Leadership coaching

How Leaders Turn Potential into Performance

October 20, 2026
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9 Min
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René Sonneveld

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High-Performance Team Leadership, Part 3: People Development

She often had the right answer. That was becoming part of the problem.

I once coached a senior executive at a large healthcare organization who was being considered for a significantly larger leadership role.

She was exceptionally capable. She understood complex problems quickly, saw connections others missed, and often reached conclusions before her colleagues had finished exploring the issues.

But there was a problem.

Her colleagues struggled to follow her reasoning. By the time they were beginning to understand a problem, she was already presenting the solution. What she experienced as efficiency, others sometimes experienced as a lack of listening.

Her intellectual ability was never in doubt. The developmental question was whether she could slow down enough to bring others with her.

Our coaching conversations explored the cost of being right too quickly and what it would take to help her colleagues develop their own judgment rather than depend on hers.

It raised a question I frequently encounter in leadership development:

How do we help talented people grow beyond what they can already do exceptionally well?

This is the third and final dimension of high-performance team leadership.

In Part 1, Why Talented Teams Underperform, I explored how motivational and coordination losses reduce productivity.

In Part 2, What Holds High-Performing Teams Together?, I examined how shared norms, cohesion, and communication sustain collective performance.

Part 3 addresses what comes next: developing people who can assume greater responsibility and help the organization continue to grow.

1. High performance does not automatically mean high potential

One of the most common mistakes organizations make is assuming that their best-performing employees will naturally become their best leaders.

An outstanding salesperson becomes sales manager. A brilliant engineer is promoted to lead an engineering department. A successful financial analyst becomes responsible for an entire finance team.

Sometimes these transitions work beautifully.

Other times, the very qualities that made someone successful in their previous role become obstacles in the next.

The salesperson who personally closed every important deal must now learn to develop other salespeople. The engineer who solved every technical problem must learn to guide colleagues toward their own solutions.

The skills required to perform a task exceptionally well differ from those required to lead others who perform it.

Research reinforces this distinction.

A study published in The Leadership Quarterly, examining leadership assessment data from 9,784 participants at PepsiCo, found that assessments of leadership potential contributed information beyond current performance ratings when predicting talent designation and promotion decisions.

Past performance alone provides an incomplete picture of future leadership capability.

When assessing potential, I would look beyond results and ask:

How does this person respond to unfamiliar challenges? Can they learn from feedback? Can they influence people without relying on their expertise or authority?

And perhaps most importantly:

Can they help other people become more capable?

2. Development requires responsibility, not just training

Organizations invest considerable resources in leadership development programs, workshops, and executive education.

These can be valuable. But much of the most important development happens when people must apply what they have learned.

Think about learning to sail.

You can study navigation, understand wind patterns, and learn the principles of seamanship. But eventually, someone has to give you the helm.

That is when knowledge begins to become judgment.

The same applies to leadership.

Research by Scott DeRue and Ned Wellman examined 225 workplace experiences involving 60 managers. They found that challenging assignments supported leadership development, although the benefits diminished when the challenge became excessive. Access to feedback helped offset those diminishing returns.

People need assignments that stretch their capabilities, together with sufficient support to learn from the experience.

Consider a promising department manager.

Instead of sending her to another leadership course, the organization could ask her to lead a cross-functional project involving colleagues over whom she has no formal authority.

Suddenly, she must negotiate priorities, manage conflicting interests, build relationships, and influence decisions.

But the assignment must come with genuine responsibility.

Too often, organizations tell someone they are being developed while retaining all important decisions at a higher level.

You cannot expect people to develop judgment if you never allow them to exercise it.

3. The difficult art of letting go

This is where leadership development becomes challenging for the leader.

Delegating responsibility means accepting that another person may approach a problem differently.

They may take longer. They may make mistakes. They may reach a conclusion you would not have chosen.

For experienced leaders, particularly those who built their careers through expertise and personal achievement, this can be uncomfortable.

I have seen executives delegate a task and then intervene repeatedly, correcting every decision before the employee has had an opportunity to learn.

The intention may be helpful. The consequence is often dependence.

People learn that the safest approach is to wait for the leader's approval.

Over time, they may become highly competent at anticipating what the boss wants while developing little confidence in their own judgment.

Delegation requires more than assigning work.

The leader needs to clarify the desired outcome, establish the boundaries of authority, agree on when consultation is necessary, and allow the employee room to act.

The question becomes:

What decisions am I willing to let this person make without me?

Returning to the healthcare executive, this was central to our coaching conversations.

Her ability to recognize solutions quickly was a strength. But as her leadership responsibilities increased, she needed to create space for her colleagues to think, question, and arrive at conclusions themselves.

