The core ideas of the Ideal Leadership Model were forged out of the need to foster and encourage leadership development in the Baltics. Shortly after Estonia, Latvia and Lithuania gained independence from the Soviet Union in 1991, it became clear that a major overhaul was needed in all aspects of society.

It was while living in the midst of a society in transition that Larry Stout, an American educator living in Latvia, was asked to assist in training up new leaders at the Stockholm School of Economics in Riga. With a blend of teaching and research with undergraduate students from all three Baltic nations, combined with executive education in the business and government arenas, Stout was able to carve out a unique yet practical approach to leadership development.

Since 2000, the Ideal Leadership Model has increasingly been studied in various educational institutions in Europe as well as used as a tool by major corporations such as Siemens and organizations such as the World Bank.