AT A GLANCE SERIES




High-Potential Experience Cycle™
Reframe Your Organization’s High-Potential Program for Optimal Impact


An Introduction
Today, more than ever, organizations must focus resources where they will provide the greatest benefit. Nowhere
is this more true than in identifying and developing high-potential leaders.i These leaders, who have the potential
to advance into significantly higher level roles or take on more challenging assignments, are critical to an
organization’s long-term success.
Accurately identifying and developing high-potential leaders yields striking benefits:
 •• Greater bench strength for key positions
 •• Smoother transitions and shorter learning curves as leaders get up-to-speed more quickly
 •• Reduced risk of derailment
 •• Enhanced retention of key leaders, lowering recruitment costs
 •• Agility in pivotal talent pools
 •• Consistently high performance from a steady supply of superior leadership talent
Although 67 percent of companies take steps to identify high-potential leaders, only 15 percent are satisfied with
their procedures.ii It’s easy to understand why. Current methods of identifying high potentials are fraught with
subjectivity and bias. Leaders not identified as high potentials might disengage. Those labeled high potential may
feel entitled to better treatment. Companies might nurture high potentials for years, only to watch them leave for
new opportunities elsewhere.
Still, it is possible to achieve high performance from your high potentials—and do it faster—by focusing on
practices that really make a difference.




                                            Copyright © 2010, Personnel Decisions International Corporation, d.b.a. PDI Ninth House. All Rights Reserved.   1
High-Potential Experience Cycle™                                                                                                              AT A GLANCE SERIES




    See the Whole Picture Through the High-Potential
    Experience Cycle™
    Given the importance of cultivating your organization’s key leadership talent, it’s essential that you step back
    and look at the whole picture. Does your organization’s process and design address the organization’s current
    and future needs, encompass the whole person, and address the full experience cycle of high potentials as they
    move through the leadership pipeline?
    Likely, you have witnessed situations in which an organization focuses solely on its objectives. High-potential
    leaders go through the motions, react with skepticism and/or cynicism, and achieve superficial results. On the
    other hand, organizations create a win/win when they align their objectives with leaders’ needs and goals. When
    they understand and incorporate the needs of both the organization and high-potential leaders into the design,
    it magnifies the value of the entire program, ensuring engagement, enhancing retention, and accelerating the
    supply of talented leaders who are ready to step into new roles when needed.
    The High Potential Experience Cycle™ shows how to address needs of both the organization and high-potential
    leaders in a parallel process. As the organization goes through the process of identifying, developing, and
    deploying high-potential talent, leaders simultaneously plan and manage their own lives and careers.




                           Organization’s                                                                                   High-Potential
                              Process                                                                                    Leader’s Experience

                    1. Forecast talent needs                                                                             1. Assess and plan for
                       and requirements                                                                                     the future
                                                                                         1 P lan

                    2. Accurately identify and                                                                           2. Commit and engage
                       engage high potentials                                           2 Identify


                    3. Accelerate                                  Organizational                       High-Potential   3. Develop and learn
                                                                                       3 Develop
                       development for                             High Potential
                                                                   Process
                                                                                                        Leader’s
                                                                                                        Experience
                       high potentials
                                                                                      3 T rans ition
                    4. Manage transitions                                                                                4. Transition and perform
                       into new roles                                                                                       in new role
                                                                                       5 Manage


                    5. Address governance,                                                                               5. Manage work- and
                       communication, and                                                                                   non-work priorities
                       evaluation




2   Copyright © 2010, Personnel Decisions International Corporation, d.b.a. PDI Ninth House. All Rights Reserved.
High-Potential Experience Cycle™                                                                                                        AT A GLANCE SERIES




Looking at the two perspectives in tandem, we see that each side comprises five key steps.

The organization’s talent process for high potentials includes:
  1.	 Forecast talent needs and requirements
  2.	 Accurately identify and engage high potentials
  3.	 Accelerate development
  4.	 Manage transitions into new roles
  5.	 Address governance, communication, and evaluation


The high-potential leaders’ process involves:
  1.	 Assess and plan for the future
  2.	 Commit and engage as a high potential
  3.	 Develop and learn
  4.	 Transition and perform in new role
  5.	 Manage work and non-work priorities


Let’s dig deeper into each section of the cycle.



