Step-by-Step Guide to Building a Leadership Development Plan

Here’s a question worth asking: If one of your top leaders left tomorrow, would your organization be ready?

For many companies, the answer is uncertain. Leadership development is often a patchwork of workshops, trainings, and scattered initiatives. While these efforts may build skills in the moment, they rarely add up to a consistent, sustainable system for growing leaders.

That’s where a leadership development plan makes the difference.

A leadership development plan is a structured roadmap that identifies leadership needs, builds targeted competencies, and aligns growth with business goals. It’s not a one-off event; it’s a strategy that equips leaders for today’s challenges and tomorrow’s opportunities.

So why don’t all companies have them? Many rely on informal processes or wait until a crisis forces their hand. Others confuse development plans with generic training programs that lack long-term accountability.

Organizations that thrive through change are those that approach leadership development with clarity and purpose. At Leadership Worth Following (LWF), we believe leadership building development plans are a business imperative. Strong leadership doesn’t happen by accident. When leaders grow with intention, organizations don’t just keep up with change, they stay ahead of it.

This step-by-step guide will walk you through how to build an effective leadership development plan that makes growth intentional and results measurable.

Step 1: Clarify Your Purpose and Goals

Before designing activities or training modules, step back and ask: Why are we building this plan?

A leadership development plan should always connect directly to your organization’s broader goals. Consider whether you are:

Preparing high-potential employees for succession

Strengthening leadership capacity in a fast-growing business

Addressing gaps in decision-making, accountability, or communication

Clarity of purpose ensures you’re not just creating a “check-the-box” program but building a meaningful strategy that drives real business outcomes.

Tip: Involve both executives and HR leaders early in the process. Alignment at the top creates buy-in and ensures the plan stays relevant across the organization.

Step 2: Assess Current Leadership Strengths and Gaps

To design an effective plan, you first need a clear picture of where your leaders stand today. Assessments help you understand the real picture, so your strategy rests on data, not assumptions.

Methods to consider:

360-degree feedback: Collect input from peers, direct reports, and supervisors.

Leadership assessments: Tools like the DRiV® uncover motives, values, and habits that drive leadership behavior.

Interviews and surveys: Ask employees what they see as leadership strengths and blind spots.

At LWF, we often see organizations surprised by what assessments reveal. A leader may think they’re a strong communicator, for example, while feedback reveals that the team feels out of the loop. Spotting these disconnects early allows your leadership development plan to target the issues that matter the most.

Step 3: Define Leadership Competencies

Once you’ve assessed where leaders are today, identify the specific competencies they’ll need for tomorrow.

While every organization is unique, core competencies often include:

Strategic thinking – seeing the big picture and aligning actions with long-term goals.

Emotional intelligence – managing self-awareness, empathy, and interpersonal skills.

Accountability – owning decisions and outcomes.

Change agility – leading through uncertainty and transformation.

Coaching and development – empowering others to grow.

Using a competency framework ensures your plan isn’t generic. Instead, it’s tailored to your organization’s culture and future direction.

Step 4: Create Individualized Leadership Development Plans

Here’s where the work becomes both strategic and personal. An effective plan is not one-size-fits-all; it blends organizational priorities with individual needs.

For each leader (or emerging leader), outline:

Current strengths and gaps – based on assessments

Development goals – aligned with both the individual’s career aspirations and the organization’s needs.

Specific activities – designed to build targeted skills.

Timelines and milestones – to track progress.

This combination of organizational structure and individual ownership is what makes leadership development plans effective. Leaders feel invested because the plan reflects their growth, while the organization benefits from alignment with its strategic goals.

Step 5: Build Learning Opportunities

With goals in place, it’s time to design the “how.” Effective leadership development requires a mix of experiences, not just formal training.

Options include:

Formal training and workshops – targeted sessions on competencies like conflict resolution or strategy execution.

Coaching and mentoring – personalized guidance to support growth.

Stretch assignments – challenging projects that push leaders beyond their comfort zones

Peer learning groups – fostering accountability and shared insights.

Self-directed learning – encouraging leaders to read, listen, and reflect.

Variety is key. Leaders grow most when they apply new skills in real-world contexts while receiving reflection and feedback to reinforce learning.

Step 6: Establish Accountability and Support

Even the best-designed plan falls flat without accountability. Leaders need both encouragement and expectations to follow through.

Ways to build accountability:

Schedule regular check-ins with HR or direct supervisors.

Pair leaders with mentors or peer accountability partners.

Require written reflections or progress updates at key milestones.

Recognize and celebrate progress publicly.

At LWF, we often remind organizations: leadership growth is not about perfection, it’s about progress. A culture that supports development rather than punishes mistakes. Creates leaders who are willing to stretch, take risks, and grow.

Step 7: Measure and Adjust

Leadership development is an ongoing process, not a one-time initiative. Measuring results ensure the plan remains relevant and effective.

Metrics to track may include:

Engagement scores from direct reports

Retention rates of high-potential employees

Business outcomes tied to leadership initiatives (e.g., improved project delivery, reduced turnover, higher customer satisfaction)

Self-reported growth in leadership competencies

If results aren’t where you want them, revisit earlier steps. Perhaps competencies need refining or learning opportunities need to be more engaging. A leadership development plan is iterative; regular adjustments over time are what create lasting, long-term impact.

Step 8: Integrate Into Organizational Culture

For leadership development to truly take hold, it can’t exist solely in HR or within a single program. It needs to be woven into your company culture.

Ways to integrate leadership development:

Discuss leadership growth during performance reviews

Highlighting leadership behaviors in recognition and reward programs

Ensure senior leaders model the same development mindset

Investing consistently in leadership development, not just during transitions

When development becomes part of “how we do things here,” leaders at every level rise to the occasion, strengthening the organization from within.

Common Pitfalls When Building a Leadership Development Plan

Even with the best intentions, many organizations stumble when building a leadership development plan. In fact, Harvard Business Review reports that over 70% of leadership development efforts yield only temporary gains. This is a clear sign that most initiatives fall short of lasting impact.

Here are some of the most common pitfalls to watch for:

One-and-done workshops – without reinforcement, skills fade quickly.

Generic or one-size-fits-all plans – leaders disengage when content doesn’t feel relevant

Lack of executive support – if senior leaders don’t model growth, no one else will

No long-term accountability – without feedback loops, reflection, and milestones, early progress disappears

Poor alignment with business goals – plans that aren’t tied directly to outcomes lose traction fast.

Avoiding these pitfalls transforms a leadership plan from a temporary boost into a long-term driver of growth and culture.

From Plan to Practice: Building Leadership Worth Following

At the end of the day, a leadership development plan isn’t just a checklist. Instead, it shapes how your leaders show up, how your teams thrive, and how your business grows.

When you invest in a development plan that is clear, tailored, and evidence-based, you do more than develop capable managers. You cultivate leaders who inspire trust, drive results, and leave a lasting impact on people and culture.

And that’s the heart of it: better leadership builds better business.

If your organization is ready to move from ideas to action, LWF is here to help you design and implement a plan that turns potential into performance, and good leadership into worthy leadership.

Schedule a Free Consultation Today!