1. Top 50 February 2010
Feature: PPG Industries
Puts High-Potential
Leaders on the Fast Track
An organization’s most precious commodity is its people. In
the Navy, there is a critical need to identify tomorrow’s leaders
early. Is it enough to use past performance as an indicator for PPG Industries is a global leader in the manufacturing of
future leadership success? Perhaps using additional criteria to coatings, glass, fiberglass and chemicals. Today it is
identify those with high potential at earlier stages of their careers considered a successful, complex international organization,
would be beneficial. recognized as a fertile proving ground for developing
This month’s newsgram focuses on ways Corporate America effective leaders. But it was not always that way. In 1993,
identifies high-potential (HIPO) employees early in their careers. the PPG found itself in an unexpected position, when the
It distinguishes between high performance and high potential, and CEO retired and the Board of Directors was unable to find a
offers key attributes of this subset of any workforce. Navy needs suitable internal candidate to replace him. “We had a weak
to keep both of these groups, as high performers consistently succession planning process,” says Harvette Dixon, the
deliver results over time. High potentials move beyond this Director of Learning and Development. This was a wake-up
“plateau,” demonstrating incredible learning agility, outstanding call for PPG’s senior leadership, especially in managing its
results in constantly changing environments, and a tenacious best talent.
commitment to organizational growth and change. In 2001, a succession management process was created to
We will celebrate Navy’s recognition of the Optimas Award proactively manage the careers of the organization’s high-
for General Excellence on March 9th, when the publisher of potential (HIPO) leadership, called Aggressive Career
Workforce Management Magazine presents the award to the Chief Management (ACM). HIPOs are developed through a
of Naval Operations. The event will be hosted by Representative combination of executive oversight, stretch assignments,
Ike Skelton (D-MO) on Capitol Hill. Navy realized two other customized development based on individual needs, and
notable achievements this month. We placed 17th on Training feedback and coaching.
Magazine’s Top 125 List in a competition with over 1,000 Two committees oversee the ACM program. The senior
companies, and BUPERS-3’s Resigning SWO Redesignation committee is chaired by the CEO and is accountable for
Program received award recognition at the Human Capital developing high-potential talent at the director level. The
Management for Defense Conference. other is chaired by the senior vice president and general
Special thanks to CNRC for submitting a highly competitive counsel for the development of high-potential leaders at the
package for the prestigious ERE Recruiting Awards. manager and below level. At the onset of this program, only
Unfortunately we came up just short, but are committed to 40 out of 10,000 managers at PPG were targeted.
changing that result next year with an even better write-up. The committees track the performance and development
In our January Newsgram, we missed a significant player in of each ACM participant and make placement decisions
Navy's Personal Financial Management (PFM) Program, and we based on PPG’s business needs. Participants are nominated
want to give due recognition. Last year, the Center for Personal for the program by their supervisor. The ACM committees
and Professional Development (CPPD) provided basic PFM meet regularly to consider nominations and make selections
training to over 34,000 Sailors. into the program. Nominees must meet some criteria to be
Best, considered. They must be among top talent within PPG,
Wayne Wagner must exhibit strong aspirations to rise to the top of the
company, must be
Awards Scorecard (Continued on page 2)
Recognition To-Date
• Optimas Award for General Excellence • Training Magazine Top 125 List: #17 • Best Diversity Company
• Training Top 125 Best Practice • Most Admired Employer Award • Diversity Council Honors Award
• ASTD Excellence in Practice Award • Work Life Legacy Award • 21st Century Best Practice Distance Learning Award
• 2009 (2 awards and 2 citations) • Tele-Vision Award • Ted Childs Work Life Excellence Award
• 2010 (6 citations) • Catalyst Award Finalist
Awards Submitted
• Work-Life Innovative Excellence Award, Alliance for Work-Life Progress (AWLP) (Announcement May 2010)
Upcoming Awards
Award Name Deadline to N1Z Submission Deadline Expected Notification
Best Award, ASTD 3 Mar 2010 31 Mar 2010 Jul 2010
Alfred P. Sloan Awards, Families and Work Institute 08 Mar 2010* 15 Apr 2010* Sep 2010
*based on location

2. Spotlight On:
Spotlight On: Moving into theForce Survey
Navy Total Future Award
Sponsor: NPRST
Description: A major component in our Top 50Conference in FY10 is the administration of the Navy Total Force Survey.