                                                          1. Plan for the Future
                  FOR T H E O R G A N I Z AT I O N                                                                FOR THE LEADER

  FORECAST TALENT N E E D S A N D R E QU I R E M E N T S                         AS S E S S A N D P L A N F O R T H E F U T U R E

    1.	 Identify leadership roles and positions to be targeted                      1.	 Clarify goals, values, and where you want to go
       •• C-suite, top 3%, pivotal roles, difficult to fill positions,                  •• What is most important and meaningful to you at work?
          etc.
                                                                                        •• What kind of organization (culture, environment, values,
       •• Consider current, near-term, and long-term strategic                             mission) do you want to work for?
          needs                                                                         •• What are your short-term and long-term career goals?
       •• Where will you need more, better, or different leaders?                       •• What matters to you outside of work? What are the
    2.	 Define purpose, priorities, challenges, needs, and                                 implications for your career?
        requirements for each role                                                  2.	 Assess capabilities and development needs
       •• What kind of leaders do you need to fill those                                •• What are your key strengths and how can you best deploy
          positions?                                                                       them?
       •• What kind of challenges will they face?                                       •• What are your key weaknesses and how can you mitigate
       •• What do they need to do?                                                         them?
    3.	 Define time frames: When do you need them?                                  3.	 Assess career options and opportunities
    4.	Consider the supply: Hire or develop?                                            •• Where can you find or create the best opportunities to
                                                                                           achieve your goals?
                                                                                        •• What do you need to do to be successful in this
                                                                                           organization?




                                                            Copyright © 2010, Personnel Decisions International Corporation, d.b.a. PDI Ninth House. All Rights Reserved.   3
High-Potential Experience Cycle™                                                                                                         AT A GLANCE SERIES




                                                                       2. Identify High Potentials
                       FOR T H E O R G A N I Z AT I O N                                                                      FOR THE LEADER

    ACCURATELY IDENT I F Y A N D E N GAG E                                                           C O M M I T A N D E N GAG E AS A H I G H P OT E N T I A L
    HIGH POTENTIALS
                                                                                                        1.	 Understand what it means
     1.	 Define required attributes of high-potential leaders
                                                                                                            •• Organizational commitment and expectations
        •• Review relevant research
                                                                                                            •• Potential benefits
        •• Define terminology: potential, performance, readiness, fit
                                                                                                            •• Personal time and energy required
        •• Specify high-potential criteria and attributes
                                                                                                        2.	Evaluate priorities
          •• for your organization
                                                                                                            •• Assess benefits relative to your personal and career goals
          •• for specific roles and positions
                                                                                                        3.	Commit to invest time and energy
     2.	Identify high-potential candidates
                                                                                                        4.	 Maintain humility and perspective
        •• Structured talent reviews
        •• Nominate, screen, and assess
     3.	Inform and engage
        •• Clarify communication strategy and steps
        •• Discuss mutual expectations, commitments, and benefits
     4.	Align with HR systems (e.g., succession, selection/
        promotion)



                                                       3. Develop and Prepare for Future Roles
                       FOR T H E O R G A N I Z AT I O N                                                                       FOR THE LEADER

    ACCELERATE DEVE LO P M E N T                                                                      D E V E LO P A N D L E A R N

     1.	 Drive individual development                                                                    1.	 Prepare development plans
        •• Clarify development goals and objectives with individual                                          •• Tactical plan to build capabilities for current/near-term
           leaders                                                                                              performance
        •• Craft short-term and long-term development plans                                                  •• Long-term/career plan (e.g., desired assignments and
        •• Monitor and provide regular feedback on progress                                                     experiences over time) to prepare for future leadership
                                                                                                                roles
        •• Clarify changing needs and expectations
                                                                                                         2.	Learn strategies and skills for self-directed development
        •• Review and update development plans
        •• Hold leaders and their managers accountable for progress                                      3.	Adopt attitude of learning
                                                                                                             •• Cultivate curiosity; avoid arrogance and defensiveness
     2.	Drive systemic development processes
                                                                                                             •• Take risks and stretch yourself
        •• Design development programs and experiences tailored to
           strategic needs and to leaders’ goals, values, and                                            4.	Engage in development activities and on-the-job learning
           development needs                                                                             5.	Monitor and measure progress
        •• Orchestrate short-term and long-term development                                                  •• Address barriers
           activities
                                                                                                             •• Revise and update plans
          •• tactical development programs, projects, and tasks
          •• job assignments, rotations, and key experiences
     3.	Reinforce a learning culture
        •• Equip everyone to be self-directed learners
        •• Support, recognize, and reward leaders who develop and
           share talent
        •• Support and protect leaders who experiment, take risks,
           and accept stretch assignments



