Adrian Furnham is Professor of Psychology at UCL, Adjunct Professor of Management at the Norwegian School of Management, and has lectured in the Middle East. He has written over 1000 scientific papers and 70 books and is among the most wellknown and productive psychologists in the world, noted for his motivational speaking. Adrian is also a newspaper columnist, previously at the Financial Times and now at the Sunday Times. He is a regular contributor to national and international radio and television stations including the BBC, CNN and ITV.
“I have been waiting for a book like this for years! This is an outstanding tour de force in helping organizations identify and develop high potential talent. This book is in a category of its own, and every HR professional needs to read it from cover to cover. A must read if you truly care about developing your people.” Cary L. Cooper, CBE, Professor at Lancaster University Management School “Too often the term ‘High Potential’ is applied to individuals who aren’t because organisations fail to properly identify them. This then has a very damaging effect on both the organisation and the individual. This book deals effectively with the issues of accurate identification, development and even potential derailing of those critical to organisational success now and in the future. For the astute ambitious individual this also provides an excellent ‘selfdevelopment’ guide.” Chris Roebuck, Cass Business School, London (formerly Global Head of Talent and Leadership, UBS) “How to spot and manage talent is a huge differentiator for organisations and this book provides invaluable advice and timeless wisdom from its renowned authors. A comprehensive guide for identifying untapped potential and managing and developing talent, it offers a pragmatic view in recognising that there is no ‘one-size-fits-all’ formula for success in managing high potentials and is written with clarity and practicality. Refreshingly, it’s both an entertaining and informative read. Highly recommended!”
HIGH POTENTIAL
Ian MacRae is a psychologist and writer who began consulting work at 18. He has a BA (Hons) Psychology from the University of British Columbia and an MSc Research Methods in Psychology from University College London where he researched the personality of High Flyers supervised by Adrian Furnham. He now lives and works between London and British Columbia, Canada.
Joanna Van De Vyvere, Director of People, Performance and Culture, KPMG
Lloyd M. Craig, Director, Alberta Treasury Branches
www.bloomsbury.com
Cover image © Guido Mieth/Getty
IAN MACRAE & ADRIAN FURNHAM
“We are surrounded by colleagues some of whom we must choose to grow and leverage in order to execute our strategy. Choose the wrong ones and you will fail. This book will help you win.”
IAN MACRAE & ADRIAN FURNHAM
HIGH POTENTIAL HOW TO SPOT, MANAGE AND DEVELOP TALENTED PEOPLE AT WORK
In today’s competitive jobs market can employers really afford to let talented people go? This essential guide to talent management outlines the crucial steps employers must take in order to identify talented staff and generate the most potential from their workforce. Covering crucial topics such as understanding high flying personality traits, key employer behaviours that promote loyalty and commitment from staff, the best assessment and management methods, and understanding why people choose to leave or stay at a company, High Potential is key reading for anyone looking to develop and nurture future talent in the workplace. Ian MacRae and Adrian Furnham have combined their significant expertise to present a practical framework for showing managers how to create a strong, strategic vision for a high performing, high potential workforce; a real competitive business advantage.
First published in Great Britain 2014 Copyright Š Ian MacRae and Adrian Furnham, 2014 The moral right of the author has been asserted No part of this book may be used or reproduced in any manner whatsoever without written permission from the Publisher except in the case of brief quotations embodied in critical articles or reviews. Every reasonable effort has been made to trace copyright holders of material reproduced in this book, but if any have been inadvertently overlooked the publishers would be glad to hear from them. Bloomsbury Publishing Plc 50 Bedford Square London WC1B 3DP www.bloomsbury.com Bloomsbury is a trademark of Bloomsbury Publishing Plc Bloomsbury Publishing, London, New Delhi, New York and Sydney A CIP catalogue record for this book is available from the British Library ISBN: 9-781-4729-04300 10 9 8 7 6 5 4 3 2 1 Design by Fiona Pike, Pike Design, Winchester Typeset by Hewer Text UK Ltd, Edinburgh Printed and bound in Great Britain by CPI Group (UK) Ltd, Croydon, CR0 4YY
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Preface There is, almost certainly, going to be something in this book you object to. The problem is that there are certain behaviours, activities and results that are desirable in particular times, societies and environments . . . and not in others. There are certain things that make people successful at work that may cause difficulties in other areas of life. Similarly, there can be qualities that make someone an excellent friend, but a terrible boss. A brilliant accountant but a terrible counsellor. A sublime performer but a lacking conversationalist. The problem of potential is always a question of what kind of potential do you mean? Many people believe that a leader of a massive company or country is the pinnacle of achievement: success is power. Others believe that a very different type of achievement is the pinnacle of human achievement. Some stridently announce that art, science, military victory, spiritual awareness, athletic performance, personal power, wealth, happiness, conformity or even extreme suffering (i.e. douleur exquise) is the pinnacle of achievement. The more specific you get about particular types of achievement, the more discriminating people can be. Tchaikovsky once said of Brahms, ‘What a giftless bastard’. Others will disagree. Our purpose in this book is not to say what is valuable, socially desirable, or to say potential is a specific behaviour or accomplishment. That would be an error. Instead, we see potential as a probability or likelihood to behave in a particular way. That means high potential at work can be seen as a high probability to be successful at a particular type of work, and will likely lead to exceptional performance in a particular area (but not always). Potential is a bet, but not a guarantee. But it is based on an extremely important set of traits and characteristics. The probability of performance can also mean people with ‘low’ potential in a certain area may still perform well in that area, under exceptional circumstances – but exceptions are by no means the rule.
