This case study using a modified Delphi mixed methodology describes the characteristics of a performance appraisal system based on leadership development that improves morale, productivity, and competitive advantage for organizations. The views of 155 respondents across multiple industries in north Texas and five experts who served as Delphi panelists identified a 13-item list of attributes as basic characteristics of a model leadership development performance appraisal system. Strong correlations were found suggesting that leadership training and development included as part of the performance appraisal process and acceptance by frontline employees of greater responsibility improved employee interactions in competitive environments.