4          Copyright © 2010, Personnel Decisions International Corporation, d.b.a. PDI Ninth House. All Rights Reserved.
High-Potential Experience Cycle™                                                                                                      AT A GLANCE SERIES




                                                   4. Transition into New Roles
                FOR T H E O R G A N I Z AT I O N                                                               FOR THE LEADER

MANAGE TRANSITIO N S I N TO N E W RO L E S                                   T RA N S I T I O N A N D P E R F O R M I N N E W RO L E

 1.	 Assess readiness and fit for relevant roles                                1.	 Evaluate offer and decide whether to accept position
    •• Utilize available information from succession processes,                 2.	Clarify expectations, priorities, and objectives for the role
       high-potential programs, development plans and progress                      •• What are you supposed to achieve and contribute?
    •• Gather other pertinent information                                           •• What are you supposed to learn?
 2.	Select based on fit and opportunity for continued                           3.	Manage your Five Agendas as a Leader
    development
                                                                                    •• Business agenda
    •• Ensure the organization and hiring managers know which
                                                                                        •• learn the business and key metrics
       talent is available
                                                                                        •• develop strategic and tactical action plans
    •• Ensure high potentials know which roles and positions are
       available                                                                    •• Leadership agenda
 3.	Support transitions                                                                 ••  eview and refresh your leadership values and principles
                                                                                           r
    •• Convey clear expectations for balancing performance and                          •• communicate and live your values as a leader
       development                                                                  •• Learning agenda
    •• Provide transition coaching and support                                          •• reset assumptions
 4.	Reset expectations for the leader                                                   •• une into what you need to learn and unlearn to perform in
                                                                                           t
    •• Acknowledge the risks in making this move                                           the new role
    •• Allow time and space for learning and for adjustment to                      •• Relationship agenda
       new role                                                                         •• engage and align team
    •• Discuss their status as a high potential going forward                           •• build relationships with key stakeholders
 5.	Maintain focus on engaging and meeting the broader needs                        •• Personal agenda
    of the leader
                                                                                        •• clarify overall priorities and maintain equilibrium
                                                                                        •• everage your strengths and resilience during the transition
                                                                                           l


                                               5. Manage the Broader Context
                FOR T H E O R G A N I Z AT I O N                                                               FOR THE LEADER

ADDRESS GOVERNA N C E , C O M M U N I CAT I O N ,                            M A N AG E WO R K A N D N O N - WO R K P R I O R I T I E S
AND EVALUATION
                                                                                1.	 Develop an authentic, holistic vision for yourself and your life
 1.	 Set up high-potential management system and programs
                                                                                    •• Clarify what really matters to you: personal and life goals and
    •• Allocate adequate resources and leadership                                      values
    •• Align with other systems and processes                                       •• Figure out where work and career fit in your life
 2.	Clarify governance policies and practices                                   2.	Make appropriate choices to integrate work and non-work
    •• Transparency and communication                                              priorities
    •• Talent stewardship                                                           •• Family
    •• Transitions across boundaries                                                •• Health and fitness
 3.	Create and implement a communication plan                                       •• Financial
 4.	Ensure management support and alignment                                         •• Community and social life
    •• Senior execs: teach, mentor, recognize, reward, role model                   •• Recreation and leisure
    •• Managers: support, develop, and share talent                                 •• Spiritual
 5.	Define employee brand and value proposition and how they
    apply to high-potential leaders
 6.	Evaluate impact and effectiveness


                                                        Copyright © 2010, Personnel Decisions International Corporation, d.b.a. PDI Ninth House. All Rights Reserved.   5
High-Potential Experience Cycle™                                                                                 AT A GLANCE SERIES