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14 Preface
Make decisions based on potential, on probabilities, but leave room for people to surprise you – give people the benefit of the doubt, and the occasional opportunity to prove you wrong. Not everyone will surprise you, but it’s worth waiting for the person who will. Uniformed decisions in favour of, or against, people lead to frequent errors. As we discuss in this book, there are very many factors that contribute to potential. In many cases, being ‘average’ is a strength. Yet, as positions get more demanding, responsibilities are greater, consequences of failure become more dire, scrutiny becomes more important. Exceptionality is also abnormality – with all the implied strengths and weaknesses.The more demanding the position, the more particular the requirements. Also, remember that the focus of this book is on potential at work. The characteristics one would use to evaluate an employee or boss are not the same one should use to judge the personal relationship with a partner, lover, friend, parent or child. We will describe the components of potential at work, while the question remains for you, dear reader, to name the potential to do what. That is, in fact the purpose of this book: to provide a framework for describing potential at work along with some of the key attributes. These attributes are based on the best available scientific evidence and applied research. This is a framework, an efficient way of describing and thinking about potential, within a particular structure. That being said, only one point remains before moving from the preface into the very real face of this book – and that is to recognise the contributions. Just as potential does not exist without someone defining potential to do what, and many others developing potential. Likewise, this book would not exist without many contributions. Heather Stewart, Lloyd Craig, Ken Whittall, Matthew Griffiths, Jessica Weaving, Róisín O’Connor, Kamilla Bahbahani, Cherie Mandoli, Brendan MacRae, Rebecca Milner, Luke Treglown, John Taylor and Alison Lui all contributed directly (whether knowingly or unknowingly) to the content in these pages.
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Chapter 1 An Overview of Potential 1.1 Introduction ‘Is it not true that I have some talent, after all?’ —Ludwig van Beethoven
Every organisation needs to hire able, motivated, and talented staff with potential. This can be defined as the ability to perform exceptionally well (at work, for a reasonable amount of time) for their own benefit and that of the organisation. Having high potential is about being talented and capable of exceptional performance now and in the future. Potential means having the latent possibility of becoming even better. A person with potential is one who can grow to maximise or optimise their talent. High potential is about achieving that which is possible: to explore and exploit personal gifts and situations; to realise talents one was born with; to continually learn and develop these talents. It is having something that can (and needs) to be realised. However, the topic of potential can seem simultaneously both enormously complex, and enormously simple. It is tempting, and many tempters and temptresses will sell the idea of a single measure or single important characteristic of high potential. Talent and High Potential Management has become ‘sexy’ in certain circles. High potential is the focus of many popular books and seminars. CEOs demand that their human resource staff recruit and select employees with high potential who will ensure the future success of the company. Many consultants claim to have the secret and be able, for a generous fee, to spread their ‘magic dust’ over the organisation to help spot or recruit those with potential.
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18 High Potential
The reality of identifying and managing human potential is far from straightforward or simple. There is no one potential, because how a person behaves (at work, their behaviour is typically referred to as performance) is affected by what they know about their job, how much they want to do the job, what the consequences are for performance, and what people around them are doing. Their own abilities, skills and efforts are constantly interacting with their situation and surroundings (their environment). People choose and change their work environments and, in turn, it changes them. People are dynamic, flexible, adaptable and continuously responding to their work group and corporate culture. High potential must be defined by considering the person, the organisation, and the (current and future) work situation. So how do we know who performs well now and who has the potential to perform exceptionally in the short-, medium- or long-term future? How do we match people to the ideal job? Or match jobs with people? The goal for organisations is usually to attract people who can be (very) successful in their job, and have the potential to advance into other more challenging or demanding positions ‘up the organisation’. Many corporations endorse a natural selection view: as a natural progression for people to demonstrate their own superior performance, and to work their way towards new promotions and rewards. As we will see in coming chapters, survival of the fittest models can have serious consequences for workplaces. To those who have shall more be given . . . if they are willing to exploit their gifts. The purpose of the growing field of ‘talent management’ which we will discuss later is to get the best people into the right position to improve performance, and improve the overall performance of the organisation. In other words, the aim is to get the right people in the right roles with the right skills and attitudes to deliver value to both the organisation and the individual themselves. Ideally, getting the right person into the right job optimises performance, job satisfaction, and delivers the results the organisation is looking for. This is a question of both capability and context. Does the person have the right skills, abilities, characteristics? Will they fit into the
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An Overview of Potential 19
organisation, position, and situation now and in the uncertain times ahead? Are they flexible and adaptable enough to thrive in novel situations? In many organisations this means getting high calibre people to work in a high performing culture. But high calibre people can mean very different things at different times and places. The stereotypical high calibre person is the high-flying leader that gets promoted quickly, inspires others, and leads large companies to profit. This is one common, but very narrow, conceptualisation of potential. In reality potential is more difficult to pin down because it is tied to the organisation, sector, teams and person. High potential is frequently only equated with leadership potential. Many assume the most talented or highest performing people should (or want to) end up influencing, managing, and leading others. Potential is not necessarily leadership potential, and this book is not exclusively a leadership book. Leadership is a particular type of potential that requires certain skill sets and characteristics. But as will soon become clear, it is critical to have an overarching framework for understanding potential.
