In 1970, Laurence J. Peter wrote the seminal business book, The Peter Principle. The management concept observes that employees in a hierarchy tend to rise or are promoted to “a level of respective incompetence,” often based on their success in previous jobs. Ultimately, they “reach a level at which they are no longer competent, as skills in one job do not necessarily translate to another.”

When the principle’s lesson is lost on managers involved with hiring or promoting future leaders who clearly weren’t qualified, the results can be disastrous. As I saw in my previous career, hiring, promoting or keeping people in the wrong seats or for the wrong reasons can have disastrous consequences.

It’s been said employees who choose to leave a company aren’t fleeing a bad company; they’re fleeing a bad manager. How can you try to ensure that no one leaves your organisation to escape bad management?

It often starts with the initial hire. How many times have hiring managers thought they could fix someone they thought was a good candidate – after they’re hired and onboarded? “I can train for or imbue them with the skills needed for the new job,” a manager might say, or “So what if they had no experience managing teams. We can train for that on the job.”

Promoting the wrong person for the wrong reasons is equally a recipe for disaster. “On the job” is the wrong time to empower someone as a manager, particularly when they have no previous experience in “people management” or leadership.

Simply put, managing people in a given organisation, whether it’s a small business, a family office, a Fortune 500 or a nonprofit group, is a cultural exercise. Those who manage others must reflect the company’s internal culture, which may take years to absorb or embrace.

It starts with the individual’s hire. Regardless of whether they’re being hired as a manager or not, you should try to envision how they can develop, do they have the potential to be a future leader. Do they have the right character and foundation to lead others? Have they been part of successful teams, been praised by their current or previous managers or coworkers as a valued contributor, or not?

If a manager turns out to be a failed hire, Fortune-ranked companies can absorb this more easily than a small business or family office. Failed leadership – hubris, the inability to inspire others, poor or non-existent delegation, a habit of berating subordinates in public, generally poor management decisions – can permeate the organisation and create a cascading effect of doom – can become toxic.

The tips below can help your current and future managers excel as leaders…

• Hire smart. Put another way, hire for attitude, train for aptitude. Keep an eye out for previous leadership experience and good character. You can train for skills. But while potential leaders can be mentored, they either have leadership, or they don’t.
• Manage based on their abilities, not yours. I learned some of my own people management skills from raising our now-adult children. Each child was different, requiring different input and guidance. Don’t smother their abilities. Whether offspring or employees you see as future leaders, nurturing or challenging them based on their aptitude and not your demands, will foster success and bring out the best in them.
• Don’t be afraid to tackle shortcomings or issues that emerge – and cut them loose if those are found to be insurmountable. You’re their boss first, not their friend. If it’s not working out – team productivity drops, morale tanks, or you hear grumblings amongst the ranks – don’t dawdle. Address the issues head on and quickly. Time wasted on one failed leader is time not employed preparing a more valuable candidate.

At the end of the day, managers of all levels are responsible for the success of those beneath them. If people you hired turn out to be ineffective – or incompetent – leaders, who’s really petering out?

If you could use some guidance spotting the right attitude to create tomorrow’s leader, let’s talk. I built a career finding, hiring and nurturing skilled talent to create future leaders. Let me share my insights and improve your organisation’s shot at solid future leadership.