Most, if not all, companies say they want to promote from within. But few actually invest in a real process to make it happen. Great leadership doesn’t come from a title or a job posting. It’s built through guidance, trust, and experience.
If you’re looking to develop in-house leadership, these five steps will help you identify hidden talent, create growth paths, and measure leadership success without relying on outside hires.
Step 1: Spot the Spark
You can’t grow what you don’t notice, but how do you know if someone on your team is ready to lead?
Look for Behavior, Not Job Titles
Future leaders are already showing you their potential. You just need to look beyond their current role. They might not be the loudest voice in the room, but they’re likely the ones who take initiative, help teammates, and solve problems without being asked.
Watch for Traits Like:
- Taking ownership of problems
- Asking questions and learning on their own
- Taking responsibility when things go wrong
Leadership is more about how someone thinks and behaves than their current job description. Look for the spark, not the spotlight.
Step 2: Talk About It Early
Start the Leadership Conversation Before You Think They're Ready
If someone shows promise, talk to them about it.
Let them know you see leadership potential in them. Ask if they’re interested in taking on more responsibility. Not everyone wants to lead and that’s okay. But many just haven’t been asked.
Set Clear Expectations
Be honest about the challenges and responsibilities of leadership. Many employees don’t understand what leadership actually involves, and clarity helps them make better decisions.
They should know that taking on leadership is learning and developing a whole new set of skills. They will have the venture into the unknown and be willing to fail and then learn from those failures along with feedback.
Step 3: Create Stretch Opportunities
Leadership Must Be Experienced, Not Just Explained
You don’t learn to lead by reading about it. You learn by doing.
Give your team members the chance to take on real leadership roles in a low-risk setting. That could mean leading a meeting, mentoring a new hire, or taking on accountability for a short OKR. Let them make decisions, own outcomes, and even stumble a little.
These experiences build both confidence and competence.
Step 4: Coach, Don’t Control
Support Their Growth Without Hovering
Leaders don’t grow under a microscope. They grow through coaching and support.
Instead of giving instructions, ask open-ended questions. Instead of taking over, help them reflect and improve. Coaching is about helping someone think through challenges so they can act independently and confidently.
You want to build a team of leaders who can actually lead, not a group of leaders you need to manage.
Effective Coaching Tactics:
- Offer feedback often, preferably weekly
- Ask questions like “What would you do differently next time?”
- Recognize growth, not just results
When people feel supported (not micromanaged), they rise to the occasion.
Step 5: Measure What Matters
Use the Right Metrics to Track Progress
You can’t improve what you don’t measure.
Start tracking behaviors, not just outputs. Look at how someone communicates, how they respond to challenges, and how others on the team respond to them.
360-degree feedback and regular check-ins can all help validate leadership growth.
Key Indicators of Leadership Readiness:
- Team members seek their input
- They take initiative in solving team problems
- They remain calm and focused under pressure
- They elevate others, not just themselves
When leadership progress is part of regular conversations and performance reviews, it becomes a visible, valued goal.
Leadership Starts on the Inside
If you want better leaders, grow them yourself. You don’t need to wait for a perfect candidate to walk in the door. You just need to spot potential, offer support, and give people a chance to rise.
Start small. Choose one employee who shows signs of leadership and give them a new challenge this month. That first step could be the start of your next great leader.