As part of the rich history on the topic of identifying and developing high-potential employees, thousands of books, articles and research papers have been written. Considering this weight of research, “pet theories” abound with as many different ideas on how and what to do because there are HR leaders in different organizations. Join Henryk Krajewski, a recognized leader in both the research and practice of talent assessment and development, as he shares a unifying view of what matters most in selecting and keeping the best talent. Krajewski will distinguish what matters from what doesn’t, dispel popular myths about talent, and help you focus in on winning strategies that will help you attract and retain “differentiated” talent. Specific learning objectives include: Learning to use compelling “business-language” conversations about the importance of top talent. Finding assessment methods and tests that are research-supported, and an analysis of those that aren’t.. Discovering what empirical research says about the factors proven to attract high-potentials. Gaining knowledge and familiarity with the age-old psychological data that has simply been “recycled” time and time again in popular books such as engagement. Learning how to use technology to make all of this easier.

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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

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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

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An increasing cynicism…Why?
4.500
4.700
4.900
5.100
5.300
5.500
5.700
5.900
6.100
6.300
1947:1
1949:4
1952:3
1955:2
1958:1
1960:4
1963:3
1966:2
1969:1
1971:4
1974:3
1977:2
1980:1
1982:4
1985:3
1988:2
1991:1
1993:4
1996:3
1999:2
2002:1
2004:4
2007:3
2010:2
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%
NumberofEmployees
Performance

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True Performance Distribution
Normal
Curve
Pareto Curve
10% of
Output from
the Top 1%
NumberofEmployees
Performance
O’Boyle & Aguinis, 2012, N = 633,000

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Why you care…
Bain and Co., 2013
Top Performers outpace the average by

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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?

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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
20
40
60
80
100
T1 T2 T3 T4 T5
Maintenance Curve
Performance
Learning 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

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III. WHAT MATTERS TO HIGH
POTENTIALS: A RESEARCH REPORT
CRACKING THE CODE ON HIGH POTENTIALS

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Scope:
• 45 companies across
the globe
• 5,314 “high potential”
respondents
Purpose:
• Define the attributes
that 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

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Poll Question:
Does your organization have a dedicated high potential
“value proposition” initiative?
• Yes
• No
• Currently planning on this topic

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The DIY High Potential Value Proposition
Leadership/Executive ViewHigh Potential View
Desired work attributes
Work attributes
to realize strategy
Perceived work attributes
Perceived 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.

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-3
-2
-1
0
1
2
3
2 Bad 1 bad Equal # 1 Good 2 Good
MagnitudeDifferenceinPotential
Net Change in
Potential
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.

38. © 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.

39. © 2013 Halogen Software. All rights reserved. All contents are confidential.
Manager Tools: Development Plans and
Coaching

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Manager Tools: Development Plans and
Coaching

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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.

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Questions?
Thank You!
For more information:
Henryk Krajewski, Ph.D., President, The Anderson Leadership Group
henryk@talgar.com @buildvalue
Connie Costigan, Director of Marketing and Communications, Halogen Software
ccostigan@halogensoftware.com