Sustaining a Competitive Advantage –

Identifying and Developing your

High Potential Talent20th Annual SHRM-Atlanta HR Conference

October 18-19, 2010

Kim Lang, SPHR

Vice President, Organizational Consulting

Anne Morgan

Vice President, Organizational Consulting

Your Session Presenters

Kim Lang, SPHRVice President, Organizational Consulting

404-504-5042kim.lang@right.com

Anne MorganVice President, Organizational Consulting

404-504-5209anne.morgan@right.com

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Today’s Agenda

Audience Profile – Taking the pulse of the group

Talent Research

Building the Business Case

Identifying High Potential Talent

Defining Accelerating Leadership Development (ALD)

Key Program Components

Case Studies

Outcomes & ROI

Q & A

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Who We Are Talent and career

management experts

Create and deliver workforce strategies to grow talent, reduce costs and accelerate performance

Wholly-owned subsidiary of Manpower Inc., global leader in employment services

Founded in 1980

Clients include over 80% of Fortune 500 and 70% of Global Fortune 500

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Audience Profile

Taking the Pulse of the Group regardingDeveloping Your High Potential Talent

Warm-Up Exercise to Test the

Interactive Feedback Remotes!

Look for your remote number on back

Your number turns green when you enter your response

To change your response, simply enter a new number (will turn yellow then green again)

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Warm-Up Exercise to Test the

Interactive Feedback Remotes!

1. This afternoon you discovered you have the winning

ticket for the $300M lottery! The first thing you would

do, after informing your family is to:

A. Buy a private jet to fly yourself around the world

B. Resign from work via ―voice mail‖

C. Buy a villa in Italy or buy a private Caribbean

island

D. Go back to the office and keep the secret to

yourself

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2. Development is a priority in our organization and is

actively endorsed & sponsored by senior leaders who

play a key role.

A. Very true

B. Somewhat true

C. Somewhat untrue

D. Not true at all

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3. Our company retention statistics support the need for

strategies to accelerate the development of key talent

(e.g. high potentials, under-leveraged employee

groups, etc.)

A. Very true

B. Somewhat true

C. Somewhat untrue

D. Not true at all

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4. Our organization has a robust and “ready to

assume” leadership pool that can support our

projected growth and mirrors the make-up of our

client markets

A. Very true

B. Somewhat true

C. Somewhat untrue

D. Not true at all

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Identifying Your

High Potential Talent

Differentiating between High Performance, High Value and High Potential

The Business Case

Companies that effectively identify and develop talent and in turn

develop a strong leadership bench, experience greater bottom line

returns.

Companies with above average leadership bench strength enjoy

above average 36-month revenue growth relative to their industry

peer group.

Companies utilizing formal HIPO identification and development

approaches perform at a much higher level of total shareholder

return (those in the 75th percentile or higher TSR) than those that do

not.

Sources: Voice of Leader, Conference Board, Corporate Exec Council; Building High-Potential Leaders, Hewitt, April, 2003.

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Do You Know Your

High Potential Talent?

5. My company can identify our high potential talent?

A. Very true

B. Somewhat true

C. Somewhat untrue

D. Not true at all

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Performance vs. Potential?

1. Do all high performers have potential?

2. Do all low performers have potential?

3. Are all high potentials high performers?

4. Are all low potentials low performers?

5. Can low performers have high potential?

6. Can high performers have low potential?

And……..14

Performance vs. Potential?

……is past performance the best predictor

of future performance?

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Defining High Potential

Past Business Success

Competencies

oLeadership Foundations

oPersonal Agility

oRelationship Management

Motivation

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Defining High Potential

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

Motivation

The High Potential Employee:

Is someone with the ability,

motivation, values & commitment

to rise and succeed in a more

senior, critical positions.

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Gauging the Readiness of

Your High Potential Talent

High Value Performerso Top 20-30% of workforce

o Have potential to be promoted

o Includes strong niche performers

High Potential EmployeesoTop 2-3% of workforce

oTop 10% of key performers

o Identification criteria • promotability (2 levels up in next 5 years)

• learning agility

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Distinguishing Between Performance,

High Value and High Potential

RightResults

WrongResults

WrongBehavior

RightBehavior

WRWW

RRRW

Performance High Value High Potential

Ability Leadership Learning Agility Organizational Credibility

Commitment and Values Passion for and model of client values and culture Personal engagement in client success Discretionary effort (willing to go above and beyond)

MotivationDesires advancement in complexity of responsibilities Takes risks and manages ambiguity

Includes any of the following:Subject matter expert/ specialist roleSingular capability or expertise Recognized thought leader Hard to find skills (or high demand) in general market Skill set not easily transferred in 3 months or less Portable skills, thinking and contribution to other functionsand/or geographies Unique combination of skill, behaviors and culture fit resulting in superior level of effectiveness

Current Research − High

Potential Talent

Reasons for the Research

Retention of high pot/key talent remains a hot issue

High potential talent value development

Organizations willing to focus on high potential

employees

How organizations develop their key talent

Coaching is a key component of development of high

potential talent

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How They Create Value

Team player

Build jobs for results

Tough decisions

Develop others

Great role models

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6. What has the greatest impact on your company in

terms of talent management?

