Client Industry Trends March 21, 2025

Is Leadership Development Part of Your Healthcare Organization’s DNA?

"The single biggest way to impact an organization is to focus on Leadership Development."
— John C. Maxwell

Research on leadership development DNA highlights the importance of both individual self-awareness and organizational culture in cultivating effective leadership. Leadership development DNA refers to the deeply embedded values, behaviors, and systems that shape how leadership is fostered and sustained within an organization. By understanding and intentionally developing the foundational elements, leaders and organizations can enhance their leadership effectiveness. 

In September 2024, Time Magazine published an essay titled "The Plague of Mediocre Leadership," which delves into the pervasive issue of ineffective leadership in organizations. The article highlights that a significant majority of managers—82%, according to a 2014 study—lack the necessary talent for their roles.

The article discusses the tendency of organizations to promote individuals based on confidence rather than competence. This practice often results in the selection of leaders who are personable and likable but lack essential leadership qualities, further perpetuating mediocrity. To address this issue, the essay advocates for improved hiring practices that accurately assess key leadership attributes, aiming to reduce the prevalence of ineffective leadership. 

According to Gallup's Research on workplace leadership, only 18% of managers demonstrate a high level of talent for leading others. These articles underscores the critical need for organizations to reevaluate their leadership selection and development processes to cultivate more effective leaders.

Does This Apply to the Healthcare Industry?

Research highlights several reasons why reevaluating leadership selection and development is critical in healthcare: 

 1. Unique Challenges in Healthcare Leadership

  • Healthcare is a high-stakes industry where leadership directly impacts patient outcomes, staff engagement, and financial sustainability.
  • Leaders must navigate regulatory complexities, workforce shortages, and evolving medical technologies. 

2. Gap Between Clinical Expertise and Leadership Readiness 

  • Many healthcare leaders are promoted based on clinical excellence rather than leadership skills or confidence versus competence.
  • A study found that 67% of physicians are interested in leadership roles, but only 18% receive formal executive training. (Jackson Physician Search) 

3. Lack of Formal Leadership Development Programs 

  • While 50% of hospitals have leadership development programs, there is significant variability in quality and accessibility. (PMC)
  • Leadership training often focuses on operational skills but neglects emotional intelligence, decision-making, and team management.

4. Need for Data-Driven Leadership Selection

  • Many organizations still prioritize tenure and subjective assessments over data-driven leadership selection.
  • Implementing leadership competency assessments, 360-degree feedback, and performance metrics can improve leadership quality. 

Just like in other industries, healthcare organizations must reassess how they select and develop leaders. A strategic, competency-based approach is necessary to ensure that leaders are not just promoted based on clinical expertise but are also equipped with the leadership skills needed to drive innovation, manage teams, and improve patient care. 
By embedding leadership development into the DNA of the organization, companies can cultivate strong, adaptable, and effective leaders who will drive sustainable success.

Assessing Your Organization’s Leadership Development

Perhaps a good place to start is to take complete the Organizational Leadership Development DNA Assessment. The assessment provides a structured way to facilitate discussions about leadership development within your organization. It is intended to serve as a strategic guide rather than a scientifically validated instrument.

The QR  code below takes you to the site to download the assessment. This assessment is designed to help organizations evaluate their leadership development approach. After scoring, review the following reflection questions to identify specific areas for improvement.

Reflection Questions to Consider After Completing the Assessment:

  1. Where does our organization currently excel in leadership development, and how can we further strengthen these areas?

  2. Which areas had the lowest scores in the assessment, and what immediate steps can we take to improve them?

  3. Are there leadership development blind spots in our organization that this assessment has revealed? If so, what are they?

  4. How effectively are we identifying and nurturing high-potential leaders? Do we have a structured process in place for talent identification?

  5. What cultural or structural barriers exist that may be preventing a more integrated leadership development approach?

  6. How well do our leadership development efforts align with our overall business strategy and future organizational needs?

  7. Are we leveraging technology effectively to enhance leadership growth (e-learning, AI-driven assessments, virtual coaching, etc.)? If not, where can we integrate it more?

  8. How can we improve the measurement and accountability of leadership development initiatives? What specific metrics should we be tracking?

  9. Do we have a sustainable leadership pipeline in place, ensuring continuity in key roles? What gaps exist in our succession planning?

  10. How can we make leadership development more accessible and inclusive for all employees, regardless of level or background?

  11. How often do our leaders engage in self-reflection and receive structured feedback? Are there opportunities to strengthen this practice?

  12. Who are the key stakeholders responsible for driving leadership development, and how can we increase their engagement and accountability?

