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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
© 2013 Halogen Software. All rights reserved. All contents are confidential.
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
© 2013 Halogen Software. All rights reserved. All contents are confidential.
An increasing cynicism…Why?
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Productivity
Hourly Compensation
**Shaded areas represent recessions
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I. EMPHASIZING THE TALENT SHORTAGE/ENGAGEMENT PROBLEM
CRACKING THE CODE ON HIGH POTENTIALS
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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
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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
© 2013 Halogen Software. All rights reserved. All contents are confidential.
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
© 2013 Halogen Software. All rights reserved. All contents are confidential.
Why you care…
Bain and Co., 2013
Top Performers outpace the average by
© 2013 Halogen Software. All rights reserved. All contents are confidential.
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”
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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!
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II. UNDERSTANDING HIGH POTENTIALS AND HIGH PERFORMERS AND HOW TO ASSESS THEM
CRACKING THE CODE ON HIGH POTENTIALS
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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?
© 2013 Halogen Software. All rights reserved. All contents are confidential.
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.
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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.
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Assessing Potential, Readiness and Risk
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A Deeper Dive into Assessing Potential
• Use 3rd party assessments to validate Managers’ views!
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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
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The hard truth about Mental Ability
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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!
0
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60
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T1 T2 T3 T4 T5
Maintenance Curve
PerformanceLearning Phase: IQ most important!
Maintenance Phase: Personality most important!
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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
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Simple science
IQ
Personality
Past Behavior
EQ
Future Performance
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Rolling up the data: The Nine Box Grid
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Talent pool gap analysis
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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
© 2013 Halogen Software. All rights reserved. All contents are confidential.
III. WHAT MATTERS TO HIGH POTENTIALS: A RESEARCH REPORT
CRACKING THE CODE ON HIGH POTENTIALS
© 2013 Halogen Software. All rights reserved. All contents are confidential.
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?
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“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
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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
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Forbes’ Best Companies to Work For
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IV. HOW TO RETAIN AND ENGAGE HIGH POTENTIALS
CRACKING THE CODE ON HIGH POTENTIALS
© 2013 Halogen Software. All rights reserved. All contents are confidential.
Poll Question:
Does your organization have a dedicated high potential “value proposition” initiative?
• Yes
• No
• Currently planning on this topic
© 2013 Halogen Software. All rights reserved. All contents are confidential.
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
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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
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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.
© 2013 Halogen Software. All rights reserved. All contents are confidential.
-3
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-1
0
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2 Bad 1 bad Equal # 1 Good 2 Good
Ma
gn
itu
de
Dif
fere
nc
e in
Po
ten
tia
l
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.
© 2013 Halogen Software. All rights reserved. All contents are confidential.
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.
© 2013 Halogen Software. All rights reserved. All contents are confidential.
Manager Tools: Development Plans and Coaching
© 2013 Halogen Software. All rights reserved. All contents are confidential.
Manager Tools: Development Plans and Coaching
© 2013 Halogen Software. All rights reserved. All contents are confidential.
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.
© 2013 Halogen Software. All rights reserved. All contents are confidential.
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]