The Leadership Capacity Companies Overlook

December 3, 2025

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Leaders By Design

Empathy has become a critical capability for companies developing future leaders. We explain why empathy is now essential for high-performing executives and how organizations that prioritize it build stronger cultures, more collaborative teams, and healthier leadership pipelines.

By Peter J. Dean & Molly D. Shepard

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Why Empathy Matters in Leadership

For organizations committed to developing the next generation of leaders, one truth is becoming impossible to ignore: the technical excellence that drives early-career success is not enough to carry executives into enterprise-level roles.

Increasingly, boards and executive teams want leaders who can build trust, inspire alignment, and elevate the performance of others. And among all the capacities required to do that, empathy stands out as one of the most strategically valuable — yet least developed. In The Six CEO Fundamentals, we outlined how personal readiness is just as critical as professional readiness. Empathy sits squarely at that intersection.

The Strategic Value of Empathy for Organizations

Empathy is not soft. It is not optional. And it is not innate. It is a disciplined leadership practice — one that allows executives to:

  • Listen without judgment
  • Read emotional cues
  • Build psychological safety
  • Foster higher-value collaboration
  • Strengthen alignment across functions and levels

Yet many high-performing executives still struggle with empathy because they have built careers around analysis, precision, and decisiveness — not relational leadership.

Developing Empathetic Leaders: What Companies Need to Know

Empathy can — and should — be developed through structured leadership coaching, feedback, and practice.

Companies that cultivate empathetic executives consistently report higher engagement, stronger cross-functional alignment, and a more resilient succession bench capable of navigating complex business environments.

If your organization is preparing its next generation of enterprise leaders, continue to Part 2 of this series when it launches: Building Your Next CEO: A Case Study in Empathy-Driven Succession Planning. In this case study, we show how one company successfully prepared its next CEO through empathy-driven leadership development — and why this approach should be central to a modern succession pipeline.

Is your organization investing in the leadership skills that matter most?

Leaders By Design helps companies develop the interpersonal and strategic capacities today’s executives need to succeed.

Explore our leadership development programs or contact us to strengthen your leadership pipeline.

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