Sponsor: Families and Work Institute and The way ahead Board
This survey will reach 45,000 Active, Reserve, and Civilians and rate both theirBoard co-founded theas a whole.. We used
Description: Families and Work Institute in partnership with The Conference command and Navy Conference
some of the ideas from the Great Place a membership groupassess a “best leadership and support to influence the to
Board Work Life Leadership Council, to Work Institute to that provides place to work” climate. It will allow us
identify gaps we can address to provide thepersonal and family needs of its to succeed and strengthenConference as an
business community to meet the changing tools needed for our personnel diverse work force. The our standing
employer of choice Leadership Council established the Moving into the Future Awards in 2002 to recognize leadership
Board's Work Life We will compare the results against industry benchmarks and share our findings with the workforce.
Release date: February 2010.to the changing needs of the workforce, workplace, and community in ways that yield
and innovation in responding
Results expected: June 2010.stakeholders. The purpose of the awards is to increase awareness about these issues
positive impacts for multiple
among the business community and provide organizations with replicable models for successfully addressing them.
Criteria: Recipients are selected through a rigorous review and scoring process conducted by a subcommittee of the
Council. The application asks for a brief description of the work life practice, business rationale, what obstacles were
encountered and how they were addressed, and what results have been achieved. Previous winners include Accenture
and IBM.
Application will be available: August 2010
HIPO Leaders on the Fast American Society for
Training and Development
Track Navy has been recognized once again by the prestigious American
(Continued from page 1) Society for Training and Development (ASTD) in its Excellence in
mobile and willing to relocate, have a proven Practice international competition. Navy nominated 11 programs for
track record of getting results, and exemplify
PPG’s corporate values. recognition. The competition included more than 100 countries and
Once in the ACM track, the individuals become several Fortune 100 companies. Other corporate winners included
part of a talent pool in which they are placed for Accenture, Farmers Insurance, Intel, Infosys, Booz Allen, BP and
job assignments. While the assignments are Intercontinental Hotels. Last year, we were recognized for four
developmental, they are expected to show results. practices. This year we were awarded citations for six programs:
“If a sales assignment is a stretch because they • Language, Regional Expertise and Culture Program (NETC)
have not had sales experience, we might assign a • Voluntary Education Program (NETC)
mentor. We pay a lot of attention to • Full Spectrum Surface Warfare Training (NETC)
developmental needs,” says Rich Alexander who
• Computer-Based Adult Reading Comprehension Improvement
serves on one of the committees. Stretch
assignments can be vertical or horizontal. (NSTC)
Since ACM started, more than 200 leaders • Game-Based Casualty Training System (NSTC)
have attended the company’s one-day training • Professional Apprenticeship Career Track Program (N13)
experience, the Acceleration Center. The
participants attend simulated meetings with subordinates, peers and customers, providing a preview of the senior leader work
environment, while identifying their individual strengths and developmental opportunities. After completion of the
Acceleration Center, participants are provided written feedback and follow-up coaching.
PPG has a strong bench of leadership with cross functional knowledge and talent when and where it needs it. Since 2005,
all senior vice presidents have been hired from within. “ACM is an outstanding way to accelerate the development of
leadership capability. It reinforces our commitment to our people, our senior leaders now have a better knowledge of the
pool, and it shows that we’re making an investment in our workforce for the future. It is a win-win,” says Ms. Dixon.
Did You Know?
• According to a 2008 survey by OI Partners, a career development and outplacement company, 54% of the 212 companies
surveyed said they do not have enough qualified successors now working for them to succeed their executives and managers.
• A recent Hewitt Associates study of 100 large US companies found just over half consistently use a formal approach to
identifying HIPOs. Those who do, perform in the 75% percentile or higher for shareholder return.
• Most often, HIPOs make up only 1%-5% of the workforce.
