If you knew just one leadership development program that could help you create an energized, results focused, and capable workforce, it’s the program that identifies, develops, and engages your high potential leaders (HIPOs). By actively identifying high potential leaders, you can inoculate your organization from the war-on-talent virus by ensuring you have deep bench-strength of rising global leaders. At Learn2, we help in developing leaders, with one of our clients describing how a HIPO program addresses these global realities:
“We have a leadership model with expectations for leaders at different levels in the organization. We look at business leadership, people leadership and market leadership. We expect a strategic jump from execution, from specific behaviors, and from addressing a challenge in the core business. We are deliberately building talent for future needs and roles we don’t have today.” ~ CTO, Global Manufacturer.
WHY IS IT NECESSARY TO DEVELOP YOUR HIPO LEADERS NOW?
Trends in talent bench-strength and leadership development are impacted by the sharp increase in globalization. By 2013 50% of world GDP came from developing countries; the IMF projects that percent will continue to rise sharply. Demographic trends also impact development, with Millennials taking over the workforce, making up 75% of the workforce in 2015. Get ahead of the game and invest in an HIPO leadership development program and plan for the future of your organization by identifying high potential leaders early on.
HIGH POTENTIAL LEADERS ARE A STRATEGIC PRIORITY
Deloitte’s 2014 Global Human Capital Trends survey encompassed 2532 leaders in 94 countries. Leaders identified urgent / important trends, including:
- 86% of leaders noted an urgent need to accelerate and broaden targeted leadership development
- 79% are concerned about employee retention and engagement
- Just 8% consider their leadership development programs address necessary global experience and skill set development
Our North American research confirmed Deloitte’s conclusions; leadership capacity and capability are the top priorities for Chief Talent and Chief Learning Officers. HIPO programs are essential to building your sustainable leadership bench-strength– whether your program focuses on junior leaders with early promise potential or on leaders with senior executive potential who need to be seasoned in global roles. Why? There is a 4 wave war-on-talent tsunami heading your way!
WHAT ORGANIZATIONS SAY ABOUT HIPO PROGRAMS
Our plan is integrated & central, is one of 4 strategy pillars of the organization, & is fully embraced by CEO & senior leadership.” ~ CTO, Mining and Energy.
“We are developing a center of excellence to play a consulting role with increased rigor and are challenged to raise the quality of the program – for our HIPOs, for the pool, and for the business lines. Our HIPO program is fully integrated to strategic priorities & business operational strategies.” ~ CTO, Global Bank.
FINDING HIGH POTENTIAL LEADERS WITH LEARNING AGILITY
When creating a leadership development plan, look for HIPOs who thrive in complex roles and who display learning agility. Learning agility describes the cluster of personal skills that allow for innovative and flexible responses to complex challenges especially inside evolving environmental stressors. Learning agility means HIPOs master their fear of unanticipated change and lean into change, making learning agility a good predictor for future global leaders.
“People who are learning agile: seek out new experiences to learn from; enjoy complex problems and challenges associated with new experiences because they enjoy making sense of them; and perform better because they easily incorporate new experience into their leadership stance. A person who is learning agile has more lessons, more tools, and more solutions to draw on when faced with new business challenges “ – (Hallenbeck, Swisher, & Orr, July 2011).
DEVELOP LEADERS FOR FUTURE ROLES
Given the realities of workplace complexity, you want to develop leaders for roles that do not exist today and to anticipate the experience and acumen expected of leaders stepping into the global, senior roles of the future. At Learn2, we have developed processes for achieving economic impact while developing future leaders that will create lasting impact. As you consider the influence that both globalization and decentralization have on your current and future human capital requirements, it is quite possible that your new HiPO program could produce leaders capable of galvanizing and mobilizing the collective efforts of your entire global network.
HOW DO YOU RECOGNIZE A HIGH POTENTIAL LEADER?
We asked Chief Talent Officers (CTOs) exactly what they looked for in HIPOs.
CHARACTERISTICS OF A HIGH POTENTIAL LEADER:
1. Mobile with global/international experience
2. Strong performance track record
3. Potential to see breadth across organization
4. Ability/potential to cross lines of business
CTOs use the 9 box matrix to help leaders determine potential and performance. A combination of skills, behaviors, and attitudes determine selection into HIPO programs. We also recommend impact identifiers for learning agility and social capital as foundational selection criteria.
USING A 9-BOX MATRIX TO ENGAGE LEADERS
When you elect to use a 9-box grid, calibrate as a leadership team on how to place and how to engage leaders in each category. The leadership calibration sessions catapult your leadership team forward to lead consistently which eliminates a major complaint of HIPOs. Building on the consistency, your leaders can finally:
- Align on what development to target
- Create opportunities to lead
- Initiate performance enhancement programs to target each category.
When assigning leaders to boxes, be aware that their current performance may not be stellar if the HIPO recently moved into a more challenging assignment. Monitor their performance closely or your HIPOs may slide into entitlement and begin delivering mediocre contributions!
3 BEST PRACTICES FOR HIPO SELECTION:
COLLECT RECOMMENDATIONS FROM EXECUTIVES
Working from your thoughtful recommendations collected from the 9-box matrix, have your executive team agree on the selection criteria and size of every HIPO pool. Document any agreements!
INTEGRATE HIPO PROGRAMS INTO EXISTING PROCESSES
For easiest administration, your new HIPO program can be integrated into your current annual talent optimization process.
EVALUATE IMPACT IDENTIFIERS ANUALLY
Critical to HIPO program authenticity, and to avoid the pitfalls of entitlement from the HIPOs, ongoing annual impact identifiers ensure all HIPOs remain motivated and worthy of the time and resource investment. If your line managers unequipped for difficult conversations, consider targeted leadership development with a skilled coach supporting them for this responsibility directly.
DEVELOP YOUR HIGH POTENTIAL LEADERS
Which program elements result in a world-class HIPO development program? We have done the analysis for you!
First we worked with a cadre of Fortune 500 CTOs to clarify an exhaustive list of elements included in the best HIPO leadership development programs. Next, from that list, we asked high potential leaders to list exactly which program elements resulted in the best leadership development outcomes. Note that a funded MBA program did not hit the top 5 elements!
TOP 5 CHARACTERISTICS OF A WORLD CLASS HIPO DEVELOPMENT PROGRAM:
Percentage of Characteristics of a World Class HIPO Development Program HIPO Score
1. In-Division Stretch Assignment 84%
2. New Division, Enterprise-wide or New Geography Assignment 83%
3. Risk-taking Opportunities Assigned 83%
4. Assignment to Known Trouble Spot (Crucible Role) 67%
5. Action Learning 58%
ENGAGE YOUR HIGH POTENTIAL LEADERS
Next, we used research to identify an array of potentially engaging and motivating activities for high-potential leaders. Then we asked high potential leaders to consider the list of what organizations could do to engage them and drive increased loyalty. Their answers surprised us! Your HIPOs want to know they are in the pool. We can help if you are concerned about how to couch that message to avoid entitlement of the HIPOs and demotivation of folks not selected.
TOP 4 HIPO ENGAGEMENT OPTIONS:
Percentage of Engagement Option HIPO Score
1. Selected for HIPO / Accelerated Development Track 96%
2. Senior Executive / Board Presentations & Results Reporting 84%
3. Senior Executive / Board Networking 83%
4. Represent Organization on Internal Committees or External Boards 69%
Transform your leaders. Plan your next leadership development program.
