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Development, Training & Coaching

Leadership Training Needs: Identify and Address Skill Gaps

Discover how to identify leadership training needs with proven assessment methods, competency frameworks, and strategies to close critical skill gaps.

Written by Laura Bouttell • Sat 29th November 2025

Leadership Training Needs: How to Identify and Address Critical Development Gaps

Leadership training needs are the specific skills, knowledge, and capabilities that current or emerging leaders require to perform effectively in their roles but currently lack. Identifying these needs accurately ensures development investments target genuine gaps rather than assumed deficiencies, maximising both individual growth and organisational return.

Here's a sobering reality: a CareerBuilder survey reveals that more than 26% of managers admitted they weren't ready to become leaders when they started managing others, and 58% said they received no management training whatsoever. Meanwhile, only 28% of business executives rate themselves effective at developing leaders. This gap between leadership requirements and actual capability represents both a significant organisational risk and a substantial opportunity for competitive advantage.

This guide provides a systematic approach to identifying leadership training needs across all levels of your organisation, from frontline supervisors to C-suite executives. You'll learn proven assessment methodologies, discover the most common skill gaps organisations face, and develop strategies for prioritising and addressing your specific development requirements.


What Are Leadership Training Needs?

Leadership training needs represent the gap between the competencies leaders currently possess and those required for optimal performance in their roles. Understanding this concept requires examining both its components and its strategic importance.

Defining the Gap

A training needs assessment identifies the "gap" between performance required and current performance. When a difference exists, it explores the causes and reasons for the gap and methods for closing or eliminating it.

For leadership specifically, this gap manifests in several dimensions:

Why Identifying Needs Matters

Training needs assessment offers a strategic approach to improve the performance of organisations and helps them gain a competitive advantage. When conducted properly, it:

  1. Ensures efficient resource allocation — Directs investment toward genuine gaps
  2. Reduces unnecessary training costs — Avoids spending on skills already present
  3. Increases employee motivation — Signals organisational commitment to growth
  4. Strengthens retention — Demonstrates investment in leader development
  5. Improves organisational performance — Builds capabilities that drive results

For large organisations, strong leadership is critical to success. The training needs assessment identifies employees with leadership potential and enables tailored programmes for their development.


The Three Levels of Leadership Training Needs Analysis

Effective needs assessment operates across three interconnected levels, each providing distinct insights into development requirements.

Organisational Level Analysis

This macro-level analysis examines leadership needs in the context of overall business strategy and organisational goals.

Key questions to address:

Data sources:

Team Level Analysis

This meso-level analysis explores leadership needs within specific functions, departments, or project teams.

Key questions to address:

Data sources:

Individual Level Analysis

This micro-level analysis assesses specific leaders' development requirements based on their roles and career trajectories.

Key questions to address:

Data sources:


How Do You Identify Leadership Training Needs?

Multiple assessment methods provide complementary insights into development requirements. The most effective approaches combine several techniques for a comprehensive view.

Performance Data Analysis

Review objective performance indicators to identify patterns suggesting leadership capability gaps:

Performance Indicator Potential Leadership Gap
High team turnover Employee engagement and development skills
Missed deadlines Planning and execution capabilities
Quality issues Standards-setting and accountability
Customer complaints Service orientation and team alignment
Low innovation rates Creative leadership and psychological safety
Poor cross-functional collaboration Relationship-building and influence

360-Degree Feedback

This comprehensive feedback method collects performance input from peers, managers, and subordinates, providing multi-perspective insight into leadership effectiveness.

Benefits:

Implementation considerations:

Self-Assessment Instruments

Self-assessment tools help leaders understand their strengths, weaknesses, and leadership style—and support goal setting for development.

Popular instruments include:

Skills Gap Analysis

A systematic comparison of required competencies against current capabilities:

Process steps:

  1. Define competencies required for each leadership level
  2. Assess current leaders against these competencies
  3. Calculate gaps between required and actual levels
  4. Prioritise gaps based on business impact
  5. Develop targeted interventions

Interviews and Focus Groups

Qualitative research provides context that quantitative data cannot capture:

Interview approaches:

Focus group applications:

Job Simulations and Assessment Centres

Real-world scenarios assess skills under realistic pressure:


What Are the Most Common Leadership Training Needs?

Research consistently identifies recurring capability gaps across organisations and industries. Understanding these common needs provides a starting point for your assessment whilst recognising that each organisation's priorities will differ.

The Top Leadership Skill Gaps

Research identifies the top five leadership needs as:

  1. Inspiring commitment — Motivating others toward shared goals
  2. Building collaborative relationships — Creating effective partnerships
  3. Change management — Navigating and leading transformation
  4. Taking initiative — Proactive problem-solving and innovation
  5. Leading employees — Day-to-day people management

Notably, these high-priority needs are often not among the top skills that leaders actually possess, creating a persistent capability-performance gap.