1.2 Talent Spotting & Talent Management The idea of global talent management began in the late 1990s, and remains an important topic for International Human Resource Managers (Schuler et al., 2011). The field of talent management is growing rapidly as a way of examining how to find, develop, and keep (and sometimes transition) talented people. However, some critics argue that talent management is simply rebranded human resource practices (Thunnissen, Boselie and Fruytier, 2013). Talent management has been dominated by US-led research, which is evident in the framing of the problem as The War for Talent (Michaels, HandfieldJones and Axelrod, 2001). Many organisations indeed feel that finding and keeping high-potential workers is a growing challenge and key responsibility of management. Although global economic bothers have eclipsed looming talent and worker shortages, the balance of talent supply and demand is nearing a cliff.
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20 High Potential
This is a growing problem because the demographic circumstances in most OECD countries mean a large portion of the global talent pool will exit the labour market within the next decade. The amusingly redundant term ‘ageing populations’ is a term typically used to describe nations where the average age is rising, and greater proportions of people will be in retirement, whilst simultaneously a decreasing proportion of the population will be in employment. They have fewer young people; the young people entering the workforce obviously will not have the same breadth and depth of experience as those exiting the workforce. Talent is mobile and some countries and regions lament the rapid exit of their talented young people, those of whom are attracted by better opportunities elsewhere. Some countries and regions are working hard in order to keep the young people living and working in the region (for example, Northern Opportunities, 2013) but it remains a difficult task. There is a further threat to the global talent pool from poor economic positions, which puts young people at a disadvantage with fewer opportunities to find work and develop their potential. In the short term, this means many companies are holding onto the skills already available, instead of developing the next generation of workers. This is a double threat; it means economic recovery will exacerbate the eventual exodus of the Baby Boomer generation of those born in the 1940s. Furthermore, severe, extensive periods of youth unemployment, especially in Europe, mean that large segments of the youth workforce will not have gained early experience. This is the first and a strikingly important step on the path of development. The role of experience will be discussed in Chapter 5. Many organisations are proud of their approach to talent management, but often use very conventional, standardised methods for selecting high potential recruits. Assessment centres are a popular and highly regarded method of subcontracting the hiring process (Edwards, 2011; Newby and Howarth, 2012). They differ enormously on what they say they are looking for in ‘someone with potential’. For example, consider the issue of competencies. Competencies are the building blocks of what makes a successful employee. But consider the
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An Overview of Potential 21
competency list below derived from the SHL approach. Are they the same competencies for two different jobs, different positions, and different responsibilities? What about a research and development scientist, a salesperson, or line manager? It may mean those responsible for hiring are looking for potential to do very different things. Competencies 1. Leading and Deciding. Takes control and exercises leadership. Initiates action, gives direction, and takes responsibility. 2. Supporting and Co-operating. Supports others and shows respect and positive regard for them in social situations. Puts people first, working effectively with individuals as well as teams, clients, and staff. 3. Interacting and Presenting. Communicates and networks effectively. Successfully persuades and influences others. Relates to others with a confident relaxed manner. 4. Analysing and Interpreting. Shows evidence of clear analytical thinking. Gets to the heart of complex problems and issues. Applies own expertise effectively. Quickly takes on new technology. 5. Creating and Conceptualising. Works well in situations requiring openness to new ideas and experiences. Seeks out learning opportunities. Handles situations and problems with innovation and creativity. 6. Organising and Executing. Plans ahead and works in a systematic and organised way. Follows directions and procedures. Focuses on customer satisfaction and delivers a quality service to the agreed standard. 7. Adapting and Coping. Adapts and responds well to change. Manages pressure effectively and copes well with setbacks. 8. Enterprising and Performing. Focuses on results and achieving personal work objectives. Works best when work is closely related to the results and the impact of personal effort is obvious. Shows an understanding of business, commerce and finance.
This is a simple example of different requirements for different types of potential. The positions were selected to illustrate differences between different positions, but the reality is not always so clear cut. Even similar positions in the same organisation can require differing requirements when looking for people with potential to do, sometimes, only slightly different things. This book provides a thorough analysis of what potential is; how it can be understood and applied. So, first we will explore some of the current
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22 High Potential
discussion around potential, and problems with terminology that confuse the issue. This leads nicely into what potential actually means, what it is, and a clear framework for understanding potential. Section 1 outlines the concept of potential, how it has been described in other research, good and bad uses of it, and describes a thorough framework for proper application and understanding of potential in organisations. Section 2 describes the characteristics that make up potential in individuals. It outlines what has been shown to influence performance and potential – and why each affects potential. Furthermore, this section will demonstrate when and why each characteristic should be used. Section 3 combines all of the concepts from Section 2 and shows how to consider the concepts such as intelligence and personality for different applications of potential: selection, development, and retention. Section 4 discusses strategy, qualities of strategic thinkers, and notes for strategists along with strategy and its relationship with potential. It describes how to translate the idea of potential across different types and sizes of organisations. The section on strategy discusses the HR and corporate strategies that may be necessary to try to ensure a successful High Potential/Talent Strategy is put in place.
