Leadership training is one of the most common investments organisations make and one of the least interrogated. Courses are rolled out, workshops are delivered, and managers are given frameworks for feedback, delegation, and communication. On paper, capability is being addressed.
But when organisations step back and look at how leadership actually shows up day to day, the same patterns tend to persist. Conversations are delayed, expectations remain unclear and performance issues are handled inconsistently. Managers understand what good looks like, but they do not always apply it in practice.
The issue is not a lack of training. It is a mismatch between how capability is being built and what the role actually demands.
That gap matters. The Productivity Commission has consistently pointed to management capability as a key driver of productivity, while Gallup continues to show that managers account for around 70% of the variance in team engagement. At the same time, Deloitte’s research suggests only a small proportion of organisations feel highly effective at leadership development. McKinsey & Company reinforces the same point from a performance perspective, with stronger organisations significantly more likely to outperform.
For L&D leaders, this is not a learning design issue in isolation. It is a business performance issue.
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What is leadership training?
Leadership training for managers typically takes the form of short term, event based interventions. Workshops, courses, and online modules are used to introduce specific skills such as feedback, delegation, or communication.
These sessions are often well designed and valuable in the moment. They provide structure, language and a clearer understanding of what effective leadership should look like. For organisations looking to build baseline capability quickly, this type of training is efficient and scalable.
However, its limitations are equally clear. Training is focused on knowledge, not behaviour. It happens outside the day-to-day context of the role, and once completed, the responsibility for applying that learning sits entirely with the individual manager.
This is where most management training falls short. Without reinforcement, application, and feedback, knowledge rarely translates into consistent behaviour. Over time, retention declines and the impact becomes uneven across teams.
What is leadership development?
Leadership development courses in Australia and globally are increasingly shifting toward a different model. Rather than focusing on one off learning events, development is structured over time and designed to build capability through application.
This approach recognises that leadership is not a set of ideas to understand, but a set of behaviours to practice. Managers need to apply what they learn in real situations, receive feedback, adjust their approach, and build confidence through repetition.
This is where coaching, workplace application, and structured feedback become critical. Development is not delivered once. It is reinforced over time, embedded into the role, and supported through ongoing guidance.
The distinction is not subtle. Leadership training builds knowledge. Leadership development builds capability.
The key differences
The difference between management training vs leadership development is most visible when looking at how each approach performs over time.
Leadership training is typically delivered as a one-off session or short series of interventions. It focuses on knowledge transfer, is often generic by design, and tends to produce limited long-term retention.
Leadership development, by contrast, is an ongoing journey. It is behaviour-focused, contextual to the role, and designed to support high levels of application in the workplace.
Training introduces ideas. Development embeds them.
This is why organisations that rely primarily on training often see inconsistent outcomes, while those that invest in structured development are more likely to build sustainable leadership capability.
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Why this matters to L&D
For L&D leaders, this distinction has direct implications for organisational performance.
Management capability is one of the most significant drivers of productivity and engagement. The Productivity Commission has highlighted its role in economic performance, while Gallup’s research shows managers drive approximately 70% of team engagement outcomes.
Despite this, Deloitte’s research indicates that only around 8% of organisations feel highly effective at leadership development. McKinsey & Company further reinforces the gap, showing that organisations with strong capability are three times more likely to outperform those without it.
When leadership capability is inconsistent, the impact is immediate. Decision-making slows, priorities become unclear, and performance management becomes uneven. Over time, this contributes to lower engagement, higher turnover, and reduced productivity.
For L&D, the challenge is not whether leadership development matters. It is how to build it in a way that produces measurable outcomes.
Where organisations get it wrong
The gap between training and development is rarely intentional. Most organisations recognise the importance of leadership capability, but the way it is addressed often limits impact.
One of the most common issues is the reliance on one-off workshops. These sessions may introduce useful concepts, but they are not designed to support behaviour change over time.
Another challenge is the absence of a structured pathway. Managers are expected to develop capability without a clear framework or progression, which leads to inconsistent outcomes.
Measurement is also often lacking. Without a way to assess capability, development remains difficult to evaluate and improve.