Competency Gaps by Leadership Level

Different leadership levels face distinct development challenges:

Frontline Managers:

Mid-Level Managers:

Senior Executives:

Emerging Skill Requirements

Several factors create new leadership development needs:

Digital transformation:

Workforce evolution:

Business environment:


Why Do Leadership Skill Gaps Exist?

Understanding root causes helps organisations address not just symptoms but underlying issues that create capability deficits.

Rapid Change Outpacing Development

Skill and knowledge inadequacies in leadership often arise due to the rapid pace of change in today's business environments. Technological advancements and evolving industry trends can make it challenging for leaders to keep their skill sets current. Without constant learning and development, even experienced leaders may find themselves lacking necessary skills to navigate new challenges.

Insufficient Training Investment

The persistent gap between leadership requirements and capability reflects inadequate development investment:

Flawed Promotion Practices

Many organisations promote based on technical excellence rather than leadership potential:

Remote and Virtual Work Challenges

More than 60% of organisations surveyed provided no training for virtual teams or virtual team leaders on how to deal with the challenges of collaborating virtually. This gap has become increasingly significant as hybrid work models persist.

Succession Planning Failures

Leadership and management competency gaps can arise when senior employees retire without adequate knowledge transfer or successor preparation. Mentorship programmes that pair experienced leaders with high-potential employees help build experience and foster a culture of continuous learning.


How to Conduct a Leadership Training Needs Assessment

A structured assessment process ensures comprehensive and actionable results.

Step 1: Define Assessment Scope

Clarify what you're assessing and why:

Step 2: Establish Competency Framework

Define what good leadership looks like in your context:

Core competencies to consider:

Competency Area Example Behaviours
Building relationships Creates partnerships, builds trust, shares ideas
Developing people Helps others become more effective through strengths-based coaching
Driving change Embraces change, sets goals aligned with vision
Inspiring others Encourages through positivity, vision, confidence, and recognition
Thinking critically Gathers and evaluates information for sound decisions
Communicating clearly Shares information regularly and concisely

Customise competency definitions to reflect your organisation's strategy, culture, and values.

Step 3: Select Assessment Methods

Choose appropriate tools based on your scope and resources:

For individual-level assessment:

For team-level assessment:

For organisation-level assessment:

Step 4: Collect Data

Implement assessment activities systematically:

Step 5: Analyse Findings

Synthesise data into actionable insights:

Step 6: Develop Recommendations

Translate analysis into development plans:


Matching Training Solutions to Identified Needs

Different leadership needs require different development approaches. Matching interventions to specific gaps increases effectiveness.

Formal Training Programmes

Best suited for:

Examples:

Executive Coaching

Best suited for:

Executive coaching is a popular and effective tool at senior levels; having an expert coach to discuss leadership and communication styles, values, and day-to-day challenges can boost executives' leadership performance.

Mentoring Programmes

Best suited for:

Mentorship programmes enable the transfer of knowledge from retiring executives to emerging leaders, building experience whilst fostering a culture of continuous learning and development.

Action Learning Projects

Best suited for:

Job Assignments and Rotations

Best suited for:

Peer Learning Networks

Best suited for:

Mid-level leaders, managing both up and down, benefit from experiences that connect them with mentors and peers facing similar challenges.


Leadership Training Needs by Organisational Level

Tailoring development focus to leadership level ensures appropriate intervention.

Frontline Manager Training Needs

The new manager role is one of the most challenging that leaders face. Entry-level managers are often overlooked in leadership development efforts, but it is critical that they receive training to ensure their success.

Priority development areas:

  1. Transition from peer to manager
  2. Performance management fundamentals
  3. Effective feedback and coaching
  4. Team meeting facilitation
  5. Time and priority management
  6. Conflict resolution basics
  7. Employee engagement techniques

Effective approaches:

Mid-Level Manager Training Needs

Mid-level managers require development focused on the ability to manage up as well as down and the ability to have difficult conversations.

Priority development areas:

  1. Strategic translation and alignment
  2. Cross-functional influence
  3. Developing future leaders
  4. Managing through others
  5. Stakeholder management
  6. Change leadership
  7. Executive presence

Effective approaches:

Executive Training Needs

Senior leaders benefit from depth and high-touch interactions with peers and experts that provide outside-in perspectives.

Priority development areas:

  1. Enterprise strategy development
  2. Board and investor relations
  3. Organisational culture leadership
  4. Transformation leadership
  5. External profile building
  6. Succession and legacy planning
  7. Crisis leadership

Effective approaches:


Building a Continuous Needs Assessment Process

Rather than treating needs assessment as an occasional event, embed it into ongoing leadership development practice.

Integrate with Talent Management Cycles

Align assessment with existing processes:

Create Feedback Loops

Ensure development activities inform future assessments:

Monitor External Trends

Stay current on evolving leadership requirements:

Establish Assessment Cadence

Assessment Type Recommended Frequency
Individual 360 feedback Every 18-24 months
Self-assessment Annually
Performance-based analysis Quarterly review
Organisational needs review Annually
Competency framework update Every 2-3 years

What Are the Benefits of Addressing Leadership Training Needs?

