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Leadership Training Best Practices for Growing Companies

Effective in-house leadership training fuels growth, enhances culture, and develops future leaders tailored to your business needs.
Leadership Training Best Practices for Growing Companies
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Fueling Growth Through In-House Leadership Development

As a company grows, one of the most critical factors for sustained success is its leadership pipeline. Rapid expansion often brings new challenges, entering new markets, onboarding more employees, or managing complex operations, and without capable leaders at multiple levels, a growing business can struggle. In-house leadership training is a powerful way to ensure your organization has the right leaders ready to guide teams through growth. It enables you to cultivate talent from within, aligning new leaders with your company’s culture and strategic goals.

Why focus on in-house leadership development? Consider that over three-quarters of organizations report they lack sufficient leadership depth at all levels, creating a vulnerability in times of change. Meanwhile, employees (especially younger generations) are eager for growth, about 71% of Millennials say they would likely leave within three years if they feel their leadership development is lacking. These figures highlight a clear imperative: growing companies must proactively develop their future leaders or risk stagnation and turnover. The good news is that businesses that invest in structured leadership training see tangible benefits. Studies have found that companies with robust leadership development programs are significantly more likely to outperform their peers, for example, organizations that prioritize leadership training report around 25% better business outcomes on average. Equally important, grooming leaders internally often proves more successful (and cost-effective) than hiring from outside. External hires into leadership roles are much more likely to fail or leave within their first 18 months, whereas developing people who already understand your business leads to smoother transitions. In-house programs also foster greater cultural alignment: your leaders learn together, practice solving company-specific challenges, and build a shared vision for the future.

In short, leadership training is not a “nice-to-have” for a growing enterprise, it’s a strategic necessity. By investing in your emerging leaders now, you set the foundation for sustainable growth, high team engagement, and strong organizational performance. This article will explore best practices for creating and running effective in-house leadership training programs. Geared toward HR professionals, business owners, and enterprise leaders across industries, the insights below will help you design a leadership development approach that equips your team for today’s demands and tomorrow’s opportunities.

Why In-House Leadership Training Matters for Growing Companies

For any company on a growth trajectory, developing leaders internally is one of the smartest investments to ensure that growth is sustainable. In the frenzy of scaling up, companies often find that their business is expanding faster than their leadership capacity. New teams and departments may form without seasoned managers to guide them, and top executives become stretched thin trying to oversee a larger operation. In-house leadership training directly addresses this by building a pipeline of capable managers and executives who are ready to step up as the company expands.

One key reason in-house development matters is the positive impact on retention and culture. Ambitious employees are looking for career progression, if they see that your company provides training, mentorship, and clear paths to leadership roles, they are far more likely to stay and grow with you. This is particularly true for younger professionals; as noted earlier, a large majority of Millennials will actively seek opportunities elsewhere if they don’t feel they can develop into leaders where they are. By contrast, a growing business that promotes from within thanks to solid leadership training will retain institutional knowledge and maintain stronger morale. Your people witness peers moving up and know that their efforts can be rewarded with advancement too.

Another advantage is that internal leadership training helps preserve and propagate your company’s unique culture and values. When leaders are trained in-house, they learn using examples, case studies, and scenarios drawn from your actual business context. They absorb not only management skills but also the organization’s way of doing things. This is crucial during rapid growth when there’s a risk of diluting the culture. For instance, a customer-centric startup can ensure future leaders continue to prioritize customer experience by instilling those values in its training curriculum. In-house programs also encourage teamwork and a unified leadership approach, entire cohorts of your managers can learn together, creating a network of peers who share a common leadership language and philosophy. (By comparison, sending individuals to generic external seminars may impart some skills, but it won’t forge the same team cohesion or relevance.)