1.3 Terminology Challenges Many commentators and researchers have talked about ‘the talent crisis’ (Athey, 2005) and the ‘global war for talent’ (Beechler and Woodward, 2009). Essentially companies need to find people who will perform exceptionally well and add value to the organisation. This is nothing new or particularly surprising. Implicit in that argument is that demand for talent does (and will) exceed supply. The greatest challenge in understanding high potential is still that many terms are used ambiguously or interchangeably: high-flyers, talent, potential, and various others. Talent is, quite simply, not a psychological concept. One approach is to list possible synonyms for talent. These include:
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An Overview of Potential 23
• blessed • exceptional • experienced • flair • genius • giftedness • high potential • precocious • prodigy • superstars • wonderkids or wunderkinds. It is really only ‘giftedness’ that has any serious academic investigation. Many business writers use terms with little regard for their use. The terminology challenges persist because there are so many people working and writing in what is nowhere near a unified field. Even research is diverse because so many different, separate fields investigate the idea of talent and potential. Different fields approach the area from different perspectives, including: organisational psychology; personality psychology and individual differences; education; management and leadership; human resources; and personnel, to name only a few. The problem of terminology can be made worse by competing talent or recruitment agencies that compete to appear regularly and in a prominent position on search engines. This process of Search Engine Optimisation (SEO) typically involves a process of using a broad range of key words, combined with unique, branded, product terms. This is one of the reasons many recruitment products and services, workshops or training courses can combine such a jumble of poorly defined terms. ‘Reach your full potential, learn the key techniques of organisational aspiration mastery, participate in an integrative and transformative leadership experience
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24 High Potential
using a collaborative and integrated solution. Register now for the LeadPro HiPot Solutions Training for only £2499.99 for two full days!’ Or, not. Therefore, it is even more important to clearly define the terms being used. Clear definitions are necessary for accurate measurement. Tansley (2011) wrote a paper called ‘What do we mean by the term “talent” in talent management?’ She looked at the history of the term, as well as how it is used in different languages including French, Danish, and Russian. Talent is usually defined by attitudes (motivation), knowledge, skills, or competencies. She notes that contemporary debating topics include the key issues: • to what extent is talent innate? • which early signs are best used to predict future success? • what is the size of the (by definition) minority that one could consider talented or with high ability? We will be discussing each of these questions in Section 2. The research into some of these questions is ongoing. However, we do know which characteristics can be early indicators of potential, as well as which skills and characteristics are useful for predicting success at different life (and career) stages. We know, to a degree, which characteristics are innate, which are learned, and which are a combination of the two. The remaining question is one for the person interested in their own potential or the potential of others: what exactly do you mean by potential; potential to do what? Potential is, in the simplest sense, a probability. High potential is high probability, which should highlight the importance of asking potential to do what? Lewis and Heckman (2006) conducted a very comprehensive review of the literature about talent management and noted the field is far from unified. Talent management, or TM, (which is really the study of potential at work) ranges from renamed human resources practices, to systems of managing the ‘flow’ of workers through an organisation. They are not the first, nor will they be the last to regard the popular field with some cynicism: ‘TM seems to be the new phrase designed to
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An Overview of Potential 25
re-package standard solutions to HR challenges or to stress the need to respond to demographic changes’ (p.142). There are many different ways people identify characteristics of potential; many individuals and companies pride themselves on their own approach, their own understanding of potential. Everyone is looking for something slightly different. It is not uncommon for people to invent, or modify already existing lists of potential ‘indicators’ simply to be able to ‘own’ their own unique approach. Take the two lists below: RHR International (2005)
An American-based consultancy developed a framework for defining high potential:
• ability to build strong relationships internally and externally • openness to change and growth • courage to make the ‘right’ decisions • ability to motivate and inspire others • level of self-confidence • awareness of one’s strengths and limitations • personal desire to succeed • commitment to the success of the business, even when personal sacrifice is involved • a core set of leadership values that the individual lives by • broad, comprehensive knowledge of the business • decisiveness • ability to identify and develop talent • superior intellectual abilities
• performance achievement record • career motivation/appetite for responsibility • professional/business competence • core values and behaviours • leadership capability • intellectual capacity • interpersonal effectiveness • organisational abilities • self-development/continuous learning
There are many more lists to choose from, with many variations on similar themes, only with minor differences. In many of these lists it is clear, although not always explicitly stated, that potential means leadership potential. These lists developed by surveying people working in human resource or leadership positions will perpetuate the myths as often as the realities. If high potential requires leadership capability (as stated above), this is a very particular
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type of potential. It leaves the very serious question: Can high potential result in success that is not a leadership role? If so, what predicts potential in a leadership role, and what predicts potential for other types of success? Are great leaders, great artists, great scientists and other top performers all made of the ‘same stuff’? Can we equate one to another? Winston Churchill and Adolf Hitler were both avid painters. Yet they are known for their leadership, not artistic endeavours. Performance levels are not ‘transferrable’ between the two areas. For Lombardo (2005), there are just three ‘magic bullets’: ‘Bright enough, varied enough in experience, and adaptable enough to learn from their actions’ (p.3). So, can anyone with sufficient intelligence and experience do anything? The short answer is no. The long answer is much more complex.
