Management

The Manager Gap: Why Promoting Top Performers Breaks Culture

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She was the best salesperson on the floor. Fourteen straight months of crushing quota. The kind of high performer every VP dreams about. When the team lead position opened, the decision was obvious.

Six months later, three of her direct reports had quit. Employee engagement scores had dropped by 30%. And she, the person who once lit up the sales floor, was quietly googling "I hate being a manager" at midnight.

No one saw it coming. But everyone should have.

The Promotion Trap That Breaks Your Best People

Here's the thing about high performers: they're exceptional at what they do. That's the whole point. They've spent years mastering the technical know-how, building the instincts, and earning the reputation. And when organizations need to fill management roles, these are the people they tap on the shoulder.

It makes sense on the surface. Reward hard work with career advancement. Move top talent up the ladder. Signal to the rest of the team that great performance gets noticed.

But there's a dangerous assumption buried in this logic: that someone who is great at doing the work will automatically be great at leading the people who do the work.

Dr. Laurence J. Peter called this the "Peter Principle" back in 1969. In any hierarchy, people tend to rise to their level of incompetence. You promote someone because they're excellent in their current role, not because they have the skills for the next one. And so you lose your best individual contributor and gain an unprepared manager.

It's not a theory. According to Gallup, companies fail to choose the right candidate for management positions 82% of the time. That's not a rounding error. That's an epidemic.

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Why Managing People Is a Completely Different Job

There's a disconnect that most organizations refuse to confront. The skills that make someone a top performer as an individual contributor are fundamentally different from the skills required to lead a team.

A brilliant engineer who can debug code at 2 am might have no idea how to run a one-on-one. A marketing strategist who can build a campaign from scratch might freeze when a team member starts crying in a meeting. These aren't failures of character. They're failures of preparation.

Research shows that 59% of managers received no management training. None. They were handed a new role, a new title, maybe a small bump in pay, and told to figure it out.

And what do untrained managers do? They default to what they know. They do the work themselves instead of delegating. They hover over their team's output because they can't let go of the craft. They slip into micromanagement because control feels safer than trust.

This isn't a personality flaw. It's what happens when you ask someone to do a job nobody taught them to do.

The Cascading Effect on Workplace Culture

Here's where it gets expensive.

Gallup has consistently found that managers account for 70% of the variance in employee engagement. Let that number sit for a second. Not the mission statement. Not the ping-pong table. Not the unlimited PTO. The manager.

When a high-potential employee gets promoted without support, the damage doesn't stay contained. It cascades. Their team members disengage. The best people start updating their LinkedIn profiles. Attrition spikes. And the people left behind, the ones who stay, learn a painful lesson: this is what "getting promoted" looks like here. No thanks.

This is what John Maxwell calls "the Law of the Lid." A team cannot outgrow its leader's capacity. If the leader is stuck in doing mode rather than leading mode, the ceiling drops for everyone. The work environment tightens. Creativity stalls. Burnout creeps in, not just for the team, but for the new manager too.

And here's the real kicker: your best people, the ones you're trying hardest to keep, leave. The old adage holds. People don't leave companies. They leave managers.

Retention doesn't fail because of compensation. It fails because the frontline leadership experience is broken.

The Identity Shift Nobody Talks About

When I work with new managers in our leadership development programs, there's a moment that comes up almost every time. It's the moment they realize: "Oh. My job isn't to be the best on the team anymore. My job is to make the team the best."

That sounds simple on paper. In practice, it's an identity crisis.

Top performers have spent their careers being rewarded for personal output. For knowing the answer. For being the go-to. And now we're asking them to step back, let others struggle, and measure their success by outcomes they can't directly control. This is the psychological shift that makes or breaks new managers. And without mentoring, without structured training and development, most people never make it across that bridge.

The research backs this up. Daniel Goleman's work on emotional intelligence found that at senior leadership levels, EQ becomes twice as important as technical skills. But we keep promoting people based on their technical brilliance and then act surprised when they struggle with the human side of the job.

Being an effective leader means becoming more essential but less involved. That's a paradox most high performers aren't wired for, at least not without deliberate development.

