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One of the most difficult things a leader has to do is identify and develop other leaders in their midst.

Too often, organizations promote people based on competency, not on leadership potential—the so-called Peter Principle (the theory that employees get promoted to a level where they are incompetent), says leadership expert Tom Rath, author of the best-selling leadership book StrengthsFinder 2.0. While someone may be a very good salesperson or accountant, that person should also be a good leader before you put him or her in charge of others, Rath says.