Finally, building leaders internally is often more reliable and cost-effective than external recruitment for leadership positions. High-growth companies might be tempted to hire seasoned managers from outside to quickly fill gaps, but this approach has pitfalls. External hires take time to learn your business and frequently face a higher failure rate, studies indicate they are considerably more likely to underperform or leave early compared to those promoted from within. The costs of a bad hire at the leadership level (severance, replacement hiring, lost productivity) are substantial. In contrast, developing someone who already fits your organization increases the odds of success. It also saves recruitment costs and can reduce ramp-up time, since internal candidates start with insider knowledge. In summary, prioritizing in-house leadership development ensures you have the right people, with the right skills and mindset, ready to lead your growing company forward.

Align Leadership Development with Business Goals

Effective leadership training for a growing company must start with a clear alignment to your business strategy and goals. In other words, develop leaders for the future your company is pursuing. Too often, organizations roll out generic leadership courses and hope for the best, but a one-size-fits-all program can miss the mark if it doesn’t address the specific challenges your company faces. A best practice is to identify your top strategic priorities or pain points, and build your leadership development objectives around those. For example, if your company’s growth strategy involves rapid expansion into new markets, you’ll want to focus training on skills like strategic thinking, change management, and leading through uncertainty. If, instead, your key goal is to increase innovation in your product line, then developing leaders’ creative problem-solving abilities and fostering an innovative mindset might be front and center.

Start by asking: what are the business outcomes we need our leaders to achieve? This ensures the program is not just abstract skill-building but is tied to tangible performance metrics. Perhaps you need better project delivery to keep up with demand, stronger sales leadership to drive revenue, or improved team management to boost productivity. By pinpointing these needs, you can set specific goals for the leadership program (e.g. “reduce project bottlenecks and improve on-time delivery” or “increase team engagement scores by X% under trained managers”). Aligning with business goals also helps in securing executive buy-in and resources, when the C-suite sees that leadership development directly supports a revenue increase, cost reduction, or other priority, they are more likely to champion the program. It transforms training from a “nice idea” into a strategic initiative.

In practice, aligning with business goals means involving key stakeholders in the design of the program. HR and Learning & Development leaders should collaborate with business unit heads and even the aspiring leaders themselves to identify competency gaps and critical skills. For instance, a rapidly scaling tech firm might discover that its technical experts promoted into manager roles struggle with people management and cross-functional communication, pointing to a need for training in those areas to achieve smoother growth. By tailoring content this way, the training feels relevant to participants and yields immediate benefits. One real-world example comes from a high-growth healthcare technology company that initially hesitated to invest in leadership development due to time constraints. To make the case, the HR team focused the program on an urgent business problem: eliminating operational bottlenecks that were slowing down delivery. They trained emerging managers on delegation, project management, and decision-making, which enabled those managers to take on tasks previously bogging down the executives. The result? Within a few months, senior leaders had significantly more bandwidth for strategic work, and team productivity jumped (one report noted a 30% productivity increase in six months). By framing training as a solution to a pressing issue, the program not only won executive approval but also delivered quick, demonstrable ROI.

Regularly revisiting the alignment between your training program and business goals is important as well. In a growing company, priorities can shift, maybe a new competitor emerges, or a different product line takes off and needs leadership attention. Treat your leadership development plan as a living strategy that you adjust in step with company direction. Schedule periodic reviews (for example, annual or biannual) to ask, “Are we still training for the most important outcomes?” and “What upcoming changes (reorgs, new markets, etc.) should we prepare leaders for next?” Maintaining this alignment over time ensures your leadership bench is always prepared to drive the company’s most crucial initiatives. In summary, tying leadership training tightly to business objectives keeps it purposeful and high-impact, which is exactly what a growing enterprise needs.

Build a Culture of Leadership Development (Get Executive Support)

Creating great leaders isn’t just about running a course or workshop, it’s about building a culture that values and supports leadership development. For growing companies, fostering this culture starts at the top. Executive support is a decisive factor in a program’s success: when the CEO and senior leaders visibly champion leadership training, it sends a powerful message throughout the organization. Leaders should not only approve budgets but also actively participate, for instance, by speaking at training events, mentoring high-potential employees, or sharing their own learning experiences. This involvement demonstrates that developing people is a core company priority, not just an HR exercise. Conversely, if employees sense that upper management doesn’t really care about the program, attendance and engagement might suffer. So, securing genuine executive buy-in early on is critical. Make sure your top team understands how the leadership pipeline ties into the company’s long-term success (you might present them with some of the alignment points and data discussed above). Often, showing how leadership development can solve current problems or drive key metrics will win their enthusiasm.

