How can you identify potential leaders using performance evaluations?

Really important is to define leadership competencies that are aligned with organisational mission and values. Majority of leadership competency frameworks are too generic and don't appropriately reflect organisational context.

I've never viewed leadership capacity as a measurable thing per se. Anyone with any degree of ability can accomplish numbers, metrics, and hit quotas. That doesn't make them a good leader. Their leadership ability makes them a leader. How they are seen. How they are received by team and client. How engaging they are. How charismatic they are. How they speak, especially how they speak to others. How they handle adversity. How they handle success. How they think. How they act. Mannerisms. Their raw presence all summed up. If you're looking for numbers, you'll end up with a micromanager. If you're looking for a leader, you need to look for raw presence. You'll know them when you see them (or hear them). Impossible to miss.

Results and performance being a “hygiene” expectations the importance of looking into how these are achieved has greater importance while evaluating leadership potential. Like the proverb says - if you want to go fast go alone but if you want to go far go together underlines well the importance of being able to display engagement, encouragement within and between the team(s) and doing that with right attitude, motivation and values is key mixture. This stands out and is highly valued.

It could be helpful to include leadership competencies in performance evaluation process. This would help to remind employees what leadership is expected from them, but also to ensure that all employees with leadership potential are seen as part of the talent pool.

One additional way to identify leadership potential in team members, is to include peers (both from within and outside the same team) in 360 degree review processes. You may also want to include clients and suppliers that they regularly interact with if relevant. Team members who demonstrate great emotional intelligence in engaging with their peers, and who successfully gain the respect and support of the wider business in delivering their role, often are those who naturally have stronger leadership skills, and will often make the transition to management positions more effectively, especially if they already have built respect within the business.

Examine how well an employee makes decisions, especially in challenging situations. Influential leaders demonstrate sound judgment and the ability to make informed decisions. Analyse the decision-making processes and outcomes in performance evaluations.

Evaluate an employee's ability to mentor and coach peers. Leaders often play a role in developing the potential of others. Look for instances where the individual has shared knowledge, provided guidance, or contributed to the professional growth of colleagues.

A complementary way that I have found helpful in evaluating someone's potential is to ask myself the following question: "Would I want this person to be my manager?" This helps reframe your assessment to not only consider tests, surveys, or matrices but to also call on your gut feel and intuition. It should definitely not be the only metric to make decisions. However, if someone ticks all the boxes and yet you would not want to report to them, think twice about what's causing you to feel this way.

I would argue that an individual development plan is most important for potential leaders. They all have their strengths and areas of development, and organisations should support individual needs.

How someone performs in a given role is one factor in determining candidates for a pipeline. It’s also important to know what an individuals aspirations and mobility presences. These two are particularly important because they can fortify the validity of the pipeline. Succession planning is a business continuity process and being informed about what an employee desires to do in their career and understand if there is alignment (or not) from a business standpoint are table stakes.

Communication is a crucial leadership skill. Evaluate how well employees communicate ideas, provide feedback, and ensure clarity in their interactions. Influential leaders can convey their thoughts clearly and inspire others through compelling communication.