"Many UK firms struggle due to “accidental managers”, say HR experts

The lack of formal training among many leaders of UK companies is a ticking bomb for businesses. Whilst many leaders receive promotion because they excel in their base role, the wider demands of leadership require additional, often ‘softer’ interpersonal skills to get the best out of people. Great social and emotional intelligence is central to building a high-performing and psychologically safe team culture. These are skills that can be learned. And in my experience, managers trained in coaching skills are better equipped to deliver the support employees need to overcome challenge and perform at their best, boosting productivity and wellbeing. Common myths about leadership, that people in leadership roles are somehow immune to mental distress, also means their own wellbeing needs can be neglected. Leaders who are struggling emotionally are less able to respond effectively to the wellbeing needs of employees leading to heightened stress, reduced functioning and lowered productivity.

Many UK firms struggle due to “accidental managers”, namely people thrust into leadership without adequate training. This lack of preparation leads to micromanagement, difficulty with tough conversations and trust issues, all of which hurt productivity and engagement. Overlooking the need for training undermines the managerial role’s complexity. Proper training significantly improves a manager’s effectiveness, team morale and retention. You wouldn’t employ an engineer without formal training, so why expect managers to lead without it? While some excel in communication, direction, and delegation—often due to continuous leadership development—many still lack critical skills like emotional intelligence and strategic thinking. Though leadership has shifted towards empathy and inclusion, accidental managers remain a challenge, disrupting team dynamics. Structured and ongoing development is crucial for transforming accidental managers into effective leaders and boosting firms' performance.

Closing the leadership gap is crucial to the UK economy's future performance. Many managers, though technically skilled, stumble when stepping into leadership roles. They often lack abilities in conflict resolution and clear vision setting, getting bogged down in daily duties and losing focus on effectively leading their teams. The best leaders show strengths in communication, empathy, strategy and constructive feedback. Over the past decade, leadership has shifted toward a coaching approach, recognising that the best way to navigate the rapidly changing work environment is by supporting employees to grow and to be more autonomous. While some have a natural talent for leadership, effective leadership can and should be developed. In today’s complex business environment, continuous learning and adaptation are key. Great leaders are both born and made.

Given our belief that mutable operating models (MOM) are best practice, it's evident that many businesses are mismanaged by engaging their people in ways misaligned with shareholder and C-suite priorities, focusing on processes rather than outcomes. MOMs enable businesses to engage everyone across the enterprise on outcomes, fostering a digital-human fusion that drives real value. However, this approach is still rare in most companies today. As a result, by 2030, a significant percentage of jobs will be at risk or eliminated because these businesses fail to adapt to this essential alignment between technology and human capabilities.

I don't believe poor management is the single reason for faith in UK firms being at an all-time low. Sure, it is part of it, but there are bigger forces at play. Simply put, firms are not aligning themselves to the values and beliefs of external audiences. For example, water companies that spill sewage into our rivers are created to make a profit. The Post Office was privatised to raise capital for the government, drive efficiencies and innovation and create competition. The general public might rightly believe these organisations exist to benefit society and provide a necessary service. Ultimately, though, the "raison d'etre" of Plcs is not that. Subsequently we feel disappointed when profit is put before the environment or postmasters are wrongly prosecuted. It would take incredibly strong leadership to change the direction of many Plcs and tell shareholders to ignore the bottom line. In many cases, we need to change the destination and not the vehicle or the drivers.

We’re finding that managers and leaders often lack the experience of handling difficult conversations particularly around performance. This can be down to a number of factors not limited to personal confidence, lack of experience or support from their leaders. Influencing is also an area where leaders struggle, but when done right this improves idea sharing, collaboration, and decision-making, all of which results in better performance overall. The skill of influencing is important not just in terms of influencing customers but to build rapport between leaders and their teams, too. This drives both productivity and wellbeing in businesses.

In the immortal words of The Bard, "Some are born great, some achieve greatness, and some have greatness thrust upon them." So it is with management. For so long leadership has been seen as the autocratic managment style of The Wolf of Wall Street, whilst 'people' skills have been viewed as 'soft'. Performance thrives in environments where skills are recognised, values and character are aligned and talent is actively nurtured.