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Let me share a quick story. A few months ago, I worked with a mid-sized company where Emma, a talented marketing manager, had been consistently outperforming her peers for years. She was the obvious choice for a director-level role that had opened up. But when the promotions list was announced, her name wasn’t on it. Instead, the role went to one of her male colleagues, someone who had similar skills but hadn’t delivered the same level of results. When I dug deeper with the leadership team, the response was telling: “We just felt he had more potential.” That’s when the penny dropped. Emma wasn’t being evaluated based on her performance but on a subjective, and often biased notion of potential.

The ‘Potential’ Problem

Emma’s story isn’t unique. It reflects a wider issue that holds so many women back. Despite equal representation at entry-level roles, women don’t advance into leadership positions at the same rate as men. Research shows that while women make up 56% of entry-level employees globally, they represent only 14% of leadership roles. Why? A big part of the problem lies in how organisations assess potential.

Potential, by its very nature, is subjective, and that makes it a breeding ground for bias. A study of over 29,000 management-track employees in a North American retail company found that women were consistently rated lower on potential compared to men, even when their job performance was the same, or better. These biased ratings accounted for about half of the gender promotion gap. It’s clear: the way organisations define and measure potential is flawed, and it’s costing women opportunities.

Why Bias Creeps In

So, why does this happen? How I see it, it’s a combination of entrenched stereotypes and workplace norms. Think about the traits we often associate with leaders: decisiveness, assertiveness, and risk-taking. These are typically seen as “male” qualities. Women, on the other hand, are often viewed through a different lens, one that doesn’t always align with traditional leadership stereotypes. On top of that, women are less likely to be given the high-visibility projects or critical assignments that would showcase their potential. It’s a vicious cycle - without the opportunity to shine, they’re overlooked for promotions, and the talent pipeline grows even weaker.

Why This Matters

The impact of this isn’t just personal, it’s organisational. When talented women like Emma are sidelined, companies miss out on diverse perspectives, innovative ideas, and better decision-making. A lack of women in leadership isn’t just a fairness issue,it’s a business issue. Research consistently shows that diverse leadership teams perform better, yet organisations continue to fall short of addressing this ‘potential gap.’

What Can Be Done

If you’re an organisational leader wondering how to tackle this, here are a few practical steps:

1. Be Transparent About Potential: Define what potential really means in your organisation. Make sure your criteria are clear, measurable, and consistently applied across the board.

2. Educate Your Teams: Train managers to recognise and mitigate unconscious bias. Awareness is the first step toward change.

3. Highlight Female Role Models: Shine a light on women who are already thriving in leadership roles. Representation matters. Redefine what leadership looks like in your organisation.

4. Audit Your Promotion Data: Regularly review who’s getting promoted and why. Look for patterns and take action where needed.

5. Focus on Results: Shift the emphasis from perceived potential to actual performance. Who’s delivering? Who’s leading effectively in their current role?

A Call to Action

Emma’s story, and countless others like it, remind us that we can’t afford to be passive. If organisations want to build stronger, more diverse leadership teams, they need to take a hard look in the mirror. Fixing the leaky pipeline requires more than good intentions; it demands systemic change. Let’s start asking the tough questions, addressing the biases, and creating pathways for all talent to rise.

If this resonates with you or your organisation is ready to make changes, let’s chat. Drop me a line at [email protected], I’d love to help.