The most effective leaders balance learning new skills and competencies with vertical development. If we truly want our leaders to experience the kind of transformative growth that allows them to navigate whatever comes their way effectively, then we need to consider how supporting our leaders can include vertical development.
The single most powerful way to grow your people is to help them make the mental moves from one stage of development to the next.
ROBERT KEGAN
American developmental psychologist
In this article, we’ll dive into vertical development, what it is and how it differs from horizontal development. We’ll explore Robert Kegan’s Constructive Developmental Theory, walk through a real-world case study and discuss how organizations can take practical steps to create a culture that supports vertical development.
Because the benefits of vertical development are clear (and research backs them up):
Organizations that invest in vertical development see a 12% increase in overall leadership effectiveness and a 14% increase in leaders’ ability to manage complexity. (Center for Creative Leadership, 2015)
There has been a 20% year-over-year increase in organizations seeking vertical development programs for their leaders, signaling a shift from traditional skills-based training. (Korn Ferry Institute, 2019)
Leaders operating at higher developmental stages (self-authoring and self-transforming) are associated with a 15% higher rate of organizational performance and innovation. (Joiner, B., & Josephs, S. 2007)
Executives who engage in vertical development coaching reported a 17% improvement in handling complex, ambiguous situations. (International Coach Federation, 2016)
When we invest in the growth of our leaders, it creates positive ripples of change throughout the organization.
Horizontal vs Vertical Development
Horizontal Development
We’re all perhaps more familiar with horizontal development, so let’s start here. Horizontal development happens when you attend training programs, courses, or workshops to expand your knowledge and acquire new skills or specific competencies such as communication, conflict management or giving and receiving feedback. You build practical, hands-on experience by applying what you’ve learned to situations at work.
Vertical Development
Vertical development refers to the process of increasing your capacity to navigate complexity, ambiguity, and uncertainty by shifting the way you think, feel, and behave. It focuses on mindset, cognitive growth, and emotional intelligence. If horizontal development is like adding new programs to your mind, you can think of vertical development like upgrading your operating system. The growth you experience with vertical development creates changes that affect everything else.
Vertical development goes beyond horizontal development by shifting your underlying worldview and mindset. For example, moving from a reactive mindset, where you simply respond to external conditions, to a more proactive mindset, where you can begin to shape those conditions. Rather than simply adding new experiences (like you would in horizontal development), you examine how you interpret and make sense of these experiences.
Vertical development helps you to think in more complex, systemic, and strategic ways. It’s about developing greater cognitive flexibility so you can see interconnections and anticipate consequences.
Vertical development also focuses on self-awareness and emotional regulation. Through this, you learn to understand and navigate your emotions more effectively, which leads to greater empathy and resilience.
Finally, vertical development enhances your ability to take multiple perspectives into account and appreciate different viewpoints. You would learn to hold conflicting ideas and integrate them into a more comprehensive understanding of the situation.
Stages Of Development
Robert Kegan developed the Constructive Developmental Theory, which has become the foundation of vertical development. It describes how individuals develop through a series of increasingly complex ways of understanding themselves and the world. Each stage represents a qualitative shift in how someone makes meaning of their experiences. Let’s briefly look at each stage of development.
The Socialized Mind
Here, we are shaped by external expectations and social norms. Identity and values are based on relationships and societal roles. Decision-making is often based on a desire to meet others’ expectations and gain approval.
The three main aspects of vertical development are self-awareness, complexity of thinking, and emotional regulation. At this stage, self-awareness is limited to understanding yourself through the lens of others’ perceptions. Thinking is concrete and rule-based with a focus on following established guidelines. Emotionally, this individual depends on external validation and might struggle with criticism or ambiguity. For example, a manager at this stage might prioritize team harmony and consensus, often deferring to the opinions of more senior colleagues to avoid conflict.
Leaders at this stage are effective in stable environments where it’s important to stick to established norms and procedures. They might struggle with ambiguity, rapid change, or situations requiring independent judgment.
The Self-Authoring Mind
At this level of development, the person has an internal set of principles and values that guide their actions. They become more autonomous and self-directed and are capable of setting personal goals and standards. Decision-making is grounded in their own beliefs and values rather than external expectations. When it comes to self-awareness, they show a greater capacity for self-reflection. It’s the beginning of abstract and strategic thinking, and these folks are able to integrate multiple perspectives. They’re also more resilient to criticism and driven by internal motivation and self-efficacy. For example, a leader at this stage may implement a new strategic initiative based on their own analysis and conviction, even if it goes against the prevailing opinion.