A. Retirement of baby boomers

B. Company growth

C. Competition for talent

D. Retention of existing talent

E. Other

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Approaches to Talent Development

More and more integrated

Pepsi — 70/20/10 framework

Assessment and Development Plan creation

Formal training- often led by the CEO and members of

the senior management team

Action Learning Teams and high profile project teams

Coaching

Mentoring

On-the-job Development

Strategic job moves

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Business/Diversity Knowledge

Internal Networks

CareerManagement

LeadershipDevelopment

Key Components of an

Accelerated Leadership Development Program

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ALD Key Program Components

Skill Building Modules

Targeted Action Learnings based on aggregate 360/assessment findings

Business/Diversity Dialogue Sessions

Internal & External Guest Speakers

Strategic Business Project Teams

Exposure and visibility with senior leaders

Build and strengthen peer relationships

Interaction and discussions with senior level mentors

Group Experiences Individual Experiences

Accele

rati

ng

Develo

pm

en

t

Steering Committee & Monitoring for Success

Individual Stretch Assignmentsand Action Learning

360° Feedback andDevelopment planning

Individual assessmentand coaching

Executive Panel Interviews

MENTORS

&

MANAGERS

Executive Sponsor

Case Study #1ABD Company

&

The ABD Leadership Pipeline

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LeadershipTalent Pipeline Model

Top Talent Programs

Nominated

For high performing top talent

Core Programs

Manage the Leadership Turns

All Managers

Accelerator Programs

Nominated

For high performing top talent and other targeted groups

Best Talent

Learning to Lead

SeasonedManagerAcademy

DirectorsLeadership

Forum

DirectorsGlobal

LeadershipAcademy

VPSummit

Best Talent

Advanced Leadership Development

Program

The Goal of ALDP

ALDP is designed to accelerate the development of high potential Managers & new Directors.

The program’s primary goal is to enhance leadership skills & business knowledge and expand the participant’s professional network to further his/her career at ABD

Participant Criteria Must be a Senior Manager or newly appointed Director Identified as high potential and/or top talent Diversity criteria is given strong consideration

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The Business Unit Management Team plays a critical role in the program’s success and is involved in the following key activities:

Provides executive sponsorship for the ALDP Program

Oversees ALDP participant nomination and selection process

Commits to actively supporting the development of ALDP participants for 12 months

Supports the completion of all key process activities

Participates on the Executive Interview Panel and/or as an Executive Mentor

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Case Study #2

Global Technology Firm

Business Drivers

Leadership pool not reflective of customer markets

Lack of “ready to assume leadership”: diverse bench strength

Take proactive stance to prevent retention issues of key talent

Build career self-reliant mindset in the work force

Multiple Years Multiple Divisions 250+ participants 1 year program

ROI

Expanded contributions Lateral moves for

“better fit” Retention & Promotion of key

talent Formal Alumni Network

(FDPAN) established to continue to drive development

Business Projects recommendations adopted by business units

Global Technology Firm

Focused Leadership Development (FDP)

Multi-cultural Hi-potential Individual Contributors

& Managers

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Potential Program Outcomes

&

Return-on-Investment (ROI)

Individual and Organizational Benefits

Discussion on ROI

How Do you Calculate the Benefits

and ROI of Leadership Development

in Your Company?

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Research Findings on

Calculating the ROI

Retention — key with MVPs

Promotion rate

Engagement survey scores

Improved 360 ratings

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Program Outcomes & ROI

Individual Benefits To Be Realized

Cross-functional visibility & exposure

Comprehensive process (typically 12-months)

for professional & personal development

Mentoring from an executive

360° feedback vs. manager feedback alone

Greater alignment between self-perception and

organizational perception

Individualized coaching for development

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Program Outcomes & ROI

Individual Benefits To Be Realized (continued)

Participation in an Executive Panel Interview Process, including in-

depth feedback from the panel

Individualized Development Plan aligns with business goals &

strategies while closing leadership gaps

Opportunity to expand internal networks and build cross functional

relationships

Greater knowledge and understanding of what it means to take

ownership & accountability for leadership & career development

Receive a broad base support system from multiple sources that include

Executive Mentor, Manager, Coach, and HR Business Partners

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Program Outcomes & ROI

Organizational Benefits To Be Realized

Bench strength is more diverse and robust

Retention strategy for top talent

Cross-functional executive exposure to top talent

Increased ability to assess current and future executive

needs

Accelerates development and creates a pool of

prepared top talent from which to choose when job

opportunities occur

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Program Outcomes & ROI

Organizational Benefits To Be Realized (continued)

Prepares talent in a systematic way, closing leadership

gaps and utilizing development programs as support

Expanded learnings for all key stakeholders

Promotions and/or lateral moves for “better fit”

Business projects adopted by the organization have

revenue impact, improve operating efficiencies, and

enhance market brand

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Questions or Comments

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