    People Decisions Drive Organizational Performance
    Peter Drucker claimed “Of all the decisions an executive makes, none is as important as the decisions about people,
    because they determine the performance capacity of the organization.” Decisions about high-potential leaders
    are among the most important of all those decisions, because they are key investments in the organization’s
    future.
    Old ways of looking at high-potential talent simply do not work well. Organizations need a new way to think
    about potential and more effective ways to identify and develop potential to ensure that it turns into high
    performance. And they need to do all of this faster.
    Reviewing the entire process to ensure alignment from start to finish is essential. But the real power is achieved
    only when you build the process to meet organizational needs and the needs of the high-potential leaders.
    Engagement and retention are not issues that you deal with after you invest in your top talent. They are the
    natural result of how you interact with people at every step.



     Hagemann, B.,  Chartrand, J. (2010). 2009/2010 Trends in Executive Development: A Benchmark Report. Oklahoma City, OK: Executive
    i

     Development Associates.
    ii
         Conference Board. (2005). US/KnowledgeCenter/ArticlesReports/ArticleDetail.aspx?cid=1735tid=0.




6   Copyright © 2010, Personnel Decisions International Corporation, d.b.a. PDI Ninth House. All Rights Reserved.

High potentialexperiencecycle glanceseries

  • 1.
    AT A GLANCESERIES High-Potential Experience Cycle™ Reframe Your Organization’s High-Potential Program for Optimal Impact An Introduction Today, more than ever, organizations must focus resources where they will provide the greatest benefit. Nowhere is this more true than in identifying and developing high-potential leaders.i These leaders, who have the potential to advance into significantly higher level roles or take on more challenging assignments, are critical to an organization’s long-term success. Accurately identifying and developing high-potential leaders yields striking benefits: •• Greater bench strength for key positions •• Smoother transitions and shorter learning curves as leaders get up-to-speed more quickly •• Reduced risk of derailment •• Enhanced retention of key leaders, lowering recruitment costs •• Agility in pivotal talent pools •• Consistently high performance from a steady supply of superior leadership talent Although 67 percent of companies take steps to identify high-potential leaders, only 15 percent are satisfied with their procedures.ii It’s easy to understand why. Current methods of identifying high potentials are fraught with subjectivity and bias. Leaders not identified as high potentials might disengage. Those labeled high potential may feel entitled to better treatment. Companies might nurture high potentials for years, only to watch them leave for new opportunities elsewhere. Still, it is possible to achieve high performance from your high potentials—and do it faster—by focusing on practices that really make a difference. Copyright © 2010, Personnel Decisions International Corporation, d.b.a. PDI Ninth House. All Rights Reserved. 1
  • 2.
    High-Potential Experience Cycle™ AT A GLANCE SERIES See the Whole Picture Through the High-Potential Experience Cycle™ Given the importance of cultivating your organization’s key leadership talent, it’s essential that you step back and look at the whole picture. Does your organization’s process and design address the organization’s current and future needs, encompass the whole person, and address the full experience cycle of high potentials as they move through the leadership pipeline? Likely, you have witnessed situations in which an organization focuses solely on its objectives. High-potential leaders go through the motions, react with skepticism and/or cynicism, and achieve superficial results. On the other hand, organizations create a win/win when they align their objectives with leaders’ needs and goals. When they understand and incorporate the needs of both the organization and high-potential leaders into the design, it magnifies the value of the entire program, ensuring engagement, enhancing retention, and accelerating the supply of talented leaders who are ready to step into new roles when needed. The High Potential Experience Cycle™ shows how to address needs of both the organization and high-potential leaders in a parallel process. As the organization goes through the process of identifying, developing, and deploying high-potential talent, leaders simultaneously plan and manage their own lives and careers. Organization’s High-Potential Process Leader’s Experience 1. Forecast talent needs 1. Assess and plan for and requirements the future 1 P lan 2. Accurately identify and 2. Commit and engage engage high potentials 2 Identify 3. Accelerate Organizational High-Potential 3. Develop and learn 3 Develop development for High Potential Process Leader’s Experience high potentials 3 T rans ition 4. Manage transitions 4. Transition and perform into new roles in new role 5 Manage 5. Address governance, 5. Manage work- and communication, and non-work priorities evaluation 2 Copyright © 2010, Personnel Decisions International Corporation, d.b.a. PDI Ninth House. All Rights Reserved.
