Leadership is defined more by practice than by a set explanation. Leadership capabilities are difficult to measure, but easy to observe. Organizations can enhance their individual performance management processes, by including leadership dimension.
An organization needs a well defined set of leadership competencies, which it can share with their employees at all levels in terms of expectations. All roles need to demonstrate leadership, but not all leadership competencies are required by all roles. The level and intensity of leadership will change depending upon if you are demonstrating the same at individual level vs. managerial level vs. strategic level.
There are two challenges with leadership. One is to define the end-goal in achieving leadership competencies aligned to the business goals. The other is how to achieve that end-goal. The chapter on leadership development endeavors to cover the methods, principles and thumb rules on how to build the 'leadership capital'.