Beyond executive buy-in, cultivating a leadership development culture means weaving learning and growth opportunities into the fabric of work life. Encourage managers at all levels to take an active role in developing their direct reports’ leadership skills. This could mean team leaders delegating stretch assignments to junior staff to help them grow, or directors holding quarterly “leaders of tomorrow” roundtables to discuss leadership topics with interested employees. When leaders routinely coach and support their team members’ development, it creates a trickle-down effect: employees feel empowered and start looking for leadership opportunities in their daily roles. For example, an organization can establish that whenever a manager attends an external seminar or internal training, they come back and teach a mini-session to their team (“lunch and learn” style). This norm signals that everyone is both a student and a teacher, continuously sharing knowledge.

Another aspect of culture is recognition and career pathways. Growing companies typically have fewer layers of hierarchy, so promotions might be limited, but you can still recognize and reward leadership growth in creative ways. You could implement an internal certification for completing leadership training or publicly acknowledge participants who apply new skills successfully in projects. Showcase success stories: if an employee used leadership training to initiate a process improvement that saved money or a newly trained manager significantly increased team performance, celebrate it in company communications. This positive reinforcement builds excitement and prestige around the idea of being a leader within the company. It says, “Here, we value leaders who develop others and themselves.”

Lastly, don’t overlook the role of organizational values and storytelling. In founder-led or mission-driven companies, the culture often carries a rich story of “how we lead.” As you grow and bring in batches of new employees, it’s easy for those cultural leadership traits to fade unless you intentionally pass them on. Use your in-house training as a vehicle to reinforce the core values and leadership principles that define your organization. For instance, if your culture prides itself on humble, service-oriented leadership, integrate that into discussions and materials. Senior leaders can drop into training sessions to share personal anecdotes about how they solved tough problems or learned from failures in ways that reflect company values. These stories make the lessons more authentic and memorable. In essence, building a culture of leadership development means making leadership growth an expectation and norm, something that’s talked about, encouraged, and celebrated at every level. When your whole organization believes “we succeed by growing our people,” your in-house training efforts will truly thrive.

Identify and Cultivate Leaders from Within

High-growth businesses must constantly be identifying the next generation of leaders within their own ranks. Spotting and nurturing internal talent early is far more effective than scrambling to find outsiders when a leadership vacancy appears. This is where a proactive approach to talent identification and succession planning comes in. HR and department heads should work together to recognize employees who display leadership potential, not just those who excel in their current roles, but those who show initiative, influence among their peers, adaptability, and a willingness to take on responsibilities beyond their job description. These are the employees who could thrive in bigger roles if given the right development. Some companies institute formal “high-potential” programs or nomination processes to select a cohort of future leaders each year. Others use performance reviews and 360-degree feedback to surface individuals with management aptitude. Whichever method you use, the goal is to create a visible pathway for rising talent, so that as the company grows, you have a pool of prepared people to fill new leadership roles.

Cultivating leaders from within has several distinct advantages. First, it significantly reduces the risk and time-to-productivity when filling a management position. An internal hire already understands the business, knows the team, and fits the culture, so they can hit the ground running. External recruits, by contrast, often require months of onboarding and still might not mesh well; as mentioned earlier, they are statistically more prone to early failure in the role. Second, internal promotions are a powerful morale booster and signal to all employees that hard work and development are rewarded. It builds loyalty and motivation, people see colleagues moving up and trust that opportunities won’t always go to outsiders. In fact, data shows internal promotions tend to be faster and more successful; for example, some research indicates that promoting internally can be about 20% faster than bringing in a new hire (since there’s less lag in recruiting and acclimatization). Additionally, companies that emphasize internal leadership growth can save on recruitment costs and even salaries, as they are investing in raw potential rather than paying a premium for external experience.