  • 3.
    High-Potential Experience Cycle™ AT A GLANCE SERIES Looking at the two perspectives in tandem, we see that each side comprises five key steps. The organization’s talent process for high potentials includes: 1. Forecast talent needs and requirements 2. Accurately identify and engage high potentials 3. Accelerate development 4. Manage transitions into new roles 5. Address governance, communication, and evaluation The high-potential leaders’ process involves: 1. Assess and plan for the future 2. Commit and engage as a high potential 3. Develop and learn 4. Transition and perform in new role 5. Manage work and non-work priorities Let’s dig deeper into each section of the cycle. 1. Plan for the Future FOR T H E O R G A N I Z AT I O N FOR THE LEADER FORECAST TALENT N E E D S A N D R E QU I R E M E N T S AS S E S S A N D P L A N F O R T H E F U T U R E 1. Identify leadership roles and positions to be targeted 1. Clarify goals, values, and where you want to go •• C-suite, top 3%, pivotal roles, difficult to fill positions, •• What is most important and meaningful to you at work? etc. •• What kind of organization (culture, environment, values, •• Consider current, near-term, and long-term strategic mission) do you want to work for? needs •• What are your short-term and long-term career goals? •• Where will you need more, better, or different leaders? •• What matters to you outside of work? What are the 2. Define purpose, priorities, challenges, needs, and implications for your career? requirements for each role 2. Assess capabilities and development needs •• What kind of leaders do you need to fill those •• What are your key strengths and how can you best deploy positions? them? •• What kind of challenges will they face? •• What are your key weaknesses and how can you mitigate •• What do they need to do? them? 3. Define time frames: When do you need them? 3. Assess career options and opportunities 4. Consider the supply: Hire or develop? •• Where can you find or create the best opportunities to achieve your goals? •• What do you need to do to be successful in this organization? Copyright © 2010, Personnel Decisions International Corporation, d.b.a. PDI Ninth House. All Rights Reserved. 3
  • 4.
    High-Potential Experience Cycle™ AT A GLANCE SERIES 2. Identify High Potentials FOR T H E O R G A N I Z AT I O N FOR THE LEADER ACCURATELY IDENT I F Y A N D E N GAG E C O M M I T A N D E N GAG E AS A H I G H P OT E N T I A L HIGH POTENTIALS 1. Understand what it means 1. Define required attributes of high-potential leaders •• Organizational commitment and expectations •• Review relevant research •• Potential benefits •• Define terminology: potential, performance, readiness, fit •• Personal time and energy required •• Specify high-potential criteria and attributes 2. Evaluate priorities •• for your organization •• Assess benefits relative to your personal and career goals •• for specific roles and positions 3. Commit to invest time and energy 2. Identify high-potential candidates 4. Maintain humility and perspective •• Structured talent reviews •• Nominate, screen, and assess 3. Inform and engage •• Clarify communication strategy and steps •• Discuss mutual expectations, commitments, and benefits 4. Align with HR systems (e.g., succession, selection/ promotion) 3. Develop and Prepare for Future Roles FOR T H E O R G A N I Z AT I O N FOR THE LEADER ACCELERATE DEVE LO P M E N T D E V E LO P A N D L E A R N 1. Drive individual development 1. Prepare development plans •• Clarify development goals and objectives with individual •• Tactical plan to build capabilities for current/near-term leaders performance •• Craft short-term and long-term development plans •• Long-term/career plan (e.g., desired assignments and •• Monitor and provide regular feedback on progress experiences over time) to prepare for future leadership roles •• Clarify changing needs and expectations 2. Learn strategies and skills for self-directed development •• Review and update development plans •• Hold leaders and their managers accountable for progress 3. Adopt attitude of learning •• Cultivate curiosity; avoid arrogance and defensiveness 2. Drive systemic development processes •• Take risks and stretch yourself •• Design development programs and experiences tailored to strategic needs and to leaders’ goals, values, and 4. Engage in development activities and on-the-job learning development needs 5. Monitor and measure progress •• Orchestrate short-term and long-term development •• Address barriers activities •• Revise and update plans •• tactical development programs, projects, and tasks •• job assignments, rotations, and key experiences 3. Reinforce a learning culture •• Equip everyone to be self-directed learners •• Support, recognize, and reward leaders who develop and share talent •• Support and protect leaders who experiment, take risks, and accept stretch assignments 4 Copyright © 2010, Personnel Decisions International Corporation, d.b.a. PDI Ninth House. All Rights Reserved.