1.4 Definitions Talent is commonly used to describe people’s inborn or natural abilities. The following definitions were collated from books and reports (by Uren, 2011) trying to answer the simple question: What is talent? • The Born this Ways: ‘The innate and deliverable skills and capabilities that particular individuals have to drive and sustain business performance – relative to the organisation’s specific context and its culture which will dictate what talent means.’ • The Personas: ‘Talent is about the identity that people assume to take themselves forward – and that fits within the work area or organisation.’ • The Exceptionals: ‘Individuals who set themselves apart by being able to do exceptional things through a balance of performance, potential and capability – in relation to current and future business needs.’ • The Strivers: ‘Talented people demonstrate the skills and desire to progress significantly – along with an ability to do something others struggle with.’
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• The Bright Stars: ‘Talent is role, culture, and future-specific . . . and is the sort of people who are able to differentiate themselves through their talents, spontaneity, energy, personal growth, and the ‘magnetism’ to attract other talent.’ • The Differentiated: ‘We have two views of talent – talent that is scarce and senior, but also the kind of performance and potential that exists everywhere in the organisation.’ In the business world three concepts are used interchangeably: Talent and talent management; employee potential; and High Flyers. Talent and potential are not words typically used by the psychologists who study behaviour at work. Giftedness, however, is a psychological term for the study of potential in young people that shares many commonalities with high potential in adults. In a review of giftedness, Subotnik et al. (2011) described gifted children, essentially, as the top performers; ‘giftedness is the manifestation of performance that is clearly at the upper end of the distribution in a talent domain’ (p.3). This is both important and telling: important, because giftedness is ultimately determined by performance; telling because giftedness is relative to others, and the particular domain. Gifted children are the top performers in a particular area, such as musical or mathematical ability, but it is unlikely they are top performers in every possible area. This is equally true of potential; people have different potential in different areas. Subotnik et al. (2011) also noted the importance of social values in giftedness. What makes a ‘top performer’ is ultimately determined by what kind of performance social and cultural values call for. What do the society, community, parents, and peers value? This suggests a moral and situational dimension of desirable behaviour. Many occupations and desirable characteristics change or become obsolete with changing culture, values, and technologies; from cuirassiers, to eunuchs, to whipping boys. Silzer and Church (2009a) describe different types of potential and suggest, in practice, there are many different definitions of individual potential within and between organisations. Larger organisations, for example, may have a human resources department with documented
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descriptions of potential, whereas managers may have their own idea about what predicts individual potential or what type of person they want to hire. A survey of 20 companies by Silzer and Church (2009b) found the most typical corporate definitions were: • potential to move into a high-level managerial role (35 per cent) • potential to move up one or two levels in the organisation (25 per cent) • potential to take on a wider range of roles (25 per cent) • past performance (10 per cent) Questions about potential must be considered for all positions in an organisation. Equating potential with leadership potential is hazardous because it is too restrictive. Definitions of potential will differ, depending on the occupation, organisation, and position. An unreasonably restrictive definition of success can also be demotivating to others in the organisation who are outside of the identified high talent pool, but may have potential that is being overlooked (Yost and Chang, 2009). Silzer and Church (2009) argue that the concept of potential is singular, immutable, and context dependent. It is defined by, and brought out only, in certain situations. They note that high potential can be defined by role, level, breadth, record, strategic position, or strategic area. Someone, may be a high potential artist, while being a low potential leader. They analysed eleven company definitions of talent/high potential and found evidence of seven categories, although definitions of each category varied between companies. Notice, leadership is included as a key category of potential. Whereas the other characteristics of potential are more broadly applicable (each will be discussed in subsequent chapters), leadership is a particular kind of potential that is not necessarily required for some highly demanding, skilled, and high profile career paths.
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An Overview of Potential 29
Category
Definition
Cognitive
Ability to think strategically or solve tactical problems. Ability to learn from experience and apply knowledge.
Personality
Emotionally and psychologically stable, emotionally intelligent, self-aware with strong capacity for planning, organisation and goal-setting.
Learning
Able to learn quickly and adapt. Receptive to feedback and learning from experience, mistakes and others’ advice.
Leadership
Competent and able to lead and inspire others. Brings out the best in other people, and able to influence or challenge the status quo.
Motivation
Energetic and driven to succeed, able to take risks and work to get results, commit to a goal and see it through
Performance
Ability to deliver results.
Other
Technical skills, particular knowledge and cultural fit.
