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The healthcare industry faces unique challenges that set it apart from other types of industries. Healthcare leaders and staff experience high environmental complexities that require a unique combination of leadership skills and knowledge. Leadership is increasingly emerging as a significant strategic business imperative for medical organizations, in their attempt to adapt to and anticipate dynamics to keep up with market trends (Wheelen, Hunger, Hoffman, & Bamford, 2017). As front-line healthcare providers, doctors, and nurses require essential leadership and managerial skills to carry out their duties efficiently. Harden & Laidlaw (2017) postulate that effective communication in the healthcare sector is an essential tool for providing all stakeholders with clarity and satisfaction, while ineffective communication can lead to patient dissatisfaction, confusion, anxiety, or illness. The contemplated research examines the above through an analysis of leadership development and performance management in the healthcare sector. The primary objective of this research is to address the core competencies that a healthcare leader should develop and to build a new model or framework for leadership development in the Japanese healthcare industry.

The Improvement of Leadership Development in the Healthcare Sector: A Case Study in Japanese Hospitals