Stay informed and ready to meet both everyday challenges and long-term planning and policy-making goals, with focused news, practical information, and strategic insights on all HR-related developments.
May 13 — There is little agreement on how to search for, assess and train employees with a lot of leadership “potential,” according to a report released May 8 by the Talent Strategy Group.
Over one-quarter (28 percent) of 134 companies surveyed in March and April don't even have a company-wide definition of potential, according to the report by the New York City-based Talent Strategy Group, which describes its business as “to radically simplify the talent practices of large, global companies.” (However, more than one-third of this group said they were in the process of producing or revising a definition.)
Of those companies that did have a definition of potential, 39 percent used that of the Corporate Leadership Council, 31 percent used Korn Ferry's, other consulting firms' definitions drew 7 percent or less apiece and 36 percent responded that “we don't use any of these models.”
The four most popular factors used to assess potential were learning agility (62 percent), ambition (perhaps surprisingly low, at 51 percent), near-term mobility (43 percent) and values (42 percent).
There was considerable regional variation in this regard, with 67 percent of the North American companies (which made up 78 percent of the respondents) stressing learning agility, compared with only 47 percent of European companies; 53 percent of the North Americans, but only 47 percent of the Europeans, viewing ambition as important; 68 percent of Europeans, but only 33 percent of North Americans, looking to values; and 42 percent of Europeans, but just 18 percent of North Americans, emphasizing emotional intelligence.
When asked how on-target their predictions of an employee's potential were, the average self-reported accuracy was only 52 percent.
“There are no scientifically proven predictors of potential except for intelligence and certain personality factors, but that hasn’t stopped consulting firms from developing models that purportedly ‘predict' potential,” Marc Effron, president of the Talent Strategy Group, said in a May 12 e-mail to Bloomberg BNA. “Human resource leaders are adopting these models hoping that they will improve their company's ability to better understand which leaders can move farther and faster than others.
“The fact that many of these models both conflict with each other (in terms of what they say predicts potential) and often overlap with intelligence and personality factors adds to the confusion about their validity,” he added. “This overlap means that these assessments can provide a helpful data point when making decisions about leaders, but human resource executives should pay at least as much attention to the capabilities their company will require in the next three to four years. Those capabilities, and how well a leader fits with them, will likely predict potential for success as accurately as any test.”
To contact the reporter on this story: Martin Berman-Gorvine in Washington at firstname.lastname@example.org
To contact the editor responsible for this story: Simon Nadel at email@example.com
The report can be downloaded from http://www.talentstrategygroup.com/application/third_party/ckfinder/userfiles/files/NTMN%20Potential%20Study%202015.pdf.
All Bloomberg BNA treatises are available on standing order, which ensures you will always receive the most current edition of the book or supplement of the title you have ordered from Bloomberg BNA’s book division. As soon as a new supplement or edition is published (usually annually) for a title you’ve previously purchased and requested to be placed on standing order, we’ll ship it to you to review for 30 days without any obligation. During this period, you can either (a) honor the invoice and receive a 5% discount (in addition to any other discounts you may qualify for) off the then-current price of the update, plus shipping and handling or (b) return the book(s), in which case, your invoice will be cancelled upon receipt of the book(s). Call us for a prepaid UPS label for your return. It’s as simple and easy as that. Most importantly, standing orders mean you will never have to worry about the timeliness of the information you’re relying on. And, you may discontinue standing orders at any time by contacting us at 1.800.960.1220 or by sending an email to firstname.lastname@example.org.
Put me on standing order at a 5% discount off list price of all future updates, in addition to any other discounts I may quality for. (Returnable within 30 days.)
Notify me when updates are available (No standing order will be created).
This Bloomberg BNA report is available on standing order, which ensures you will all receive the latest edition. This report is updated annually and we will send you the latest edition once it has been published. By signing up for standing order you will never have to worry about the timeliness of the information you need. And, you may discontinue standing orders at any time by contacting us at 1.800.372.1033, option 5, or by sending us an email to email@example.com.
Put me on standing order
Notify me when new releases are available (no standing order will be created)