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Standard : Leaders invest in building the next generation of leaders

Purpose and Strategic Importance

This standard requires leaders to actively identify, develop, and create pathways for the next generation of leaders — not as a future-state plan, but as a current-state priority. Organisations that neglect leadership pipeline development become fragile, dependent, and unable to grow beyond their existing leadership capacity.

It supports the policy "Develop Future Leaders" by making leadership succession and development investment a structured, accountable leadership practice.

Strategic Impact

  • Creates a resilient leadership pipeline that sustains organisational capability through change
  • Reduces the risk and cost of unplanned leadership gaps
  • Enables the organisation to grow faster than its current leadership headcount
  • Develops a culture where leadership is seen as a learnable, developable capability
  • Strengthens retention of high-potential individuals through visible investment and progression

Risks of Not Having This Standard

  • Sudden leadership departures create capability crises with no ready successors
  • Organisations remain dependent on a small number of individuals for strategic leadership
  • High-potential individuals leave when they see no pathway to growth
  • Leadership capability becomes the binding constraint on organisational performance

CMMI Maturity Model

Level 1 – Initial

Category Description
People & Culture - Leadership development reactive; successors identified only when gaps emerge.
- Future leader development conflated with current performance management.
Process & Governance - No structured succession planning or leadership pipeline visibility.
- Development conversations focus on current role, not future capability.
Technology & Tools - No talent management tools tracking leadership readiness or potential.
- Development plans not connected to leadership pathway.
Measurement & Metrics - Leadership pipeline not measured or tracked.
- Gaps visible only when a senior leader exits.

Level 2 – Managed

Category Description
People & Culture - Some high-potential individuals identified informally.
- Development plans exist but do not include leadership pathway.
Process & Governance - Annual talent reviews identify high-potentials but without follow-through.
- Succession discussed for critical roles in some areas.
Technology & Tools - Basic talent management tools available.
- Leadership readiness tracked in some business units.
Measurement & Metrics - High-potential retention tracked informally.
- Leadership pipeline reviewed annually.

Level 3 – Defined

Category Description
People & Culture - Leaders actively identify and invest in developing leadership potential in their teams.
- Leadership pathways discussed openly in development conversations.
Process & Governance - Structured succession plans exist for critical roles with named, ready successors.
- Future leader development embedded in performance and development cadences.
Technology & Tools - Talent management platforms track leadership readiness and development progress.
- Stretch assignments and leadership experiences systematically tracked.
Measurement & Metrics - Leadership pipeline depth and readiness reported quarterly.
- High-potential retention tracked per leader.

Level 4 – Quantitatively Managed

Category Description
People & Culture - Leadership development effectiveness assessed as part of leader performance reviews.
- Senior leaders personally sponsor high-potential individuals' development.
Process & Governance - Leadership pipeline quality a standing board-level governance topic.
- Pipeline gaps drive investment, hiring, and development strategy decisions.
Technology & Tools - Leadership readiness data integrated into talent and workforce planning tools.
- Development pathway analytics inform programme investment.
Measurement & Metrics - Internal promotion rate, pipeline depth, and readiness scores tracked as governance metrics.
- ROI of leadership development investment measured over 2-3 year horizons.

Level 5 – Optimising

Category Description
People & Culture - Developing the next generation of leaders is an unquestioned leadership priority at every level.
- Leaders are evaluated significantly on the quality of the leaders they develop.
Process & Governance - Leadership pipeline strategy continuously refined based on organisational direction and talent data.
- Succession planning integrated with strategic workforce and capability planning.
Technology & Tools - Predictive talent analytics identify future leaders earlier and more accurately.
- Development recommendations personalised based on individual trajectory and organisational need.
Measurement & Metrics - Leadership pipeline health tracked as a strategic organisational resilience metric.
- Successor readiness and development velocity continuously improving.

Key Measures

  • Percentage of critical roles with a named, ready (within 12 months) successor
  • Internal promotion rate at leadership levels year-on-year
  • High-potential identification and development plan completion rate
  • Retention rate of identified high-potential individuals
  • Leadership development investment per identified future leader
Associated Policies
Associated Practices
  • Leadership Pathway Conversations
  • Stretch Assignments and Sponsorship

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