PurposeThis paper seeks to review the current literature in order to explore how performance of leadership in project management determines project outcomes. The specific causes of project success or failure have been an area of much debate in the project management literature. Performance of leadership has been cited as a critical success factor, determining either the success or failure of a project.Design/methodology/approachAn extensive literature review has been undertaken to explore our understanding of how project leadership performance impacts on project outcome.FindingsThe mechanisms through which leadership may impact on outcomes are considered. Implications include the need for project managers to prioritize training in leadership skills, and the need for continuous professional improvement to enhance leadership outcomes. No single leadership model is appropriate throughout the duration of the project. Performance, therefore, must be modified to align with the stages of the project duration.Research limitations/implicationsWhile the literature has given meaningful insights into leadership of projects, there has been little research into performance management of project leadership. The work is the basis of developing a research agenda and establishing a conceptual framework. The opportunity exists, based on this work, for carrying out research on project leadership performance and its effect on project outcomes.Practical implicationsInsightful learning has been achieved into project leadership and the failing of practitioners in appropriate training and development at various stages of the projects life cycle.Social implicationsProjects and project‐based management, delivered nationally and internationally, are of significant importance to organizations. Increasing understanding of the implications of leadership performance, therefore, is of critical importance.Originality/valueThe literature review has identified significant limitation in project leadership performance management. It is anticipated that this work will trigger further research.