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7 Ways To Develop Managers into Leaders: A Step-by-Step Guide That Actually Works

Discover 7 proven strategies to transform managers into leaders. Boost engagement, retention & growth with practical leadership development.

Courtney Ritchie
August 25, 2025
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Sixty percent of new managers fail within their first two years. It’s a staggering number but it means there’s a big opportunity to develop managers into successful leaders.

Real leadership development happens through intentional coaching and practical skill-building. 

But how do you develop your current and first-time managers?

We’ve narrowed down seven proven strategies that actually work for developing managers into leaders. You'll discover the critical skills every leader needs and how to implement a leadership development program that drives measurable results.

Whether you're an HR leader or an executive strengthening your leadership pipeline, these actionable strategies will transform your management team into the leaders your organization needs to grow.

Why Developing Managers Leads to Business Growth

Organizations invest $60 billion annually in leadership development. With such a large investment, leadership development needs to deliver measurable returns, not wishful thinking.

When done right, leadership training programs generate 29% ROI within three months, expanding to 415% annualized returns. Every dollar spent on leadership development returns $4.15. Participants improve learning capacity by 25% and performance by 20%.

Employee engagement sits at historic lows, with 85% of workers worldwide either disengaged or actively disengaged. Since managers drive 70% of employee engagement, stronger leaders become essential for organizational health.

Employee retention is also another reason why manager development is essential. Companies prioritizing leadership development see 20 times greater employee retention. When 58% of workers would leave companies that don't offer leadership development, and each departure costs $18,591, retention alone justifies the investment.

Neglecting leadership development can lead to:

  • Wasted funds and missed opportunities
  • Discouraged potential leaders
  • Organizational reluctance to invest further
  • Higher turnover and recruitment costs
  • Risk to employee well-being in critical sectors

Effective leaders understand how to make better decisions, build stronger teams, and improve business outcomes. Companies with effective leadership pipelines consistently outperform competitors in revenue growth, profitability, and workforce commitment.

Organizations treating leadership development as a core business strategy gain competitive advantages in performance, innovation, and talent retention.

The Difference Between Managers and Leaders

two sticky notes difference between leader and manager.

Business cards and email signatures use "manager" and "leader" interchangeably. Yet the roles require different skills and produce different results.

Managers execute tasks through established systems. Leaders inspire others toward a shared vision. Both matter. Both drive success. 

Understanding the difference helps you develop the right skills for the right outcomes.

Vision vs. Execution

Leaders create the vision. They paint possibilities and inspire people to make them real. Teams want to be part of something bigger than themselves.

Managers excel at measurable goals, workflow planning, and hitting targets. They coordinate resources and people to meet objectives. Both skills build organizational success.

Change vs. Stability

Leaders embrace innovation even when current systems work well. They push for better approaches and accept that change creates disruption.

Managers refine existing systems and structures. They optimize efficiency and minimize risk through proven methods. Organizations need both perspectives.

People vs. Processes

Leadership focuses on relationships, talent development, and trust. Leaders spend time with stakeholders and build loyalty through consistent delivery.

Managers concentrate on systems and processes that achieve outcomes. They ensure workflows function effectively and deliver results.

Long-term vs. Short-term

Leaders maintain focus on distant goals without regular rewards. They demonstrate commitment to long-term vision.

Managers work toward shorter-term objectives with regular progress acknowledgment. Both timeframes matter for sustainable growth.

Coaching vs. Directing

Leaders coach team members and view them as capable problem-solvers. They resist dictating solutions.

Managers assign specific tasks and provide clear execution guidance. Both approaches develop team capabilities.

Building on Both Skills

Management and leadership skills complement each other. Leadership tells us where to go. Management shows us how to get there.

The transition from manager to leader involves shifting from task-oriented thinking to a vision-oriented perspective. Instead of ensuring timely project delivery, leaders motivate teams to innovate and exceed expectations.

Recognizing these differences becomes the first step in developing managers into leaders who drive sustainable growth and innovation.

7 Effective Strategies To Develop Managers into Leaders

leader developing new manager

Building leadership capabilities involves skill development and mindset shifts. Here are 7 proven strategies to create lasting leadership throughout your organization.

1. Define leadership for your organization

Start with clarity. What does exceptional leadership look like at your company? The most effective companies define leadership within their specific business model, strategy, and culture. Don't apply generic competency models.

Identify leaders who excel in your environment. Document their behaviors and approaches. Focus on how your best leaders think and what choices they make during critical moments. Build expectations around the daily and pivotal challenges your leaders actually face.

2. Set clear career goals

Help managers establish specific, measurable goals for their leadership journey. These goals align personal growth with organizational objectives, creating direction for their career path. 

Effective goal-setting provides a foundation for all development activities and shows high-potential employees you're invested in their future.

Smart goal-setting works because it gives people something to build toward.

3. Create development plans that work

Turn aspirations into actionable steps. Effective career development plans require active participation from managers and their supervisors to map necessary skills, experiences, and resources for growth. 

Include three to five clear goals for each development cycle; more than five can create overwhelm. Plans without action remain wishes. Plans with clear steps become reality.

4. Connect managers with mentors

Mentorship accelerates leadership development through guidance from those who've already faced similar challenges. 

Research shows mentorship creates safe spaces for reflection and growth while offering practical insights that classroom training cannot provide.

