Study shows the capabilities organisations find most challenging are not always the ones they prioritise
LONDON – 30th July 2026 – Alchemist, a global leadership development company specialising in changing behaviour at scale through practice-led learning, today announced the results of its 2026 Leadership Challenges & Priorities research.
Analysts examined responses from 281 HR, learning and development, talent management, people operations, and organisational development professionals to understand whether organisations are building leadership capability in ways that improve performance, support change, and accelerate execution. The study also identified the most significant leadership challenges organisations face and where they are focusing their priorities for the year ahead.
Among the trends uncovered in the study:
- Leadership development is happening under substantial operating pressure. Workload and productivity pressure was rated very or somewhat impactful by 90.2% of respondents, followed by budget pressure and cost-cutting at 88.7% and talent-market instability at 88.0%.
- Manager performance is improving for some organisations, but not broadly enough. Slightly more than half report an increase in the percentage of people managers meeting performance expectations (51.4%), while nearly as many report the percentage stayed the same or decreased (48.5%).
- Performance and change leadership are closely connected. Among organisations reporting improved effectiveness in leading change or transformation, 66.5% also reported increased manager performance.
- Consistent leadership framework use is one of the clearest patterns in the research. Organisations with a consistently used leadership framework are more likely than all others to report an increase in the percentage of people managers meeting performance expectations (66.9% vs. 31.9%).
- Leadership development faces a substantial implementation challenge. Organisations report difficulties aligning stakeholders on what effective leadership looks like, sustaining behaviour change, building managers’ coaching capability, and providing reinforcement and practice at scale.
The three most widespread leadership challenges, rated very or somewhat challenging, were:
- Recruiting and hiring strong leaders: 76.9%
- Building leadership bench strength and succession depth: 75.5%
- Building first-time manager capability: 71.0%
When respondents were required to select their top three leadership development priorities, the following rose to the top:
- Equip leaders to lead effectively in an AI-enabled workplace: 46.5%
- Improve leadership practices that support engagement and retention: 44.1%
- Improve decision-making speed and quality: 40.8%
- Improve coaching and employee development capabilities: 40.1%
- Improve accountability and execution: 38.9%
- Improve the ability to lead change and operate amid uncertainty: 37.3%
Taken together, the challenge and priority data reveal a substantial leadership execution gap. The capabilities organisations find most challenging are not always the ones they are prioritising for development.
- 71% said building first-time manager capability was very or somewhat challenging, but only 17.3% selected it as a top priority, a difference of 53.7 percentage points.
- 75.5% said building leadership bench strength and succession depth was very or somewhat challenging, compared with 27.1% who selected it as a top priority, a difference of 48.4 percentage points.
- 76.9% said recruiting and hiring strong leaders was very or somewhat challenging, while 34.2% selected it as a top priority, a difference of 42.7 percentage points.
“Organisations need to address two agendas at once,” said Russell Miller, CEO of Alchemist. “They must prepare leaders for emerging priorities, such as AI and uncertainty, while continuing to build the capabilities that support performance over time. Closing the gap requires clear expectations, practised behaviours, ongoing reinforcement, and measurement that supports business outcomes.”
About Alchemist
Headquartered in London, Alchemist is a global leadership development company specialising in immersive, experiential, and interactive learning. Known for its client-centric approach and innovative design, Alchemist creates learning experiences that are impactful, memorable and built to drive business outcomes through high-stakes, real-world challenges, live practice, AI-driven simulations, and immediate coaching. Learn more at thisisalchemist.com.