Scaling

The Promotion Trap: Why Your Top Performer Might Fail as a Manager

Oz Merchant
June 20, 2025
June 19, 2025
Manager

Great players don’t always make great coaches.

But in startups, we love a shortcut.

The engineer who ships the most code? Make them Head of Engineering.
The AE who closes the most revenue? Call them your Sales Manager.

It sounds like a reward.
It feels like a natural next step.
It often turns into a slow disaster.

Here’s the trap: We confuse excellence in execution with the ability to lead others into excellence.

Different skillset. Different mindset.
And unless you understand that, you might burn your best player, damage team morale, and still be left holding the bag.

Let’s break down how to get this right.

Step 1: Stop Equating Doing With Leading

Just because someone can do the job doesn't mean they can teach it, scale it, or hold others accountable.

It’s like assuming a great chef will automatically run a five-star kitchen. Cooking and managing are two different muscles.

One thrives on control; the other requires letting go.

A promotion is not a thank-you gift. It’s a bet on a different ability.

That bet should be backed by signals. Not sentiment.

Step 2: Look for the Right Signals

Your star performer may be crushing it solo, but can they make others better?

Here’s what to look for:

  • Do they coach others proactively or hoard their secrets?

  • Do they elevate the room or suck the air out of it?

  • Do they give clear, constructive feedback or just complain?

  • Do they think in terms of systems, not just outcomes?

If they’re not already informally leading, a title won’t change that.

Step 3: Understand the Emotional Cost of Mis-Promotion

You’re not just risking performance. You’re risking people.

Promoting the wrong person creates:

  • Frustrated teams who feel micromanaged or ignored

  • A newly minted manager who feels overwhelmed and isolated

  • A culture where title becomes the prize instead of impact

The worst part? You often lose your best performer and fail to gain a good manager.

That’s a double loss. Startups can’t afford that.

Step 4: Create a Non-Manager Growth Track

Not everyone wants to manage. And not everyone should.

Build a clear Individual Contributor (IC) growth path, especially in technical and sales orgs.

Make it prestigious. Make it pay.

  • Staff Engineers

  • Principal Designers

  • Enterprise AEs

  • Lead Strategists

Titles that honor mastery without pushing people into roles they didn’t sign up for.

Action Step:
Map out two tracks: one for people who want to lead others, one for those who want to deepen craft. Show your team both paths early.

Step 5: Test Before You Title

Before you hand out a manager title, give them the experience.

Call it a pilot. A trial. A shadow role.

Let them:

  • Run a few 1:1s

  • Coach a junior teammate

  • Build a process, not just use one

  • Handle conflict or underperformance (with support)

Then check in.

  • Did they like it?

  • Did their teammate learn and grow?

  • Did they feel drained or energized?

Management is not just a promotion. It’s an identity shift.
You’re asking someone to stop being the star and become the stage crew.

That’s not for everyone. And that’s okay.

Step 6: Train, Don’t Just Promote

If someone passes the test and wants the role, invest in them.

Don’t assume they’ll “figure it out.” That’s how good people quit.

Teach them:

  • How to set clear expectations

  • How to give and receive feedback

  • How to run effective 1:1s

  • How to prioritize coaching over doing

Make management a skill not a sink-or-swim scenario.

Step 7: Be Willing to Reverse the Decision

Sometimes you try it, and it still doesn’t work.

That doesn’t make them a failure. It makes you a responsive leader.

Create a culture where people can try leadership and opt out with dignity.

Let them step back into an IC role without shame, without demotion, and without cutting their comp.

Because being a great operator is still worth celebrating.

Lastly…

Startup founders, this is your wake-up call:
Don’t turn your best performers into your worst managers.

Being good at the work doesn’t mean they’ll be good at helping others do the work.