How To Create a Leadership Development Plan

Turn Potential Into Performance: A Step-by-Step Guide to Leadership Development Planning
If you want to build a strong, future-ready business, helping your team grow as leaders is key. Clear leadership development plans give your employees the skills they need to take on bigger roles while boosting engagement and motivation. When your team feels valued and supported, they are more likely to stay and do their best work.
By identifying leadership talent, setting objectives and providing targeted learning opportunities, you make growth possible for your team and your business. Simple steps like these can drive long-term success and give your business a solid edge.
This guide will show you how to develop your own leadership development plan. You’ll learn how to find potential leaders, outline your programmes and measure results to make sure your efforts deliver real value.
Understanding leadership development plans
Leadership development plans are tools that help businesses identify, nurture and strengthen effective leaders. These plans can prepare future leaders to take on key leadership roles, align leadership with business strategy and support business continuity.
Defining leadership development
A leadership development plan is a structured framework that focuses on building specific leadership qualities and skills in employees. You use these plans to help team members become effective leaders by outlining clear steps for professional development, training and ongoing support.
These plans often target key leadership competencies like communication, decision-making, problem-solving and people management. The aim is to enable employees to grow into senior leaders or other management roles within your organisation.
A good plan has to be personalised to fit your staff’s strengths, experience and career goals. By tracking progress and giving feedback, you make sure your future leaders are always improving their leadership skills.
Key components and benefits
A strong leadership development plan includes:
- Clear objectives: set measurable goals for each participant.
- Skill assessments: review current abilities to find growth areas.
- Development activities: use workshops, leadership coaching, mentoring or formal leadership training.
- Progress tracking: monitor learning and adjust plans as needed.
- Feedback loops: give regular input to help future leaders improve.
These components help you nurture a steady pipeline of talent, ensuring you have capable leaders ready for business needs. Investing in leadership development encourages employees to stay, increasing retention and morale. Targeted plans also help align individual progress with your company’s business strategy.
Benefits extend to business impact, as leadership programmes support innovation, strengthen decision-making and prepare your company to handle change effectively.
The importance in business context
A well-designed leadership development plan offers real value for businesses. It prepares your organisation to fill leadership gaps quickly, lessening the risk to business continuity if a key leader leaves or retires. The cost of filling that vacancy internally is far lower than hiring a senior leader externally. Then, you can backfill the successful internal candidate’s role either with more internal talent or at a lower cost externally.
Focusing on future leaders ensures your company is ready for growth and change. Strong leaders boost productivity, guide teams through challenges and help drive business goals. Internal talent is already familiar with your business goals and challenges, which often makes for a smoother transition than integrating external hires.
Encouraging leadership development at all levels leads to better communication, smarter decisions and a stronger company culture. Businesses with clear development plans are not only 20 times more likely to retain top talent, but are also more cost-effective. Think of it as a practical investment in your company’s long-term stability.
Designing an effective leadership development planAssessing organisational needs and current capabilities
A successful leadership development plan involves understanding your business environment, setting specific targets, recognising talent within your teams and providing well-structured growth paths. This ensures your organisation builds strong leaders ready to support growth and change.
Assessing organisational needs and current capabilities
Start by examining your company’s most important business priorities and current workforce. Use tools like leadership skills assessment to spot gaps in leadership behaviours. Take time to review how your business operates today, then analyse what leadership style fits your company culture best.
Speak with key stakeholders and gather data through 360-degree feedback, peer reviews and surveys. This provides a clear picture of existing leadership strengths and areas to improve. Consider trends in your industry and shifts in your business environment that may influence the leadership skills required for future success.
By mapping out current capabilities, you can build an effective leadership development plan that is tailored to what your business truly needs. Considering current employees and their skill set prevents wasted resources and focuses attention on areas that will drive growth.
Identifying and developing potential leaders
Finding and nurturing potential leaders starts by identifying high-potential employees. Look for employees who show strong leadership behaviours, adaptability, and learning agility. Performance reviews, 360-degree feedback and input from supervisors all play a part in this process.
Characteristics to consider:
- Proactive problem solving.
- Strong interpersonal skills.
- Ability to guide and motivate teams.
Encourage personal growth by offering coaching, mentoring and leadership challenges. Give these employees opportunities to lead projects, take part in decision-making and contribute ideas. Frequent feedback from peers and supervisors provides guidance for improvement and builds confidence.
Matching candidate skills with business needs helps create a targeted leadership pipeline. This increases chances of long-term success and supports your succession planning efforts.
Setting clear leadership goals and objectives
Work with your future leadership talent to set goals with clarity and purpose. The most effective leadership development plan relies on strong, measurable objectives linked to your company’s strategic direction. Use the SMART goals framework to ensure your aims are specific, measurable, achievable, relevant and time-bound.

