AbstractThe author contends that despite the importance of developing the next generation of organizational leaders, the results to date have been frustrating. Various failures are enumerated and outlined: program failures, personal failures, and institutional failures. Organizations must develop a “bench” of developing leaders who can move into increasingly senior positions. Chief executive officers (CEOs) must be involved and engaged, and not completely leave it up to their senior teams. The CEO should help people recognize talent in high‐potential people in the areas of competence, motivation, and interpersonal skills. The planning process is outlined in detail; leaders should share their knowledge about goals and timelines, and that there are two jobs for every level someone hits, and that each new level represents a new starting point. Flexibility belongs in a plan, and resilience is critical. It is important to take risks and to create an environment that supports risk taking. The latter inevitably involves some failure. The importance of mentoring and sponsorship is discussed, with the assertion that most people and companies tend to get these areas wrong. The ongoing challenge of developing the next generation of leaders is a critical—and current—strategic challenge facing senior executives.