I think that making available a number of paths for growth is certainly a good thing. I expect there are size limits on such a structure - either for the company as a whole or the extent of the company that gets to experience that track.
This is something I'm very curious about - small companies which have managed to keep their employs happy, well-paid and continuously growing (as individuals).
>'Also - do you think it's that their overwhelmed, under-trained for the new demands of the role, or something else that causes so many managers to fail?'
I doubt there's ever truly a single source for manager failure, but if I had to bet on the most significant variables in failing in a typical situation I'd say:
* Promotion Beyond Competence:
Happens for all sorts of reasons - nepotism, stereotyping, political maneuvering (puppet appointments), adherence to tradition and many more.
However it happens, the person is not properly equipped for the role, in the worst case it's to such a degree that they don't recognize how far they fall short.
* Lack of Ambition / Urgency:
If it ain't broke, don't fix it. If it is broke, don't fix it. There's too much risk. No reason to rock the boat and jeopardize a steady, comfortable paycheck.
* Unmanageable People:
I expect lots of people have never worked for a good manager of any measure. That bad experience makes them utterly certain that anyone who isn't 'in the trenches' 100% of the time useless - a drain on their productivity.
So, once the good one comes along - the one who will make him/herself an impenetrable human bullshit shield for 98.6% of every day in exchange for a 5 minute status report - they refuse to offer up that barest minimum.