A 2015 study by Warwick Business School concluded that underdeveloped leadership and management skills had a constraining effect on the growth of SMEs, and the problem can be particularly prevalent in software teams.
Development leads are often appointed for their experience, their domain knowledge and their understanding of the codebase. People skills, however, are just as important. If your leads shy away from key areas like code reviews, training and development of their juniors, and solving disputes, then they're not as effective as they could be. Similarly, there are leaders who take such responsibilities too seriously, leaving their teams to feel stifled and unempowered.
Effective coaching can help people to develop the skills to become true team leaders, enabling their teams to thrive and steering them to success while embracing their creativity and recognising their individual skills.