How to Know If Your Leaders Are Ready for the Next Level

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April 29, 2026

During the past few years, I have evaluated and coached a lot of leaders. I don’t know how it happened. It was never a part of my plan to provide leadership coaching. It sure is now. I’ve learned a few things that I’d like to share with you. 

I remember my first request for “coaching”. It all started with a friendly conversation. The CEO of a large contractor reminded me of an interaction we had some 20 years earlier. He recalled an observation I made about one of his sons, an emerging leader in the company. I suggested an approach with him and, years later, it turned out to be effective. Back then, (and still today) I used some assessments as a starting point. So, my observations were formed by a synthesis of data and intuition. I remember thinking that this son’s leadership strengths and weaknesses were pretty obvious…to me. I didn’t understand how they weren’t so obvious to his Dad. This speaks to the value (and objectivity) of an outside perspective and some validated assessments. 

As a consultant, my job allows me to spend a lot of time with leaders, so I have learned and know things through “osmosis.” Kind of like Sunday afternoon dinners at the Manning household. The Manning brothers became great quarterbacks, in large part, from hanging around the other great quarterbacks in the family. They learned things just talking about football around the dining room table. So, they knew things intuitively that other quarterbacks had to learn the hard way.

So, in a similar way, I have learned about the qualities that define a good leader, just from hanging out with good leaders (and some bad ones). Fast forward to a few years ago. The “son” in my story is now the President of that company. He asked me to help some of his leadership team, who were at risk of derailing. These leaders had a lot of potential, but they had some gaps preventing them from getting to the next level. This President wanted me to work with them to see if they could develop into the leader the company wanted and needed. I was off and running, coaching leaders. 

This got me thinking… How can you tell when a leader is ready for the next level? What should you look for? What are the qualities of a leader who is ready for the next level? Assessments help provide some objectivity to the process, but it remains a mix of data and intuition. The intuition part is a little more subjective.

So, I have identified ten indicators (qualities to look for) to help you identify when leaders are ready for the next level. Successful leaders need to display these competencies (preferably before they are elevated to their executive role). The coaching happens around these qualities. We then work together to build capability when we can (or build a team around the leader when we can’t). 

Let’s divide the competencies into four buckets:

  • Performance and Results
  • People and Influence
  • Mindset and Adaptability
  • Character and Judgement

The most effective promotion processes evaluate these indicators using multiple data sources. I’ve used performance reviews, 360 feedback, observed behavior (in stretch roles), and structured leadership assessments (like Hogan, for example).

You should trust your “gut” (it’s your second brain), but verify it.

Performance and Results

  1. Consistent delivery (beyond their role): They exceed expectations in their current position and already operate at the next level; they take on stretch assignments successfully.
  2. Business impact: They drive measurable outcomes (increased revenue, better productivity, employee retention).

People and Influence

  1. Ability to develop others: They actively coach, mentor, and elevate their team. Strong leaders leave a trail of promoted people behind them.
  2. Influence without authority: They build trust across functions and levels, getting buy-in and alignment even when they don’t have formal power.
  3. Team performance under their leadership: Their direct reports consistently perform well, stay engaged, and don’t leave the company.

Mindset and Adaptability

  1. Learning agility: They adapt quickly to new challenges, seek feedback, and visibly grow from setbacks rather than repeating mistakes.
  2. Strategic thinking: They connect day-to-day work to broader, longer term business goals, anticipate problems, and think beyond their immediate function. They can look forward 3-5 years.
  3. Comfort with ambiguity: They make sound decisions with incomplete information and remain effective when circumstances shift.

Character and Judgment

  1. Integrity and values align: They model the organization’s values under pressure, not just when it’s convenient. You can trust them to do the right thing.
  2. Self-awareness and coachability: They know their strengths and blind spots, are emotionally intelligent, and actively seek development, and respond constructively to feedback.

Think about your “next tier” of leadership, especially those at the executive level. If they are exhibiting these ten qualities consistently, you are in good shape. When they have gaps or are missing some of these indicators, well, coaching can help (with a caveat).

Some of these indicators will require some system and process to support them. For example, to track results you must have an effective project tracking and forecasting capability. Most of these qualities fall under the umbrella of “culture and values”. If your “leader” isn’t in alignment, they won’t be a good fit, even with coaching.

Finally, there are two important questions you should get answered before you invest in coaching: 1) Do they know that they have leadership gaps, which limit their effectiveness or promotability? and 2) Do they want to change and develop themselves to mitigate or remove their gaps?

If they answer “no” to either (or both), in my experience coaching will be a waste of effort. When the answers are yes, there is a great opportunity to advance a talented person into an effective and successful leadership role. It can be very rewarding, all the way around, when it works.