In today’s fast-paced business world, leadership development is no longer a luxury but a necessity. As companies strive to remain competitive, the focus is shifting from merely managing employees to creating environments where leadership can flourish organically within teams. Empowering employees, fostering a culture of innovation, and nurturing future leaders are crucial to long-term success.
But how can businesses develop empowered leaders from within their own teams? The answer lies in mentorship, creating psychological safety, and encouraging risk-taking and creativity.
The Missed Opportunity of Untapped Leadership Potential
It is often said that leadership lies within everyone. However, in many organizations, leadership potential goes unnoticed. This may be because employees haven’t been given the right opportunities to develop their leadership skills or because management is more focused on immediate outcomes than long-term growth.
In fact, a staggering 58% of managers have never received formal training in leadership or management, according to recent research. If those in managerial roles are not properly trained, it is no surprise that many employees’ leadership potential goes unrecognized. This results in a disengaged workforce, a lack of innovation, and missed opportunities for growth.
Gallup’s recent report found that 67% of U.S. employees are disengaged at work. Disengagement is a worrying trend for any organization, as it negatively impacts productivity, creativity, and retention. Without clear pathways for growth or leadership, employees are unlikely to contribute their best efforts.
Empowerment Through Mentorship: Shifting from Management to Leadership
The solution to this widespread issue lies in fostering leadership within teams through mentorship. Instead of focusing solely on task management, companies should adopt a mentorship mindset that empowers employees to take ownership of their development. Mentorship involves recognizing potential in team members and providing them with opportunities to grow.
When employees are given the freedom to develop their leadership skills, organizations are more likely to foster a culture of continuous improvement. This also shifts the focus from short-term deliverables to long-term organizational success. Leaders who adopt a “guide-on-the-side” approach rather than a top-down management style will see their team members thrive and take on leadership roles themselves.
Psychological Safety: Encouraging Innovation and Risk-Taking
Another critical element in developing leaders within teams is creating psychological safety. Harvard professor Amy Edmondson defines psychological safety as an environment where individuals feel safe to voice their opinions, try new things, and make mistakes without fear of retribution. When employees feel safe, they are more likely to step up, offer innovative ideas, and take on leadership responsibilities.
Google’s “Project Aristotle” study, which examined the success factors behind high-performing teams, identified psychological safety as the most important factor. Without it, even the most talented employees may hold back, fearing judgment or failure.
Inviting Novel Approaches: Fostering Creativity to Uncover Hidden Leaders
To further uncover leadership potential, companies should encourage team members to take creative approaches to problem-solving. This can be achieved by challenging teams to tackle issues in new ways, without predefined roles or hierarchy. By doing so, natural leaders often emerge, bringing innovative solutions to the table.
Encouraging creativity and allowing employees to collaborate without rigid boundaries can lead to greater ownership and engagement. As team members take on more responsibilities and contribute in new ways, organizations will be better positioned to identify and nurture future leaders.
SOLV Energy: A Case Study in Leadership Development
One company that has embraced this leadership development approach is SOLV Energy. Through their structured mentoring program, employees are encouraged to step into leadership roles, collaborate across departments, and solve problems creatively. By fostering psychological safety and providing opportunities for growth, SOLV Energy has successfully improved employee satisfaction and strengthened its capacity for innovation.
Mentors at SOLV Energy guide their mentees in building confidence, encouraging them to explore new approaches and take calculated risks. This has led to a culture of empowerment, where employees feel valued and are more willing to contribute their ideas and leadership.
Practical Steps to Develop Leaders in Your Organization
For companies looking to cultivate leadership from within, there are several practical steps that can be taken to create a leadership-oriented environment:
- Adopt a Mentorship Mindset: Shift from task management to long-term leadership development. Encourage managers to focus on their team members’ potential and provide opportunities for growth. By mentoring rather than directing, leaders can develop future leaders who will take the organization to new heights.
- Create Psychological Safety: Foster a culture where employees feel comfortable sharing ideas and taking risks. When mistakes are met with understanding and new ideas are encouraged, employees will feel more empowered to step into leadership roles.
- Encourage Creative Problem-Solving: Give team members the freedom to approach challenges in new ways. By allowing employees to work outside of predefined roles, organizations can identify hidden leaders and provide them with opportunities to take on greater responsibilities.
Building the Next Generation of Leaders
Leadership is not just about directing others—it’s about developing those around you to become leaders themselves. By fostering an environment of mentorship, psychological safety, and creativity, organizations can unlock the full potential of their teams and ensure long-term success.
Developing leaders from within is not just beneficial for employee engagement and innovation—it’s essential for the future growth of any business. Empowered employees are more likely to take ownership, drive positive change, and lead the organization into a prosperous future.
