40 – 50% of New Leaders Fail; Here’s How to Make Sure Yours Don’t

When Jordan was hired to lead a fast-growing division, she brought experience, a strong track record, and the confidence of the executive team. She quickly realized the resources and structure needed weren’t in place. Without a roadmap, clear success metrics, or dedicated coaching, cracks began to show: her team grew disengaged, early decisions missed the mark, and by year’s end, she struggled to deliver on the promise that earned her the role.

A 2025 Forbes article wrote that McKinsey & Company revealed in 2017 that 40% to 50% of new leaders fail within their first 18 months. This statistic still holds true today. Leadership transitions are among the most high-stakes moments for any business, yet organizations often underinvest in structured onboarding and executive coaching. Too often, companies focus on selecting the “right” person, only to overlook the support required to set them up for success. The risk is greater when leaders are recruited externally, where cultural misalignment, slower trust-building, and unclear expectations magnify the challenge. Adding to this complexity, leaders are frequently hired into periods of disruption with compressed timelines and heightened expectations, leaving little room for error. Leadership failure, therefore, is not just an individual shortfall but a systemic risk that threatens performance, culture, and competitive advantage.

Even the most capable leaders stumble without clear expectations, coaching, and alignment. To change this outcome, organizations must implement intentional support that prioritizes one-on-one coaching, leadership action plans, and crystal clear expectations during the onboarding process. The cost of failed leadership ripples across teams, departments, and entire organizations. Lost productivity, eroding morale, and higher turnover are common outcomes when leaders struggle to gain traction. A 2023 Gallup study estimated the global cost of disengaged employees at $8.8 trillion annually, nearly 9% of global GDP. Poor leadership doesn’t just hurt companies; it undermines economic growth.

Leadership Fundamentals That Drive Success

The key leadership fundamentals listed below equip leaders to navigate challenges effectively while aligning with organizational expectations. By integrating these activities from day one, leaders accelerate impact, establish credibility, and set the stage for long-term success.

1. Personalized Coaching: Implemented within the first 30 days, one-on-one coaching helps new leaders transition more quickly and effectively by addressing their unique challenges and building confidence. It reinforces core leadership skills like communication, delegation, and vision setting while providing guidance on situational realities. Coaching helps leaders avoid common pitfalls and accelerate integration, ensuring their decisions align with company culture and build credibility.

2. Comprehensive Onboarding: Onboarding programs that emphasize leadership fundamentals equip new hires with the tools to handle challenges, build confidence, and earn trust from their teams. A 2023 Paychex survey found that 52% of new hires feel undertrained, with half planning to leave soon, rising to 80% when onboarding is poor. These statistics underscore the value of structured support like clear performance metrics, regular check-ins, team integration, and detailed role expectations.

3. Leadership Plan: A leadership plan, or strategic action plan, should be closely aligned with the expectations of a leader’s direct supervisor to ensure priorities are clear. A structured plan should focus on building team relationships, clarifying goals and metrics, and aligning with organizational culture. Delivering early wins during this period establishes credibility, while timely coaching and support ensure leaders set a foundation for long-term success.

Investing in comprehensive onboarding, personalized coaching, and a focused leadership plan empowers new leaders to hit the ground running and make an immediate impact. By embedding leadership fundamentals from day one, organizations not only prevent failure but ignite engagement, drive performance, and accelerate results. Making leadership development a strategic priority turns potential into momentum, ensuring leaders, teams, and the entire organization thrive.

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