Does your company have a leadership pipeline?

In doing my research I have found many web sites that talk about the 4 generations in the workplace, knowledge transfer and creating a leadership pipeline.
It seems to me that all of these go together however I haven't seen a lot on how to find the leaders in organizations.
The question is, who in your company fits in the leadership role? How do you know for sure there's a fit and that the individuals are motivated enough to stick with you until the chair needs filling?
It really is an issue that should be faced at the point of hiring however it seems that we delay until the chair is empty or about to be vacated.
In one survey I read it was indicated that Generation 'X' lacks leadership qualities and many of them don't have the leadership vision. Why?
Are the up-an-comers Generation 'Y' our new leaders?
Do we still promote based on seniority? Although many will respond that this is no longer the case just check out unionized environments, many are still promoted based on knowledge of what they do rather than training people up to the management or leadeership position.
With all of the knowledge and understanding we now have of the human entity I wonder why we aren't changing the way we do things and helping more people to enjoy their work and have fun while they're doing it.
Do you have the answers?