5 Symptoms of Leadership & Governance Misalignment

As organisations evolve over time, leadership and governance frameworks that once worked well can quietly fall out of alignment. The result is rarely obvious at first—but over time, misaligned leadership behaviours and governance structures become a material risk to strategy delivery, performance, culture, and stakeholder confidence.

Independent leadership and governance reviews are now considered vital practice, not a remedial action or nice-to-have add-on.

But how do you know when one is needed?

Indicators You Need an Independent Review

Below are the five symptoms we see regularly that tell us leadership and governance is out of whack - and therefore the most common indicators that an objective, independent review would add value.


#1. Strategy Is Agreed but Not Executed

What this looks like

  • Senior leaders agree strategic priorities, yet delivery consistently falls short

  • Different parts of the organisation interpret the strategy differently

  • Progress relies on individual effort rather than governance discipline

When governance frameworks don’t translate strategic intent into clear accountability, execution becomes fragmented and inconsistent.

Why this matters
Research from Harvard Business Review consistently shows that strategy failure is rarely due to poor strategy—it is usually caused by misaligned leadership behaviours, communication, incentives, and decision-making structures.


#2. Decision-Making Is Slow, Revisited, or Undermined

What this looks like

  • Decisions take too long or are repeatedly reopened

  • Authority is unclear, leading to escalation or avoidance

  • Informal influence overrides formal governance forums

Decision clarity and accountability are core elements of effective governance.

Why this matters
The Institute of Directors and UK Corporate Governance Code highlight decision clarity and accountability as core elements of effective governance.

When leadership teams lack clarity on who decides what, organisations experience:

  • Delays

  • Duplication

  • Risk avoidance

  • Frustration at all levels


#3. Leadership Behaviours Don’t Match Stated Values

What this looks like

  • Organisational values are communicated but not consistently role-modelled

  • Different leaders demonstrate different “acceptable” behaviours

  • Psychological safety is talked about, but challenge is discouraged or avoided

No governance framework can compensate for misaligned behaviour at the top.

Why this matters
The CIPD and Chartered Institute of Internal Auditors identify “tone from the top” as a leading indicator of organisational health and risk.

When leadership behaviour is inconsistent, it undermines:

  • Trust

  • Engagement

  • Accountability

  • Ethical decision-making

No governance framework can compensate for misaligned behaviour at the top.


#4. Growing Tension, Silos, or Blame at Senior Level

What this looks like

  • Functional leaders protect territory rather than act collectively

  • Leadership meetings focus on symptoms, not root causes

  • Blame replaces ownership

Leadership misalignment is one of the strongest predictors of declining performance during growth or change.

Why this matters
According to McKinsey & Company’s Organisational Health Index, leadership misalignment is one of the strongest predictors of declining performance during growth or change.

These behaviours often indicate:

  • Unclear collective accountability

  • Competing priorities

  • Governance structures that reinforce silos rather than enterprise thinking


#5. Known Risks Are Repeatedly Discussed but Not Resolved

What this looks like

  • The same risks appear on agendas quarter after quarter

  • Over-reliance on key individuals

  • Weak succession planning or risk ownership

Key signal: Risk management is discussed, but leadership behaviour doesn’t drive action.

Why this matters
The OECD Principles of Corporate Governance emphasise proactive risk oversight as a board and executive responsibility—not a compliance exercise.

When risks are acknowledged but not acted on, it often reflects:

  • Lack of ownership

  • Weak challenge

  • Governance that is reactive rather than strategic


Why an Independent Leadership & Governance Review Matters

When these symptoms emerge, internal reviews often struggle to gain traction due to:

  • Power dynamics

  • Confirmation bias

  • Reluctance to challenge peers

The UK Corporate Governance Code explicitly supports regular independent evaluations as a mechanism for continuous improvement.

An independent review provides:

  • Objective insight into how leadership and governance operate in reality

  • Safe challenge to behaviours, not personalities

  • Clear, practical recommendations aligned to strategy and growth stage

The UK Corporate Governance Code explicitly supports regular independent evaluations as a mechanism for continuous improvement.


 Final Thought: Misalignment Is a Growth Risk, Not a Failure

Leadership and governance misalignment is not a sign of failure—it is a natural risk of growth, change, and/or increased complexity.

Organisations that address it early:

  • Execute strategy more effectively

  • Make better decisions, faster

  • Build trust with employees, investors, and regulators

  • Become genuinely growth-ready

If several of these symptoms feel familiar, an independent leadership and governance review is not just advisable—it is a strategic investment.

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