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6 Steps to Create an Effective Leadership Development Plan

Adeline de Oliveira
A manager and a coach smiling and shaking hands in a factory

In an ever-changing business world – marked by rising costs, supply chain disruptions, and increasingly stringent regulations – many managers find themselves thrust into roles where they must lead change and guide their teams through uncertainty, all while maintaining high levels of performance. The result is often rushed decision-making, disengaged teams, and missed opportunities for improvement.

Developing leaders who are empowered to sustain operational excellence and employee engagement should therefore be a top priority for organizations focused on long-term growth. That’s why a leadership development plan is essential. Acting as a clear roadmap, it helps organizations proactively develop skills by equipping leaders with the tools, resources, and support they need to succeed.

In this article, you will learn how to build a solid leadership development plan that aligns with your organization’s strategic priorities while fostering continuous, sustainable leadership growth. We are also highlighting the key components that will set your plan up for success from the very start.

Key takeaways:

  • A leadership development plan is a structured framework guiding the growth of leaders’ skills, behaviors, and strategic capabilities.
  • Key elements of leadership development plans include personalized plans, blended learning, coaching, self-assessment, collaborative learning, and continuous improvement.
  • A mix of leadership development methods – training, coaching, mentoring, hands-on experience, etc. – helps perfect and anchor leadership behaviors and skills.
  • Embedding leadership development goals and practices into daily work fosters engagement, professional growth and a continuous improvement culture.
  • Developing effective leaders leads to performance improvement by aligning decisions with business goals, building collaborative teams, and boosting operational effectiveness.

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What is a leadership development plan?

A leadership development plan is a structured framework that defines the steps and strategies required to develop, refine, and nurture the best management skills and behaviors – such as decision-making, strategic thinking, emotional intelligence, and communication – of current and future leaders within an organization.

Personalized and built for long-term development, the plan aims at achieving specific business objectives:

  • Ensuring succession planning: Leadership development prepares high-potential employees to step into key roles, ensuring the organization has a ready leadership pipeline to maintain continuity and stability.
  • Addressing skill gaps: By identifying and targeting specific leadership competencies, development plans help close gaps in knowledge, capabilities, and behaviors enabling managers to meet current and future business needs.
  • Improving performance: Investing in leadership growth equips managers with the management practices, skills, and tools needed to boost performance of both teams and organizations.

Leadership development plans should be personalized to each individual’s capabilities, knowledge, experience, and hierarchical level. By combining multiple development approaches – such as leadership training and coaching, mentoring, e-learning, and personal growth initiatives – programs become relevant, engaging, and tailored to individual needs, ultimately driving stronger leadership effectiveness and performance.

Key components of a successful leadership development plan

Alignment with the organization's context

A leadership development plan must be closely connected to managers’ day-to-day responsibilities and aligned with the organization’s operational reality. By grounding leadership development in real-world situations within the company, it ensures that the skills managers build are practical, applicable, and directly relevant to the challenges they face at work.

Personalized leadership development plan

An aspiring leader has different needs than an experienced executive. An effective leadership development program is structured across multiple levels, with each level offering tailored strategies to address the specific leadership skills required. For even greater impact, development methods should align with the individual goals and career aspirations of each leader.

Blended leadership development approaches

Leadership development plans combine a variety of learning methods – training, coaching, mentoring, e-learning, hands-on experiences, etc. This blended approach reinforces learning and helps embed new practices sustainably by catering to different learning styles and preferences.

Coaching support

Coaching provides managers with guidance, advice, and feedback as they practice key leadership competencies and behaviors in the work environment. Close, ongoing support from the coach ensures leadership skills and best practices developed are sustained over time.

Individual assessments

Tools such as 360-degree feedback, peer assessments, and performance reviews help leaders understand their strengths and areas of improvement. This increased self-awareness is the foundation for meaningful and lasting leadership development.

Collaborative and peer learning

Leadership is also developed through shared experience. Co-development sessions, working groups, and regular opportunities for exchange among leaders should be integrated into leadership development plans to foster collective learning, strengthen collaboration, and build a shared culture of continuous improvement.

Culture of continuous learning and improvement

Leadership development is an ongoing journey, not a one-time event. Continuous reinforcement through regular feedback, follow-ups, and learning opportunities helps leaders stay current and continuously adapt their skills to evolving organizational needs.

Recognition of efforts and achievements

Recognition is a powerful driver of motivation and engagement. The most successful programs use digital platforms to track progress and recognize leaders as they reach key milestones. Providing career development opportunities or celebrating achievements through public recognition are proven ways to engage, motivate, and retain both current and emerging leaders.

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Benefits of a leadership development plan

Align leadership skills with business priorities

With a structured leadership development plan, leaders align their actions and decisions with the organization’s strategic and operational objectives. This alignment reduces gaps between top management and the floor, while accelerating the execution of priorities and key initiatives.

Create a consistent leadership culture

A unified leadership culture creates a more harmonious work environment throughout the organization. By reducing the disruptions caused by varying management styles across departments, it promotes clarity, alignment, and collaboration at every level.

