At GE 85% of executives are promoted from within the company. This statistic is a direct correlation with their commitment to developing within their company. When Larry Bossidy took over Allied Signal, a subsidiary of GE, he was given the task of evaluating leadership in order to groom managers for the next generation of his company. As a result, Bossidy stated that 30-40% of his time as CEO should be devoted to developing leadership from within the organization. This process began with the hiring. 

When he first came aboard, Bossidy interviewed over 1000 candidates. Each of these candidates was evaluated with regards to leadership potential. "360" evaluations served as a beneficial tool to identifying leadership potential in candidates. "360's" provided information regarding each candidate's ability to motivate, lead, develop, sustain energy, implement plans, accomplish goals, execute, team build, and think strategically, as well as touching upon multiple experiences that effect their decision-making process. 

Assessments can help current leaders see promising new leaders in many different perspectives. These perspectives help leaders ascertain who the best candidate is to develop internally. After choosing the candidate with the most potential, the real work as a leader begins: developing new leaders and reinforcing a culture that is committed to maintaining a leadership pipeline.

Developing leadership from within is beneficial to companies in three ways:

1. It sends a companywide message that the organization is invested in developing employees to their highest potential.
2. It eliminates the detours of cultural mismatch. 
3. It allows real time assessment of candidates, painting an accurate picture of the candidate's true ability as a leader.

Companies and leaders who are committed to building their leadership pipeline are able to help their company achieve a competitive edge by making talent development and retention a strategic priority.