Leadership has never been more complex, or more vital. As organisations navigate digital transformation, B-BBEE and ESG imperatives, and volatile market dynamics, the pressure on executive teams to deliver long-term value is mounting. Yet across critical functions, including finance, technology, and operations, there is a growing leadership capability gap that threatens business continuity and competitive advantage. Are companies looking in the right places for the talent they need? Increasingly, the answer appears to be no. 

According to McKinsey, a staggering 87% of companies either face or expect to face skills gaps within the next five years. Executive management, IT leadership, and operations are among the hardest hit. In technology alone, only 16% of executives report confidence in their current talent pool. Meanwhile, 60% cite the shortage of tech talent as a major barrier to digital transformation.  

In finance, the evolution of the CFO role from compliance gatekeeper to strategic advisor is demanding new capabilities. As BCG reports, finance leaders now require fluency in data analytics, scenario planning, ESG metrics, and digital tools — skills that often fall outside the traditional accounting background. And in operations, McKinsey finds that leadership deficits are preventing companies from executing ambitious growth strategies, with capability-building urgently required to close the gap between potential and performance. 

In South Africa, the gaps in managerial and leadership are even more stark: Recent data reveals a staggering 94.2% shortage in key leadership positions such as general managers, operations managers, and project managers. Professional leadership roles — including department heads, team leads, and technical directors — aren’t far behind, with a 78.2% shortage reported. These gaps are not only about unfilled seats; they point to a deeper issue: a lack of the specialised capabilities required to lead effectively in complex, fast-changing business environments. 

The challenge lies not just in quantity, but in the quality of leadership talent available. High-impact leaders today must combine technical knowledge with strategic foresight, and that blend is in short supply. Skills such as strategic thinking, innovation, and project and resource management are in particularly high demand, especially as sectors across the economy embrace digital transformation. Equally concerning is the scarcity of soft skills — communication, adaptability, emotional intelligence — and the ability to manage and motivate diverse teams. Organisations are also struggling to find leaders with strong decision-making, problem-solving, and analytical thinking skills, all of which are essential for navigating uncertainty and driving sustained performance. 

What’s clear is that traditional hiring strategies are no longer sufficient. The bar for leadership has shifted, and so too must the approach to finding and developing executive talent. 

Rethinking where (and how) we search for leaders 

The leadership skills gap is not simply a recruitment problem — it’s a strategic risk. Yet many organisations still approach executive search as a transactional process, focusing on job titles, tenure, and narrow definitions of experience. In doing so, they overlook potential game-changers: those with unconventional backgrounds, cross-sector insights, or adaptive thinking, which are the very capabilities needed to lead in complex environments. 

Strategic search partners play a critical role here. Leading firms don’t just fill roles; they challenge assumptions, act as market advisors, and identify top-tier talent capable of delivering disproportionate impact. Research by McKinsey shows that top performers can be up to eight times more productive than their peers, but they are rarely found in conventional places. Search partners bring the network, expertise, and market intelligence to uncover these hidden leaders, many of whom are outside traditional candidate pools. 

In fact, both McKinsey and BCG advocate for redefining how leadership potential is assessed. High performance in a current role doesn’t always equate to future leadership capability. Instead, organisations should focus on broader inputs, from cross-functional leaders, and succession pipelines, to untapped talent pools to uncover individuals who can thrive amid uncertainty. 

Bridging the gap through strategic partnerships 

Successful executive search partnerships today are about speed, precision and foresight. Effective search firms partner with clients to understand their strategic goals, culture, and leadership challenges, helping them identify talent not just for today, but for what’s coming next. 

This involves: 

• Mapping leadership potential to strategic business shifts, such as digital innovation, sustainability, or global expansion. 

• Challenging outdated role definitions, ensuring the search is focused on capabilities, not just credentials. 

• Tapping into diverse talent pools, broadening perspectives and improving the agility and inclusivity of executive teams. 

• Providing ongoing market insight, enabling organisations to benchmark their talent strategies against real-time trends. 

Importantly, the most successful firms build long-term relationships — not just placements — helping clients shape the executive pipeline in line with future challenges. 

The DAV difference 

DAV transforms the executive search process from a transactional exercise into a strategic lever for long-term success. Businesses need leaders with the vision to see around corners, the resilience to guide teams through ambiguity, and the adaptability to meet challenges that don’t yet exist. DAV brings this into focus by aligning executive talent acquisition with business goals, market realities, and future capabilities. Our approach goes far beyond job specs and CVs — it’s about uncovering the leaders who can truly shift the dial. 

With a proven track record in identifying high-impact executives, deep market insight, and a commitment to diversity and inclusion, our team delivers more than candidate; we deliver confidence that your leadership team will not only meet today’s challenges, but will be equipped to create tomorrow’s opportunities. For companies expanding into South Africa, scaling operations, or redefining their strategic direction, DAV offers the expertise, networks and foresight to ensure that every leadership hire is a catalyst for growth. When the cost of a leadership gap is strategic drift, there’s no room for guesswork.