Identifying and Developing High Potential Employees: Lessons From the Field

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Identifying and Developing High Potential
Employees Lessons From the Field

• Saturday, April 4th
• 1030am

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Participants

• Jeff Foster Chair, Hogan Assessment Systems
• Kenneth Pederson ThinksWise
• Jennifer Saavedra Dell
• Ryan Ross Hogan Assessment Systems

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Identifying and Developing High Potential
Employees Lessons from the Field
Kenneth R. Pederson, Ph.D. Chief Learning
Officer kpederson_at_thinkwiseinc.com
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Out Standing in the Field
Doctorate from University of Houston and joined
Dow Chemical in 1977. Variety of HR roles,
mostly around Selection and Development of talent
both line and staff. 1995, Dow reorganized
around Global Business Model HR systems
restructured using Global Competencies 1996, led
redesign of HiPo to embrace new business
structure and use Global Competencies. Ran
process until retirement in 2004. 2005
present, consulting and design of Succession
Planning system for ThinkWise, Inc.
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What Changed in the Dow Future Leader Process?
Target number of HiPos based on Top 2 target. Heavily weighted in upper management roles. Target number of Future Leaders based on Attrition Model with much more emphasis on early identification and development.
Definition of HiPo was Top Performer with potential to advance 2 more levels. Definition of Future Leader was Demonstrating critical competencies at the level above their current role.
Goals of system 95 top jobs filled internally. Retain top talent. Goals of system 95 top jobs filled internally. Retain top talent. Assure diversity of talent pools.
Administration was paper based with 3-ring binders and managers completing profiles on nominees. Administration was on-line with profiles completed by nominees with manager review approval.
Measures of process success BOD satisfied with annual review Book. CEO satisfied with ability to reorganize and/or fill roles with internal talent. Measures of process success BOD CEO satisfaction FL attrition less than ½ that of peers Progression 2-3X rate of peers 100 participation in Incentive Compensation Base variable Comp. treatment better 80 hit rate of roles filled based on Plan
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Learned principles for systems that works
Process must be owned by the CEO and driven by
line management. For development, Future Leaders
need to be managed as a Corporate Asset, not a
local or divisional asset. In a matrixed
organization, the Functions are the best drivers
of Future Leader identification and development
with consultation from Businesses and
Geographies. Competencies are easier basis for
assessment than readiness, or potential. The
definitions can be more behavioral.
Development goals need to revolve around
creating an Experience Portfolio that prepares
them for top roles, be those managerial or
technical. Regardless of assessment method, the
vetting and agreement/ support by two levels of
leadership is critical for defining who is a
Future Leader. It takes an organization 3 5
years (cycles) to learn and embrace a new/revised
system.
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Questions

• How does your company define high potential?
• How does your company identify high potential
  employees?
• What processes do you have in place for selecting
  high potential employees?
• What processes do you have in place for
  developing and training high potential employees?

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• How does such a designation affect the individual
  employees?
• What is the impact of this system on employees
  that are not designated as high potential?
• What procedures do you use to monitor the
  performance and progression of high potentials?
• How do you monitor the effectiveness of your
  policies concerning high potential employees?

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• What lessons have you learned from this process
  that others could benefit from?
• Are there things that you would do differently if
  setting up your system again?
• If you were setting up a structured system for
  identifying and developing high potential
  employees at another organization, what would
  your first steps be?

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Audience Questions

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