| Given the number of baby boomers expected to retire | | | | co-workers of the high potentials (anonymously via an |
| between now and 2030 (the last group of baby | | | | online survey), their direct managers, and members of |
| boomers reach of the age of 65 in 2030, and, of | | | | the senior leadership team to get their perspective of |
| course, some may choose to work past age 65), | | | | the strengths and weaknesses of these individuals. |
| organizations need to prepare others to take over | | | | They gathered data from performance reviews, past |
| leadership roles. Some organizations will likely source | | | | projects they worked on, and looked at the roles and |
| externally to fulfill leadership roles within the | | | | responsibilities they had within the organization. They |
| organization. However, many other organizations | | | | also reviewed in detail areas where the high potentials |
| realize that it may be better to move individuals into | | | | took the initiative to make improvements and/or get |
| these roles who already understand the business and | | | | things accomplished - in other words, opportunities they |
| have already been working in the organization. And, | | | | found to take a leadership role. |
| certainly, a combination may occur where | | | | Let me step back a moment, these individuals who |
| organizations promote from within and look to fill some | | | | had been identified as high potentials had worked for |
| roles from external. These organizations who are | | | | the organization for a minimum of 8 years and some |
| interested in recruiting from within will look to identify | | | | as long as 15 years. There were individuals who had |
| "high potentials" already working within the organization | | | | developed an understanding of the workings of the |
| in a variety of roles. | | | | company as a whole. They were those individuals |
| High potentials are often identified as those individuals | | | | you would find pitching in to help out regardless of the |
| who have the potential to grow into leadership roles | | | | project in order to ensure the company reached its |
| within the organization. They are hard working | | | | goals. They were all strong problem solvers and |
| individuals who have the potential to be leaders based | | | | were driven individuals. And, they were passionate |
| on their knowledge, skills, and the behaviors and | | | | learners - learning all they can - frequently on their own |
| attitudes they display. They are high achievers within | | | | - to understand the company. |
| the organization - willing to do what is necessary to | | | | The Leadership Development Training Program |
| get the job done. They are eager to learn new skills | | | | XYZ Widget, based on their research and the data |
| and take on additional responsibilities and bigger | | | | they gathered, determined that there would be |
| challenges. | | | | courses that every high potential individual would |
| There are many examples of companies that have | | | | attend together as a group and then they would |
| successful leadership training programs in place, such | | | | branch off to attend training specific to a particular |
| as Bank of America, General Electric, Microsoft, Philip | | | | function area. The leadership program would run |
| Morris, Novartis International, and Marriott International - | | | | over approximately a two year time period and was |
| to name just a few. These organizations have seen | | | | comprised of the following sessions: |
| the value of ensuring that their high potential | | | | All participants took the following workshops over a |
| employees are groomed for future leadership roles. | | | | one year time period: |
| Successful organizations know what skills are required | | | | - Business acumen |
| for a leader to be effective for the organization to | | | | - Financial management |
| meet its long term strategic goals and grow and | | | | - Decision making/problem solving |
| prosper. For example, many effective leaders have | | | | - Strategic planning |
| the following strengths: | | | | - Influencing |
| - Coaching others | | | | - Coaching |
| - Influencing skills | | | | - Long term vision/goal setting |
| - Collaborative decision making and problem solving | | | | - Team leadership |
| - Team leadership | | | | Then, participants took additional workshops specific to |
| - Communication | | | | their functional area over 6 - 12 months after the initial |
| - Long term vision/goal setting and the ability to | | | | program was completed. |
| communicate that to the organization | | | | Sales Function |
| - Financial management | | | | - Competitive analysis |
| - Strategic planning | | | | - Solutions selling HR/Admin Function |
| - Strategic thinking | | | | - Interviewing and selection skills |
| - Creative thinking | | | | - Policies and procedures |
| - Critical thinking | | | | - Basic law Product Marketing/Customer Service |
| - Adaptability/flexibility | | | | Function |
| - Risk taking | | | | - Customer analysis |
| - Business acumen | | | | - Market analysis Manufacturing Function |
| - Change management | | | | - Lean manufacturing |
| Organizations may choose to look at their best leaders | | | | - Business process management Finance Function |
| and use those competencies they have identified in | | | | - Advanced financial management |
| those specific individuals to determine what they | | | | - Budgeting and monetary control Planning and |
| expect/need from their high potential employees in | | | | Procurement Function |
| order to develop a leadership training program that | | | | - Purchasing |
| meets their professional and personal needs and helps | | | | - Negotiating |
| the company meet its long term objectives, which | | | | - Supply chain management Quality Control Function |
| includes having individuals in place and ready to take on | | | | - Quality management |
| senior leadership roles within the organization. An | | | | - Auditing |
| assessment should be done of the high potential | | | | - ISO 9001 Materials Management Function |
| employees to determine their current strengths and | | | | - Inventory control |
| development needs. | | | | - Supply chain management |
| Any skills that are not needed or used now by the | | | | The program then wrapped up with formal mentoring |
| senior leadership team, but may be used at a later | | | | component. The mentoring program supported all |
| time, should be considered when developing the | | | | leadership development participants at the end of their |
| leadership training program. For an example, let's | | | | program. |
| assume that the organization is currently doing | | | | Prior to the start of the program, preparation work |
| business throughout the United States; however, the | | | | was required. This included what the individual |
| Board of Directors would like to see the organization | | | | expected to achieve from the program (their goals |
| grow and do business internationally. Your upcoming | | | | and objectives), how they intended to use their new |
