This document discusses the importance of leadership development and talent management. It argues that in today's knowledge economy, an organization's talent will be the key source of competitive advantage, rather than physical capital. It outlines the different levels of the leadership ladder and emphasizes that leadership skills, like interpersonal behaviors, will become increasingly important at each level over functional skills. The document proposes that organizations assess talent, develop leadership skills through coaching and assignments, and establish an ongoing talent development strategy to ensure success.