One of the most common yet costly mistakes organizations make is promoting their best technical performer into a management role—without considering whether they have the capability to succeed at that level. While it may seem logical to reward high performance with advancement, this approach often leads to a double loss: the organization loses its top technical expert and gains an ineffective manager.
This phenomenon is so widespread that it has a name: the Peter Principle. Employees tend to be promoted based on past performance rather than their ability to handle the complexity of work at the next level. As management consultants, we’ve all seen the consequences—teams that struggle, managers who micromanage or disengage, and organizations that fail to operate at peak effectiveness.
But what if we could help our clients break this cycle?
The Flawed Instinct to Promote the Best Performer
The instinct to promote the highest performer on a team is understandable but often incorrect. Why? Because the best person at one level is often perfectly suited to that level. They excel because their problem-solving capability matches the complexity of their work, and they apply their full expertise in ways that drive value.
When this person is promoted without considering their suitability for a management role, they often find themselves in a position where they can no longer contribute in the way that made them successful. Instead of solving technical problems, they must now lead people, coordinate work, and think strategically—often at a level of complexity beyond their natural capability.
At the same time, the team loses its strongest contributor. The result? A drop in overall performance, both in technical execution and managerial effectiveness. And, critically, there is no going back. Very few employees will accept a demotion, meaning that an over-promotion is a one-way mistake with long-term consequences.
Helping Clients Make Better Fit-to-Role Decisions
As senior management consultants, our role is to equip clients with the tools and frameworks to avoid these costly mistakes. A structured approach to role fit ensures that employees are placed based on more than just performance. Instead, they must be assessed on three key factors:
- Problem-Solving Capability – Does the individual have the cognitive capacity to handle the complexity of work at the next level?
- Skills and Knowledge – Have they developed the specific leadership and managerial competencies required for the new role?
- Application – Do they value the work at the next level enough to apply their full capability to it?
Each of these factors is critical—without them, even the highest-performing individual will struggle in a role that is misaligned with their capabilities.
Using the Talent Pool Review to Support Clients
A practical way to guide clients through this challenge is the Talent Pool Review, a structured approach to assessing and developing internal candidates before a promotion decision is made. By incorporating this tool into consulting engagements, management consultants can help organizations:
- Identify employees with the right mix of problem-solving capability, leadership skills, and motivation for management roles.
- Develop talent pipelines that align with long-term organizational needs.
- Avoid the costly trap of promoting individuals into roles where they cannot succeed.
Conclusion: Aligning People for Organizational Success
When an employee is promoted beyond their capability, everyone loses—the employee, their team, and the organization as a whole. But with the right approach, management consultants can help their clients build high-performing organizations where individuals are placed in roles that match their capability and potential.
Want to equip yourself with the tools to guide your clients in making better fit-to-role decisions? Join me for the CMC Canada Master Class: Getting the Right Person in the Right Role on May 2025.
