Roles and functions of senior and front line managers in VET organizations and their approaches to developing management and leadership expertise were examined in order to identify best practices. Based upon mail surveys sent to managers in 1551 registered training organizations (365 responded, for a response rate of 23.5%), 147 telephone interviews, and 10 intensive case studies, there has been an increased focus on the external environment. Some of the external forces providers must face include changing work and policy environments, increased administrative responsibilities, reduced government funding, and increased expectations regarding corporate connections/industry links. Management roles and responsibilities are being redistributed into "flatter" structures, with front line managers taking on many of the strategic roles of senior managers in addition to their traditional operational roles. Four broad approaches to leadership and management development are endorsed by VET managers: (1) formal work-related learning, such as mentoring and work shadowing; (2) informal work-related learning, such as casual meetings and support groups; (3) seminars and workshops; and (4) traditional and short courses. In planning for the future, attention should be given to increasing opportunities for development at senior management level and creating pathways for prospective managers and leaders, most particularly at front line management level. (The appendices, contained in volume 2, include managerial job titles, case studies, and the survey questionnaire. Contains 26 tables, 4 figures, and 136 references.) (MO)