On taking office in 1861, Lincoln appointed his three main rivals for the Republican nomination to his cabinet: Seward as Secretary of State, Chase as Treasury Secretary, Bates as Attorney General. Each was abler in many ways than Lincoln himself. Keeping them inside the administration converted their ambition into his asset, and removed the most credible external opposition.
The principle: Capable rivals outside the organisation are weapons; inside the organisation they are talent. The leader confident enough to bring them in gains their ability AND removes their ability to oppose. The insecure leader who excludes them gets neither benefit.