Why Leadership Energy Drives Organizational Performance

The most resilient leaders still depend on the organization around them. See how leadership energy is already impacting performance in your organization, and where it belongs in how you develop leaders.

The Scenario

Imagine this…

A VP notices her best director has gone quiet in meetings, still capable but visibly diminished. Around the same time, a handoff between teams that used to run smoothly starts creating friction: there’s missed alignment and a sense that neither group trusts the other. By the end of the quarter, several departments report missed targets, and each one is certain their situation had nothing to do with the others.

These appear to be separate issues, with unique fixes: a coaching conversation, a boundary-spanning exercise, and a performance audit. But what if these challenges share the same origin, showing up in different places?

Leadership energy.

Energy is a misunderstood and under-measured driver of performance. Seen clearly, it’s something leaders can learn to cultivate in themselves and help others do the same. Seen at scale, it’s a reason for organizations to ensure their systems sustain energy instead of working against it.

Our report on the importance of leadership energy explains the patterns, describes what a single de-energizing relationship costs a team, and provides ways for organizations to respond.

The Energy Signal

What Is Leadership Energy?

Leadership energy determines whether an organization’s effort builds momentum or breaks down. It’s the underlying capacity that makes employee motivation, morale, and organizational performance possible, and a clear signal of where performance is headed before results fully show it.

To understand leadership energy more clearly, think about how energy at work operates on 3 levels: the energy a leader brings individually, the energy created between people, and the collective energy that forms when those exchanges compound across the entire organization.

Diagram of the 3 levels of leadership energy. At the center, individual energy. Lines connect it to 6 surrounding people, representing relational energy created through interactions between individuals; 5 lines are energizing and 1 is de-energizing. A dotted circle encloses the group, with an arrow pointing up to collective energy, built through exchanges across the organization.
  • Individual: What a leader carries into every interaction.

  • Relational: What’s created between people.

  • Collective: What emerges when energy multiplies across every exchange.

Energy Isn’t Only a Leader’s Responsibility

Managing energy well is a leadership capability, and it starts with a leader cultivating self-awareness and habits. Understanding the importance of organizational energy also means recognizing something outside any one leader’s control: a system built to support what they’re trying to do.

When individual leadership development and a healthy leadership ecosystem grow together, the energy of each produces stronger performance.

Take for example a director who learns through 360 feedback that his team’s meetings are draining, not because of the number but because every meeting defaults to open-ended discussion with no clear outcome. He restructures how his meetings run, and his team responds positively. But the meetings coming from other departments still run the old way, and 6 months later, his team is just as de-energized.

He did everything right, and his team was initially better for it. But the organization kept draining the energy he tried to protect. That’s the cost when organizations treat energy as a personal responsibility rather than a shared one: Even the right fix can’t outlast a system working against it.

What Holds a Leader Up

The Research

The Outsized Impact of 1 De-Energizing Relationship

Not every relationship carries the same weight. A de-energizing one costs far more than it may seem to, and it’s often one-sided: only one person in the relationship experiences it as draining.

Our relational energy research, based on assessment data from 600+ leadership teams, measured how much weight energy carries. Team leaders and members rated how interactions with each person typically affected their energy level.

How de-energizing relationships affect teams

  1. The good news: Only 9% of the relationships were de-energizing.

    Illustration: a grid of 100 circles. 9 are filled, representing de-energizing relationships; 91 are outlined.

  2. But those negative ties hit harder. Removing 1 de-energizing relationship has the same impact on team effectiveness as adding 4 energizing ones.

    Illustration: a level balance scale. 1 filled circle on one side balances 4 outlined circles on the other.

  3. When the negative relationship involves the team’s leader, the impact triples.

    Illustration: the filled circle grows to 3 times its size and the scale tips toward it, outweighing the 4 outlined circles.

  4. De-energizing relationships are rarely mutual. In 87%, only 1 person experienced the relationship as draining.

    Illustration: two circles, one purple and one white, each holding 5 battery-style bars. As the circles move closer together, the purple circle stays fully charged while the white circle drains from 5 bars to 2, showing the relationship is draining for only one person.

The imbalance of negative energy doesn’t stay contained to how 2 people get along. It shapes outcomes that determine how a team can function.

Take psychological safety, a strong predictor of team performance. One de-energizing relationship erodes it more than an energizing relationship helps it. Neutralizing the impact of one de-energizing relationship on psychological safety takes 4 strongly energizing ones, and that only brings the team back to neutral.

Multiply that math across every team in an organization: A handful of unaddressed negative relationships can cap how far organizational energy, and performance, can go.

Hear more about what these insights mean, directly from one of the researchers behind them.

The Challenges

Leadership Energy at Work: The Origin Behind Familiar Challenges

You’ve just seen what one relationship can do to a team. But that’s only one way negative energy shows up in an organization. Energy also drives some of the most familiar challenges leadership development seeks to address.

  • Burnout spreads wide. When an exhausted leader has less energy to give the people around them, that fatigue moves through every interaction, eventually spanning levels and departments.

  • AI is accelerating work. The energy leaders need for independent judgment erodes underneath the speed, and trust breaks down when no one can tell if a decision reflects collaborative human thinking or an AI answer.

  • Leadership readiness is weakening. Energy is unevenly distributed, overloading some teams while others go untapped, wearing down the entire talent pipeline.

  • Complexity isn’t letting up. Energy stays under constant pressure; it’s spent on reactive alert instead of the performance it should be building.

Each shows up differently, but the mechanism is the same: leader energy that isn’t being preserved, renewed, or guided well. That’s what makes leadership energy a lens worth using: It helps you address several top organizational challenges at once.

The opportunity is finding where a leader’s energy and the systems around them meet, then choosing the right level of action: individual, relational, or collective.

Get the Report

Energy Is a Leading Indicator

Because individual, relational, and collective energy compound into each other, a shift at one shows up before it becomes a visible problem at the next. That makes leadership energy even more valuable: It signals where performance is headed before it appears in an engagement score or an exit interview.

The signal itself tells you what to change, and where. Read it early enough, and you can shift a behavior before it becomes a habit, or a habit shapes a culture.

Once you know where energy is generated, shared, or lost, you can build development that addresses it directly, for individual leaders, for the relationships between them, and for the leadership ecosystem that either sustains that energy or works against it.

Our Energy Equation gives you the language to diagnose where that’s happening in your organization. The full report goes further, laying out the research behind it and the specific development actions that address energy at its source.

Related Webinars: Hear From Our Experts

Mon., Nov. 23, 2026 2:00 pm EST / 8:00 pm CET

How Leader Resilience Impacts Energy Dynamics at Work

  • Peter Ronayne, PhD Senior Faculty
  • Paige Graham, PhD Global Portfolio Manager, Consultative Solutions

Thu., Dec. 3, 2026 2:00 pm EST / 8:00 pm CET

How Collective Energy Shapes Team Culture & Performance

  • Diane Bergeron, PhD Senior Research Scientist
  • Donna Porter, CPCC, PCC Leadership Solutions Partner

Frequently Asked Questions About Leadership Energy