Successful mentorship programs need executive buy-in, clear expectations, and proper mentor training. The best mentors share real experiences, not just advice.

5. Make feedback ongoing

Annual performance reviews don't develop leaders. Build ongoing feedback mechanisms that provide regular insights and course corrections. 

Employees who receive continuous feedback from managers are nine times more likely to trust them. Eighty percent of employees who received feedback within the past week report full engagement.

Constant input creates feedback loops that strengthen leadership capacity and improve communication.

6. Assign stretch projects

Push managers beyond comfort zones through carefully selected challenging assignments. Effective stretch assignments align with company goals and individual development needs. 

Examples include leading cross-functional teams, implementing new initiatives, or solving complex organizational problems.

These experiences develop critical leadership capabilities: strategic thinking, delegation, and team building. Growth happens outside comfort zones.

7. Invest in leadership training programs

Fund formal leadership development programs that provide structured learning experiences. Programs should target competencies needed at specific leadership levels and offer personalized attention, hands-on learning experiences, and ongoing support.

The most effective training combines frameworks with practical application. Participants implement new skills in real-world contexts immediately.

Build these seven strategies systematically. Organizations create pipelines of capable leaders prepared to drive sustainable growth and innovation.

Essential Skills That Transform Managers Into Leaders

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Leadership development succeeds when you target the right skills. Eighty-three percent of organizations need new leadership capabilities to meet future demands. Focus on skills that bridge the gap between management and leadership excellence.

Emotional Intelligence Builds Strong Teams

Emotional intelligence ranks as a foundational leadership capability. Leaders with high EQ understand and manage emotions, build authentic relationships, and create psychological safety within their teams. They excel at reading situations and responding appropriately.

Active listening enables leaders to build trust and foster open dialogue throughout organizations. Communication skills separate effective leaders from average managers.

Adaptability Drives Success

Adaptability emerges as the most critical leadership quality according to 71% of executives surveyed across 90 countries. Leaders demonstrate agility when responding to market shifts and organizational change.

Strategic thinking sets leaders apart from managers. This includes developing long-term vision, identifying opportunities, and anticipating challenges before they arise. Decision-making capability—analyzing situations, considering multiple perspectives, and making informed choices under pressure—proves equally essential.

People Development Creates Results

Leaders who excel at coaching, mentoring, and providing continuous feedback create stronger teams and deeper bench strength. 60% of U.S. employees have never received conflict management training, yet managers spend approximately 24% of their time managing conflicts.

Technical Competencies Matter

Leaders must develop proficiency in digital literacy, AI adaptation, and data analysis. Leaders who can work alongside and manage AI systems gain distinct advantages.

Ethical Leadership Builds Trust

Leaders who demonstrate accountability, transparency, and integrity earn their teams' trust and respect. They create cultures where people feel safe to innovate and take appropriate risks.

Practice Makes Perfect

Leadership development moves beyond theoretical training to practical application. Programs that support "learning by doing" and provide safe spaces for feedback and self-assessment prove most effective.

Build these essential skills through deliberate practice. Your managers transform into leaders who can navigate today's complex business environment.

How Learnit Develops Managers Into Leaders With Tailored Learning Programs

Sixty percent of new managers receive zero formal training when stepping into leadership roles. These same managers influence 70% of employee engagement scores. 

That's why organizations partner with Learnit to build leaders who perform. We create practical, tailored learning experiences that transform management capabilities into leadership excellence. Our methodology builds skills through live, instructor-led sessions that focus on immediate application.

Each program delivers:

  • Live workshops focused on practical skill application
  • Reinforcement tools to solidify key takeaways
  • Group coaching that encourages accountability and peer learning
  • Customizable modules based on organizational needs
  • Practical job aids and templates supporting immediate implementation

Learn more about our manager training programs to develop confident, capable leaders who deliver business impact.

Final Thoughts

Strong leadership isn’t built in a day. It’s built through clear expectations, hands-on practice, and steady support. When you define what leadership means for your organization, set specific goals, and stack practical development activities, you turn managers into leaders who raise performance.

Start simple. Pick a pilot group, document the leadership behaviors that matter most, and set three concrete goals per manager. Pair each person with a mentor, assign one meaningful stretch project, and set a monthly feedback cadence. Reinforce with live, skill-focused sessions and job aids that your managers can use the same day. 

Do this consistently, and you’ll build a reliable leadership bench that drives results.

Frequently Asked Questions

What is the main difference between managers and leaders? 

Managers focus on executing tasks through established systems, while leaders inspire others toward a shared vision. Leaders create and communicate the big picture, whereas managers excel at setting measurable goals and planning workflows to achieve objectives.

How can companies effectively develop managers into leaders? 

Companies can develop managers into leaders by defining leadership expectations, setting career goals, creating development plans, implementing mentorship programs, providing continuous feedback, assigning stretch projects, and investing in leadership training programs.

What are the key skills managers should develop to become effective leaders? 

Essential leadership skills include emotional intelligence, communication, adaptability, strategic thinking, decision-making, people development, digital literacy, and ethical leadership. Developing these skills helps bridge the gap between management and leadership excellence.

Why is leadership development important for businesses? 

Leadership development is crucial because it leads to higher employee engagement, better retention rates, increased productivity, and improved financial performance. Companies that invest in leadership development are better equipped to navigate challenges and outperform their competitors.

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