Your leadership team are the people who steer the ship. They set the strategy direction of the organization. When performance doesn’t meet expectations, employers need to make the difficult decision to make a change at the leadership level.
Most organizations prefer retention. Replacing a leader is disruptive, expensive, and risky. But sometimes the greater risk is allowing the wrong leadership dynamic to continue.
Making a change when warranted is part of running a successful business. Replacing a member of a leadership team is common in executive search in Toronto.
We spoke with our recruiters to create a list of the top signs for employers to look for. Here are some of the clearest signals it’s time to replace someone on your leadership team:
1. You’ve already tried the retention route, and it’s not working
Many companies will first double down on support in hopes that internal change can lead to retention. They invest in executive coaching, bring in consultants, adjust mandates, or redesign incentives. These are smart, responsible steps.
But when the same problems persist after multiple interventions, leaders may simply lack what the organization now requires. At that point, further investment delays the inevitable rather than acting as the solution.
2. Performance has flatlined
A temporary dip in performance can happen to anyone. Markets change, competitors innovate, and even strong leaders hit challenging cycles. This is a normal part of doing business.
What’s concerning for employers is when they see prolonged stagnation. It’s a red flag when revenue growth, profitability, innovation, or customer satisfaction stall despite favourable conditions or repeated resets. This is when a leader’s effectiveness deserves scrutiny. High-performing teams find ways to create momentum even in imperfect environments.
3. Leaders are stuck in the past and resistant to change
Strategy evolves. Technology advances. Workforce expectations shift.
When leaders continue to rely on playbooks that worked five or ten years ago, your organization will gradually lose relevance. Resistance often shows up as dismissing new ideas, defending legacy processes, or hiring people who think the same way they do.
Companies that thrive usually have leaders who are curious, adaptable, and willing to challenge their own assumptions.
4. The company culture is not strong
Culture is a leadership output. If engagement is low, collaboration is weak, or accountability is inconsistent, those patterns typically reflect what senior leaders tolerate, reward, and model. While HR can support improvements, culture rarely transforms without different behaviour at the top.
When repeated initiatives fail to create a healthy environment, it may be a sign that the current leadership team cannot build the one the business needs.
5. Leadership has lost the trust of employees
Trust, once gone, is incredibly hard to rebuild.
Employees notice when messages change, commitments are missed, or transparency is limited. Over time, skepticism replaces belief. Productivity drops, retention suffers, and top performers quietly explore other opportunities.
If credibility cannot be restored, new leadership may be the only way to reset confidence.
6. Persistent issues never get resolved
Every organization has problems. Strong leaders address them, make decisions, and move forward.
Weaker leaders revisit the same topics repeatedly without closure. Meetings feel redundant. Priorities shift before implementation happens. Frustration builds because everyone sees the gaps, but nothing changes.
When execution continually stalls, it often reflects deeper leadership misalignment.
A final word about replacing leadership team members
Replacing a leader is never the first choice, but sometimes it becomes the necessary one. When performance stagnates, adaptability disappears, and trust erodes, renewal at the top can unlock energy, clarity, and direction throughout the organization.
More Insights About Executive Search Recruiting
Retention vs. Replacement: Where Should Employers Invest Right Now?
15 Signs It May Be Time to Let an Employee Go
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