The Death of the ‘High Potential’ (And What’s Next)

• The Pitfalls of Traditional High Potential Programs
• Narrow Focus and Limited Perspective
• Bias and Lack of Diversity
• Demotivation and Disengagement
• Rethinking Talent Development for the Modern Workplace
• Embracing a Growth Mindset
• Democratizing Leadership Development
• Focusing on Team Performance
• Innovative Approaches to Talent Development
• Value-Based Recognition Programs
• Team Project Contests
• Learning Initiatives That Reward Upskilling
• Flexible Benefits Systems
• Comparing Traditional and Modern Approaches to Talent Development
• The Future of Talent Development

For decades, HR departments have relied on “high potential” (HiPo) programs to identify and nurture future leaders. But in today’s rapidly evolving business landscape, are these traditional approaches still fit for purpose? As organizations grapple with unprecedented change, many are questioning whether the concept of the “high potential” is holding them back. This article explores why traditional HiPo programs are falling short and presents innovative alternatives for developing talent in the modern workplace.

The Pitfalls of Traditional High Potential Programs

Narrow Focus and Limited Perspective

Traditional HiPo programs often suffer from a myopic view of talent. Dr. Tomas Chamorro-Premuzic, Professor of Business Psychology at University College London, argues that these programs tend to overemphasize charisma and confidence while undervaluing critical skills like emotional intelligence and learning agility. This narrow focus can lead to the promotion of individuals who excel at self-promotion but may lack the adaptability needed in today’s dynamic business environment.

Bias and Lack of Diversity

Research by the Center for Creative Leadership found that women and minorities are consistently underrepresented in HiPo programs, with only 23% of high potentials being women and even fewer being people of color. This lack of diversity not only perpetuates existing inequalities but also deprives organizations of diverse perspectives crucial for innovation and problem-solving.

Demotivation and Disengagement

Labeling a select few as “high potentials” can have unintended consequences for the broader workforce. A study by CEB (now Gartner) revealed that 55% of employees who were not identified as high potentials reported decreased engagement and commitment to their organization. This creates a self-fulfilling prophecy where those not chosen for HiPo programs become less likely to excel and contribute their full potential.

Rethinking Talent Development for the Modern Workplace

Embracing a Growth Mindset

Instead of fixating on a small group of predetermined high potentials, forward-thinking organizations are adopting a growth mindset approach to talent development. Dr. Carol Dweck’s research at Stanford University demonstrates that individuals who believe their abilities can be developed (growth mindset) outperform those who believe their talents are innate gifts (fixed mindset).
Practical application:

• Implement training programs that emphasize skill development and continuous learning for all employees
• Recognize and reward effort, progress, and improvement, not just innate ability or past achievements
• Encourage managers to provide regular feedback focused on growth opportunities rather than fixed assessments

Democratizing Leadership Development

Progressive companies are moving away from exclusive HiPo programs towards more inclusive leadership development initiatives. Google’s Project Oxygen, for example, identified eight key behaviors of great managers and provides training and resources to help all employees develop these skills, regardless of their current role or perceived potential.
Best practices for democratizing leadership development:

• Offer leadership training and mentoring opportunities to all interested employees
• Create cross-functional project teams to give diverse groups of employees leadership experience
• Implement job rotation programs to broaden skills and perspectives across the organization

Focusing on Team Performance

While individual high potentials may shine in the short term, long-term organizational success depends on high-performing teams. Research by MIT’s Human Dynamics Laboratory found that the most important predictor of team success was not individual talent, but rather the quality of team communication and collaboration.
Strategies for enhancing team performance:

• Implement team-based recognition programs that reward collective achievements
• Organize cross-functional innovation challenges or hackathons to foster collaboration
• Provide training on effective teamwork, communication, and conflict resolution skills

Innovative Approaches to Talent Development

Value-Based Recognition Programs

Traditional HiPo programs often focus on rewarding individual achievements, which can foster competition and silos. Value-based recognition programs, in contrast, align rewards with organizational values and behaviors that drive long-term success. These programs encourage collaboration, innovation, and ethical behavior across all levels of the organization.
Key components of effective value-based recognition:

• Clearly defined organizational values that are communicated and reinforced regularly
• Peer-to-peer recognition platforms that allow employees to acknowledge colleagues’ contributions
• Regular celebrations of teams and individuals who exemplify company values

Team Project Contests

To foster innovation and cross-functional collaboration, many organizations are implementing team project contests. These initiatives bring together diverse groups of employees to tackle real business challenges, providing opportunities for leadership development and skill-building outside of traditional hierarchies.
Benefits of team project contests:

• Encourages creative problem-solving and innovation
• Develops leadership and project management skills across the organization
• Breaks down silos and fosters cross-functional collaboration

Learning Initiatives That Reward Upskilling

In a rapidly changing business environment, the ability to continuously learn and adapt is crucial. Progressive organizations are implementing learning initiatives that incentivize and reward employees for acquiring new skills and knowledge.
Examples of effective learning initiatives:

• Digital badging systems that recognize skill acquisition and completion of learning modules
• Gamified learning platforms that make skill development engaging and rewarding
• Micro-learning opportunities integrated into daily work routines

Flexible Benefits Systems

One-size-fits-all compensation and benefits packages are becoming obsolete. Forward-thinking companies are implementing flexible benefits systems that allow employees to customize their rewards based on individual needs and preferences.
Advantages of flexible benefits systems:

• Increased employee satisfaction and engagement
• Ability to attract and retain diverse talent with varied needs
• More efficient allocation of company resources

Comparing Traditional and Modern Approaches to Talent Development

The Future of Talent Development

As we move beyond traditional HiPo programs, the future of talent development will likely be characterized by:

1. Continuous assessment and development: Rather than annual reviews and fixed HiPo lists, organizations will adopt more frequent, data-driven talent assessments and personalized development plans.
2. Emphasis on adaptability: The ability to learn, unlearn, and relearn will become the most valued skill in a rapidly changing business environment.
3. Holistic approach to potential: Organizations will consider a broader range of factors when assessing potential, including emotional intelligence, cultural fit, and ability to drive positive change.
4. Technology-enabled development: AI and machine learning will play an increasing role in identifying skill gaps, recommending learning opportunities, and matching employees with projects that accelerate their development.
5. Focus on collective intelligence: Success will be measured not just by individual performance, but by an employee’s ability to elevate team performance and contribute to organizational knowledge.

In conclusion, the death of the traditional “high potential” concept opens up exciting possibilities for more inclusive, effective talent development strategies. By embracing growth mindsets, democratizing leadership development, and implementing innovative approaches to recognition and learning, organizations can unlock the full potential of their entire workforce. The future belongs to companies that can nurture and harness the diverse talents of all their employees, creating a more agile, innovative, and resilient organization in the process.

References:

1. The role of talent management and HR generic strategies for talent retention
2. Accessing Talent: The Foundation of a U.S. Army Officer Corps Strategy
3. The Strategy of Talent Localization in Multinational Corporations
4. The Strategic Managing of Human Resources