Too often, firms wait until just before the moment of succession to ask: “Are they ready?” The worst time to evaluate leadership is when you need it most.
Leadership readiness doesn’t emerge overnight. It’s built over time, through real-world responsibility, thoughtful risk, and opportunities to rise—or stumble—and grow. In other words, the only way to honestly know if someone can lead is to give them the chance. And that’s where performative opportunities come in – structured, real-world leadership roles that act as proving grounds for the next generation of leaders.
With more founders eyeing succession and a surge in next-gen advisors stepping up, the industry’s real challenge isn’t identifying future leaders—it’s giving them the space to lead before the title arrives.
Performative opportunities are more than one-off assignments; they are intentional, strategic projects designed to test leadership ability in real time. Whether leading a client segmentation initiative, heading a technology upgrade, or building a new advisor training program, these assignments give emerging leaders the runway to act like leaders before they officially carry the title. Additional situations where you might create these performative opportunities include:
Whatever project you and the other team members agree on, encourage them to clearly define the project goals and communicate them to everyone on the team to create a sense of shared purpose and expected outcomes. The objective here is straightforward: establish the conditions where leadership either shows up or doesn’t.
THE (DEMONSTRATE → OBSERVE → VERIFY) LEADERSHIP FLIGHT SIMULATOR
Think of this as your Leadership Flight Simulator—a place where future leaders can “fly the plane” in controlled conditions, learning by doing while still under a watchful eye. One of the most practical and effective ways to implement these opportunities is by utilizing the following model we’ve come to rely on at ClientWise:
This cycle isn’t just about evaluation; it’s about growth and accountability. Providing younger advisors with real-life leadership challenges should focus equally on learning and on gauging performance. These opportunities create a relatively safe and controlled environment for younger advisors to ‘fail up” – learning valuable leadership lessons from their mistakes, which they can then carry forward into future undertakings to avoid making the same errors when similar situations arise.
According to a recent industry survey conducted by Michael Kitces, it’s AUTONOMY not INCOME that most determines an advisor’s overall happiness and satisfaction.
WHY “LEADERSHIP LABS” WORK
Some of the best firms we coach have institutionalized this process through “Leadership Labs”. In these environments, high-potential talent collaborates in small cohorts to address major firm-wide initiatives. Each group is assigned a project and paired with a senior sponsor who serves as both mentor and project steward.
It’s a great way to provide next-generation leaders and advisors with an immersive experience that helps cultivate and enhance their practical leadership skills. These programs often include training in areas such as team management, operational and financial oversight, and strategic decision-making, with a focus on personalized support and practical application. Additionally, they may offer networking opportunities and insights from third-party experts. Key benefits can include:
The results? Deeper engagement, stronger peer collaboration, and accelerated development. More importantly, these labs send a clear signal that your firm isn’t waiting to develop leaders but is committed to building them now.
THE COST OF WAITING UNTIL THEY’RE ‘READY’
Readiness is not a destination—it’s the result of consistent exposure, responsibility, and feedback. Waiting for someone to be completely ready before assigning leadership responsibilities often leads to missed opportunities and a shaky succession process.
By providing opportunities for others to lead, you foster a sense of both ownership and accountability. When they understand that “the buck stops here,” it ignites their drive to take the initiative rather than following someone else’s lead. Similarly, they learn about setting and holding people accountable for the expected actions and outcomes.
Firms that cultivate leadership through performative opportunities create a self-renewing pipeline. They don’t guess who is ready; they know because they have seen it.
Lastly, remember that sharing leadership not only creates greater organizational stability and long-term sustainability but also provides a clearer path to identifying future owners and partners who will drive the firm and enable you to monetize your equity when you exit. Most importantly, it’s a responsibility you owe to your clients – to ensure their continuity of care far into the future.
You don’t build leaders by watching. You build leaders by letting them lead.
Ready to explore this topic more? Download our Successful Next Generation Leaders: 8 Essential Qualities checklist to help identify, develop, and cultivate the right future leaders.
Coaching Questions From This Article