Looking beyond performance: how organizations identify leadership potential

By: The Capella University Editorial Team with Lorinda Mohwinkel, Program Manager, Career Development Center

Reading Time: 3 minutes

Strong performance shows how well someone meets current expectations, but it doesn’t always indicate readiness for leadership. "Organizations focused on results often look successful, but they may be missing opportunities to grow and develop their people,” explains Lorinda Mohwinkel, program manager at Capella’s Career Development Center. Identifying leadership potential means paying attention to how employees handle complexity, influence and responsibility in expanded roles.

The difference between performance and leadership readiness

Job performance reflects success in current responsibilities. Leadership readiness reflects whether someone can succeed in a role with broader expectations, such as setting direction or influencing colleagues outside their direct scope of work. This distinction shapes how roles are designed and how people are evaluated.

If a career has centered on technical expertise, developing leadership capability can require deliberate growth in areas that were not previously part of the role. “Moving from an individual contributor or subject matter expert into a leadership role requires a new set of skills, including coaching and motivating your team and setting a North Star for your team’s strategy,” Mohwinkel says.

Clear decisions depend on evidence rather than impressions. Managers and HR teams may review demonstrated skills, structured feedback and development over time to form a consistent view of leadership readiness. These patterns offer a stronger basis for decisions than assumptions tied to personality or tenure.

Developing leadership capability before a role change

When engaging employees in development discussions, it’s critical to identify the skills and competencies required for future leadership roles. Doing so gives employees the opportunity to build those skills before promotion decisions are made. It’s important to remember that mistakes are part of that process.  “New leaders need space and opportunity to fail safely and grow,” Mohwinkel says.

Professional development plays a central role in preparing for the next career step. “Build leadership capabilities as an individual contributor by seeking out a mentor for advice, stretch roles and opportunities to lead at work, like leading a project or training, or mentoring new employees,” adds Mohwinkel. “And look for opportunities to lead outside of work in your community, such as leading a committee where you volunteer or mentoring kids or new professionals.” These experiences allow employees to strengthen skills such as problem solving, team building, empathy and accountability before stepping into a formal leadership role.

Whether you manage people directly or support managers through HR, Capella’s MS in Human Resource Management can help you develop the ability to assess leadership readiness and guide the development of associates and direct reports.