Grove addresses a familiar problem in organisations: strong performance in one role does not necessarily predict success in management. A highly effective salesperson may lack the skills needed to lead others, yet promoting weaker performers can create a different problem by appearing to disconnect advancement from achievement.

His argument focuses on the signal that promotion decisions send to the wider organisation. When high performers are given greater responsibility, employees can see that results are recognised and rewarded. This does not mean that performance in a current role should be the only criterion for promotion, since managerial ability requires different skills and judgement. Rather, Grove emphasises that organisations must consider both individual suitability and the incentives created by their decisions. Promotion is therefore not only a staffing choice; it also communicates what kinds of behaviour and performance an organisation values.