7 Ways Stagnant Leaders Hurt Business

Have you experienced this: Someone on the team with 20 years of experience believes their tenure makes them irreplaceable and even invaluable. That’s a clear example of a stagnant leader.

When Tenure & Experience Don’t Equal

Here’s the uncomfortable truth: 20 years of experience doesn’t always mean 20 years of growth and value added to the team today.

I’ve heard Phillip Van Hooser say that ”sometimes, it’s just 2 years of experience repeated 10 times.” 

And when that happens, we end up with people in decision-making positions who aren’t leading themselves—or their teams—to their greatest potential.

How Stagnant Leaders Hurt Business

This matters in business today because stagnation in leadership and team development has a direct impact on a business’s bottom line. Here are a few ways this shows up:

1. Decreased Innovation: Leaders who fail to grow and adapt are less likely to encourage innovation, leaving the organization vulnerable to competitors who embrace change.

2. Lower Employee Engagement: Stagnant leaders demotivate their teams, leading to decreased productivity and higher turnover.

3. Missed Opportunities: Outdated skills and mindsets mean leaders may overlook or mishandle emerging market trends, technological advancements, or customer needs—resulting in lost revenue.

4. Inefficient Problem-Solving: Without continuous growth, leaders may lack the creativity and critical thinking skills to address challenges effectively, causing delays and inefficiencies.

5. Eroded Team Trust and Morale: Teams lose confidence in leaders who don’t model growth and adaptability, undermining collaboration and performance.

6. Reduced Customer Satisfaction: Leaders stuck in the past fail to adapt to evolving customer expectations, leading to poor service and declining loyalty.

7. Increased Costs Due to Turnover: Ineffective leadership drives high-performing employees to leave, increasing hiring and training expenses.

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The Reality of Slow/No Leadership Growth

The reality is that if a stagnant leader isn’t focused on learning and growing year after year, their value might not be as big as you/they think. 

Do you need to have a conversation with them about turning things around? Maybe you’ve been doing that and haven’t seen any transformation…could it be time for a hard decision to be made for the good of the team?

BEFORE you do anything, leaders ALWAYS LOOK IN THE MIRROR FIRST. Ask yourself, 

“Am I setting the example for what I want to see on my team?”

  • – What are you reading to stay sharp?
  • – How are you pushing yourself to innovate and reinvent your leadership style?
  • – Are you staying ahead of the curve—technology, industry trends, customer needs?
  • – How are you communicating to others that you’re proactively growing?

The world is changing fast, and success waits for no one. Leadership isn’t about showing up and coasting. It’s about owning your growth, setting the example, and leading your team through constant change.

So, here’s my question for you:

What’s ONE action you’ll take this week to make sure you’re growing?

Drop your thoughts in the comments — I’d love to hear how you’re staying ahead and becoming the leader your team needs!

~ Alyson Van Hooser

Don’t Go Stagnant! Contact Us for a Custom Training Plan to Jumpstart Leadership Growth Today!

Alyson Van Hooser

Alyson Van Hooser, Pres & CEO, Van Hooser Leadership. With the grit that only comes from tough experiences, Alyson has learned a thing or two about personal and professional success. From her management experience with Walmart, as an elected city council member, bank manager — all before the age of 30 — Alyson has wisdom well beyond her years! Her podcast, Stake: The Leadership Podcast, offers a fresh perspective on leadership and helps multiple generations successfully work together! Connect with Alyson on LinkedIn.

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