On of the core values that shapes our understanding of main aims of educational institutions seems to be development. It must be seen on at least four different levels: individual, group, organizational and social. Individual human development must be seen as the most important precondition of all other types or levels of development. Using L. Kohlberg’s theory of socio-moral development, the paper discusses necessary organizational changes in schools needed to create better conditions for individual development of all students, teachers and others involved in school life. It also gives description of “inclusive” and “developmental” school culture supporting individual development of all. Finally the paper looks at the implications for leadership. It gives the proposal to define educational leadership as “developmental leadership” and tries to characterise that type of leadership.