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A Better Career Path: Stop Making Management the Only Way Up

Some of the smartest companies have stopped forcing this false choice. In 2018, Shopify introduced two parallel growth tracks: one for individual contributors (the Staff track) and one for managers. Both came with equal opportunities for career advancement, salary growth, and recognition.

The idea is simple but radical. Not everyone should manage. And that should be fine.

When organizations create a single-lane leadership pipeline where management is the only path to the next level, they trap people. High performers who don't want to manage take the promotion anyway because there's no other route forward. And high-potential employees who might make excellent managers get passed over for someone with better metrics.

The solution isn't to stop promoting people. It's to stop pretending that management and individual excellence are the same thing. Build dual tracks. Normalize saying "no" to leadership roles without it being a career death sentence. Reward depth of expertise with the same prestige you give to people management.

What a Real New Manager Training Program Looks Like

If you are going to promote someone into a management role, here's what has to be true from day one:

  • Redefine the job before they start. Make it painfully clear that their success is no longer measured by personal output. Their job is team outcomes. Period. Have this conversation before the promotion, not after the first crisis.
  • Invest in leadership development early. Don't wait until they're drowning. The best initiatives build mentoring, coaching, and real-time feedback into the role from the very beginning. A structured training program isn't a nice-to-have. It's the difference between a thriving team and a slow-motion culture collapse. Too many leadership initiatives come after the damage is done.
  • Prioritize emotional intelligence over technical know-how. Teach them to listen, ask questions, and hold space for disengagement before it becomes departure. Help them develop a leadership style that's their own, not a copy of their manager's.
  • Give them a leadership team. No new manager should operate alone. Connect them with senior leaders who've been through the same transition. Create peer cohorts. Build the support system that makes the difference between a rough first year and a complete flame-out.

Closing the Manager Gap

The manager gap isn't a mystery. It's a choice.

Every time an organization promotes a top performer without investing in their transition, they're choosing short-term optics over long-term culture. They're choosing to celebrate the promotion announcement on LinkedIn and deal with the fallout later.

But closing this gap doesn't require a massive overhaul. It requires one shift in belief: that leadership is a skill, not a reward. And like any skill, it can be taught, practiced, and developed if you invest in it before the cracks show.

The best leaders I've worked with weren't born that way. They were built. Through mentoring, through real coaching, through the kind of leadership development that treats management as a craft worth mastering.

Your high performers deserve better than being thrown into a role they weren't prepared for. Your teams deserve better than a manager who's still learning to lead on their backs. And your culture deserves better than the slow erosion that happens when nobody closes the gap.

Want to close the gap for your new managers? Download the free New Manager Playbook to give your next generation of leaders the structure, tools, and support they need from day one.

FAQ:

Now that you have mastered how to manage conflict - what is your plan of action for making an impact with your team?

Now that you have mastered how to create an environment of empowerment via the 3-P's - what is your plan of action for making an impact with your team?

Developing Your Communication, Empathy and Emotional Intelligence skills is start. What is your plan of action for implementing your learnings within your your team?

Now that you understand the differences in these titles - what is your plan of action for what you learned?

Assessing your team's behaviors is a start - but do you have a plan of action for the results?

Now that you have mastered the art of decision making - what is your plan of action for making an impact with your team?

Download your free leadership guide that outlines the 6 necessary steps you need to acheive in order to develop a high performing team (in weeks, not months).  
Download your free leadership guide that outlines the 6 necessary steps you need to acheive in order to develop a high performing team (in weeks, not months).  
Download your free leadership guide that outlines the 6 necessary steps you need to acheive in order to develop a high performing team (in weeks, not months).  
Download your free leadership guide that outlines the 6 necessary steps you need to acheive in order to develop a high performing team (in weeks, not months).  
Help your managers improve their managing of communication, collaboration and conflict. Download your free leadership guide that outlines the 6 necessary steps you need to achieve in order to develop a high performing team (in weeks, not months).
Download your free leadership guide that outlines the 6 necessary steps you need to acheive in order to develop a high performing team (in weeks, not months).  
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