How to Create a Leadership Development Plan

Did you know that only 25% of organizations feel their leadership development programs are effective? Meanwhile, companies with strong leadership pipelines are 2.4 times more likely to outperform their competitors.

If your organization isn’t investing in leadership development, you’re setting yourself up for a serious talent gap. The good news? Creating a Leadership Development Plan isn’t rocket science—when done right, it can help identify high-potential leaders, develop key competencies, and drive long-term business success.

Here’s how to build a leadership development plan that turns good managers into great leaders.

Step 1: Assess and Identify Talent

Before you can develop future leaders, you need to know who has the potential. A structured assessment process helps you identify individuals with the right mix of skills, behaviors, and leadership capacity.

Recommended Assessment Tools:

• Predictive Index (PI) Behavioral Assessment – Uncovers a person’s natural drives and work style, helping you determine leadership potential.
• Leadership 360 Survey – Provides well-rounded feedback from peers, direct reports, and managers to identify strengths and development areas.
• 9-Box Grid – Helps visualize leadership potential by plotting individuals based on performance vs. growth potential.

Pro Tip: Don’t just look at high performers—look for individuals with learning agility, strong decision-making skills, and the ability to lead through change.

Step 2: Identify Behavioral Themes and Leadership Style

Once you’ve identified potential leaders, it’s time to understand their natural leadership styles and how they fit within your existing team. This is where behavioral analytics come in handy.

Key Tools to Use:

• PI Design: Team Discovery – Helps you map out team behavioral patterns to see how leadership styles interact.
• PI Analytics – Provides insights into group dynamics, showing whether your leadership team leans more toward action, strategy, or execution.
• Behavioral Gap Analysis – Identifies gaps between your current leadership team’s strengths and the skills needed for future success.

Here’s a real-world example: If your leadership team is full of big-picture thinkers but lacks strong executors, you’ll want to consider developing leaders with an eye for process improvement and operational efficiency to fill in the gaps.

Learn more: Want a demo of these tools? Contact us.

Step 3: Determine Key Leadership Competencies

Great leaders aren’t just born—they’re built through strategic competency development. Define the essential skills needed at different levels of leadership in your organization.

Competencies to Focus On:

• Leading the Organization: Strategic thinking, resource allocation, operational planning, performance management.
• Leading Others: Coaching, emotional intelligence, team development, delegation, conflict resolution.
• Leading the Self: Accountability, adaptability, self-awareness, resilience, and communication.

Pro Tip: Align these competencies with your company’s business strategy. If innovation is a priority, develop leaders who are risk-tolerant and adaptable.

Read more: Leadership Development Trends for 2025

Step 4: Map Behaviors and Skills to Leadership Roles

Now that you’ve identified key competencies, it’s time to match individuals to leadership roles based on their natural strengths– and identifying where skill training will fill the gaps.

How to Align Leaders to Roles:

1. Use PI Job Targeting software – Define role-specific competencies and compare current leaders against these models.
2. Conduct skills and experience mapping – Identify which leaders already have the required competencies and who needs development.
3. Hold calibration sessions – Ensure alignment between senior leadership expectations and talent development plans.

Here’s another example: If a high-potential leader has strong strategic skills but struggles with communication, their plan might include executive presence training or public speaking workshops.

Looking at C-Suite? Read more about top PI Profiles for your C-Suite roles

Step 5: Implement Targeted Leadership Development Activities

Now for the fun part—developing your future leaders through practical, high-impact development programs.

Ideas for Development Activities:

• Mentorship & Coaching – Pair emerging leaders with experienced executives.
• Job Rotations – Provide cross-functional experiences to develop broader leadership skills.
• Self-Paced Microlearning – Use platforms like LinkedIn Learning or MindWire’s leadership training.
• Leadership Workshops – Invest in Coaching for Accelerated Performance and Delegate Like a Boss training.
• Professional Certifications – Encourage industry-specific certifications for credibility.

Pro Tip: Leadership development should be ongoing—not just a one-time training session. Structure activities across 6–12 months for maximum impact.

Read More: 5 underrated skills every leader needs

Step 6: Measure Success and Adjust the Plan

If you can’t measure it, you can’t improve it. Tracking leadership growth and adjusting the plan ensures long-term success.

Key Metrics to Track:

• Promotion & Succession Readiness – Are your high-potential leaders getting promoted?
• 360-Degree Feedback Scores – Have leadership effectiveness scores improved?
• Employee Engagement & Retention – Are employees more engaged under stronger leadership?

Learn more: Read the case study about GCON’s leadership development initiatives which have led to greater employee retention and overall performance.

Leadership Development Is a Long-Term Investment

Maybe building a strong leadership pipeline is checking a box, but it’s also about future-proofing your business. A well-executed leadership development plan ensures your organization grows, adapts, and thrives in any market condition.

So, what’s your next step? If you’re ready to design a leadership development plan that delivers real results, let’s talk.