So how can growing companies practically develop leaders from within? One best practice is to create stretch opportunities and on-the-job learning experiences as part of your training strategy (this will be discussed more in the next section). For potential leaders, nothing beats real experience, assign them to lead a small project team, let them chair a meeting or represent the department in a cross-functional initiative. These “trial runs” give aspiring leaders a chance to build skills and confidence in a relatively controlled setting. Pairing such opportunities with feedback and coaching helps them learn quickly. Another approach is rotational programs for larger organizations, for instance, rotating high-potential employees through different departments or roles over 6-12 months to broaden their understanding of the business and expose them to various leadership challenges. This technique, often used by global companies, can be scaled down for a midsize firm by simply encouraging inter-departmental projects or mentorship (e.g. someone from operations shadows a sales manager for a week to learn people-management tactics, and vice versa).

Also, don’t underestimate the value of formal succession planning. As your company expands, map out likely future needs: if you plan to open two new regional offices next year, who internally could lead those offices? If a key director were to leave, is there a second-in-command ready to step up? Identifying those individuals and giving them targeted development now (such as inclusion in strategic meetings, advanced leadership courses, or dedicated mentoring from an executive) will prepare them for when the time comes. In the long run, developing leaders from within creates a virtuous cycle: each leader who rises through the ranks can then mentor others, and you build an organization that continually regenerates its leadership strength. This internal pipeline is an invaluable asset, particularly in a competitive talent market. Growing companies that manage to cultivate their own leaders will find they can expand faster and more smoothly than those constantly forced to hire from the outside.

Tailor Programs to Your Organization’s Needs

One of the hallmarks of a successful in-house leadership training program is that it is specifically tailored to your organization and people, rather than being a generic, off-the-shelf program. Every company has its own culture, strategic priorities, and talent profile, and your leadership development efforts should reflect that unique context. Start by assessing the specific skills and behaviors that leaders in your company need to succeed. A tech startup might prioritize agile decision-making and technical project management for its leaders, whereas a retail company might emphasize customer service leadership, multi-unit management, and supply chain coordination. Customize your training curriculum to focus on the competencies that align with your industry and business challenges. You can use a leadership competency model as a framework, for example, identify 6-8 core competencies (strategic thinking, emotional intelligence, innovative mindset, etc.) and map those to what the business needs from its leaders. Ensure the content, case studies, and language in the program resonate with your work environment. If safety leadership is critical in your manufacturing firm, include modules and examples around leading safety initiatives. If your company values flat hierarchies and collaboration, incorporate training on leading through influence rather than authority.

Tailoring also means adjusting the program for different leadership levels and learning needs. A growing company will be training leaders at various stages, new supervisors, middle managers, and perhaps new executives, and each group has different challenges. One size will not fit all. Consider creating distinct tracks or cohorts. For instance, first-time managers might go through a “foundations of leadership” series covering basic people management, feedback skills, and task delegation. In contrast, more senior managers might attend advanced workshops on strategy execution, change leadership, and coaching their teams. By segmenting your audience, you ensure that everyone gets training that is relevant and neither too elementary nor too advanced for them. Another dimension of personalization is at the individual level: within a cohort, people will have unique strengths and gaps. Use assessment tools and feedback to personalize the experience. Many companies kick off leadership programs with self-assessments or 360-degree assessments that help participants understand their own leadership style and areas for improvement. With this insight, participants (perhaps with a coach or manager’s help) can set personal development goals to focus on during the program. For example, an individual might decide, “I want to become better at delivering constructive feedback to my team,” and then during training they might get specific practice and tips on that skill.

This tailored approach extends to format and scheduling as well. Growing companies often operate at a fast pace, so flexibility is key. If you find that taking managers out of their roles for a full week of training is impractical, design a program that is spread out in smaller chunks (like half-day sessions over several weeks, or a few hours each month) to minimize disruption. Alternatively, leverage online learning modules to allow leaders to learn at their own pace, supplementing in-person workshops. The advantage of in-house training is you have control to structure it in the way that best suits your workforce, whether that’s short, intensive bootcamps, ongoing bite-sized learning, or a mix of both. Solicit input from participants about what timing and format help them engage most, and be willing to adjust accordingly.

