Leadership Misalignment: The Cost You Can't Afford to Ignore

When the CFO emailed his forecast, it landed with a thud. The revenue projection fell 15% short of the target. Enough to threaten expansion plans and put bonuses on the line.

 

The leadership team gathered.

Not for brainstorming or vision casting.

This was a “fix it fast” kind of meeting. The air was thick enough to slice with a knife.

 

Sales pushed for discounts. “We just need to close the deals.”

 

Product pushed back. “If we cut prices now, we undercut everything we’ve built this year. We’ll be seen as a low-cost provider, which kills our position.”

 

Marketing offered a lead-generation campaign. But it was a longer-term play that wouldn’t land soon enough.

 

The CEO listened. Everyone had a point.

Every option felt urgent. And wrong.

He felt that familiar pull—to just do something.

Push it through. Show the board a fast move.

 

He went with the discounts.

Not because they were right. Because they were fast.

 

This isn’t a story about poor leadership. It’s a story about good people drifting just far enough out of sync that in a high-pressure moment, they stopped leading together. The forecast didn’t create the tension. It exposed the subtle misalignment that had been growing for months.

 

The sales team earned bonuses based on volume. The product team measured innovation and market position.

The CEO was concerned about the short-term financials.

 

Each one made a logical decision based on their role.

But their roles weren’t aligned. Their incentives weren’t aligned. And over time, their definitions of success had drifted, too.

 

That’s how a company ends up with smart people pulling in different directions. And how a moment of pressure becomes a moment of loss. 

Not just revenue, but trust. Energy. Momentum.

 

Where Misalignment Hides

 

Misalignment rarely announces itself.

 

It often starts when a leader’s internal sense of purpose—their values and vision—no longer aligns with how they actually spend their time or make decisions.

 

It’s a slow drift.

 

You believe in developing your people, but your calendar says otherwise.

Clarity is a stated value, yet your team is working from three different plans.

You aim for long-term growth, but short-term pressure keeps calling the shots.

 

The compromise is barely noticeable.

It hides in the meeting that feels more like a performance.

The strategy deck you build, knowing it won’t drive anything that matters.

 

And when that drift starts at the top, it spreads.

 

People adjust to your uncertainty.

They react instead of leading.

Priorities compete. Departments protect their own lane because they don’t trust where things are headed.

 

Soon, it’s not one big thing; it’s everything.

The company is busy but unfocused.

Small tasks stall. Decisions drag.

The friction piles up.

And it drains the energy you need for real progress.

 

How Misalignment Affects Your People Decisions

 

If you want to know what a leader really values, look at who they hire, promote, and let go.

 

When you’re aligned, those decisions reinforce what matters.

You hire for character, not just credentials.

You promote based on potential, not convenience.

And when someone no longer fits—even if they’re delivering—you make the hard call.

 

The decisions aren’t easy, but they’re clear because you are.

 

When misalignment creeps in, clarity disappears.

There’s pressure to fill the seat, so you lower the bar. You make the desperation hire, convincing yourself it’ll work with more support. But a few months in, you’re managing fallout—conflict, confusion, missed handoffs. And the role still doesn’t work.

 

Or you promote someone because they’re strong technically. You don’t want to lose them. But they’re not ready to lead, and now their team is paying the price.

It’s not just a performance issue. It’s a trust issue.

 

The team notices. They see who gets rewarded, who gets tolerated, and who gets left out. They feel the gap between what’s said and what’s real.

 

And the ones you most want to keep?

They start to look elsewhere.

 

How Misalignment Affects Your Money Decisions

 

If you want to know what a company really prioritizes, look at where the money goes. Every budget line is a signal. Every investment is a vote for values.

 

When you’re aligned, spending is intentional.

You invest in infrastructure, talent, and tools that support long-term growth—even if that means saying no to short-term wins.

 

But when misalignment creeps in, your budget stops reflecting your strategy. You start approving what feels urgent, not what moves the business forward.

 

Misalignment turns financial planning into a reactive exercise.

 

One team lobbies for a flashy platform. Another asks for more headcount. You say yes to both—not because they’re aligned with strategy, but because the pitch was strong and the pressure was high.

 

Another signal? The gap between your financial reality and your operational pace.

 

A 2024 PwC report found that while many companies push for rapid growth, their systems can’t keep up. And when growth feels stalled, it’s tempting to chase the next shiny solution.

 

Nearly 64% of CFOs say they’ve felt pressured to greenlight digital transformation projects without fully understanding the long-term cost or whether their teams can actually deliver them (PwC CFO Pulse, 2024).

 

Consider the decision to invest in a new market. An aligned leader makes the choice based on rigorous analysis and understanding of the company’s capacity to deliver. Whereas a misaligned leader pours money into expansion without ensuring the product is ready, the team is trained, or the supply chain can handle it. When the initiative falters, it is not just a financial loss; it’s a blow to morale. And a distraction that pulls the entire organization off course.

 

That’s how companies overreach—launching too many half-ready ideas, then pulling back when resources get stretched, fracturing trust.

 

How Misalignment Affects Your Energy and Pace

 

The pace of a company is set by its leaders.

 

When you’re aligned, the rhythm is grounded. You know when to push and when to pause. The urgency is real, but it’s not constant. There’s space for people to breathe, reflect, and return with energy.

 

When a leader is misaligned, the pace is erratic and unsustainable. Activity gets confused with progress.

 

It turns urgency into a lifestyle. The team moves fast but never lands. Everything feels critical. Every week is a sprint. But no one is sure where the finish line is—or why it matters.

People start saying yes to everything because they don’t know what to protect. Meetings pile on. Communication breaks down. Work becomes performative. Motion replaces meaning.

 

And energy? It becomes exhaustion.

 

Not from laziness or lack of skill but from the slow, steady toll of chasing unclear goals at an unsustainable pace.

 

This isn’t high performance. It’s rapid burnout.

And when leaders don’t address the drift, the cycle continues:

Unclear direction → constant urgency → reactive execution → diminishing returns.

 

The activity level is high. Yet the business is running on fumes.

 

The Path Back to Center

 

Fixing misalignment doesn’t require a new grand strategy. It takes something more demanding: closing the gap between what we say matters and how we actually lead.

 

And it starts with the leader.

 

You have to pause long enough to notice the friction.

  • Where are you forcing decisions that should feel clear?
  • What keeps stalling despite your efforts to fix it?
  • Where’s the gap between the results you want and the behavior you’re modeling?

 

It requires the discipline to ask hard questions.

  • Are your people decisions building the team you actually need?
  • Does your budget reflect your top priorities?
  • Is the pace you are setting energizing or draining your team?

 

Answering honestly is the work.

 

It’s the deliberate act of realigning, one decision at a time. That is what creates coherence.

And in a complex world, coherence is the ultimate competitive advantage.

Lisa L. Baker is the Founder of Ascentim, an award-winning coaching and leadership development firm that helps high-achieving professionals lead boldly and live fully.  Drawing on over two decades of Fortune 500 experience and her signature G.R.O.W. framework, Lisa guides clients to unlock their area of greatness—where strengths, passions, and purpose align. Her belief?

“When we lead from our greatness, we are our most powerful, authentic selves.”

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