The above is perhaps the best and most comprehensive view of potential that we have so far. Each will be discussed further in Section 2, and put into a clearer model of potential, along with what to look for in an employee, or in your own career. Yet there are, of course, other approaches. Uren (2011) suggested a rather different approach, which stressed the benefits of ‘talent segmentation’ or sorting people into categories. This model serves as an example of what to be wary of when trying to identify and understand potential. While Silzer and Church describe different characteristics (or categories of characteristics) that contribute to potential, Uren’s types are much more general and much more difficult to really use and apply. She identified six types: 1. Brand Enthusiasts (‘Impress Me’): who seek opportunities to be stretched and challenged and want support for this to happen. 2. Career Ladderists (‘Promote Me’): who want fast promotion, progression and upward development in more traditional organisations. 3. Connectors (‘Support Me’): who like friendly supportive organisations and want collaboration in a range of developmental experiences. 4. The Nurtured (‘Guide Me’): who want organisations to get to know them, respect them and take a large role in their development.
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5. Opportunity Seekers (‘Challenge Me’): who, like Ladderists, want progression but want to be challenged en route. 6. Planners (‘Understand Me’): who see their career as an anchor that gives them a sense of stability and a pathway through life. The problem with this model is that it does not describe what specific attributes contribute to success. There are different types of people, but those do not necessarily fit well within a model of matching people with tasks and jobs at work. Which people are more likely to be successful, how do characteristics change and develop, and of equal import – what mechanisms underlie success and potential? The problem with all categorical approaches is how to determine what type an individual is; whether he or she is more than one type; whether these types change or indeed which type is preferable and more adaptable. Types are useful for highlighting points and people of interest, but make poor conceptual models.
1.5 What You Want in a Talented Person The following list is of positive characteristics you want in people at work. First select from the list five characteristics that you look for most in a leader, or someone you would want to follow. Now do the same for a colleague: and then what about someone who works for you? What about what you look for in a friend or partner? Are they always the same? Ambitious (hard working, aspiring)
Honest (truthful, has integrity, trustworthy, has character)
Broad-minded (open-minded, flexible, receptive)
Imaginative (creative, innovative, curious)
Caring (sensitive, appreciative, concerned, respectful, loving)
Independent (self-reliant, self-sufficient, self-confident)
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Competent (capable, productive, effective, efficient, thorough) Co-operative (friendly, team player, available, responsive)
Inspiring (uplifting, enthusiastic, energetic, humorous, cheerful, positive about the future) Intelligent (bright, thoughtful, intellectual, reflective, logical)
Courageous (daring, stands up for own beliefs)
Loyal (obedient, dutiful, respectful, committed to the company)
Dependable (reliable, conscientious, responsible)
Mature (experienced, wise, has depth)
Determined (hard working, persistent, purposeful, steadfast)
Self-controlled (restrained, self-disciplined)
Fair-minded (objective, forgiving, willing to pardon others, consistent)
Straightforward (direct, candid, forthright)
Forward-looking (visionary, foresighted, concerned about the future, sense of direction)
Supportive (understanding, helpful)
This list, taken from Kouzes and Posner (1998) only has positive and desirable characteristics. But studies have found that different people, in different countries and working in different sectors want essentially the same characteristics in their leaders. Essentially they all want them to be honest, bright and inspiring. Similar companies may have very different cultures and values, which affect what combination of characteristics is going to be most successful in that company. There are many important ways companies and people can vary. Although there are some indicators of success in almost any position, there are also grey areas. This is an important observation about perspectives. Has the board, the line manager, and the HR group got very different definitions of what potential
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is, as well as those who work with and for those claimed to have potential? Do you and your boss have the same ideas about potential? If in doubt, ask.
1.6 The Fundamental Questions There are three key questions about potential that we will look at in detail in Section 3 of this book. The questions are important, and are framed from the perspective of those looking at others’ potential from a company or organisation. This could be a manager, leader or whoever is responsible for human resources or talent management. Yet, these questions are of interest to everyone. The table below shows the three key questions, framed from a leader’s perspective, but can also be examined from the perspective of self-awareness and reflection.
1. Finding
Leader/HR Perspective
Individual Perspective
How do I identify other’s potential?
How do I understand my own potential?
2. Developing How do I develop other’s potential?
How (and where) do I develop and channel my skills.
3. Retaining
Should I stay in the same position? With the same company?
How do I keep high potential people?
The key difference is from a leader’s or organisation’s perspective. High potential is about finding (recruiting and selecting), developing, and keeping (retaining) the right people for the organisation. From an individual’s perspective, the important part is finding how, where, and when to practice and apply one’s abilities. A) Finding (identifying) those with potential: There are talented people out there, and for any position, when multiple candidates apply some are more capable than others. Typically this involves first attracting and recruiting and then picking the best-qualified or highest potential person from many candidates. Sometimes it may only be a few people; sometimes it can involve selecting the right person from hundreds or thousands of candidates.