Finally, keep the program agile. As your organization’s needs evolve, so should the training. Regularly gather feedback from participants and their supervisors: Are the topics still on point? Which sessions were most valuable, and which felt less relevant? This data will guide tweaks to content and methods. Maybe you’ll find that as the company grew globally, there’s now a need to add “leading diverse teams” or “cross-cultural communication” to the curriculum. Or if the company adopted new technologies, perhaps training on “leading remote teams” or “data-driven decision making” becomes pertinent. Tailoring is not a one-time design task but an ongoing process of refinement. By continuously aligning the program with your organization’s current reality, you keep it effective and engaging. In summary, tailoring your leadership training ensures that it hits the bullseye in addressing your company’s challenges and prepares leaders in a way that truly fits the environment in which they will lead.

Emphasize Practical, Hands-On Learning

Leadership is best learned by doing, not just by reading slides or theory. Thus, one of the most important best practices for any leadership development initiative, especially in a fast-growing company where you want immediate impact, is to make the learning as practical and real-world as possible. Every minute that your emerging leaders spend in training should feel directly applicable to their day-to-day work. There are several ways to embed this hands-on approach. One is to use real business challenges and case studies from your company as part of the training exercises. Instead of hypothetical scenarios, have participants tackle issues your organization is currently facing or has faced in the past. For example, you could present a scenario based on a recent project that went off-track and have groups discuss how better leadership might have improved the outcome. Or, as a training project, ask cohorts to develop solutions for actual improvements (process efficiencies, new product ideas, customer service enhancements) and later present these to senior management. This approach, which essentially turns training into a problem-solving session for the business, serves a dual purpose: leaders practice critical thinking and decision-making, and the company gains fresh ideas or even immediate fixes.

Another powerful method is to incorporate experiential learning activities such as simulations, role-playing, and stretch assignments. Simulations (whether in-person or virtual) can mimic high-pressure situations like crisis management or difficult employee conversations, giving leaders a safe space to practice responses and learn from mistakes without real consequences. Role-playing can be used for practicing giving feedback, interviewing, negotiating, or handling conflict, common leadership tasks, with peers acting out employee roles. Participants often find these exercises much more engaging and memorable than lecture-based lessons. Stretch assignments, as mentioned earlier, involve giving an upcoming leader a temporary responsibility beyond their current role. For instance, you might assign a participant to lead a cross-functional task force to implement a small new initiative, thereby forcing them to exercise project leadership, persuasion, and accountability. Throughout such assignments, they should receive support and coaching, but the hands-on trial is the best teacher. One company’s success story comes from an internal program at a retail chain: groups of emerging leaders were each tasked with researching a pressing operational problem and proposing a solution to executives. Alongside periodic classroom sessions, the participants worked on these projects for several months. The outcome not only educated the new leaders in project management and teamwork, but also produced valuable improvements for the business, and gave senior management confidence in promoting those individuals. In fact, all alumni from that first program ended up promoted to higher roles, as the leadership team saw them demonstrate capability in real time.

To truly emphasize practical learning, ensure there’s plenty of opportunity for practice and feedback built into the program. It’s not enough to tell aspiring leaders about a concept like “active listening” or “strategic thinking”, have them practice it. After learning a concept, use breakouts, role plays, or action learning projects so they apply the concept and then debrief on how it went. Encourage participants to bring real issues from their work as examples. Perhaps a manager in training is dealing with a demotivated team member; that scenario can be discussed and used to practice a coaching conversation. Then, back on the job, the manager can apply the approach for real and report back on the results. This iterative loop of learn → apply → reflect is where behavior change truly happens. Feedback is a crucial component: facilitators, mentors, or peers should give constructive feedback during exercises (and ideally after on-the-job attempts) so leaders refine their skills. Research shows that leaders who receive consistent feedback and chances to practice during training are far more likely to actually use those new skills effectively at work. In other words, practical learning bridges the gap between theory and action, ensuring your investment in training translates into tangible performance improvements. For a growing company, this means your leaders won’t just gain knowledge, they will build confidence and habits to lead teams through real challenges as they arise.

