Potential versus Performance

Approximately only one in five companies uses an empirically validated model for assessing the potential of its participants on executive courses. How therefore, are future leaders being selected in 80% of the cases: answer – mainly on past performance. Unfortunately however, the key to success in a new leadership role is usually highly dependent on the individual’s potential – the ability to learn and adapt; rather than the individual’s experience and competencies. This is according to Claudio Fernandez-Araoz in the June 2014 HBR article “21^st Century Talent Spotting: why potential now trumps brains, experience and ‘competencies.’” On the assumption that 1/ you are a manger who wants to develop potential; and 2/ you work in one of the 80% of companies that don’t have empirical ways of assessing potential, how might you detect and assess potential?

Here’s what to look for in terms of potential along with further considerations (“et alors”)

Potential versus Performance

According to the author, performance factors such as intelligence, experience, surpassing objectives and specific competencies “particularly the ones related to leadership” should not be overlooked when hiring or promoting “talent”; however the key to getting the right people into challenging positions is to seek potential. Here’s what to look for:

Motivation

“A fierce commitment to excel in the pursuit of unselfish goals.” Ambitions should be big and collective but expressed with “deep personal” humility with a desire to continually develop.

Curiosity

A “penchant” for seeking out new experiences, knowledge and candid feedback. This should be along with an openness to learning and change.

Insight

The ability to gather and make sense of information in order to suggest new possibilities. It is not just research or analysis but a “what could be done” perspective.

Engagement

A “knack” for using emotion and logic to communicate a persuasive vision.  The key is to engage others and “connect with people.”

Determination

The wherewithal to fight for difficult goals despite challenges and bounce back from adversity. With the drive to succeed many things can be made to happen…

Et alors

Not many companies ask managers to assess the potential of their staff and yet at the same time they might have a myriad of executive education courses targeted at “high potentials”. If the company does go some way to formalizing its high-potential detection process, the system inevitably falls back on detecting high performance. The only way to break out of this cycle is to educate managers on the detection of potential: it’s not just if the junior manager appears to be “one of us”, or has done a good presentation, or works long hours, or is “correct”; rather it is all about motivation, curiosity, insight, engagement and determination. Above all, it is learning agility that makes the talent have the “best chance of success.”