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Other times, finding the right person may require actively seeking out and enticing high potentials away from other companies. This is the main business of Head Hunters: Attracting talented high potential people. It also involves finding ways to persuade talented people to join the organisation. The purpose is either to select the best person, who is already interested in the position, or to seek out the best person and make them interested in the position. For employers, there are two key, interrelated questions. First, how do you figure out who is the bestqualified person for the job? Second, how do you entice them into the job? The latter involves an understanding of their motivation patterns, which may (or may not) be very different from less talented people. B) Developing those with potential: Employment is about development from the very start. The first part of any job is developing a person’s ability to fit with the job requirements. Any job involves learning about the tasks, the job demands, and the culture at work and how to work with others. Mediocre development endeavours stop here – teaching the person to do a single job, then letting them get on with it. For some people, learning to do their job and being left alone to get on with it is exactly what they want. Others want to learn how to do their job better (and to benefit either financially or from the satisfaction of a job well done) or to take on new responsibilities in the organisation. Development should not be thought of as a process of promoting people. Development, at its best, is moving people into their optimal roles. For some, the optimal role is being good at the job they are in and enjoy; for some, the optimal role is constant learning and development and new experiences. It also should not be ignored that sometimes development is the (challenging) requirement of being able to do the same job well with radically new and changing circumstances. The most versatile and promotable are as important, and as deserving, of development efforts as the dependable and consistent workers. Development efforts can be large-scale, with overall frameworks and processes, but must also occur at individual levels. People can learn from reading, and can refer to policy and procedure manuals. But few can learn fully and properly without guidance and support, and development from others in the organisation. It is possible to argue that there are only three different approaches to development which are listed below:
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• Experiential: ‘Stretch assignments’, shadowing, outplacement, job rotation. • Educational: MBA, short course, case studies, simulations. • Personal: Coaching and mentoring. The question is which methods are best for the individual and the organisation. High potential development typically involves all three. C) Retaining those with potential: It is surprisingly common to see that individuals rarely remember that commitment and loyalty is a mutual thing. Staying in a company or organisation is not automatic, and most people do not feel obligated to stay in a company that is buying their skills based on hourly, weekly or annual labour agreements. Keeping people, especially talented or high potential people, is an ongoing and worthwhile effort. Retention of skilled and engaged employees is not so much a constant strain, as it is a matter of personal and professional satisfaction and achievement. People are motivated by different things, but most people take pride in their own work and their own personal and professional development. Others are focused on the benefits and rewards of their career – something of which a skilled leader is aware of, and able to work with (reward). Satisfaction and achievement are fundamental aspects of retention. People who are bored, feel unrewarded, unappreciated, misunderstood or maltreated are much more likely to leave irrespective of their potential. People leave or stay with managers, not companies. Many with high potential desire, and actively seek out, development opportunities. The simple argument can be made for cost effectiveness and return on investment: hiring and development is expensive, and retention focuses on securing that investment. Keeping a talented employee could mean transforming the high potential employee into a talented manager, into a talented director or even a talented CEO. Or it can mean transforming a team of technicians into local or world-leading specialists who develop excellent products, provide expert services or have brilliant ideas. For a budding entrepreneur or community activist it may be about finding (and developing) the right people or group of people to match up with a vision and plan.
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Retention is also about keeping those who are best for the organisation – and particularly in times of hardship, retention takes on the more grim focus on which employees do not add value or productivity to the organisation. Retention is keeping the best and the brightest, but it is also about keeping only who do the job required, the kind term is ‘letting people go’ which sounds disingenuous because it misapplies agency, and implies there was a time when they were not allowed to leave. Sometimes employers and leaders are forced to make judgements about current performance and future potential and decide whether or not they believe employees can add short- or long-term value to the work. For this, it is equally important that decisions are made based on strong evidence and good judgement.
1.7 Defining Potential Potential is the upper (and lower and middle) possible trajectory of what a person can do. Success and performance are what a person has done in the past, potential is what the person could realistically do in the future. Potential is of course dependent on factors outside of individual control. Internal characteristics are not the sole determinant of performance but they are foundational. Even internal characteristics like intelligence and personality are, to a certain extent, influenced by a person’s environment and upbringing. Furthermore, opportunities, good fortune, development, mentors, career and life events can be unpredictable and drastically affect potential. Potential is not a guaranteed trajectory, but really is a probability of following a certain trajectory. It is variable, contextual, and an interaction of internal and external factors. It is a range of possible trajectories, and more information about the contributors to potential help to narrow down a specific, probable trajectory of career potential. More information leads to more accurate estimates. An uppermost limit always exists, when an optimal combination of the right traits mix with the right environment and opportunities. A potential ‘floor’ exists – where even very intelligent, talented people may end up if deprived of education or opportunities to develop and hone skills.
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Key Points The lessons from giftedness (Subotnik et al., 2011) can be translated into understanding potential: 1. Potential reflects cultural and organisational values. Those with potential to be a top performer in any domain reflect value judgement about what performance is useful and instrumental, as well as what performance is undesirable. It also reflects what types of jobs and work add social, cultural, community or economic value. 2. High potential eventually leads to specific outcomes. By the very nature of defining potential, there will be measurable outcomes. Those with high potential have a high probability of performing well, and likely performing better than others with lower potential. 3. Potential is specific to certain jobs and domains. Defining potential means defining the job, as well as the domain. While there can be overlap between high potential in different domains, potential to be successful in one area does not translate directly into potential to be successful in another; just because someone is a high performing mathematician does not necessarily mean they are a high potential public speaker or leader. 4. Multiple factors influence potential: including biology, psychology, social and cultural groups. This will be discussed throughout subsequent chapters, but there is no single, simple measure of potential. 5. Potential is relative. High potential exists only relative to moderate and low potential. Potential is high because it is related to the greatest probability of success, or probability of the highest performance. The highest and lowest potential is, by its very nature, rare.