• In a 2009 Conference Board survey, 57% of director level respondents say entry-level professionals are considered for HIPO
status after two to five years on the job but only 34% say they are effective at identifying capable leaders early in their career.

3. Top 10 Attributes of a High Best Practices
Potential Employee
McDonald's uses roundtable discussions to help identify
top candidates. After an individual is identified as a
1. Earns the respect and trust of supervisors, peers, and
HIPO, he or she goes to a third-party assessment center
subordinates.
for a two-day session. Candidates then undergo an
2. Strives for and maintains a high level of competence in
accelerated program designed to build strengths and
technical or functional discipline.
competencies.
3. Produces tangible, measurable results above
expectations consistently.
Eli Lilly asks each of its designated high-potential
4. Appreciates and integrates thoughts and solutions
candidates to complete a short-term project. This project
provided by diverse elements of the workforce.
may include applicants from different functional areas.
5. Has a bias for action and is a proactive catalyst for
Each assignment provides a better understanding how
change.
other functional area issues affect the entire company.
6. Welcomes feedback and constructive criticism.
Candidates don’t leave their jobs, but take on this
7. Manages time in a manner that fosters learning and
responsibility as an additional duty. An eight-page talent
high performance.
identification questionnaire evaluates the assumed
8. Thinks and solves problems creatively and from a
potential of 15,000 associates on performance, potential
position of inquiry.
derailment factors, and learning agility.
9. Has a broad understanding of the organization’s
business and his or her role in its goals. Possesses the
At General Mills, the cereal maker launched a three-day
ability to effectively engage across functional lines.
simulation program that prepares these high-potential
10. Actively leads and manages teams that create a sense
employees for situations that might not occur on a
of loyalty and community.
typical day. Groups of 36 managers are brought together
at headquarters and divided into six teams to compete
against one another in challenges that replicate business
Quote of the Month problems.
“While high performance employees complete their jobs
well, high-potential employees are thought to possess the At Unilever, the top managers are labeled on a
skills and qualities necessary to be the organization’s new leadership rating matrix as green. Mediocre candidates
generation of leaders.” are labeled amber, and low performers are reds. The
– Steven Shapiro, Denver Business goal is to get 50 green candidates into critical jobs at
various levels of seniority. The company says the
ranking system helps attract and nurture leaders.
Tools and Resources
How the Top 20 companies grow talent: a summary of how leaders at top organizations show commitment to identifying and
developing their next generation leadership talent. http://www.inspireimagineinnovate.com/pdf/Top_Companies_2005_Report.pdf
Accelerating Leadership Development; a Business Imperative: Raytheon’s approach to identifying and developing its future
leadership bench. Process contains some excellent tools which help in identifying ROI. (Contact Wayne Wagner for copy)
Critical Thinking, High Potentials, Fact and Fiction: a Hudson Company white paper which lays out ten guiding principles for
installing a high potential program. Accentuates the importance of an identification process.
http://www.hudson.com/documents/eu-high-potentials-white.pdf
Developing a Leadership Training Program for High Potentials, A Case Study: taking best practices from across industry, the author
uses a fictitious company to lay out the framework of a “best in class” HIPO program. (Contact Wayne Wagner for copy)
Points of Contact
Mr. Wayne Wagner (Primary) CDR Brenda Malone CDR Ralita Hildebrand, N10 Mr. John Drake, NSTC
Strategic Affairs Office, N1Z N1 Public Affairs Officer Mr. Doug Whalen, N11 Mr. Ron Hendren, PMO
703-693-2322 703-693-0865 CAPT Bernie Carter, N12 Mr. Dylan Finelli, NPC
wayne.wagner@navy.mil brenda.malone@navy.mil Ms. Sofiya Velgach, N13 Mr. Rick Gualandi, NRC
Mr. Ilia Christman, N14
CDR Lisa Truesdale CAPT Ken Barrett Ms. Carol Lynn Judge, N15
Chief Strategist, N1Z Director, Diversity Office, N13 CAPT R. Scot Hopkins, N16
703-693-0184 703-695-3936 Ms. Jamie Fisher, N1Z
lisa.truesdale@navy.mil ken.barrett@navy.mil Ms. Michele Harrison, NETC