Whilst it takes work, time and money to get the right people in role, it takes much more to replace the wrong people as does the common option of working around the problem. The costs and damage to the business and the people in it – vary from role to role, but there are always costs.
A common mistake is promoting someone who is good at their current job – purely on this basis or because we need to reward them to keep them happy.

This can result in:-
-losing our best person in one role and gaining a poor manager
-the person failing to work at the right level and dragging everyone down

We can also ignore poor social process skills an then wonder why there are problems in the team/department.

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In small businesses this problem can become apparent when a founder entrepreneur puts themselves in a manager role as the company grows – they can turn out to be very poor leaders and are reluctant to acknowledge this and let go.