Research shows top performers often not ready for senior leadership roles

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A 2019 study in the Quarterly Journal of Economics found that promoting the best individual contributors often leads to worse team performance. Hiring panels look for evidence of leadership potential beyond technical skill. Key indicators include taking on broader responsibility, demonstrating business impact, and developing others. Senior roles require the ability to get work done through others and exercise judgment in ambiguous situations. Organizations frequently struggle to fill these positions internally due to this shift in required competencies.

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