Companies often judge talent based on vibes and storytelling rather than actual results, resulting in a "confidence trap" that costs them their best leaders. This phenomenon is particularly stark when it comes to promotions, where men are more likely to be promoted than women despite receiving lower ratings for "potential." Women, on the other hand, are consistently outperforming men in their current roles yet receive lower ratings for potential.
The problem compounds when it comes to how feedback gets delivered. Large-scale text analysis conducted by Textio found that women's performance reviews disproportionately focus on personality traits and labels, such as "abrasive" or "too nice," rather than business impact. Men's reviews, by contrast, center on business outcomes and technical skills.
The root cause of this issue is that companies confuse confidence with competence. Factors like "executive presence" and "gravitas" carry outsized weight in promotion discussions, masking bias and rewarding self-promotion over substance. Calibration meetings designed to standardize ratings can even amplify this dynamic, with confident storytelling trumping comparable results.
To fix this problem, companies need to treat potential as a hypothesis that requires proof rather than a halo that justifies advancement. This means defining potential concretely through measurable competencies, auditing the ratings that gate opportunity, replacing confidence tests with readiness trials, banning trait-only feedback in calibration, reframing the opportunity itself, and monitoring the language.
Companies can also track key metrics such as promotion speed, stage conversion, first-year impact, time to full productivity, and audit gap to identify where progress is blocked. By converting performance into advancement using clean, auditable criteria, companies can build deeper leadership benches, experience fewer flameouts among newly promoted managers, and shorten the time-to-impact on critical work.
Ultimately, this issue isn't about diversity or confidence but rather pipeline quality control. Companies that take a data-driven approach to leadership development will be rewarded with competitive advantage in markets that value disciplined execution.
The problem compounds when it comes to how feedback gets delivered. Large-scale text analysis conducted by Textio found that women's performance reviews disproportionately focus on personality traits and labels, such as "abrasive" or "too nice," rather than business impact. Men's reviews, by contrast, center on business outcomes and technical skills.
The root cause of this issue is that companies confuse confidence with competence. Factors like "executive presence" and "gravitas" carry outsized weight in promotion discussions, masking bias and rewarding self-promotion over substance. Calibration meetings designed to standardize ratings can even amplify this dynamic, with confident storytelling trumping comparable results.
To fix this problem, companies need to treat potential as a hypothesis that requires proof rather than a halo that justifies advancement. This means defining potential concretely through measurable competencies, auditing the ratings that gate opportunity, replacing confidence tests with readiness trials, banning trait-only feedback in calibration, reframing the opportunity itself, and monitoring the language.
Companies can also track key metrics such as promotion speed, stage conversion, first-year impact, time to full productivity, and audit gap to identify where progress is blocked. By converting performance into advancement using clean, auditable criteria, companies can build deeper leadership benches, experience fewer flameouts among newly promoted managers, and shorten the time-to-impact on critical work.
Ultimately, this issue isn't about diversity or confidence but rather pipeline quality control. Companies that take a data-driven approach to leadership development will be rewarded with competitive advantage in markets that value disciplined execution.