Finally, support is inconsistent. Managers are expected to apply learning in complex situations without ongoing guidance, which limits their ability to build confidence and consistency.
These gaps explain why leadership training alone rarely delivers sustained results.
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What effective leadership development looks like
A more effective approach starts with a leadership capability framework. Organisations need to clearly define what effective leadership looks like in their context, not in abstract terms, but in observable behaviours such as setting expectations, managing performance, and communicating clearly.
From there, development needs to be structured as a journey. Managers should be supported over time, with a clear sequence of learning and application that reflects the realities of their role.
Blended learning is critical. Content alone is not enough. Development should combine structured learning with workplace application, reflection, and feedback.
Coaching and peer support play a key role in reinforcing learning and helping managers navigate real challenges.
Most importantly, development must be connected to the workplace. Capability is built through application, not theory.
How IML supports leadership development
IML’s approach to leadership development is built around structured pathways rather than one off training.
Courses such as the New Manager course, Foundations of Intentional Leadership, and Accelerate are designed to support leaders at different stages of their development.
The focus is on real world application, behaviour change, and structured progression. Managers are supported as they apply learning in their role, rather than being left to translate theory into practice on their own.
This creates a more consistent and measurable approach to building leadership capability.
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What L&D should do next
For L&D leaders, the starting point is to assess the current approach to leadership development.
This means auditing existing courses, identifying where capability gaps exist, and understanding where current methods are falling short.
From there, the focus should shift to building a structured development pathway. One that combines a clear capability framework, ongoing learning, and workplace application.
Measurement is essential. Without it, development cannot be refined or linked to business outcomes.
The shift is not about delivering more training. It is about building capability in a way that is structured, measurable, and aligned to performance.
Frequently asked questions
How should organisations balance training and development in practice?
Most organisations still need both. Training works well for introducing concepts quickly and building shared understanding across a group. Development is where that learning is embedded. A practical approach is to use training as the entry point, then structure development around application, coaching, and reinforcement over time.
What should L&D measure to understand if leadership capability is actually improving?
Beyond attendance or completion rates, organisations should look at indicators such as consistency in performance conversations, clarity of team objectives, engagement trends at a team level, and manager confidence over time. These signals show whether behaviour is changing, not just whether learning has occurred.
How can L&D justify investment in development over one off training?
The strongest case is made by linking leadership capability to business outcomes. This includes reduced turnover, improved engagement, faster decision-making, and more consistent performance across teams. Framing development as a productivity and risk reduction lever, rather than a learning initiative, shifts the conversation.
What are the biggest risks of continuing with a training-only approach?
The risk is not that training has no value, but that it creates a false sense of progress. Organisations may believe capability has been addressed, while underlying behavioural gaps remain. Over time, this leads to inconsistent leadership standards, avoidable performance issues, and increased pressure on high-performing teams.
How do you support managers who are already in a role but underprepared?
Retrofitting development is still effective if it is applied quickly and practically. This includes focusing on core capabilities such as performance management, delegation, and communication, supported by coaching and real-world application. The key is to prioritise immediate challenges rather than broad leadership theory.
Explore the New Manager course to get started.
References
- Gallup (2015) Beck, R. and Harter, J., Managers account for 70% of variance in employee engagement. Available at: https://news.gallup.com/businessjournal/182792/managers-account-variance-employee-engagement.aspx
- Gallup (2025) State of the Global Workplace Report. Available at: https://www.gallup.com/workplace/349484/state-of-the-global-workplace.aspx
- Productivity Commission (2024) Thiris, J., The great productivity divide. Available at: https://www.pc.gov.au/media-speeches/articles/great-productivity-divide/
- Deloitte (2023) Global Human Capital Trends: New fundamentals for a boundaryless world. Available at: https://www.deloitte.com/us/en/insights/topics/talent/human-capital-trends/2023/future-of-workforce-management.html
- McKinsey & Company (2024) Organizational health is (still) the key to long-term performance. Available at: https://www.mckinsey.com/capabilities/people-and-organizational-performance/our-insights/organizational-health-is-still-the-key-to-long-term-performance