These leaders are effective in dynamic environments that require strategic thinking and autonomous decision-making. They’re capable of driving change and inspiring others through a clear, internally driven vision.
The Self-Transforming Mind
This is the final stage of Kegan’s Constructive Developmental Theory. Individuals at this stage can hold multiple perspectives simultaneously and appreciate the complexity and interconnectedness of systems. They’re open to continued learning and transformation because they recognize the limitations of any single perspective. Decision-making might involve synthesizing diverse viewpoints and navigating paradoxes and ambiguities. They have deep self-awareness and humility and recognize the fluidity of identity and beliefs. They possess highly integrative and systemic thinking and are capable of seeing the broader picture and long-term implications.
These folks are very emotionally intelligent, able to manage complex emotions and foster a culture of psychological safety. An example might be a senior executive at this stage who led their organization through a significant transformation, balancing short-term performance and long-term innovation and sustainability.
Leaders at this stage are effective in highly complex environments where systemic thinking and adaptive leadership are essential. They’re capable of leading transformative change and fostering innovation through inclusive, integrative approaches.
Case Study
I worked with a CEO who began as a very tactical, operational leader. He was originally a co-founder and then led his firm, as we worked together over the years. At first, he was unable to set a few firm priorities for the organization - they were more reactive. He was very impact-focused and cared deeply for his employees and customers, but in the moment his communication didn’t always reflect this. Over our years of working together, he was able to prioritize and move into strategic roles and positioning, to express more empathy and emotional awareness of how other perspectives might differ.
As his self-awareness expanded, he was able to take on multiple viewpoints more and more. As his vision became clearer on the long-term impact of actions, where he thought the firm and industry were going, etc., his adult development caught up to the brilliance he had always displayed as one of the pioneers of his industry. He was asked to sit on boards, he was able to be focused on people, performance, and data, and he thought about what type of legacy he wanted to leave both at home and work. He was thoughtful about how to engage with different partners and how to develop his team further. He has done a lot of mindset work to shift the impact of his previously reactionary ways - and is great in a crisis - leading everyone confidently and compassionately.
He started as the socialized mind. He was initially focused on immediate tasks and operational details. He struggled to set firm priorities and often responded reactively to situations. He demonstrated reactive decision-making without a clear long-term strategy and communication that didn’t consistently convey empathy or emotional awareness.
He shifted to a self-authoring mind when he was able to think strategically about the organization’s direction, improved his communication to reflect his empathy and considered different viewpoints. Developing a clear vision for the long-term impact and direction of the firm was another sign of this stage.
Finally, he began the transition to a self-transforming mind. He is able to consider multiple perspectives and integrate them into his decision-making. He also demonstrates calm, compassionate leadership in crisis situations, leading with confidence and empathy. Being sought out for board positions because of his strategic vision and leadership, becoming thoughtful about his legacy, and the broader impact of his actions are other signs that he is living more fully at this level.
Coaching played a crucial role in his progression through the stages of vertical development by emphasizing a focus on the long-reaching impact of action, emotional intelligence, self-awareness, and developing an ability and desire to simultaneously understand viewpoints that at first may seem contradictory.
THROUGH ANOTHER LENS...
If we look at the CEO’s journey through Torbert’s Action-Logics Framework, we see he moves through the stages of Achiever, Individualist, and Strategist.
He begins as very goal-oriented and focused on success and immediate results. His actions are driven by a desire to succeed and make a tangible impact on the organization. Although he cared deeply about his employees and customers, his focus was more on achieving outcomes than the process of how those outcomes were achieved. His decision-making was often reactive, responding to challenges as they arose rather than proactively setting a strategic direction. All these things demonstrate that he began at the Achiever stage.
He transitioned to the Individualist stage by showing increased self-awareness (reflecting on his personal values and how they aligned with his leadership), began to embrace complexity (understanding different perspectives and the broader impact of his decisions), became more invested in his personal growth and self-expression (realizing his leadership style needed to evolve and started thinking more strategically (considering how he would shape the long-term direction of the organization).
