The prominent role of competency development in enhancing the success of employees and organizations has drawn the attention of practitioners leading them to introduce competency development as a central part of their human resource practices. Unfortunately, this strong managerial interest has not been fully translated into the academic world, creating a gap between theory and practice. The main purpose of this study is to fill this gap by exploring the nature of competency development in 22 Flemish organizations through a longitudinal multiple case study design. By using a grounded theory approach, a framework has emerged mapping out the different steps of competency development in the participating organizations. As such, this study can be an important first step toward closing the gap between practice and theory concerning competency development in organizations.