Busy, successful companies are usually well-run with their current management. Other companies are just trying to get through today, never mind tomorrow. Sometimes, this means little thought is given to their next leadership group or succession planning, which can have the double effect of letting emerging leadership talent languish or seeing them leave to climb a ladder elsewhere.

Why Creating New Leaders Matters

In today’s competitive global market, companies must maximize opportunities to pivot quickly and grow. For that, they need leadership—exceptional leadership. It’s not enough for leaders to manage tasks and activities. They must engage talent, guide teams through difficult change, and make smart decisions that ensure they stay ahead of their industries’ curve.

The Dangers of Ignoring the Next Generation

The dangers are many, but here are a few:

• Fresh perspectives, innovative ideas, and the energy of younger generations are lost. Stagnation sets in, and companies struggle to keep up with change.
• High-potential employees leave for workplaces that recognize their value, leading to a brain drain of creativity and ambition. Prioritizing experience over fresh ideas and diverse viewpoints is a mistake.
• Leadership gaps emerge when seasoned executives retire or move on, creating instability and uncertainty. Organizations that fail to prepare for the future often find themselves scrambling to fill critical roles.

Identifying Tomorrow’s Potential Leaders

The best candidates for leadership are those who consistently contribute ideas, collaborate well with colleagues, and seek mentorship. They are curious, adaptable, and eager to grow. These qualities signal high motivation and a strong capacity to lead.

Plum’s Observations in the Field

A Leadership Failure

A tech company’s business unit failed to establish clear pathways for leadership development. Promotions were granted based on favoritism rather than performance. Employees who advocated for their teams were penalized, and high performers were frequently left in frustration. The result? A workplace filled with junior hires and disengaged employees, where morale was low and cynicism ran high.

A Leadership Success

In contrast, a leadership program at another organization identified high-performing employees and provided structured development opportunities. Many participants advanced to senior management and director roles, receiving mentorship from executives. Those who excelled had access to an executive program designed to prepare them for vice-presidential roles. This approach not only developed capable leaders but also reinforced the idea that dedication and hard work could lead to meaningful career growth.

Plum’s Approach to the Topic

The Plum team has executive leadership expertise, allowing us to deeply understand corporate culture and team effectiveness, including conflict-competence, resolving issues, increasing self-awareness, adapting to different preferences, and leading with empathy and emotional intelligence. Our courses are designed by embedding that expertise throughout our programs. We incorporate research, evidence-based learnings, and best practices.

Practical Tips and Advice

Here are a few concrete ways a company can identify and then nurture the leaders of tomorrow:

• Performance Reviews: Conducted at least twice a year, reviews should assess initiative, problem-solving, communication, collaboration, and adaptability.
• Talent Assessments: Skill, personality, and leadership tests help identify key traits like emotional intelligence, self-management, and critical thinking.
• Professional Coaching: High-potential employees benefit from personalized coaching that focuses on strengths, accountability, and leadership development.
• High-Potential Programs: Structured programs help track and develop top talent, ensuring leadership readiness.
• Rotational Programs: Providing exposure to different roles builds a well-rounded skill set and a deeper understanding of the organization.

The Plum Power Hour

Plum recognizes the challenges of leadership development. Our Plum Power Hour is a monthly, one-hour leadership training session—delivered virtually or in person for a full year. Each session focuses on a key leadership topic tailored to an organization’s needs, such as managing difficult conversations or leading through change. Sessions build on each other to reinforce learning and create meaningful professional development. The open forum format encourages participation, discussion, and real-world application.