Adopt a Blended Learning Approach

Modern leadership development is most effective when it leverages a mix of learning methods, rather than relying on a single training format. This blended approach can be especially beneficial in a growing company setting, where different leaders may have different learning styles and busy schedules. By offering multiple ways to learn, you increase engagement and accommodate everyone’s needs. What do we mean by blended learning in this context? It typically refers to a combination of formal instructor-led training (in person or virtual classrooms), self-paced e-learning or digital modules, group discussions or communities of practice, on-the-job learning activities, and coaching/mentoring. Each modality has its strengths: workshops allow interactive learning and networking, e-learning provides flexibility and consistency of content, group discussions enable peer learning, and on-the-job tasks ensure real experience. When combined thoughtfully, these methods reinforce each other. For example, a participant might take an online module about “Effective Delegation” (to learn concepts), then in a live workshop practice delegation through a role-play, later apply it by delegating a task at work that week, and finally discuss the experience in a group coaching session. This layered learning means the concept is encountered multiple times in different ways, which greatly aids retention and skill building.

One noteworthy insight from leadership development research is that organizations using a rich mix of development approaches tend to report significantly better outcomes. In fact, companies that utilize five or more methods (classroom training, e-learning, coaching, mentoring, stretch assignments, etc.) have been found to be nearly five times more likely to see improvements in their leaders’ capabilities compared to those that use just one or two methods. The reason is clear: complex skills like leadership flourish with varied practice and perspective. A blended program might, for instance, include a core curriculum delivered via interactive workshops (to cover foundational knowledge and allow face-to-face practice), supplemented by short videos or webinars that leaders can watch on-demand (to reinforce topics or cover niche skills). It could also involve establishing peer learning circles, small groups of participants who meet regularly (virtually or in person) to share experiences and tips as they implement what they learned. Many growing companies also integrate manager coaching into their programs: each participant’s direct manager is brought into the process, perhaps helping set development goals at the start and then meeting after each module to discuss how the employee will apply it. This not only reinforces learning but also gets the manager invested in their subordinate’s growth.

Technology can be a big enabler of blended learning. In-house leadership programs can use learning management systems (LMS) or collaboration tools to create an online hub for participants. There, you can host discussion forums, reading materials, quizzes, and even gamified challenges to keep people engaged between formal sessions. For example, after a live workshop, you might pose a question on the forum like “Share a recent difficult conversation you had with a team member and how you handled it,” allowing participants to reflect and learn from each other’s experiences in between training days. Micro-learning, short 5-10 minute learning nuggets such as a quick article or a video, can be delivered weekly to keep leadership concepts fresh in mind over the duration of the program. And given the global, often remote nature of today’s teams, don’t hesitate to mix in virtual instructor-led training or webinars if getting everyone in the same room is impractical. A Zoom-based leadership seminar with interactive polls and breakout discussions can be nearly as effective as in-person, and it allows geographically dispersed managers to join together.

In designing a blended program, ensure coherence and intentionality. All the various components should tie back to the core leadership competencies and objectives you’ve set. It’s not about adding more elements just for the sake of it, but about choosing the right mix that complements each other. For example, a common pitfall is having disjointed content, an e-learning module that teaches one model of leadership, while the live workshop trainer prefers a different model, causing confusion. To avoid this, develop an integrated curriculum plan: maybe use the e-learning for foundational knowledge, the workshop for practice, the coaching for personalized application, etc., all around the same frameworks. When done well, a blended approach creates a continuous learning environment. Instead of leadership training being a one-time event, it becomes an ongoing process, something always on the leaders’ radar, accessible in various forms when they need it. This is ideal for a rapidly evolving business, because it means your leaders are continually learning and adapting, not just attending a class and then forgetting about development for the rest of the year.

