and performance crisis.

Variance in team engagement attributed to managers

70%

Gallup Research

Employees quit specifically because of poor leadership

57%

Multiple HR Studies

The retention crisis: Replacement costs range from $10,000 to $40,000 per skilled employee, with C-level executive replacements costing up to 213% of yearly salary. Most critically, 42% of turnover is preventable through better leadership.

The Alignment Advantage

Organizations that achieve leadership alignment capture extraordinary performance gains across every measured dimension. The returns are both immediate and compound over time.

Higher profitability for aligned organizations

30%

PwC Research

More innovative than misaligned teams

2.8x

McKinsey Team Research

Lower turnover in high-engagement workplaces

51%

Gallup Engagement Studies

Leadership development investments yield impressive returns of $3 to $11 for every dollar invested, with aligned organizations experiencing 24% revenue increases and 22% profit margin improvements.

Decision-Making Speed Multiplier

Leadership alignment creates dramatic improvements in organizational agility and execution effectiveness that compound into competitive advantage.

Speed advantages: Aligned leadership teams implement strategic changes 45% faster and demonstrate 40% faster time-to-market for new products. Teams with above-average decision-making capabilities are 2.8 times more innovative and respond significantly faster to market changes.

McKinsey & Company; BCG Innovation Research

The LOS® Global Solution

We help organizations transform leadership dysfunction and misalignment into organizational effectiveness through our proprietary Strategic frameworks, Executive Team Effectiveness Programs, and world class Experiential Leadership development programs.

With misalignment costing up to 25% of revenue and leadership development delivering $3-$11 ROI for every dollar invested, the cost of inaction far exceeds the investment required for transformation.

Don’t wait!