For years, leaders have treated transformation as a question of strategy and technology. Do we have the right plan? The right tools? The right talent? Most leadership teams think they have a speed problem. They don’t. They have a friction problem. Not the obvious kinds, like failed systems or bad strategy. Friction is quieter, far more pervasive, and seems innocuous. But friction, the invisible drag embedded in how organizations structure work, make decisions, and align teams, is becoming a material leadership risk. And as organizations push harder for agility, that friction comes with serious costs. WHERE WORK SLOWS DOWN Friction rarely shows up as a dramatic failure. It’s a leaky pipe that causes major damage one drop at a time: well-intentioned people doing well-intentioned work that simply doesn’t add up. Consider these common scenarios: A sales team chasing deals in a market segment that leadership decided wasn’t a priority six months ago—but never clearly shut down or communicated. Marketing isn’t supporting it; product isn’t building it, but pipeline reports still reward it. A pricing decision that requires input from finance, product, and sales. Everyone weighs in. No one owns it. What should take two days takes two weeks. By then, the opportunity is gone. A project review that starts with five people and ends with 20 on the weekly call. More updates, more slides, more discussion, but less progress. No one is doing anything wrong, but the misalignment erodes win rates, wastes spend, and diffuses energy. Multiplied across functions and geographies, and the cumulative impact is enormous. This is what makes friction so dangerous. It hides in plain sight, embedded in everyday decisions and activities that seem reasonable in isolation but disconnected in aggregate. IT’S COORDINATION, NOT CAPABILITY When execution falls short, leaders often assume a talent gap. But more often, the issue is clarity and misalignment. Misalignment between product, sales, and finance can lead organizations to invest in initiatives that never meaningfully move the business. Even areas like training, typically seen as universally positive, can become sources of friction when content is mistimed, irrelevant to current priorities, or disconnected from real work. The problem isn’t always that organizations lack talent or effort. It’s that their systems for aligning that effort are breaking down under complexity. 3 REASONS DECISIONS STALL Decision-making sits at the center of organizational friction, and it’s where many companies struggle most. Three issues tend to surface repeatedly. 1. Unclear decision rights. When it’s not obvious what decisions should be made at which level, everything escalates. In the pursuit of zero risk, organizations create bottlenecks that grind progress to a halt. 2. Confusion between operational and financial decisions . Teams often get stuck optimizing financials for precision when speed and execution quality matter most. This delays action in the name of perfect information. 3. A lack of alignment between strategy and decision-making . When leaders aren’t aligned on core principles, every decision becomes a debate, and consistency breaks down. The result is predictable: slower execution, diluted accountability, and mounting frustration. THE REAL COST OF FRICTION While the financial cost of friction is significant, the more damaging impact is on organizational culture. Employees stop caring as much. Not because they’re unmotivated, but because they can’t see how their work actually moves anything forward. Over time, this erodes trust. People begin to question whether their efforts matter, whether leadership is aligned, and whether the organization can execute its ambitions. That’s when friction stops being an operational issue and becomes a leadership one. THE POWER OF SUBTRACTION The most effective leaders are ruthless about simplification. They don’t add clarity by adding more. They add clarity by removing things. They focus the organization on a defined set of critical priorities and ensure that every activity ladders back to them. They continuously challenge processes, cutting them back to their essentials. They resist the temptation to expand meetings, reports, and governance structures that create the illusion of control while obscuring accountability. Just as importantly, they stay close to the work . They listen to what’s happening on the ground to find out where projects stall, where decisions lag, and where effort is wasted. This helps leaders identify friction points quickly and address them directly. A reliable signal that an initiative is in trouble is when meetings grow, decks get longer, and no one can answer who owns the outcome. At senior levels, friction often comes down to trust. When leaders don’t trust others to deliver, they insert themselves into decisions. That slows everything down. MOVE FASTER BY DOING LESS In an era defined by constant transformation, the instinct is often to do more: launch more initiatives, adopt more tools, and pursue more opportunities. But the organizations that move fastest are often the ones that do less. They make clear choices about where to compete and where not to. They align relentlessly around a few priorities, and they design their operating models to reduce friction, not create it. In today’s environment, success doesn’t come from doing more. It comes from removing what’s in the way. Increasingly, those barriers aren’t visible on an org chart or a roadmap. They’re embedded in how work happens every day. Steve Holdridge is the president and COO at Dayforce.