Finally, the CEO transitioned to the Strategist stage when he developed a clear, long-term vision for the organization that integrated his personal values with the organization’s strategic needs. He became proactive, anticipating changes in the industry and positioning the organization to thrive in the future. He leveraged his empathy and emotional awareness to understand how different perspectives could contribute to a stronger, more cohesive organizational culture. His focus evolved to include not just performance and data but also the people within the organization, understanding that true success requires a balance of all these elements. Finally, when he began to consider the legacy he wanted to leave, this long-term perspective informed his decision and leadership style.
Practical Strategies For Organizations
So, how can organizations support leaders in vertical development? We’ve got some practical steps you can take.
Coaching
Individual coaching can help leaders explore mindsets, challenge their assumptions, and facilitate growth through reflective questioning and feedback. For example, senior leaders learn to evolve their decision-making process to handle greater complexity.
Peer mentoring can be another option as long as the mentor is at a higher stage of vertical development and is able to model behaviors and share insights. For example, a mid-level manager might be paired with a more senior leader to learn how to think strategically.
Reflective Practices
Journaling is great for so many reasons, but it’s a space for leaders to document their thoughts, experiences, and learning moments. It’s a practice that promotes self-awareness. For example, a leader might reflect on a challenging meeting, exploring their emotional responses and identifying areas for growth.
Mindfulness and meditation practices also help develop self-awareness, resilience, emotional regulation, and present-moment awareness. You could offer regular mindfulness workshops to help leaders manage stress and improve focus.
Challenging Assignments
Stretch assignments allow leaders to step outside their comfort zones and require higher levels of cognitive and emotional complexity. For example, a leader is tasked with leading a cross-functional team on a high-stakes project, requiring them to navigate diverse perspectives and innovate solutions.
Rotational programs expose leaders to different functions, geographies, and business units, which broadens their perspectives and fosters systemic thinking. For example, a leader might rotate through roles in marketing, operations, and finance to better understand the interconnectedness of various business functions.
Feedback And Developmental Assessments
360-degree feedback tools provide leaders with comprehensive insights into their strengths and areas for growth. This feedback should be framed constructively to support vertical development. Developmental assessments measure developmental stages and provide tailored developmental plans.
Learning Communities
Create learning communities or cohorts where leaders can engage in collective learning and share their developmental journey to foster a culture of continuous growth. For example, monthly meet-ups where leaders discuss books, case studies, or personal experiences related to self-awareness, complexity of thinking, and emotional regulation.
Action learning projects give leaders real-world problems to work on in a collaborative setting and an opportunity to reflect on their learning throughout. For example, forming a team to tackle a strategic initiative with regular debriefs to reflect on the dynamics and learning outcomes.
Creating A Supportive Environment For Vertical Development
A culture that values continuous growth and recognizes the importance of evolving mindsets as well as acquiring new skills is vital to vertical development. Consider celebrating and rewarding leaders who demonstrate growth in their thinking and emotional maturity.
Psychological safety is important, too. Leaders need to be able to feel like it’s safe to take risks, make mistakes, and learn from them. Encouraging open dialogue where leaders can share their developmental challenges without fear of judgment will go a long way.
HR and L&D should champion vertical development initiatives, such as leadership programs and talent management strategies, which have vertical development embedded in them. They should align these initiatives with performance reviews and career progression plans. These initiatives should be ongoing and integrated into daily work, not just one-offs.
The Role Of Senior Leadership
The actions and attitudes of senior leaders set the tone for the whole organization. It’s important for them to model the behaviors and mindsets of the self-transforming stage of development by openly discussing their challenges, growth moments, and insights so they normalize the process for others. Senior leaders can sponsor and actively participate in vertical development programs signaling their importance to the organization and ensuring that sufficient resources (time, budget, and personnel) are allocated for them.
Finally, they can encourage reflective processes across the organization, such as regular team debriefs, time for personal reflections, and mindfulness activities.
The greatest challenge for leaders today is to transform their action-logic and develop the capacity to lead organizational transformation.
Bill Torbert
Leadership Professor Emeritus, Boston College
The transformation that both individual leaders and whole organizations can make when they invest in the process of vertical development is tremendous.
But getting there can be challenging. We believe that with the right support, anyone can learn to shift their mindset, and we hope the practical strategies outlined above give you a place to get started today.
We offer one-on-one executive coaching for leaders who would like to develop self-awareness, more complex ways of thinking, and emotional intelligence. We also offer leadership development programs that include topics like emotional intelligence and provide opportunities to integrate and practice the learning. Interested? Let's chat!
