Leader development is defined as the "expansion of a person's capacity to be effective in leadership roles and processes" (McCauley, Van Veslor, & Rudeman, 2010, p. 2). These roles and processes are ones that aid in setting direction, creating alignment and maintaining commitment in groups of people sharing common work. Most organizational leadership research and educational programs have focused on developing individual-based knowledge, skills, and abilities associated with formal leadership roles (human capital) of individuals (Day, 2000). Leader development therefore results by investing in human capital.
Developmental theory While there is no specific theory from which leader development derives, developmental theory taps into two aspects of development: learning and change. Development is a form of change and it is impossible for a leader to develop without change occurring (Day & Zacarro, 2004). Learning is defined as the attainment of a permanent change in a person because of practice or experience, which then drives change and development (Day & Zacarro, 2004). Learning stems from two traditions: a permanent change in behavior following experience based on behaviorism, and a change in or creation of new mental models based on Gestalt psychology. Behaviorism allows for performance to be used as an indicator of a leader's behavior. In contrast, Gestalt psychology examines the creation of new mental models that arise from experience, which can help a leader develop their intrapersonal competence. Together, behaviorism and Gestalt traditions are thought to be complementary in the fact that development comes from both changing mental models and creating new behaviors (Hogan and Warrenfeltz, 2003).
Differentiating between leader development and leadership development Leader development is described as one aspect of the broader process of leadership development (McCauley et al., 2010). Leadership development is defined as the expansion of a group's capacity to produce direction, alignment, and commitment (McCauley et al.), in contrast to leader development which is the expansion of a one's ability to be effective in leadership roles and processes. Further distinctions between the two can be made by looking at components of each model. Leader development focuses on developing individual knowledge, skills, and abilities (human capital), whereas leadership development focuses on building networked relationships (social capital) among individuals in an organization. Leader development keys in on the assumption that effective leadership occurs through the development of individual leaders, whereas leadership development is a function of the social resources that are rooted in relationships (Day, 2000). In leader development, the focus is on intrapersonal skills of self-awareness, self-regulation, and self-motivation; leadership development focuses on interpersonal skills of social awareness and social skills (Day, 2000). Day (2000) argues that what most organizations term as leadership development should be more accurately labeled as leader development. Organizations cannot choose one or the other approach, but instead a bridge must be anchored on either side of leader and leadership development for effective development to occur (Kegan, 1994). Therefore, it is important to develop the intrapersonal capabilities to serve as a foundation for interpersonal competence and link both leader and leadership development together.
Differentiating between leader development and management development Management development and leadership development can often be confused as one. Although they also can overlap, there are key differences between the two that are not to get confused with leader development. Leadership processes allow groups of people to work together, whereas management processes are considered to be position and organization specific (Keys & Wolf, 1988). Management development includes managerial education and training (Latham & Seijts, 1998; Mailick, Stumpf, Grant, Kfir, & Watson, 1998). There is a greater emphasis on gaining specific types of knowledge, skills, and abilities to enhance task performance in management roles (Baldwin & Padgett,1994; Keys & Wolfe, 1988; Wexley & Baldwin, 1986). Also, management development's goal is to apply proven solutions to problems giving it more of a training orientation. Management development focuses more on the formal managerial roles.
Leader development model McCauley, Van Veslor, and Ruderman (2010) explain a two-part model for developing leaders. The first part illustrates three elements that combine to make developmental experiences stronger: assessment, challenge and support. Assessment lets leaders know where they stand in areas of strengths, current performance level, and developmental needs. Challenging experiences are ones that stretch a leader's ability to work outside of their comfort zone, develop new skills and abilities, and provide important opportunities to learn. Support, which comes in the form of bosses, co-workers, friends, family, coaches and mentors, enables leaders to handle the struggle of developing. The second part of the leader development model (McCauley et al., 2010) illustrates that the leader development process involves a variety of developmental experiences and the ability to learn from them. These experiences and the ability to learn also affect each other in that a leader with a high ability to learn will search for developmental experiences and through developmental experiences leaders will increase their ability to learn. It is also important to note that the leader development process is rooted in a particular leadership context which includes elements such as age, culture, economic conditions, gender of the population, organizational purpose and mission, and business strategy (McCauley et al.). This environment molds the leader development process. Along with assessment, challenge and support, leadership context are important aspects of the leader development model.
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