Management development is increasingly adopted by organizations seeking to attract and retain talented employees. This research project assessed the current state of management development in Australia. Specifically, this paper sought to identify variables associated with management development effectiveness. A model of management development effectiveness was developed and tested in this study through path analysis using the Analysis of Moment Structures Program. Data were collected from 206 managers in 153 organizations in Australia. Eighteen different industries are represented in the sample. The observed model had a good fit with the predicted model and all the predicted paths were significant and in the expected direction. Link to corporate strategy and opportunitiesfor skill utilization were the two variables most closely associated with management development effectiveness. The implications of these findings for improving management development effectiveness are discussed.