This chapter presents a framework for the development of leadership capacity inhigher education institutions that is underpinned by the concept of distributed leadership;this approach focuses on the development of all members of the institutionas leaders, not just those in formal leadership positions. The case study used toillustrate this approach is drawn from an initial program at a regional universityin Australia. This program, known as the Faculty Scholars Program, has becomeembedded in practice at the university. The program empowered a group of academics,who were not in formal leadership positions, to lead key change initiativeswithin the institution. The chapter describes the pilot program initiated locally andhow the program was expanded in 2006-2008 through funding by the AustralianLearning and Teaching Council to include three other institutions, with furtherfunding provided in 2009 to expand to two more institutions.