Chamber Member, Member Submission

Why Edmonton Businesses Are Struggling with Leadership Capacity and What to Do About It in 2026

Across Edmonton’s business community, many leaders are carrying a growing sense of strain and economic uncertainty that is difficult to quantify but increasingly hard to ignore. Teams are leaner. Decisions feel heavier. The pace of change has not slowed, yet leadership bandwidth has not expanded to match it. While organizations often describe these challenges as talent shortages or burnout, a more precise issue is emerging underneath: a growing gap in leadership capacity.

Leadership capacity refers to an organization’s ability to consistently make sound decisions, navigate uncertainty, and mobilize people toward strategic priorities. When that capacity erodes, even strong businesses begin to feel reactive rather than intentional.

 

Leadership Capacity as a Business Risk

For many YEG-based organizations, leadership capacity is now a material business risk. It shows up in delayed decisions, stalled initiatives, and over-reliance on a small number of key individuals. Founders, executives and senior leaders often absorb the pressure themselves, believing this phase is temporary. In reality, sustained overload quietly increases operational risk, succession vulnerability, and attrition at critical levels.

This challenge is particularly acute in small to mid-sized organizations where leaders are expected to balance strategy, operations, people management, business development, and client or stakeholder demands without the depth of infrastructure available to larger enterprises.

 

What Has Changed in the Last Five Years

The leadership environment of 2026 looks fundamentally different than it did pre-pandemic. Many experienced leaders exited the workforce earlier than expected, while emerging leaders were promoted rapidly, often without sufficient development or support. At the same time, expectations around transparency, ethics based decision making, communication, and people leadership have increased.

Compounding this is the reality of constant disruption. Economic uncertainty, regulatory shifts, evolving workforce expectations, and technological change require leaders to operate in a near-continuous state of decision-making under information overload. Over time, this creates decision fatigue, reducing both the quality and speed of judgment across the organization.

The result is not a lack of effort or commitment, but a structural mismatch between what leaders are being asked to carry and the systems in place to support them.

 

Common Signs Leadership Capacity Is Strained

Organizations experiencing leadership capacity constraints often share similar symptoms. Strategic plans exist but execution is inconsistent or suffering. Senior leaders feel indispensable and hesitant to step away. High performers are stretched thin, while middle managers struggle to move from task execution into true leadership roles.

Importantly, these conditions are not solved by hiring alone. Without addressing how leadership work is structured and supported, adding more people can actually increase complexity and strain.

 

What Edmonton Businesses Can Do Now

Strengthening leadership capacity does not require a complete organizational overhaul. However, it does require intentional action.

First, clarify where leadership time is actually being spent. Many senior leaders are absorbed in operational problem-solving that could be redistributed with clearer decision rights and accountability structures.

Second, invest in leadership development and support infrastructure that is practical and role-specific. Generic training has limited impact. Leaders benefit most from support that helps them make better decisions in real time, manage cognitive load, and lead through uncertainty with clarity.

Third, address succession earlier than feels necessary. Succession planning is not only about replacing roles; it is about reducing risk concentration and building resilience into the organization.

Finally, normalize leadership support. High-performing leaders are not self-sustaining systems. Organizations that treat leadership capacity as an asset to be maintained, rather than an infinite resource, are better positioned for long-term performance.

 

Looking Ahead to 2026

As Edmonton’s economy continues to grow and evolve, organizations that proactively strengthen leadership capacity will gain a meaningful advantage. They will move faster with more confidence, retain key talent, and navigate uncertainty with greater stability.

The question for business leaders is no longer whether leadership capacity matters, but whether their organization is actively building it.

What would change in your organization if leadership capacity were treated as a strategic priority rather than an individual burden?

 

Author: Lina Bil, MBA, CPHR is a leadership and people strategy consultant based in Edmonton. She works with organizations across Western Canada to strengthen leadership capacity, organizational resilience, and long-term business performance.

Elevate Talent Solutions https://www.elevatetalentsolutions.ca/ | Lina Bil Coaching https://www.linabil.ca/