Integrate Mentorship and Coaching

A robust in-house leadership development program doesn’t rely solely on classes and coursework; it also harnesses the power of relationships, particularly mentorship and coaching, to accelerate growth. Mentorship and coaching provide the human touch that helps emerging leaders translate knowledge into wisdom. For a growing company, establishing a mentoring culture can be a game-changer. Here’s how to do it: pair less-experienced leaders or high-potential employees with seasoned leaders in the organization for regular one-on-one mentoring sessions. This could be a formal mentor-mentee assignment as part of the leadership program or even a more organic system of encouraging leaders to take juniors “under their wing.” The mentors act as confidants and guides, sharing their own experiences, listening to challenges, and providing advice and feedback in a safe, non-judgmental setting. For example, a new manager might be struggling with delegating work, a mentor who’s a senior manager can share how they learned to overcome the same struggle and maybe observe the mentee’s approach and give pointers. Such knowledge transfer is incredibly effective because it’s contextual and personal. Mentees gain insights that training slides can’t offer, and mentors often report that they learn in return and refresh their own skills by teaching others.

Coaching, in this context, can be done by professional coaches or internally by managers trained in coaching techniques. While mentorship often covers broad career and leadership guidance, coaching typically focuses on specific development goals and performance improvements. For instance, as part of the leadership program, each participant could have a series of coaching sessions (with an internal HR coach or an external coach) to work on particular skills, like improving emotional intelligence or stakeholder management. The coach helps the leader set goals, practice new behaviors, and holds them accountable over time. If bringing in external coaches is not feasible, training your senior leaders and HR team in basic coaching skills can still bring benefits. The idea is to foster a style of dialogue in the company where managers don’t just issue orders, but regularly ask developmental questions like “How can I support you in reaching your goals?” or “What would you do differently next time?” When upcoming leaders experience this kind of coaching-oriented management, they learn to adopt it in their own style as well, thus perpetuating a supportive leadership climate.

There’s also peer mentoring and peer coaching, which can be valuable in a cohort-based program. Participants in the leadership training can be encouraged to buddy up and support each other, maybe set aside 30 minutes a week for peer pairs or small groups to discuss how they’re applying lessons and to troubleshoot challenges together. Peers often find it helpful to learn that others are facing similar hurdles (e.g. “I’m not the only one finding it hard to give constructive criticism to an older team member”) and they can exchange practical tips. This builds camaraderie and a sense that “we’re all in this leadership journey together,” reinforcing commitment to the program. It’s also an excellent way for employees from different departments to build relationships, which later helps in cross-team collaboration as the company grows.

In implementing mentorship and coaching, ensure there is some structure and support around it. Provide mentors with guidance on how to be effective mentors (some may be first-timers, give them a short training or handbook on mentorship best practices). Set expectations like meeting frequency, but also allow flexibility for pairs to define what works for them. Recognize and thank mentors, as they are volunteering time for the company’s future. For coaching, if internal, make sure confidentiality and trust are maintained so coachees feel comfortable opening up about their difficulties. Over time, as these practices become ingrained, you will see a leadership community forming in your company: one where people at all levels feel responsible for nurturing talent around them. The beauty of a strong mentorship/coaching culture is that it continues outside the formal training sessions, learning and growth become continuous, relationship-driven processes. In a high-growth environment, this network of support helps leaders weather challenges and avoid feeling isolated. And for the organization, it means leadership development isn’t confined to a classroom; it’s happening every day through conversations and shared wisdom.

Measure Impact and Iterate

How do you know if your leadership training efforts are actually paying off? For growing companies with limited time and resources, this question is crucial, you need to ensure that the program delivers real value. That’s why establishing a practice of measuring the impact of leadership development is a best practice unto itself. Start by defining what success looks like before the program even launches. Earlier we discussed aligning with business goals; use those goals to set concrete metrics. There are several levels of metrics you can track. On a basic level, you have participation and feedback: how many leaders completed the program, and what did they think of it (often gathered via surveys)? High completion rates and positive feedback suggest the program is engaging. But those are only surface-level indicators. The more telling measures are behavioral and business outcomes: are the participants actually performing better as leaders on the job, and is that translating into better results for their teams or the company?