| leaders will need to understand how to do business | | | | skills and knowledge and some required reading. |
| internationally - international laws and regulations for | | | | Throughout the program, and in between sessions, |
| doing business in various countries, cultural differences, | | | | participants were assigned projects to lead and had to |
| the ability to gauge the market overseas including | | | | complete required readings. Additionally, they were |
| identifying market for product or services and the | | | | required to put together strategic plans as to how the |
| competition, developing overseas offices, leading | | | | specific functional area they were assigned to might |
| virtually, etc. These additional needed skills and abilities | | | | develop and grow in the future. Assessments were |
| should be part of any effective training program for | | | | done throughout the two year program to gauge |
| the high potentials and should be part of any | | | | increases in skills and knowledge. |
| assessment to determine if an individual has the | | | | All graduates of the program were assigned mentors |
| potential to be a senior leader within the organization | | | | from their specific functional area. These mentors |
| given these future needs. | | | | were executives in those areas and had agreed to |
| Let's look at a case study of a manufacturing | | | | participate in a formal mentoring program to groom |
| company that saw the need for a leadership | | | | junior high potential employees to take on executives |
| development program for their high potential | | | | roles in the future. Mentoring was a required |
| employees. We'll look at how they determined what | | | | component of the executive's role and formal |
| competencies were needed for future leaders and | | | | mentoring plans were submitted to learning and |
| what comprised the program that was developed. | | | | development and monitored regularly for progress. |
| We'll also look at how additional individuals were | | | | How Additional Participants Were Selected |
| selected to attend the program. | | | | In addition to the already-identified high potential |
| Case Study: XYZ Widget Manufacturing Corporation | | | | employees, the learning and development group held a |
| Background Information | | | | nomination to include others in the training program with |
| XYZ Widget Manufacturing Corporation has been in | | | | long-term potential. The nomination process included: |
| business since the early 1980's manufacturing widgets | | | | - A nomination form for managers and executives to |
| for both business-to-business and | | | | nominate individuals within the organization to |
| business-to-consumer sales. The following functional | | | | participate in the training program, including answering: |
| areas exist within XYZ Widget: Finance, HR/Admin, | | | | - Why the individual is a good candidate for the |
| Sales, Customer Service, Planning & Procurement, | | | | program (examples required) |
| Materials Management, Manufacturing, and Quality | | | | - What the individual will achieve from the program and |
| Control. Of those 8 functional areas, 5 of them are | | | | how the individual's attendance will benefit XYZ |
| led by senior executives who are in their 60s and | | | | Widget |
| expected to retire within the next 3 - 5 years. The | | | | A process for review of the nomination forms by a |
| other 3 are led by senior executives in their mid-50s. | | | | variety of managers, leaders, and directors within XYZ |
| There is no planned retirement date for them, but the | | | | Widget, from across all functional areas |
| Board of Directors for XYZ Widget wants to be | | | | An interview process for candidates who were |
| prepared. | | | | selected from the nominations |
| To that end, the Board of Directors has asked the | | | | A selection process based on the results of interviews |
| company to start thinking about succession planning. | | | | of the candidates |
| How will they fill the leadership roles at each of the | | | | A total of 30 individuals went through the initial pilot |
| functional areas? | | | | program - 20 considered high potentials and 10 others |
| Determining Competencies | | | | who were selected from nominations (of 35 total |
| The learning and development group at XYZ Widget | | | | nominated). Two programs were run simultaneously - |
| interviewed each of the current members of the | | | | with 15 participants per program. |
| leadership time (across all functions) to determine what | | | | Wrap Up |
| skills they believed were required to be effective in | | | | The program ended up taking almost 3 years to |
| their roles. These interviews were done in person, | | | | complete due to scheduling issues. |
| one-on-one. | | | | 25 of the 30 participants completed the program in its |
| The group also met with the Board of Directors to | | | | entirety, some of those were assigned mentors during |
| understand their vision for the company and their | | | | the program (rather than at the end as planned) to |
| expectations of the next group of leaders. This | | | | provide them additional support in getting through the |
| meeting was done with all of the Board of Directors in | | | | program. The company determined that some of the |
| small groups. | | | | individuals who were not considered part of the high |
| Additionally, they surveyed, on-line and anonymously, | | | | potential group but rather were nominated and |
| other individuals in management roles to get their | | | | selected might actually be a better fit for an executive |
| perspective on the strengths and weaknesses of the | | | | leadership role over the previously identified high |
| current leadership team and what they believed were | | | | potential employee. Of the 5 who did not complete the |
| needed for future leaders given the direction the | | | | program, 1 of them quit for another job, and 2 of them |
| company was heading. | | | | dropped out of their own volition as they decided that |
| All interviews were confidential. The data gathered | | | | the workload was more than they wanted to commit |
| was used to determine what competencies (skills and | | | | to at this point. The other 2 were released from the |
| behaviors) were required for future leaders. | | | | program because they did not complete required |
| Additionally, external research was gathered | | | | assignments and had very limited participation. |
| conducted about a variety of companies in the same | | | | References |
| and similar industries to determine what were generally | | | | The Leadership Pipeline: How to Build the |
| considered as key skills and knowledge for | | | | Leadership-Powered Company, Authors: Ram Charan, |
| executives. | | | | Stephen Drotter, James Noel; Publisher: Jossey-Bass, |
| The learning and development group also interviewed | | | | 2001 |
| in depth each of the individuals initially identified as high | | | | Succession: Are You Ready? |
| potentials in the company. They also interviewed the | | | | |