See Also
Healthcare Leadership Trends 2025


Embedding Leadership Development into Your Organization’s DNA

Leadership development is not a one-time initiative or an isolated program—it must be deeply embedded into an organization’s culture, values, and strategic priorities. Organizations that successfully integrate leadership development into their DNA create a continuous pipeline of capable, adaptable, and future-ready leaders.
This paper has outlined key strategies to achieve this, including:

  • Commitment from the Top – Leadership development must be championed by executives and woven into the company’s mission.
  • Defining Leadership Competencies – Organizations must establish clear leadership behaviors aligned with their business strategy.
  • Embedding Leadership Development into Culture – Growth should be continuous, not episodic.
  • Structured Leadership Pipelines – Transparent pathways for leadership progression are critical.
  • Individual Development Plans (IDPs) – Leadership must be personalized, intentional, and goal-driven.
  • Mentorship, Coaching & Experiential Learning – The best leadership growth happens through real-world challenges and guidance from experienced leaders.
  • Measurement & Accountability – Organizations must track leadership effectiveness and ensure their investment translates into results.

The Organizational Leadership Development DNA Assessment provides a structured way to evaluate how deeply leadership development is embedded within your organization. Use it as a starting point to spark conversations, identify strengths and gaps, and refine your leadership strategy.

How B.E. Smith Leadership Consulting Services Can Help

B.E. Smith offers comprehensive services to assist healthcare organizations in enhancing their leadership development initiatives.

B.E. Smith’s Leadership Consulting Services provide the tailored support needed to strengthen leadership pipelines and secure organizational success, no matter the challenges ahead. With decades of proven expertise in talent assessment, succession planning, and leadership development, we deliver customized strategies that address the unique needs of each organization. Our services go beyond short-term fixes, focusing on sustainable solutions that empower teams and ensure stability during periods of transition.

Central to our approach is a commitment to designing solutions that fit your vision and goals. Through executive succession planning, we create one-, three-, and five-year strategies to safeguard leadership continuity during pivotal changes. Leadership development programs further complement this by fostering innovative thinking, building essential skills, and preparing future leaders to step into critical roles with confidence. 

These comprehensive services are supplemented by ongoing advisory support, reflecting our dedication to nurturing long-term partnerships. By working hand-in-hand with healthcare organizations, we help them build resilient leadership teams that are ready to meet both current demands and future opportunities.

At B.E. Smith, collaboration is key. Every service we provide is tailored to reflect the distinct culture, challenges, and aspirations of each client. Paired with a track record of measurable success, this approach sets us apart as a trusted partner for organizations committed to excellence. 

Whether your team is navigating retirements, evolving market conditions, or growth opportunities, our leadership consulting solutions will help you identify, develop, and strengthen the leaders who will guide your organization into the future.

Make Leadership Development a Strategic Imperative

Leadership is the driving force behind innovation, engagement, and long-term success. Organizations that fail to prioritize leadership development risk stagnation, disengagement, and poor succession planning.

Take the time to evaluate, refine, and strengthen your leadership development efforts. The future of your organization depends on the leaders you cultivate today.

What steps will your organization take to ensure leadership development is truly part of its DNA?

Take the Next Step: Elevate Your Leadership Development Strategy

Leadership development is not just a priority—it’s a strategic necessity. If your organization is ready to take a more intentional, structured, and results-driven approach to developing leaders at all levels, we’re here to help.
Contact us today for a consultation on how to:

  • Assess your current leadership development integration
  • Design a customized leadership strategy aligned with your business goals
  • Implement effective leadership pipelines, coaching, and training programs
  • Create a culture where leadership growth is continuous and measurable

Let’s work together to embed leadership development into the DNA of your organization and build a strong, adaptable leadership team for the future. Schedule your consultation today and start transforming your leadership development strategy! 

Elevate Your Organization

Latest News

Elevate Your Organization

Request Staffing

Location of your Business                                                                      

Location of your Business                                                                      

Staffing Need(s) *                                                                                                              

Staffing Need(s) *                                                                                                              

* Indicates Required Fields

 

I agree to receive emails, automated text messages and phone calls (including calls that contain prerecorded content) from and on behalf of AMN Healthcare, and affiliates. I understand these messages will be to the email or phone number provided, and will be about employment opportunities, positions in which I’ve been placed, and my employment with AMN companies. See privacy policy or cookie policy for more details.

* Indicates Required Fields

 

I agree to receive emails, automated text messages and phone calls (including calls that contain prerecorded content) from and on behalf of AMN Healthcare, and affiliates. I understand these messages will be to the email or phone number provided, and will be about employment opportunities, positions in which I’ve been placed, and my employment with AMN companies. See privacy policy or cookie policy for more details.