1.8 Potential and Equity A final important note on potential is the consideration of equity. Equity can be a thorny issue, many organisations fear testing because they are worried about exposing themselves to accusations of prejudice or legal challenges. The issues around equity and fair practice can seem to be a thorn in the side of business, making more work for employers.
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However, employment equity concerns are tied fundamentally to the concept of potential. Equity focuses on reducing barriers to employment that prevent people or groups from jobs where they have the potential to succeed. Equity is not about giving anyone a job, but making sure people who are equally capable have equitable access. In other words, equity is about identifying potential based on valid criteria. Identifying potential in a way that disadvantages specific people with noticeable, but irrelevant, criteria is not just unfair, it’s bad business practice. Employment equity can provide a competitive advantage because it ensures the assessed talent pool is the closest match to the actual talent pool. This further emphasises the importance of defining potential to do what. A clear, specific and accurate definition of what constitutes success, or what the results of high potential would be, is very important for making sure the right people are chosen for the right position based on the right conditions. Best practices in employment equity, although they may be framed differently, are essentially the same as best practices in identifying potential. It means making selection, training and retention decisions based on factors that accurately and reliably determine performance. Kamilla Bahbahani, Equity Manager at the University of British Columbia provides an excellent 5-point framework for the importance of equity to organisations, and how it is fundamentally linked to the concept of potential. Equity is: 1. Right: Fundamentally, the first point is that equity is right in the sense of both morality and validity. You have your own opinion on which is more important and why. It is right because it means people are not unfairly excluded for reasons that do not actually affect performance. It is both moral in the sense that it is good and valid in the sense that it is correct: overall it is right. 2. Legal: In employment law, the legality of identifying the proper characteristics is referred to as bona fide occupational requirement (BFOR) or bona fide occupational qualifications (BFOQ). Essentially it means selecting people based on criteria that are reasonably and justifiably important for successful performance. For example, if the primary purpose of the job is to transport cargo using a lorry, the ability to drive
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Figure 1.1: Equitable vs. Inequitable Identification of Potential
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a lorry is a BFOQ. Conversely, it would be unreasonable to select someone based on his or her own characteristic that is unrelated to a BFOQ. For example, physical fitness requirements, for fire-fighters that require the applicant to climb a ladder and carry heavy equipment (UK Fire Services, 2011), can be a valid BFOQ because they are necessary for successful completion of the job. Selecting based on these criteria is moral, valid, and legal. Narrowing the pool to only men, only people who are more likely to have greater upper body strength, or any other factor that is related to ability (talent) but not necessary for the talent may not be legal. As will be discussed in Chapter 11, ‘Retention’, organisations that are not equitable (or perceived not to be equitable) also risk wider perceptions of unfairness and risk losing more talent (Kerr-Phillips and Thomas, 2009). 3. Efficient: Employment equity can increase the talent pool. The essential reasons are similar to the validity issue raised in the first point. Bias in hiring, selection or recruitment reduces the potential talent pool by excluding people who do have the potential to be successful. It can also lead to people being mistakenly identified as high potential. Eliminating invalid selection criteria increases the potential talent pool, but it is not a simple matter of advertising employment equity. Inequitable procedures may quickly be spread around, and can be a serious deterrent to broadening the talent pool. 4. Educational: Equitable employment policy enhances learning because it leads to work environments with a more diverse group of people. As will be discussed in later chapters, wider ranges of experience, of learning opportunities and knowledge is an important characteristic of potential. It enhances individual learning (in the sense that each employee can learn more from colleagues) and it enhances organisational learning because teams may have a wider range of knowledge and experience to draw on. One of the simplest examples is marketing. 5. Interesting: Equitable employment practices typically lead to greater diversity in the workplace. This means people with a broader range of experience and background bring new, interesting, and useful knowledge and abilities to work. The opportunity to work with many
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different people, all of whom are skilled and highly capable or have high potential, creates a much more enjoyable and interesting workplace. Whereas inequity leads to hiring unqualified or incompetent people; this consequently leads to stagnation and frustration in the workplace. Angel Gurría, Secretary General of the Organisation for Economic Co-operation and Development (2012) describes how gender equity in the workplace, for example, can increase economic growth, and employers play a crucial role in driving that economic growth. Although women now outnumber men in higher education in most developed nations, men still outnumber women especially at the higher levels of management and in boardrooms, and women make on average 18 per cent less than men for comparable work (Gurría, 2012). US ambassador Kornbluh refers to this as the ‘leaky pipeline’ of skills (BIAC, 2012).
1.9 Conclusion There is no ‘one potential’, just as there is no single job description that applies to all types of work. Identifying potential first involves distinguishing between dimensions of potential: Foundational dimensions, which apply across the board. Growth dimensions, which affect learning and development. Career dimensions, which are truly unique to different jobs. So, with some idea of how to define potential, a look into the fundamental questions, and considerations of equity and asking potential to do what?, we can sally forth.
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Available to pre-order at www.bloomsbury.com
HIGH POTENTIAL Hardback- Spring 2014