Secrets of a Chief People Officer: Developing High Potential Leaders
?? Developing high potential (HiPo) leaders is one of the most rewarding yet challenging tasks for a Chief People Officer (CPO). These individuals are the future of your organisation, and nurturing their growth is crucial for long-term success. However, the journey is fraught with obstacles and requires a strategic, thoughtful approach. In this blog, I’ll share the unvarnished truth about running HiPo programs—the triumphs, the trials, and everything in between.
?? Why HiPo Programs Matter
High potential leaders are often seen as the cornerstone of future leadership within an organisation. They are individuals who show exceptional promise and are key talent to nurture as part of an organisation’s C-Suite succession planning. Investing in their development ensures a robust leadership pipeline, fostering innovation and driving organisational growth. Let’s not confuse HiPo programs with high performance, and leadership potential programmes. Both still needed in the design of leadership development in an organisation.
?? The Warts: Challenges in HiPo Programs
?? Bias and Subjectivity:?One of the biggest challenges is ensuring the identification process is free from bias. Despite best efforts, subjective opinions can sometimes overshadow objective criteria, leading to potential candidates being overlooked or unqualified individuals being chosen. I have found in the past the candidates put forward for a programme shouldn’t really be in the High Potential ‘box’ and when scratching the surface the person is a solid performer with a great relationship with their boss, or worse still the team is full of underperformers and the person managing is trying their best to retain that one individual who is performing.
?? Changing Business Needs:?The qualities that define high potential can shift as the business environment evolves. This means that HiPo identification criteria need regular review and adjustment. Regularly reviewing Leadership Capabilities is essential as part of the business cycle, which I know is often hard to find time to do. But being open and honest with those leaders previously identified as HiPo to say the goal posts have changed can be harder to do.
?? Entitlement Mentality:?Once identified, HiPos may develop a sense of entitlement, expecting rapid promotions and special treatment. This can lead to dissatisfaction and disengagement if their expectations are not managed properly. This is perhaps one of the hardest things to do, because we all know that responsible organisations will not ‘create’ roles for the sake of it; there has to be a business need for a role to be filled. Yet, retaining those leaders you’ve just invested in is crucial for succession planning. I have personally found that being transparent with the succession plan is one part of the puzzle when it comes to this, but this has to be balanced with developing humble leaders as well as good reward structures and understanding fully what motivates that person to stay. As a side point to transparency, I find it incredible when I speak to organisations who say that they don’t tell people who have been identified as part of the succession plan, and worse still when they don’t speak about having a HiPo programme. Why wouldn’t a company talk about it?! I’d worry about a company’s sustainability if they didn’t have one.
?? Balancing Development and Performance:?HiPos are often top performers in their current roles, and pulling them away for development activities can strain their departments and impact overall performance. I’m always mindful of this when designing a HiPo programme in terms of the investment in time, both for the person in terms of managing their existing workload, but also HiPo leaders will naturally carry on their learning at home to support them accelerate their career, so thinking about the impact on this is also key. Most good HiPo programmes will have supporting learning that people can do outside of the schedule. ?
?? Investment Justification:?Justifying the investment in HiPo programs can be challenging, especially in times of budget cuts. Demonstrating the ROI of these programs is crucial but often complex. Whilst I know that many organisations want to run their own leadership development programmes, when it comes to HiPo programmes then I think it’s essential to engage a leadership consultancy. Their experience in running these programmes week in, week out is invaluable, and they will have the data points to back up the investment.
? Time and Effort:?HiPo programs require significant time and effort from both the participants and their mentors. Balancing this with their regular duties can be a difficult task. love designing HiPo programmes but it does amaze me sometimes when organisations ask me to do a programme over a 3 to 6 month period. This timeframe does not a ‘C-Suite’ leader make. Most programmes I’ve designed have been over 18 to 24 months, they incorporate Boardroom presence strategies as well as all those crucial skills a C-Suite leader needs. Anything less, in my view, would be classified as an element of an overall leadership programme.
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?? The All: Strategies for Success
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? Objective Criteria:?Use a combination of performance data, 360-degree feedback, and potential assessments to identify HiPos. Predictive Leadership Behaviour tools can provide additional insights. One of the things I like to do as a Chief People Officer is get to know each candidate put forward before a decision is made. Afterall, their name will be on the Succession Plan that I present at Board meetings. Things that I look for include, are they self-aware? are they coachable? Is this the right time for them to embark on an HiPo programme? Is there high strategic fit as well as high performance?
