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This is another solution which will probably not work well in education.
I came to teaching after a 22-year career as a naval officer, having,
every few years to face a selection board of my (only slightly more
senior) peers, who considered whether I was worthy of promotion (and,
I might add, I wasn't always successful, which is why my career ended
after 20 years rather than 30). What I observed was a system that,
while far from perfect, did an adequate job of promoting the most
competent and those with the highest chance of success at more
challenging positions.
The method is not dissimilar to that used in universities, but I
think it was less driven by politics than the university system seems
to be.