Yesterday’s leaders and skilled workers are retiring every day, and millennials are flooding the job market. The old way of running things is fading out. Successful businesses of tomorrow must look ahead and be prepared to adapt. Companies that invest in leadership development have more competent leaders who know how to execute business strategy, retain a talented group of employees, and overall improve the bottom line.

A focus on leadership development equates to skilled leaders who can communicate business strategy and execute it. Most businesses acknowledge that they need strong leaders on all levels to accomplish business goals effectively. Companies should look to their strongest leaders to develop or change business strategy instead of reaching outside the company. Investment in strong leaders within the company will save them money. Besides, those who already know the workings of the business can engage with the group differently.

They can bring team members together to establish common goals and a shared vision, inspiring them to believe in the roles they play with each step forward. Good leaders build communities and attract skilled employees (and increases the likelihood they will stay). Poor leaders hinder the development of employees, while strong leaders retain talented employees because they help them grow.

Most importantly, they help the business thrive as the world and the market changes. Strong leaders improve the bottom line by reducing costs and generating new streams of revenue. They also improve customer experience, increasing the likelihood that consumers will come back. Businesses invested in leadership development have leaders who can make quick decisions when unforeseen situations come to call. They can anticipate and navigate changes within the market, within the business strategy, within the team, and help shape business culture.

Businesses who prioritize leadership development have a team of good communicators focused on finding ways to implement change. Some of the best leaders serve as mentors to the talented group of people who drive the company. As leaders develop their teams, the old way of doing business may change. The traditional method of leaders making all the decisions isn’t suited for every business. Even though few businesses are investing in leadership development, most of them acknowledge its importance in helping a company withstand the test of time.