Good leadership is crucial to a successful organization. However, the definition of good leadership has evolved significantly over the years. Fifty years ago, a directive, task-oriented approach was the norm. Over time, the focus shifted to people-oriented and motivational leadership. Today, successful leadership is all about flexibility, with effective leaders adapting to circumstances, goals, and the needs of their teams.

Many organizations choose to promote internal employees into leadership roles. But how do you recognize leadership potential? And how do you ensure it’s developed? In this article, we share insights to help you identify and nurture leadership within your organization.

1 Leadership in a TUNA World

In today’s TUNA world (Turbulent, Uncertain, Novel, and Ambiguous), agility is essential. Organizations must balance operational efficiency and error reduction with the need to foster innovation — where experimentation and occasional mistakes are part of the process.

At the same time, employees expect inspiring leadership tailored to their needs. This evolving dynamic raises expectations for leaders, who must not only think strategically and act under pressure but also demonstrate essential soft skills. These include empathy, communication, and coaching abilities.

2 What Is Leadership Potential?

A common misconception is that high performers are automatically high potentials. While strong performance can indicate growth potential, it does not necessarily mean someone is suited for a broader leadership role. An expert may be highly skilled in their field and show the ability to grow, without possessing the skills needed to mobilize and inspire a team.

To recognize leadership potential, it’s important to look beyond an individual’s current performance or self-confidence. The following traits can help identify the potential to develop a flexible leadership style:

• Agility, learning ability, and growth mindset – Quickly adapting and staying open to new ideas and feedback.
• Resilience and stress tolerance – Handling pressure and setbacks effectively.
• Emotional intelligence and empathy – Connecting with and supporting others.
• Decisiveness – Making firm decisions, even under uncertainty.
• Creativity and innovation – Developing new solutions and embracing change.
• Communication skills – Clearly and confidently conveying messages.
• Ethics and responsibility – Acting with integrity and setting a strong example.

The context of your organization and the specific expectations of the role are also key factors to consider.

3 How Do You Measure Leadership Potential?

Before assessing potential, it is important to determine which competencies are linked to effective leadership within your organization. Next, it is useful to thoroughly map out which behaviors are associated with these competencies and what attitudes and fundamental behaviors underpin them. This enables a deeper analysis of whether an employee shows positive indications or counter-indications for developing these competencies. To accurately assess potential, a combination of elements should be considered:

• Observed behavior: Does the employee demonstrate a strong foundation for the competency?
• Personality: Does the development of the competency align with the employee’s personality traits?
• Motivation: Does the employee show the right intrinsic motivation to develop the competency?

Intelligence: Does the employee have the necessary intellectual capacity to develop the competency? It is important to assess these elements objectively and in a standardized manner. This can be supported by an independently conducted development center.

4 How Do You Nurture the Leaders of Tomorrow?

Identifying and becoming aware of potential is an important first step. Equally important, however, is having a solid talent development policy. This should have a central place in human resources strategy and be reinforced by fostering a learning culture within the organization. Some effective strategies for developing potential include:

• Challenging assignments – Give employees tasks that stretch their abilities.
• Mentoring and coaching – Pair employees with experienced leaders or coaches for guidance.
• Feedback culture – Ensure regular feedback moments and open communication.
• Encouraging a growth mindset – Promote experimentation and learning; ensuring that mistakes are acceptable.

Formal development programs – Offer training and courses focused on leadership skills.

5 Conclusion

Recognizing and developing leadership potential requires a broad perspective and an active approach. It is not just about assessing current performance but also about identifying behaviors that indicate future growth. Detecting potential requires an objective and standardized approach. Deciding whether to invest in an employee’s leadership trajectory is crucial for their career development. Beyond identifying potential, it is essential to facilitate and support an employee's learning process in the most effective way possible. This approach helps build the leaders of tomorrow and secures the future of your organization.