Your people should identify key goals that reflect their leadership development priorities. For example, they may want to improve decision-making skills, develop a particular leadership style or strengthen communication among teams. Align these leadership development goals with broader business objectives to drive real impact.
Select key performance indicators (KPIs) that will show progress and successes. These indicators might include promotion rates of high-potential employees, feedback scores or performance results from leadership tasks. Consistent measurement helps adjust the plan for maximum effect.
Creating a structured development journey
Design a clear leadership development journey using a structured approach. Begin with an onboarding plan to outline expectations, skills to be developed and available support.
Incorporate continuous learning opportunities so employees continue developing beyond the initial phase. Rotational assignments and job shadowing introduce potential leaders to new functions and encourage practical application of skills. Offering a leadership development plan template can guide both employees and managers through goal-setting, progress tracking and assessment.
Set regular checkpoints to monitor development and provide feedback. This keeps development on track and ensures business targets remain aligned with each individual’s progress. Structured plans build capability and prepare your leaders for future roles within the organisation.
Implementing Leadership Development Programmes
Creating a strong leadership development programme requires a mix of learning methods, hands-on experience and support through mentoring and feedback. Focusing on these key areas will help your business build effective leadership skills and foster development over time.
Learning methods and training opportunities
A good leadership development strategy includes a blend of structured programmes and flexible learning options. Mixing different formats ensures that everyone’s learning needs are met and helps leaders develop practical skills faster.
One powerful way to develop strong future leaders is to enrol them on an intensive ILM-accredited leadership course while completing on-the-job development activities. The combination of learning key strategies and being able to implement them in real time sets your future leaders on a path for success.
Businesses also have the opportunity to choose leadership training courses suited to the individual stage of each of its future leaders. Young leaders will benefit from foundational knowledge on the core elements of leadership, while middle management courses can help experienced managers take the next step up. Women in leadership training addresses the unique barriers women face as they progress in the workplace.
These leadership training courses provide in-depth, scenario-based learning. They cover key leadership attributes that include communication, decision-making and conflict management.
On-the-job experiences and action learning
Practical experience is essential for leadership development. Assigning challenging projects or rotating job roles gives future leaders a chance to use what they have learned in real situations. Action learning projects can help teams solve real business problems while building leadership skills.
Working together on these projects helps employees see the impact of their decisions and actions. Encourage participation in cross-functional teams, as this exposes staff to new perspectives and skills.
You can also create documents that track on-the-job learning:
Job Experience | Skill developed | Duration |
Leading a team meeting | Communication | 2 weeks |
Project management | Organisation | 3 – 6 months |
Rotational assignments | Adaptability | 4 weeks |
These structured opportunities support growth and help identify high-potential talent.
Mentoring, coaching and feedback mechanisms
Mentoring and coaching are important for developing leadership talent. Assign mentors who can give personal guidance to new or aspiring leaders. Leadership coaching through one-on-one meetings provides targeted support for specific challenges.

It’s important to set up feedback channels that encourage open discussion. Continuous feedback helps employees adjust their approach and improve over time. Regular performance reviews and check-ins will keep development goals on track.
Offer constructive feedback that points out strengths and areas for improvement. Using formal feedback tools or informal discussions, support your leaders as they learn. Consistent support and honest communication build confidence and drive long-term results.
Measuring success and ensuring long-term impact
To create real value from a leadership development plan, you need to track progress using clear measures and adjust your strategy over time. Focusing on both measurable results and building a strong leadership culture helps secure your business’ future.
Evaluating outcomes and adjusting plans
Successful leadership development starts by setting specific success indicators that link directly to your key business objectives, such as team productivity, employee engagement or retention rates. Use key performance indicators (KPIs) to track business performance and see if your plan is working as intended. This might include metrics like goal attainment rates, leader promotions or improvements in team output.
Collect feedback from participants and their teams on a regular basis. Use surveys, one-to-one sessions, and performance reviews to gather insights. Schedule these checkpoints as part of a continuous improvement process. When gaps or challenges appear, revisit your leadership development activities and adjust your plan as needed.
Documenting progress in a simple table can help you identify trends:
KPI example | Target | Actual | Change needed |
Team goal Completion | 95% | 89% | Review training |
Employee retention | 90% | 92% | Maintain support |
Internal promotions (organisational size dependent) | Five per year | 3 per year | Add mentoring |
Regularly updating your plan ensures ongoing success and supports effective succession planning.
Sustaining a leadership culture
Long-term impact relies on embedding leadership development into your organisational culture. Prioritise regular feedback, peer mentoring and visible support from senior managers. Building a strong culture of leadership helps create internal leadership mobility and keeps future leaders engaged.
Encourage a learning mindset by offering coaching, supporting personal goals and sharing success stories within your teams. Celebrate achievements, no matter how small, to reinforce positive change and continuous growth. Make leadership development an ongoing process rather than a one-time event.
Frequently asked questions
A strong leadership development plan outlines clear goals, tracks progress and adjusts to individual strengths. You can improve outcomes by using feedback, focusing on skill gaps and creating ways to measure growth.
What essential elements should be included in a leadership development plan?
Your plan should list clear objectives and key skills leaders need to develop. Include specific actions, a timeline and ways to track progress. Resources and support, such as workshops or coaching, add value.
What steps should a business take to develop an effective leadership programme?
Start by gaining support from key stakeholders and identifying staff who show leadership potential. Set clear goals and gather input from your team. Address skill gaps, provide training and track progress.
What are the best practices for measuring the success of leadership development initiatives?
Track progress using clear metrics such as employee performance, promotion rates or survey feedback. Ask participants about their experiences and review improvements in team performance. Regular reviews help you see what works and where to adjust your plan.
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