Sometimes the most valuable contribution a leader can make is to resist providing the answer.

4. Feedback turns experience into learning

Challenging assignments alone do not guarantee development.

People can repeat the same mistakes for years without understanding what needs to change.

Experience becomes developmental when people have opportunities to reflect on what happened, understand the consequences of their decisions, and adjust their behavior.

A meta-analysis by Christina Lacerenza and colleagues, examining 335 independent samples, found that leadership training can improve learning, behavior, and organizational results. Feedback, opportunities to practice, and training spread over multiple sessions were among the features associated with greater effectiveness.

In my coaching work, I frequently notice how differently people respond to feedback depending on how it is delivered.

A leader might say:

"You need to become more strategic."

But what does that mean?

Perhaps the employee spends too much time on operational details. Perhaps they struggle to connect their department's objectives with broader organizational priorities. Or perhaps they rarely challenge assumptions.

Useful feedback identifies observable behavior and its impact.

For example:

"During yesterday's meeting, you moved directly to the solution before the others had finished explaining their concerns. What effect do you think that had on their willingness to contribute?"

This creates an opportunity for reflection.

The goal is to help someone recognize patterns they may not yet see and make conscious choices about changing them.

Feedback also needs to be regular. A conversation once a year during a performance review is rarely sufficient.

Learning happens while the experience is still fresh.

5. Potential needs opportunity, not merely recognition

There is another leadership responsibility organizations sometimes overlook.

Development opportunities often go to the most visible employees, rather than necessarily to the most capable.

Some people naturally speak up, volunteer for assignments, and attract senior management's attention.

Others may be equally capable but less inclined to promote themselves.

When the same individuals consistently receive challenging assignments, organizations risk overlooking valuable talent elsewhere.

I encourage leaders to ask:

Who in this team has capabilities we are not fully using?

Who has demonstrated sound judgment but has not yet been given the authority to make important decisions?

Whose contribution might become more visible with the right opportunity?

Potential can emerge at different stages of a career. Sometimes a person's abilities become apparent only when someone has the confidence to give them a responsibility they have never held before.

6. How do we know development is working?

Organizations often measure development through training hours, completed programs, or promotion rates.

These provide some information, but they do not tell the whole story.

I would pay attention to changes in behavior.

Is the employee making decisions that previously required approval? Are they handling more complex relationships? Can they manage disagreements without escalating every conflict?

Are they becoming more capable of learning independently?

And, particularly for future leaders, are the people around them becoming more capable as well?

I would also ask the employee:

What can you do today that you could not do six months ago?

Which decisions are you now comfortable making?

What have you learned from something that did not go as planned?

What responsibility are you ready to assume next?

The answers reveal both progress and where further development is needed.

Leadership is measured by what continues without you

I return to the executive whose story opened this article.

Her greatest developmental opportunity was learning to use her exceptional abilities in a different way.

In our coaching, the focus shifted from the speed with which she could reach a conclusion to the space she could create for others to reach their own.

That meant examining the moments when she could pause, ask another question, and allow a colleague to complete a line of reasoning before offering her own answer.

The challenge was to use her intelligence in a way that developed the judgment of others.

That is a significant transition.

The three dimensions explored in this series are closely connected.

Productivity determines how effectively a team uses its capabilities. Team climate influences whether people can cooperate and sustain that performance. People development ensures that capability, judgment, and responsibility continue to grow.

A leader who achieves outstanding results today but leaves behind a team that cannot function without them has created a different problem for tomorrow.

One of the strongest measures of leadership is what other people become capable of doing because you led them.

So I would leave leaders with one final question:

If you stepped away from your team tomorrow, who would be ready to assume greater responsibility, and what have you done to prepare them?

References

  • Church, A. H., Guidry, B. W., Dickey, J. A., & Scrivani, J. A. (2021). Is there potential in assessing for high-potential? Evaluating the relationships between performance ratings, leadership assessment data, designated high-potential status and promotion outcomes in a global organization. The Leadership Quarterly, 32(5), Article 101516. https://doi.org/10.1016/j.leaqua.2021.101516
  • DeRue, D. S., & Wellman, N. (2009). Developing leaders via experience: The role of developmental challenge, learning orientation, and feedback availability. Journal of Applied Psychology, 94(4), 859–875. https://doi.org/10.1037/a0015317
  • Lacerenza, C. N., Reyes, D. L., Marlow, S. L., Joseph, D. L., & Salas, E. (2017). Leadership training design, delivery, and implementation: A meta-analysis. Journal of Applied Psychology, 102(12), 1686–1718. https://doi.org/10.1037/apl0000241

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