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CORPORATE LEADERSHIP COUNCIL®CORPORATE LEADERSHIP COUNCIL

CORPORATE EXECUTIVE BOARD

Six Mistakes That Drive Away Your Rising Stars

The CLC’s Recent Research Profiled in the HBR

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From the CORPORATE LEADERSHIP COUNCIL ®www.clc.executiveboard.com

© 2010 The Corporate Executive Board Company. All Rights Reserved. CEB6571710SYN-B

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An employee’s potential is determined by his or her aspiration, ability, and engagement.

A NEW SYNTHESIS ON EMPLOYEE POTENTIAL

The Corporate Leadership Council’s Model of Employee Potential

Source: Corporate Leadership Council High-Potential Employee Management Survey, 2005.

DERF 09-4174

Catalog # CLC2229791937

Title LEGO 1029 CE ON

Ability Engagement

Aspiration

The High-Potential EmployeeAhigh-potentialemployeeissomeonewiththeability,engagement,andaspirationtorisetoandsucceedinmoresenior,criticalpositions.

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Currently, a majority of employees have limited potential to truly excel at the next level.

■■ Nearlyhalftheworkforcehaslessthana5%chanceofbeingatopperformeratthenextlevel.

■■ About8%ofemployeeshaveatleasta75%chanceofbeingatopperformeratthenextlevel.

THE POTENTIAL GAP

Distribution of Workforce Probability in the Top Quartile in a More Senior Role1


DERF

Catalog # CLC13Q2WOA

Title

1 An employee’s probability of performing in the top quartile in a more senior or a critical role is based on the employee’s potential score, which is weighted according to the predictors of top performance at the level above him or her. An employee’s potential score was converted into the probability of being a top performer in a more senior, more critical role using logistic regression.

1% 5% 50% 75%25%

Current Probability of Success in a More Senior, Critical Role

Num

ber

of

Em

plo

yees

32% 15% 22% 13% 8%10%

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No function or level has adequate number of high-potential employees.


DERF 09-4174

Catalog # CLC2229791937

Title LEGO 1029 CE ON

POTENTIAL DEFICITS EXIST IN MOST FUNCTIONS AND AT MOST LEVELS

Percentage of High-Potential EmployeesBy Function

Percentage of High-Potential EmployeesBy Level

13%12%

10%10%10%9% 9%

8% 8% 8% 8%7%

6% 6%

4% 4%

Per

cent

age

of

Hig

h-P

ote

ntia

l E

mp

loye

es

Per

cent

age

of

Hig

h-P

ote

ntia

l E

mp

loye

es

Ret

ail O

per

atio

ns

Cu

sto

mer

Co

nta

ct

Cu

sto

mer

Ser

vice

R&

D

Mar

keti

ng

Sal

es

Oth

er

En

gin

eeri

ng IT

Op

erat

ion

s

Co

rpo

rate

Ad

min

.

Fin

ance HR

Man

ufa

ctu

rin

g

Pu

rch

asin

g

Qu

alit

y C

on

tro

l Junior Level Mid Level Senior Level

9.1%

6.3% 6.2%

Althoughsomefunctionshousemorepotentialthanothers,nofunctionisfullyprepared.

Thepotentialgapisslightlyhigheratmoreseniorlevels.

Function

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5

77% Immediate/Short-Term

Priority

HIGH PRIORITY DUE TO HIGH VALUEOrganizations are prioritizing HIPO identification due to the high value associated with the employees. Please Indicate the Priority of Effective HIPO Identification at Your Organization

How Much More Valuable Is a High-Potential Employee Than an Average Employee?

15.7% More Than 100% More Valuable

1.2% No Material Difference in Value


19.3% More Than 20%

More Valuable


19% Long-Term Priority

3% Not a Priority in 2010–2011

Source: Corporate Leadership Council’s HR Organizations’ High-Potential Employee Management Strategies Survey.

n = 83.

Note: Numbers may not add up to 100% due to rounding.

