A successful assessment of the potential of leaders against performance can prepare you and your company to determine a succession plan for key roles. Articulating, analyzing and understanding potential also allows the company to properly invest in those leaders who offer the greatest opportunity to achieve a high return on investment of company resources focused on building leaders.

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2. The key outcome for any succession planning
process is the ability of the leadership team to
determine criteria for assessing the potential of
individual employees.
employees
Many articles and books provide approaches to
assessing potential and potential is broadly defined
as the capacity of an employee to be able to perform
work at a higher level at some point in the future.
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3. Interestingly, most organizations really need to look
at “potential “ more deeply and authors Ram Charan,
i l d l d h R Ch
Stephen Drotter and James Noel have aptly explored
potential in their book The Leadership Pipeline. The
p p p
authors provide a deeper look at potential across
three categories and the likelihood of future
contribution.
contribution
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4. In The Leadership Pipeline, the authors propose
looking at potential as the likely future work
contribution along a continuum of Mastery to
Growth to Turn.
Turn Potential – Able to do the work at the next
level in three to five years or sooner.
y
Growth Potential – Able to do the work of bigger
jobs at the same level in the near term.
Master Potential – Able to do the same kind of
Mastery
work current being done only better.
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5. The best approach in building a talent or leadership
pipeline is to assess the potential across these three
i li i t th t ti l th th
categories and compare those assessments against
the sustained performance for each leader.
It is critical that both perspectives of the leader are
ascertained.
ascertained The sustainability of performance at
exceptional levels creates the pathway for a leader
with potential to excel broadly and deeply for the
good of th company.
d f the
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6. Below is the Performance-Potential Grid which graphically depicts a
matrix of the combinations for sustainable performance and potential.
Sustained Performance Level
Low Full Exceptional
Like Future Work
tion
Turn Low/Turn Full/Turn Exceptional/Turn
e
Contribut
Growth Low/Growth Full/Growth Exceptional/Growth
ely
C
Mastery Low/Mastery Full/Mastery Exceptional/Mastery
Adapted from The Leadership Pipeline
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7. Category Description Details
Turn
T Can be promoted to
C b t dt • Exhibits operating, technical, and professional
E hibit ti t h i l d f i l
a higher leadership skills that are extremely broad and deep
level within 3 to 5 • Exhibits managerial skills that are expected at
years the next highest organizational level
• Demonstrates leadership skills that are
expected at the next highest organizational
level
• Regularly works at building new skills and
abilities
• Aspires to higher level challenges and
opportunities
• Demonstrates “fire in the belly”
• Has a business perspective beyond current
organizational level
• Is oriented toward total business results, not
just focused on the success of own area
Adapted from The Leadership Pipeline
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8. Category Description Details
Growth
G th Can be promoted
C b t d • Exhibits operating, technical, and
E hibit ti t h i l d
at the same professional skills that are high for
leadership level current organizational level
within 3 years
y • Exhibits managerial skills that are high
g g
for current organizational level
• Frequently demonstrates leadership skills
that are high for current organizational
level
• Adds new skills when job calls for it
• Aspires to greater challenges but
primarily at the same organizational level
• Is motivated to do more than is expected
• Has a business perspective beyond
current position
• Is focused on the success of own area and
the team Adapted from The Leadership Pipeline
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9. Category Description Details
Mastery
M t Can improve in
C i i • On balance, exhibits operating, technical,
O b l hibit ti t h i l
current role with and professional skills that are acceptable
the same effort for current organizational level
• Demonstrates little effort to build new
skills but keeps current skills sharp
• Aspires to stay with company, as opposed
to assuming bigger challenges or higher
personal contributions
• Is motivated to do what is needed in
current job
• Understands the job
• Is focused primarily on technical issues
Adapted from The Leadership Pipeline
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10. Gather a 3 to 5 member project team, a Leadership
Pipeline Team (LPT).
Pi li T (LPT)
Assess all leaders in the organization.
Plot the results on a Performance Potential Grid.
Performance-Potential Grid
Discuss and adjust each leader’s position on the
grid.
Create development plans.
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11. 3 to 5 top leaders in the organization
Manages the assessment process
Synthesizes the assessment data
Guides the development plans
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12. All current leaders in the organization need to be
involved in the assessment of potential. A process to
i l d i th t f t ti l t
inventory the current leaders and their respective
potential ratings provides the necessary data.
g
Each leader will assess themselves
Each leader will be assessed by their superior
Each leader will be assessed other leaders
throughout the organization
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13. A standard set of descriptors for determining
potential must be agreed upon.
i l b d
It is critical that the assessor be honest in their
assessment that the leader may have t e des e but
assess e t t at t e eade ay a e the desire
has not yet demonstrated the ability to progress to
bigger jobs.
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14. Using an external facilitator, the LPT discusses and
debates the assessed leaders and their respective
d b h dl d d h i i
placements on the Performance-Potential Grid.
These d scuss o s are as important – if not more
ese discussions a e po ta t ot o e
important – than the actual placement on the grid.
Great care should be taken in setting the ground
rules f the discussions and th criticality th t th
l for th di i d the iti lit that the
discussions in the room are confidential.
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15. The LPT should prioritize their discussions and actions for
leaders falling in the highlighted areas of the g
g g g grid.
Sustained Performance Level
Low Full Exceptional
Like Future Work
tion
Turn Low/Turn Full/Turn Exceptional/Turn
e
Contribut
Growth Low/Growth Full/Growth Exceptional/Growth
ely
C
Mastery Low/Mastery Full/Mastery Exceptional/Mastery
Adapted from The Leadership Pipeline
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16. Exceptional/Turn – These leaders offer the highest
potential and should receive the greatest
i l d h ld i h
investment of time, energy and money.
Exceptional/Growth Leaders – Prepare t ese
cept o a /G o t eade s epa e these
leaders for the next level.
Full/Turn Leaders – Determine what experiences
can h l these leaders to improve their
help th l d t i th i
performance.
Exceptional/Mastery Leaders – These seasoned
p / y
contributors will remain in their role; determine
how to recognize them for their contributions.
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17. A development plan for each high potential leader will
need to be developed. Below are several methods
which could be utilized in the development of leaders.
Advanced degree programs
Significant special projects/assignments
Leadership development curriculum – i
L d hi d l i l internal
l
and/or external
Job/role rotation
Mentoring
Executive coaching
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18. Low/Mastery – These leaders are in the wrong
leadership level and should be demoted or they
l d hi l l d h ld b d d h
need to be managed out of the organizations.
Low/Turn – If these leaders have suc potential,
o / u t ese eade s a e such pote t a ,
determine what is holding back their sustained
performance.
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19. “My main job was developing talent. I was a gardener providing
My
water and other nourishment to our top 750 people. Of course,
I had to pull out some weeds, too.”
Jack Welch
“Leadership is unlocking people’s potential to become better”
Leadership people s better
Bill Bradley
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20. For more information on succession planning
contact Michael Holland via email at
mike@BishopHouse.com or visit our website
www.BishopHouse.com to learn more about
our firm.
firm
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