Evaluating Leadership Potential: Beyond Performance Metrics

Identifying and promoting leaders is one of the most consequential decisions an organization can make. However, many organizations make the mistake of equating high performance with leadership potential. Effective leadership requires a unique set of skills, including emotional intelligence, adaptability, and the ability to inspire others. This article explores how organizations can distinguish between performance and leadership potential and adopt structured approaches to identify the right candidates for leadership roles.

Distinguishing performance from leadership potential

Top performers are not always the best leaders. While they may excel individually, leadership requires a shift in focus from personal achievements to team success. Olivier Prestel warns, “The biggest mistake is promoting a top salesperson to manager simply because they’re good at sales.” Leadership involves coaching, decision-making under pressure, and fostering collaboration—qualities that are not always evident in high performers.

One effective way to address this challenge is by introducing mentorship opportunities for high performers. Mentorship allows potential leaders to gain experience in guiding others without immediately transitioning into formal leadership roles. Jean-Christophe Simon highlights, “Testing leadership potential in low-risk environments, such as projects or small teams, can reveal whether an individual is ready for greater responsibilities.” This approach ensures individuals develop leadership skills gradually and with proper support.

Aarthi Scott adds, “When considering promotions, it should feel like a no-brainer. Those who are ready for leadership often showcase the behaviors expected at the next level long before they receive the title.” Observing these behaviors, such as taking initiative, fostering collaboration, and providing mentorship, can be a reliable indicator of leadership readiness.

Another strategy is incorporating personality and competency assessments, such as the Big Five Personality Traits or Reflector 360, to evaluate attributes like emotional intelligence, adaptability, and collaboration. These tools help organizations identify candidates who possess the soft skills critical for leadership.

Risks of misaligned promotions

Promoting individuals without assessing their leadership capabilities can lead to significant organizational challenges. Teams often experience decreased morale when a leader lacks the skills or temperament required for the role. Anika Grant states, “If someone seeks promotion for the title alone, it rarely aligns with their actual capabilities.” Such misalignments not only create frustration for the individual but also disrupt team dynamics.

One real-world consequence of misaligned promotions is the risk of losing high-performing team members. When a leader fails to inspire or manage effectively, team members may disengage or leave the organization. Aarthi observes, “Leadership missteps often have ripple effects, eroding trust and collaboration across teams.” Philippe Gilet also warns about the importance of evaluating leadership readiness beyond surface-level performance, “Promoting someone solely based on their technical expertise, without assessing their adaptability to new responsibilities, often results in inefficiencies and frustrations for the entire team.”

Additionally, misaligned promotions can result in wasted organizational resources. Training, onboarding, and lost productivity associated with an ineffective leader can be costly. Studies show that poor leadership can lead to turnover rates as high as 60%, further emphasizing the need for deliberate decision-making when promoting individuals.

Structured approaches to leadership evaluation

To identify and nurture leadership potential effectively, organizations should implement structured evaluation frameworks. Philippe notes, “It’s not just about technical skills or past achievements; it’s about understanding whether a candidate has the mindset to grow with the organization and adapt to its evolving challenges.”

These may include:

1. Competency-Based Assessments: Tools like Reflector 360 and Big Five Personality Assessments provide insights into traits such as adaptability, collaboration, and resilience.
2. Real-World Simulations: Jean-Christophe suggests, “It is essential to assess talents in real-life situations or practical cases to better understand their abilities in summarization, decision-making, and stress management.”
3. Continuous Development Programs: Leadership is not static; it requires ongoing growth. Mentorship, regular feedback, and tailored training programs ensure that potential leaders develop the skills they need to succeed. Aarthi adds, “At Google, transparency and objectivity are essential in our promotion processes. We assess not just performance but how individuals embody organizational values.” 

Virginie Hello emphasizes the importance of feedback in this process, “When leaders avoid having honest conversations about performance and potential, it delays the inevitable and often causes more harm than good. Direct feedback, even when difficult, is far more effective.”

Effective leadership evaluation is about recognizing potential rather than rewarding past performance. By adopting structured frameworks and focusing on continuous development, organizations can identify and promote leaders who will drive long-term success.

Meet the experts:

These articles feature insights from six industry leaders with deep expertise in leadership, organizational strategy, innovation, and talent management. Their experiences across various industries—from tech giants to private equity, venture building, and deep-tech—bring valuable perspectives on scaling organizations, building high-performance teams, and navigating leadership challenges.

The insights shared in this article reflect the personal experiences and perspectives of the contributors. They do not represent the official stance of any company or organization.

Olivier Prestel – CEO and Change Management Specialist

Olivier Prestel is a seasoned CEO and transformation expert with a strong international background, having lived and worked across Europe, Asia, and the US. He has led multicultural, cross-border teams and managed international companies navigating complex market transitions. His expertise lies in change management, organizational resilience, and leadership team development, helping businesses scale efficiently while maintaining agility in dynamic global environments.

Aarthi Scott – Growth, Innovation & Business Transformation Leader

Aarthi Scott is an executive leader in business transformation, customer success, and strategic planning. Currently Managing Director at Google, she has built a career focused on cross-functional leadership, large-scale business growth, and executive alignment. Her expertise spans customer-centric innovation, operational leadership, and leadership development in global organizations.

Anika Grant – CHRO and Strategic HR Advisor

Anika Grant is a global HR leader and transformation expert with over 25 years of experience. She has led major organizational and cultural change initiatives at Uber, Dyson, and Ubisoft, where she was Chief People Officer. She specializes in leadership development, workforce transformation, and cultural evolution in high-growth environments. She now advises companies on HR strategy, talent retention, and leadership alignment.

Philippe Gilet – CTO and Leadership Development Expert

Philippe Gilet is a technology leader and manager coach with deep expertise in strategic leadership assessment, team development, and corporate innovation. As CTO & co-founder of Aledia, he has led groundbreaking R&D initiatives. His work focuses on identifying and developing leadership potential, guiding managers in scaling organizations, and ensuring strategic alignment.

Jean-Christophe Simon – Executive Leadership and Innovation Strategist

Jean-Christophe Simon is a seasoned executive and innovation strategist with a career spanning multinational corporations, venture capital, and deep-tech startups. He has held C-suite and board roles in M&A, R&D, and corporate strategy, including at Groupe SEB, Nikon, and Essilor. He now advises businesses on leadership alignment, innovation, and scaling high-performance teams.

Virginie Hello – COO and Venture Builder

Virginie Hello is an entrepreneurial leader specializing in venture building, leadership strategy, and business transformation. As COO of Rainmaking APAC, she has led corporate innovation initiatives and helped scale startups internationally. Her expertise includes talent management, leadership team structuring, and cultural transformation in high-growth environments.