To assess behavior change, you might employ follow-up evaluations, such as 360-degree feedback surveys administered 6-12 months after training to see if colleagues notice improvements in areas like communication, decision-making, or team motivation for those who underwent training. You could also look at internal promotion rates. Are more leadership positions being filled by trained internal candidates (a sign that the pipeline is strengthening)? For business outcomes, connect the dots where possible. If one aim of the training was to improve employee retention under better-trained managers, check the retention statistics in departments led by program alumni versus those that aren’t. If another aim was to boost project delivery efficiency, track project completion times or client satisfaction scores before and after the training intervention. In one scenario, a company found that teams led by graduates of their leadership program had significantly higher engagement scores and 15% lower turnover than other teams, directly tying back to the program’s objectives. While it can be tricky to claim causation (many factors influence outcomes), consistent positive trends in areas targeted by the training provide strong evidence of impact.

Another key is to gather qualitative feedback and success stories. Numbers are important, but anecdotes can be powerful too. Encourage leaders who went through training to report their personal wins: perhaps a participant shares that thanks to the skills learned, they were able to resolve a conflict in their team that previously would have escalated, saving a valuable employee from quitting. Or a newly promoted manager might credit the program for giving them the tools to take on their role with confidence, leading to their team exceeding its goals. Document these stories and even share them with leadership and participants of future cohorts; they highlight the program’s value in a relatable way. Some organizations publish an internal “leadership development impact report” annually, summarizing metrics and testimonials, to keep executives and stakeholders informed of progress.

Measuring impact is not just about proving ROI; it’s also about continuous improvement of the program. Use the data you collect to refine your leadership training. If participants consistently say they wish there was more practice of difficult conversations, incorporate more role-play exercises. If the post-program evaluations show that many still struggle with a particular skill (say, strategic thinking), perhaps the program needs a dedicated module or longer focus on that area. On the other hand, if you notice certain business metrics aren’t moving as expected, revisit whether the training content truly addresses those drivers or if additional support (like manager reinforcement or policy changes) is needed in the workplace to complement the training. The idea is to create a feedback loop: Train → Measure → Adjust → Train again (improved). This iterative cycle ensures that your leadership development stays effective and relevant as the company evolves.

It’s also worth communicating the impact upward; when executives see solid results, they’ll remain committed to funding and participating in the program. In a high-growth scenario, resources can be tight, and initiatives that don’t show value may be cut. By demonstrating that your leadership training yields improved leadership performance and contributes to business goals (turning it from a cost center into a true investment), you secure its future. And as the program persists and improves year over year, the compounding benefit is remarkable: you end up with a deep bench of leaders who are not only well-trained but also experienced, adaptable, and proven in delivering results for the company.

Final Thoughts: Building Leaders from Within

For growing companies in any industry, strong leadership is the engine that drives sustained success. By implementing these best practices, from aligning development with your strategy, to making learning hands-on, to fostering a culture of continuous mentorship, you are essentially building that engine in-house. Remember that leadership training is not a one-time event but a journey. It starts with a commitment to invest in your people and continues with a supportive culture that encourages learning every day. As your organization expands, new challenges will emerge, but with a robust internal pipeline of trained leaders, you’ll be ready to meet them. These leaders will understand your company’s DNA, live its values, and guide their teams through change with confidence because they’ve been prepared for it.

In-house leadership development is an investment that pays dividends in performance, innovation, and retention. Companies that grow the leaders they need from within tend to navigate growth pains more smoothly, they scale up without losing the qualities that made them successful in the first place. Moreover, they create an environment where talented people want to build their careers, knowing that growth opportunities are abundant. By following the best practices outlined in this article, HR professionals and business owners can design leadership training programs that are educational, practical, and truly impactful. The result is a win-win: employees advance and fulfill their potential, and the company gains the capable leadership required to thrive in an ever-changing, competitive landscape. In the long run, the greatest legacy of a high-growth company is not just the products it makes or the markets it enters, but the cadre of leaders it develops. Those leaders are the ones who will carry the vision forward and ensure that success is not just achieved, but sustained across generations of the company.

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