Cracking the code on high potential finding engaging and retaining your best webinar

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Cracking the code on high potential: Finding, engaging, and retaining your best

Henryk Krajewski, Ph.D.

President

Anderson Leadership Group

@buildvalue


Topic list

I. Emphasizing the talent shortage and

engagement problem

II. Understanding High Potentials/High Performers

and how to find/assess them

III. What Maters to High Potentials: A Research

Report

IV. How to Retain and Engage High Potentials


An increasing cynicism…Why?

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Productivity

Hourly Compensation

**Shaded areas represent recessions


I. EMPHASIZING THE TALENT SHORTAGE/ENGAGEMENT PROBLEM

CRACKING THE CODE ON HIGH POTENTIALS


Why you care…

Type of Job

% more productivity

Superior performers vs.

Average performers

Low Skill +19%

High Skill +32%

Professionals and Managers +48%

Schmidt and Hunter, 1998


True Performance Distribution

O’Boyle & Aguinis, 2012, N = 633,000

Normal

Curve

Pareto Curve

1% of Output

from the Top

1%

Nu

mb

er

of

Em

plo

ye

es

Performance


True Performance Distribution

Normal

Curve

Pareto Curve

10% of

Output from

the Top 1%

Nu

mb

er

of

Em

plo

ye

es

Performance

O’Boyle & Aguinis, 2012, N = 633,000


Why you care…

Bain and Co., 2013

Top Performers outpace the average by


Source: Business Week, based on data from the Bureau of Labor Statistics as of 09-09

.

Demographic and Economic Shifts are Accelerating a “Talent Mismatch”


New Rules for a New Generation…

The US Labor Department estimates that today's worker will have held 10-14 jobs by the age of 38!


II. UNDERSTANDING HIGH POTENTIALS AND HIGH PERFORMERS AND HOW TO ASSESS THEM



High Potential vs. High Performance?

• Do all high performers have potential?

• Are all high potentials high performers?

• Can low performers have high potential?

• Can high performers have low potential?


Source: Adapted from Corporate Leadership Council Realizing the Full Potential

of Rising Talent Volume I: A Quantitative Analysis of the Identification and

Development of High-Potential Employees, 2005.

Ability

Commitment & Values

Aspiration

Spotlight on High Potentials: A Definition

The High Potential Employee:

Is someone with the ability,

aspiration, values and

commitment to rise and

succeed in a more senior,

critical positions.


Ability

Commitment & Values

Aspiration

Ability• Thinks strategically

• Deals with complexity

• Possesses EQ

Commitment and Values•Reflects values and culture

•Proactive and displays

discretionary effort

Aspiration• Desires advancement in

complexity of responsibilities

•Seeks to improve oneself

Spotlight on High Potentials: A Definition

Source: Adapted from Corporate Leadership Council Realizing the Full Potential

of Rising Talent Volume I: A Quantitative Analysis of the Identification and

Development of High-Potential Employees, 2005.


Assessing Potential, Readiness and Risk


A Deeper Dive into Assessing Potential

• Use 3rd party assessments to validate Managers’ views!


Poll Question:

Which do you think is the best single factor or method that can used to predict future performance?

• Personality testing/Leadership style

• Past Behaviour Interviews

• IQ/critical thinking

• Emotional Intelligence

• Role Plays


The hard truth about Mental Ability


What is “Additive” to Mental Ability?

• Personality tests• Conscientiousness

• Integrity/Dutifulness

• Extraverson and Affiliation

• Past-behavior interviews• Use structured scoring keys!

• Behavioural Role Plays• Smell the leather – see the

behavior first hand!

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T1 T2 T3 T4 T5

Maintenance Curve

PerformanceLearning Phase: IQ most important!

Maintenance Phase: Personality most important!


What about EQ?

• Mayer (MSCEIT; 1999; 2003) sets EQ as an ability

• Four dimensions:

I. Perceiving and identifying emotions

II. Using emotional feedback in decision-making processes

III. Reasoning about, and understanding, fine distinctions and emotional development

IV. Managing and controlling emotions in both the self and others


Simple science

IQ

Personality

Past Behavior

EQ

Future Performance


Rolling up the data: The Nine Box Grid


Talent pool gap analysis


Best practice

1. Teach managers about potential

2. That we should ‘reality check’ managers’ ratings using calibration meetings

3. Do a deep dive with a 3rd party to validate potential using proven methods

4. Assess fit and competence over time through “pipeline management” of talent pools


III. WHAT MATTERS TO HIGH POTENTIALS: A RESEARCH REPORT



Scope:

• 45 companies across the globe

• 5,314 “high potential” respondents

Purpose:

• Define the attributesthat are most important to top talent

• Discover which of these attributes drives engagement

What do High Potentials Really Want?


