The success of your firm depends on the kind of leaders that you have. Your firm has to have a plan for current leaders and future ones. There has to be a grooming system in place so that when the current managers retire or leave, there is already someone that can replace them. Although you can argue that there are plenty of good managers out there, and you can easily find one if you advertise the position, bringing someone from outside isn't always the best idea for two reasons. First, there will be a leadership vacuum until the position is filled. During this period, things can slow down because there's no oversight. Second, bringing in someone new that doesn't understand the culture of the place can destroy staff morale.

How to Identify Leaders

1. Potential
Although performance is an important quality in identifying an employee with leadership skills, it's not the only factor. A worker should also have potential. Employees that have a high desire to grow show great potential. Their enthusiasm means that they are ready for whatever responsibility that comes their way. These employees also have an aptitude for decision making. Even though employees have to follow the chain of command when making important decisions, smart workers will make a decision without hesitating if the manager is not around. These employees know the importance of keeping things moving.

2. Engagement
A good employee is invested in the company. He or she believes that the firm's goals are related to his or her success. If you realize that there's an employee who cares more about the company than themselves and isn't afraid to voice their opinions when it comes to areas that need improvement, you have a potential leader. This employee is ready to go above and beyond to achieve the organization's goals. Some of them show enthusiasm as new employees during the onboarding process.

3. Accountability
There are people that won't admit their mistakes because they don't want to look bad in front of others. These individuals will come up with all kinds of excuses when things go wrong at work. However, there's another group of people that are hard to find. They are not afraid to admit their mistakes, and they use their failures as opportunities for learning. These people can become great leaders because they are accountable for their actions.

How to Groom Leaders

1. Networking
We learn more about the world from other people. Once you have identified potential leaders, take them with you on networking events and encourage them to mingle with other people in the industry. Networking can help the employee expand their knowledge on a certain subject and identify ways in which they can improve their productivity. Networking can also help the employee find important contacts that can benefit the organization in times of need.

2. Give them Responsibilities
The best way for employees to learn is through experience. Therefore, expose your workers to leadership responsibilities, for example, give them assignments that require them to make fast decisions. Expose them to high-pressure situations and observe how they react. Give them pointers, but leave the decision making to them. Let them chair some meetings so that they can learn how to coordinate people.

3. Feedback
Grooming is also about letting the employee know when he or she goes wrong with something. Provide constructive criticism and encourage them to keep doing their best. In addition, give them credit when they do something right.

Conclusion

You have to know how you can identify and groom the next generation of leaders within your organization because it defines your firm's long-term success. Grooming leaders from within also improve staff morale because it shows that the organization gives its employees opportunities to grow.