Systematic attention to leadership development delivers measurable organisational benefits.

Improved Performance

Leaders equipped with necessary capabilities drive better results:

Enhanced Engagement

The manager influences 70% of a team's engagement, making manager development especially important to team success. Developed leaders create environments where employees thrive.

Stronger Retention

Investing in the development of employees increases their motivation and strengthens their sense of commitment to the organisation. Leaders who feel developed are more likely to stay; leaders who develop others build loyalty in their teams.

Better Succession Readiness

Proactive development creates pipelines of prepared leaders:

Competitive Advantage

Organisations with superior leadership capability outperform competitors:


Frequently Asked Questions

What is a leadership training needs assessment?

A leadership training needs assessment is a systematic process for identifying the gap between leadership competencies currently present in an organisation and those required for optimal performance. It examines needs at three levels—organisational, team, and individual—using methods such as 360-degree feedback, performance data analysis, self-assessments, interviews, and skills gap analysis. The assessment's purpose is to direct development resources toward genuine capability gaps, ensuring training investments deliver maximum impact.

How do you identify leadership development needs?

Identify leadership development needs through multiple complementary methods: analyse performance data for patterns suggesting capability gaps; conduct 360-degree feedback to gather multi-perspective insights; use self-assessment instruments to understand leaders' own perceptions; perform skills gap analysis comparing required competencies to current capabilities; conduct interviews and focus groups for qualitative context; and use job simulations or assessment centres for objective skill measurement. Combining several methods provides the most accurate and comprehensive picture.

What are the most common leadership skill gaps?

The most common leadership skill gaps include inspiring commitment and motivation, building collaborative relationships, leading change effectively, taking initiative proactively, and managing employees day-to-day. Additionally, communication, emotional intelligence, strategic thinking, conflict resolution, and virtual leadership consistently appear as development priorities. The specific gaps most critical to any organisation depend on its strategy, culture, and current leadership population.

Why do leadership training needs vary by level?

Leadership training needs vary by level because each leadership tier faces distinct challenges requiring different capabilities. Frontline managers must transition from individual contribution to leading others, focusing on fundamental people management skills. Mid-level managers navigate the complexity of managing upward and downward simultaneously whilst influencing cross-functionally. Senior executives require strategic, enterprise-wide perspectives and must shape culture whilst managing external stakeholders. Tailoring development to level ensures relevance and impact.

How often should organisations assess leadership training needs?

Organisations should assess leadership training needs continuously through integrated talent management processes, with formal comprehensive assessments conducted annually. Individual 360-degree feedback works well every 18-24 months, whilst performance-based indicators should be reviewed quarterly. Competency frameworks require updating every 2-3 years to reflect evolving business requirements. Major strategic shifts, significant organisational changes, or emerging business challenges may trigger additional assessment cycles.

What is the difference between training needs and training wants?

Training needs represent genuine capability gaps that, if addressed, improve leadership performance and organisational results. Training wants are development activities leaders prefer or request that may not address actual performance requirements. Effective needs assessment distinguishes between the two by grounding analysis in performance data, business requirements, and objective assessment rather than solely relying on leader preferences. Both matter—engaged leaders more readily embrace development—but resources should prioritise needs whilst considering wants.

How do you prioritise multiple leadership training needs?

Prioritise multiple leadership training needs by evaluating each against criteria including: business impact (how significantly does this gap affect results?), prevalence (how many leaders share this need?), urgency (how time-sensitive is addressing this?), feasibility (can we realistically develop this capability?), and strategic alignment (does this support organisational priorities?). Weight these factors based on your context, score each need accordingly, and focus resources on highest-priority gaps whilst developing plans for lower-priority needs over time.


Conclusion

Identifying leadership training needs with precision transforms development from well-intentioned activity into strategic investment. When organisations understand exactly where capability gaps exist—and why—they can direct resources toward interventions that genuinely improve leadership performance and drive business results.

The most effective approach combines multiple assessment methods, examines needs across organisational, team, and individual levels, and connects findings to specific development solutions. Rather than treating assessment as an occasional event, leading organisations embed needs identification into ongoing talent management practice, creating continuous feedback loops that keep development priorities current.

The stakes are significant. With managers influencing 70% of team engagement and the majority of new managers reporting they felt unprepared for leadership, the gap between leadership requirements and actual capability represents both a pressing challenge and a substantial opportunity. Organisations that systematically identify and address leadership training needs build the capable leadership pipelines that enable sustained competitive advantage.

Begin your assessment by examining the most critical leadership roles in your organisation, the competencies those roles require, and the methods that will provide the clearest insight into current capability levels. From that foundation, develop targeted interventions that close genuine gaps—and establish the ongoing processes that keep your leadership development investments aligned with evolving organisational needs.


Start your leadership training needs assessment today by selecting two or three methods from this guide and applying them to your highest-priority leadership population. The insights you gain will transform how you invest in developing the leaders your organisation needs.