A project developed and tested a management and leadership capability framework for the vocational educational and training (VET) sector. The framework emerged from a review of research into the characteristics and behaviors of managers and leaders and from interviews and focus group meetings with VET managers. The framework that emerged consisted of these nine core capabilities: (1) corporate vision and direction; (2) focuses strategically; (3) achieves outcomes; (4) develops and manages resources; (5) change leadership; (6) interpersonal relationships; (7) personal development and mastery; (8) business and entrepreneurial skills; and (9) develops and empowers people. These capabilities and their associated 73 elements were incorporated into a questionnaire sent to 396 VET managers who rated their actual level and required level of proficiency on each capability. Overall, managers' high ratings confirmed validity of the framework. A gap analysis of the required versus actual levels of proficiency revealed a number of training or developmental needs for VET managers. Major areas of training and development needs identified were in these three capability domains: corporate vision and direction, focuses strategically, and achieves outcomes. (Appendixes include 74 references, survey questionnaire, and analyses of capabilities by state.) (YLB)