PurposeThis paper establishes a comprehensive basis for understanding the roles and competences of mid-level management and their influence on the effectiveness of continuous improvement (CI) capability within an organisation.Design/methodology/approachThis research builds upon the hypothesis that methods alone do not lead to successful CI capability development. It focuses on the role of mid-level management in driving a CI environment that underpins the effectiveness of CI capability. A reference model for the CI environment is synthesised based on critical literature review, integrating CI culture, CI enablers and CI leadership elements. A comprehensive framework is introduced to define CI leadership roles and competence indicators. A quantitative benchmarking study involving structured interviews with 15 UK organisations was undertaken to collect evidence for a causal relationship between CI leadership competences and CI capability.FindingsAnalysis of the benchmarking data provides clear evidence of the causal relationship between the CI leadership competences of mid-level management and CI capability of the organisation. Given that the empirical study was structured on the basis of the CI leadership roles and competences framework introduced in this paper, this also provides validation for the proposed framework and the CI environment model.Practical implicationsThe evidence-based knowledge of the positive relationship between the mid-management CI leadership competences and the effectiveness of the CI capability informs strategic organisational development interventions towards enhancing CI capability and effectiveness, ultimately underpinning productivity enhancement and sustainability. The framework for mid-level management CI leadership roles, responsibilities and competences introduced in this paper and grounded in underpinning work undertaken within a large automotive Original Equipment Manufacturer (OEM), can be adapted by any organisation. The CI environment reference model should provide a comprehensive support for strategists to communicate the framework for CI capability improvement within an organisation, to enhance acceptability and adherence to improvement actions.Originality/valueThis research proves for the first time the significance of the causal relationship between the CI leadership competences and the effectiveness of the CI capability within an organisation, thus filling an important gap between established previous work, focussing on the role of mid-level management on one side and practitioner and team level roles, methodologies and tools. The proposed CI environment model is a theoretical contribution with reference value for both practice and further studies. The comprehensive framework for mid-level management CI leadership roles, responsibilities and competences introduced in this paper provides sound foundation to deliver CI leadership in the workplace.