“Desired Attribute” Categories

• Leadership

• Values

• Culture

• Comp/Benefits/Development

• Work Environment

• Brand Attributes

Engagement

Outcomes

• Commitment

• Intent to Stay

IMPACT ON

Analysis Overview

Defined from over 30,000 individual data points


CommitmentIntent to Stay

• Values: honesty and integrity

• Brand: Company known for #1 in market and best talent

• Culture: A sense of belonging and camaraderie

Drivers of Engagement Outcomes: Results

• Comp/Benefits/Dev

• Values

• Culture

• Leadership

• Work Environment

• Brand


Forbes’ Best Companies to Work For


IV. HOW TO RETAIN AND ENGAGE HIGH POTENTIALS



Poll Question:

Does your organization have a dedicated high potential “value proposition” initiative?

• Yes

• No

• Currently planning on this topic


The DIY High Potential Value Proposition

Leadership/Executive ViewHigh Potential View

Desired work attributesWork attributes

to realize strategy

Perceived work attributesPerceived work attributes of

employees’ experience

Gap

Gap

Gap Gap


AN EXAMPLE…

EVP Elements HiPo’s GET… HiPo’s GIVE…

BRAND: Living with

a Commitment to

Excellence

Built-in time to reflect on

problems and solutions that

matter to real people

Accept personal accountability

to be measured on what they

create and how useful it is

VALUES: Working

in a ethics-

conscious way

Ethical decision-making by

management – transparent

guidelines

Demonstrate that they will keep

commitments to the company

and its clients

CULTURE:

Belonging to a

Winning Team

A firm that attracts top talent

and recognizes merit

Updating and retooling their

skills as market needs require

The Deal


Job Characteristics Model (Hackman, & Oldham, 1976)

• Skill variety – using a number of different talents in a number of different activities

• Task identity – completion of a whole task from beginning to end with a visible outcome vs. only a piece of the work

• Task significance – tasks that have a significant and identifiable impact on the lives or work of other people

• Autonomy – a sense of control and discretion over how one executes

one’s work

• Individualized feedback loops – individualized consideration with a

consistent flow of information to allow one to adjust, amend, and learn.


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2 Bad 1 bad Equal # 1 Good 2 Good

Ma

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ten

tia

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Net Change inPotential

How to Ruin HiPOs: Bad Managers

Source: Adapted from Corporate Leadership Council Realizing the Full Potential of Rising Talent Volume I: A Quantitative Analysis of the Identification and Development of High-Potential Employees, 2005.


Job Characteristics Model (1976)

• Skill variety – using a number of different talents in a number of different activities

• Task identity – completion of a whole task from beginning to end with a visible outcome vs. only a piece of the work

• Task significance – tasks that have a significant and identifiable impact

on the lives or work of other people

• Autonomy – a sense of control and discretion over how one executes

one’s work

• Individualized feedback loops – individualized consideration with a

consistent flow of information to allow one to adjust, amend, and learn.


Manager Tools: Development Plans and Coaching


Take-aways and actions…

• Understand what high potential and educate your managers.

• Develop formal “HiPo” validation process using ‘calibration teams’ and

deeper level, 3rd party assessments.

• Use simple, practical online tools to capture and powerfully illustrate

your workforce at a glance.

• Monitor and track HiPo’s in different talent pools and regularly assess

their fit for promotion.

• Create an explicit “HiPo value proposition” to attract and retain talent.

• Find and develop manager specialists that leverage the Hackman and

Oldham elements to develop key talent.


Questions?

Thank You!

For more information:

Henryk Krajewski, Ph.D., President, The Anderson Leadership Group [email protected] @buildvalue

Connie Costigan, Director of Marketing and Communications, Halogen Software [email protected]

Cracking the code on high potential finding engaging and retaining your best webinar

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