?? Regular Reviews:?Establish a regular review process to ensure the criteria for identifying HiPos remain relevant to the organisation’s evolving needs, particularly with the roles the company needs and the capabilities. We have heard in the last couple of years the number of C-Suite leaders that have left organisations, with new C-Suite roles coming into the fold over this time. Only this week did I hear companies talk about a Chief AI Officer. On the topic of AI, with the speed in which AI is developing, there is an increasing trend towards innovation, influence and relational intelligence as a capability being reported amongst Talent Acquisition and Human Capital Consultancies. Companies need to be assessing both their roles, but also their leadership capabilities a lot more often than they did before.
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?? Transparent Processes:?Clearly communicate the goals, expectations, and opportunities associated with HiPo programs. Ensure that participants understand that being identified as HiPo is just the beginning of a long-term development journey. Equally though, with the people they have been identified as successor for, it’s important to keep a transparent and ‘adult’ conversation happening. My point above about changing roles and capabilities can make current incumbents nervous. I always talk about ‘stage fit’ with leaders and there does come a point for all of us when it’s best to step aside in a humble and graceful way. ?And with this, for the company to support and respect the person when that happens. Equally though, when a leader wants to move on then this should be planned to avoid fall out elsewhere in the organisation. It’s a telling sign of the culture in a senior leadership team when the warning of someone leaving is their contractual notice period. It’s a far better scenario when both the HiPo successor and the exiting leader are in conversation over the transition in good time before it is announced. I do realise there are complexities when it comes to public companies and Executive Director but a transparent succession planning process will help.
?? Ongoing Feedback:?Provide regular, constructive feedback to help HiPos understand their progress and areas for improvement. This can help mitigate feelings of entitlement and keep them grounded. I always talk about this as providing the right support and challenge in the process. Depending on their personality type will mean that this will be done in different ways to make this a meaningful part of the HiPo programme.
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?? Blended Learning:?Combine formal training, on-the-job experiences, and mentoring to provide a well-rounded development experience. Rotational assignments can also provide broader exposure. Crucially though, they need exposure to all aspects of what the future will include; Board exposure, investor exposure (if relevant), cross functional leadership, etc. Both C-Suite and NED mentoring is vital, but reverse mentoring I have found to also be particularly effective.
???? Flexible Scheduling:?Ensure that development activities are scheduled in a way that doesn’t overly disrupt the participants’ current roles. This might include offering flexible learning options like online courses, evening or weekend workshops. But, be respectful if this doesn’t work for everyone. However, most people can accommodate this to support their own career development if planned well in advance.
?? Integrated into organisation-wide leadership development: ?With developing leaders generally being one of the top topics for CPOs to solve for in 2024, I’m seeing more and more that HiPo programmes are more successful when integrated into an overall Leadership Development plan for the whole organisation. On the one hand, it allows companies empower effectively the frontline team members, as well as giving those middle management layers consistent leadership tooling from which Leader of Leaders can be more efficiently developed. On the other hand, it allows for a continued talent pipeline coming through in the event that top layer succession plan gets a little leaky. It is also proven to improve retention rates, which then brings me onto the measuring ROI.
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?? Track Progress:?Use metrics to track the progress of HiPos through the program. This can include improved performance, innovation rates, team & individual assessment, engagement scores, and retention rates.
?? Showcase Success Stories:?Highlight the success stories of HiPos who have advanced within the organisation as a result of the program. This can help justify the investment and garner continued support both from and for senior leadership. In mid to large organisations it is quite often the case that when people get appointment into senior leadership roles others don’t necessarily understand the decision. So, demonstrating the capabilities being developed through the programme, and linking this to succession planning for a sustainable business is key.
Conclusion
Running HiPo programs is not without its challenges, but the rewards of developing future leaders are immense. It's one of my favourite parts of being a CPO. By addressing the potential pitfalls head-on and implementing strategic solutions, CPOs can create effective HiPo programs that truly make a difference. Remember, the goal is to cultivate leaders who are not only capable but also aligned with the organisation’s vision and values.
Stay tuned for more insights and strategies in our ongoing series, "Secrets of a Chief People Officer."
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Great insights on developing high potential leaders! ?? At GiANT London, we've seen the transformative power of a well-structured HiPo program with many so many of our clients. Integration of reverse mentoring has broadened perspectives and fostered a culture of continuous learning. Balancing formal training with real-world assignments boosts readiness for C-Suite roles.? For ROI, several strategies have proven effective: 1???Improved Performance:?HiPo employees outperform peers by 91% in critical competencies (CEB study). 2???Innovation Rates:?Leadership programs can boost innovation by 20% (McKinsey & Company). 3???Engagement Scores:?HiPo programs can increase engagement scores by up to 20% (Gallup). 4???Retention Rates:?Development programs improve retention by 25% (Harvard Business Review). 5???Internal Promotions:?40% of senior roles are filled through HiPo programs within two years (Center for Creative Leadership).