  • 5.
    High-Potential Experience Cycle™ AT A GLANCE SERIES 4. Transition into New Roles FOR T H E O R G A N I Z AT I O N FOR THE LEADER MANAGE TRANSITIO N S I N TO N E W RO L E S T RA N S I T I O N A N D P E R F O R M I N N E W RO L E 1. Assess readiness and fit for relevant roles 1. Evaluate offer and decide whether to accept position •• Utilize available information from succession processes, 2. Clarify expectations, priorities, and objectives for the role high-potential programs, development plans and progress •• What are you supposed to achieve and contribute? •• Gather other pertinent information •• What are you supposed to learn? 2. Select based on fit and opportunity for continued 3. Manage your Five Agendas as a Leader development •• Business agenda •• Ensure the organization and hiring managers know which •• learn the business and key metrics talent is available •• develop strategic and tactical action plans •• Ensure high potentials know which roles and positions are available •• Leadership agenda 3. Support transitions •• eview and refresh your leadership values and principles r •• Convey clear expectations for balancing performance and •• communicate and live your values as a leader development •• Learning agenda •• Provide transition coaching and support •• reset assumptions 4. Reset expectations for the leader •• une into what you need to learn and unlearn to perform in t •• Acknowledge the risks in making this move the new role •• Allow time and space for learning and for adjustment to •• Relationship agenda new role •• engage and align team •• Discuss their status as a high potential going forward •• build relationships with key stakeholders 5. Maintain focus on engaging and meeting the broader needs •• Personal agenda of the leader •• clarify overall priorities and maintain equilibrium •• everage your strengths and resilience during the transition l 5. Manage the Broader Context FOR T H E O R G A N I Z AT I O N FOR THE LEADER ADDRESS GOVERNA N C E , C O M M U N I CAT I O N , M A N AG E WO R K A N D N O N - WO R K P R I O R I T I E S AND EVALUATION 1. Develop an authentic, holistic vision for yourself and your life 1. Set up high-potential management system and programs •• Clarify what really matters to you: personal and life goals and •• Allocate adequate resources and leadership values •• Align with other systems and processes •• Figure out where work and career fit in your life 2. Clarify governance policies and practices 2. Make appropriate choices to integrate work and non-work •• Transparency and communication priorities •• Talent stewardship •• Family •• Transitions across boundaries •• Health and fitness 3. Create and implement a communication plan •• Financial 4. Ensure management support and alignment •• Community and social life •• Senior execs: teach, mentor, recognize, reward, role model •• Recreation and leisure •• Managers: support, develop, and share talent •• Spiritual 5. Define employee brand and value proposition and how they apply to high-potential leaders 6. Evaluate impact and effectiveness Copyright © 2010, Personnel Decisions International Corporation, d.b.a. PDI Ninth House. All Rights Reserved. 5
  • 6.
    High-Potential Experience Cycle™ AT A GLANCE SERIES People Decisions Drive Organizational Performance Peter Drucker claimed “Of all the decisions an executive makes, none is as important as the decisions about people, because they determine the performance capacity of the organization.” Decisions about high-potential leaders are among the most important of all those decisions, because they are key investments in the organization’s future. Old ways of looking at high-potential talent simply do not work well. Organizations need a new way to think about potential and more effective ways to identify and develop potential to ensure that it turns into high performance. And they need to do all of this faster. Reviewing the entire process to ensure alignment from start to finish is essential. But the real power is achieved only when you build the process to meet organizational needs and the needs of the high-potential leaders. Engagement and retention are not issues that you deal with after you invest in your top talent. They are the natural result of how you interact with people at every step. Hagemann, B., Chartrand, J. (2010). 2009/2010 Trends in Executive Development: A Benchmark Report. Oklahoma City, OK: Executive i Development Associates. ii Conference Board. (2005). US/KnowledgeCenter/ArticlesReports/ArticleDetail.aspx?cid=1735tid=0. 6 Copyright © 2010, Personnel Decisions International Corporation, d.b.a. PDI Ninth House. All Rights Reserved.