Facilitate sucession planning

Leadership development programs help anticipate future leadership skill needs and identify high-potential employees before key positions become vacant. This approach ensures effective succession planning by equipping talents with the tools and resources they need to grow into leadership roles.

Increase talent retention

A well-defined approach to developing leaders helps retain employees by providing clear professional growth opportunities, a vision for their future within the company, and a pathway for career advancement.

How to create a leadership development plan

Infographic showing the steps to creating a leadership development plan, each illustrated with an icon placed on a square 3D base

1. Set clear objectives

What are your business objectives? What will leadership development help the company achieve? Savvy organizations typically invest in developing their leaders to pursue core goals tied directly to performance, continuity, and long-term success.

Top objectives include:

  • Planning succession by preparing future managers to perform in leadership roles and responsibilities.
  • Closing critical skill gaps in areas such as decision-making, communication, and emotional intelligence.
  • Building a consistent leadership culture that promotes alignment, clarity, and collaboration.
  • Improving overall organizational performance by equipping managers with effective management practices.

Defining clear goals gives leadership development direction, focus, and measurable impact. This essential step transforms generic leadership development programs into key strategies for sustainable performance and growth.

2. Define company needs

What are your skill development needs? The organization should analyze the gap between existing leadership competencies and those required to support the desired leadership culture and achieve business goals.

To do this, the company can begin by gathering feedback from employees, managers, and senior leadership, providing a well-rounded view of strengths and improvement areas across all leadership levels. Interviews and self-assessments can further enrich the analysis by allowing leaders to share their aspirations and challenges. This assessment helps define leadership development priorities and enables the creation of relevant, targeted action plans.

3. Identify talents

Which managers or leadership teams will benefit most from the leadership development program? Who is your next generation of leaders? An effective plan starts by clearly identifying the individuals who should participate in leadership development activities, based on both current roles and future organizational needs.

Companies should begin by mapping critical roles to their strategic objectives and identifying the leadership skills required for success in each role. Performance data, 360-degree feedback, and succession planning can help distinguish high performers, high-potential employees, and leaders facing new or expanded responsibilities. By segmenting participants according to role, experience level, and impact on the business, organizations ensure leadership investment delivers measurable value.

4. Build personalized action plans

What leadership development strategies should be used? A leadership development plan must combine multiple approaches and methods tailored to each individual’s learning style, while remaining aligned with organizational goals and context:

  • Leadership coaching: A personalized, one-on-one approach that helps managers strengthen their leadership skills and behaviors, address development gaps, and enhance strategic thinking, problem-solving, and decision-making.
  • Professional training: Structured courses, certifications, and programs delivered by recognized institutions that provide proven leadership development frameworks to build core management competencies.
  • 360-degree feedback: A comprehensive feedback process that gathers input from employees, peers, and senior leaders to increase self-awareness and identify leadership strengths and improvement areas.
  • Immersive development experience: Hands-on, experiential learning where leaders face real-world challenges in realistic situations to practice decision-making, problem-solving, and soft skills.
  • Emerging leader program: A targeted initiative designed to identify and prepare high-potential employees for future leadership roles through a mix of training, coaching, and practical experience.

5. Measure progress and adjust

How can organizations evaluate progress? Leadership development plans should be regularly measured and adjusted to address both the evolving needs of leaders and the organization.

Organizations can track multiple success indicators – including KPIs and KBIs – to ensure individual and organizational goals are being met. Employee surveys and feedback offer valuable insights into how leadership skills are perceived and whether they are fostering engagement and team satisfaction. Analyzing the impact of the leadership development plan on team management, performance outcomes, and overall organizational climate helps identify areas for improvement and refine development strategies accordingly.

6. Integrate leadership in the corporate culture

How can organizations ensure that best leadership practices endure over the long term? Lasting impact comes from treating leadership development as an ongoing process, not a one-off program, and embedding it into the daily fabric of the organization.

Companies can support continuous growth by providing post-training follow-ups, establishing regular learning rituals, and making resources readily accessible for skill-building. When leadership is integrated into everyday practices, managers are more likely to apply what they learn, engage in leadership discussions during team meetings, and coach future leaders. Additionally, positioning leadership development as a key part of career growth reinforces a culture where leadership is valued at every level.

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Create a strategic leadership development plan for high-performing managers

An effective leadership development plan is never static. Leadership development is a continuous journey that cultivates leaders who can adapt to both present and future challenges. By combining business strategy, dynamic learning methods, and a strong connection to corporate culture, organizations can boost team engagement and organizational performance.

The real challenge lies in developing great leaders and establishing consistent leadership across all levels, allowing each individual to grow into their full potential. A structured yet flexible plan not only strengthens individual skills but also enhances the company’s resilience and competitiveness amid evolving market demands.

FAQ on leadership development plan

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Implement an effective plan to develop your teams' leadership skills

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Adeline de Oliveira

Adeline de Oliveira

Writer and editorial manager for about 15 years, Adeline is passionate about human behavior and communication dynamics. At Proaction International, she covers topics ranging from Industry 5.0 to operational excellence, with a focus on leadership development. This expertise enables her to offer insights and advice on employee engagement and continuous improvement of managerial skills.