The old system was always "define each level based on business objectives and expectations and then promote people when they are demonstrating that they are hit

The old system was always "define each level based on business objectives and expectations and then promote people when they are demonstrating that they are hitting those objectives and expectations." So you couldn't be promoted to L7 unless there was a business need for an L7 because you must be doing L7 work, which requires a business need.