Leadership Development Needs a Makeover—And Here’s How to Fix It

by Yvell Stanford

Elevate. Empower. Evolve. That’s the mantra for leadership today, and it’s the driving force behind my mission to revolutionize learning, organizational culture, and talent architecture. I believe leadership development isn’t just about skill-building—it’s about designing environments where talent thrives, innovation flourishes, and learning becomes second nature.

Forget stuffy conferences and buzzword-laden workshops—today’s leaders need real skills, fast. The workplace is changing at the speed of a New York subway (delays and all), and leadership development needs to keep up.

The latest Annual Leadership Development Survey (courtesy of Training Magazine and Wilson Learning Worldwide) confirms what we already know: traditional leadership training is stuck in the past. According to the survey, only 35% of organizations rate their leadership development programs as highly effective, meaning most companies are struggling to keep up with the needs of modern leaders. If organizations want to thrive, they need to revamp how they develop their leaders—starting now.

1. Training Budgets Are Tighter Than a Subway Turnstile

After a big boost in 2022, leadership training budgets have hit a standstill. According to the survey, 48% of organizations allocate less than 10% of their training budget to leadership development, despite leadership being one of the biggest drivers of organizational success. Companies are cutting back on high-potential programs, manager training, and even executive development. That means if you're a leader, waiting for someone to invest in you is like waiting for an express train at midnight—you're better off taking matters into your own hands. Organizations should prioritize leadership development as a long-term investment, not an expense. Even small, consistent training efforts can have a transformative impact.

2. The Skills Leaders Need (and What’s Getting Left Behind)

Coaching, communication, and team leadership are still top priorities, but emotional intelligence, adaptive thinking, and AI literacy are climbing the ranks. Meanwhile, interpersonal relationship skills have taken a hit, dropping from the 7th most important skill in 2023 to 12th place in 2024—which explains why so many Zoom calls feel like talking to NPCs in a video game.

Great leaders don’t just manage; they connect. Let’s bring back the human touch, shall we? Encouraging authentic conversations, mentoring, and active listening can reignite meaningful workplace relationships and drive collaboration.

3. AI as Your Assistant, Not Your Replacement

Only 7% of organizations are actively using AI in leadership development, but those who are see major benefits:

• AI-powered coaching (think of it as a 24/7 leadership sidekick)
• Realistic scenario training (because making mistakes in VR is better than in real life)
• Automated content creation (finally, no more dry leadership manuals)

Yet, 48% of organizations haven’t explored AI at all for leadership development, citing concerns about ethics, bias, and privacy. Bottom line? AI should be the co-pilot, not the driver. Smart leaders embrace AI to enhance—not replace—human decision-making. Organizations should experiment with AI in safe, controlled ways to build trust and demonstrate its value.

4. What’s Actually Working in Leadership Development

The best organizations are getting leadership development right by doing these six things:

1. Using dynamic, real-world learning (because no one grows from endless PowerPoints)
2. Supporting leadership transitions (no more “sink or swim” mentality)
3. Getting executives to lead by example (not just nodding from the boardroom)
4. Training managers to be actual coaches (instead of just taskmasters)
5. Holding leaders accountable for continuous growth (because leadership is a journey, not a one-time workshop)
6. Prioritizing character (yes, integrity and ethics still matter!)

Organizations that implement these strategies are 2.5 times more likely to report strong leadership pipelines, ensuring a steady flow of capable leaders ready to take on new challenges. By embedding these practices into company culture, leadership development stops being a chore and starts becoming an engine for sustainable success.

5. Supporting Innovation: The NYU AI Coaching Initiative

One exciting initiative that deserves attention is the NYU AI Coaching Initiative, a groundbreaking project designed to integrate AI-driven coaching into leadership development. This initiative, led by Dr. Woody Woodward, PhD, PCC , the?director of NYU’s Coaching Innovation Lab, leverages machine learning to provide personalized coaching recommendations, real-time feedback, and data-driven insights to emerging and experienced leaders. The program is already showing promising results, with over 75% of participants reporting improved leadership effectiveness and faster skill development.

Dr. Woodward highlights that AI-powered coaching tools like ChatGPT are democratizing access to advanced coaching, enabling leaders at all levels to benefit from high-quality, scalable development resources. Additionally, the rise of digital coaching providers during COVID-19 has accelerated innovation in coaching, making leadership support more accessible than ever before. Programs like NYU’s Coaching Lab are crucial for helping organizations bridge the leadership gap by combining technology with human expertise to create more adaptable, insightful, and self-aware leaders.

Final Thought: Adapt or Get Left Behind

Leadership isn’t a title, it’s an action. If organizations want to build strong cultures, they need to ditch outdated training models, embrace AI smartly, and make leadership an ongoing practice, not a box to check. By making leadership growth a daily habit, businesses will see stronger teams, higher engagement, and more innovative solutions.

So, what do you think? Is leadership development keeping pace with the times? Drop your thoughts below!