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INCREASING INVESTMENTS, POOR RESULTS

Change in Investment in HIPOs’ Development1

Organizations report increased investments in high-potential employee development but less than one-third report significant returns.

33%

47%

16%

4%0%

Greatly Increased

Somewhat Increased

Stayed Constant

Somewhat Decreased

Greatly Decreased

Per

cent

age

of

Surv

ey R

esp

ond

ents

14% Minimal Returns

55% Moderate

Returns

31% Significant Returns

Returns on Investments in High-Potential Employees

Source: Corporate Leadership Council’s HR Organizations’ High-Potential Employee Management Strategies Survey.

1 Change in investment measured over past two years.

n = 88.

n = 86.

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MISTAKE #1: ASSUMING THAT HIGH-POTENTIALS ARE HIGHLY ENGAGED

Percentage of Employees Who Admit They’re Not Trying Their Best

Engagement levels have decreased significantly–yet intent to stay has slightly increased for all non-HIPO employees.

■■ HIPOsareawarethattheirskillsarevaluedanddon’tsharetheneedtostickaround.

“Atthetimewhenweneedthemmost,myrisingstarsseemto

haveonefootoutthedoor.”General ManagerF100 Technology Firm

HIPO employees who believe they’ll be working for a different employer in 12 months

HIPO employees who believe their personal goals are significantly different than what the organization plans for them

HIPOs who admit to having little confidence in their coworkers

0%

5%

10%

15%

20%

25%

30%

35%

Total HIPOs

25% 20% 40%

Source: CLC Human Resources Engagement Survey, September 2009.

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BUILDING MANAGER AWARENESS ABOUT EMPLOYEES

Manager ChecklistIllustrative

Answereachquestionwith“yes”or“no.”

Scoring System

0–5 “No”s: Low Risk6–10 “No”s: Medium Risk11–15 “No”s: High Risk

Su

sie

Wo

ng

Ben

Pen

g

Lily

Wu

Gra

ce C

ho

u

Kev

in L

iu

Nu

mb

er

of

“No

”s

Source: Novartis; China HR Executive Board research.

Retention Risk Assessment—Manager Questions and ScoringPart I: Manager–Employee RelationsDo I maintain an open, trusting, and mutually respectful relationship with this employee? Yes Yes No No Yes 2

Do I know this employee’s objectives and work with him or her toward these goals? Yes Yes Yes No Yes 1

Do I know that this employee perceives his or her total rewards to be fair and receives recognition for achievements? No No No Yes Yes 3

Do I understand why this employee works at Novartis and not at another firm? Yes Yes Yes Yes Yes 0

Manager–EmployeeRelationsRisk Low Low Med Med Low 6Part II: Employee’s Work–Life Balance SatisfactionDo I understand if the working environment fits with my employee’s personal and career needs? Yes Yes Yes No Yes 1

Do I understand and support this employee to expand his or her interests or hobbies? No No Yes No No 4

Do I know if this employee’s attitude, physical health, and overall status have been healthy for the past six months? Yes Yes Yes No Yes 1

Employee’sWork–LifeBalanceRisk Low Low Low High Low 6Part III: Employee’s Job–Interest AlignmentDo I know if the employee’s values are consistent with the organization’s values and culture? Yes Yes Yes Yes Yes 0

Does this employee demonstrate passion and enthusiasm for his or her work? Yes Yes No No Yes 2

Do I know how satisfied my employee is with aspects of the work situation (e.g., projects, training, coworkers)? Yes Yes No No Yes 2

Employee’sJob–InterestAlignmentRisk Low Low Med High Low 4Part IV: Employee’s Career GoalsDo I know if the employee’s current work is aligned with his or her long-term goals? Yes Yes Yes No Yes 1

Have I discussed different career choices with this employee? Yes Yes Yes No Yes 1

Am I currently and actively working with this employee toward his or her career goals? Yes Yes Yes No Yes 1

Have I had a discussion with this employee about ways to contribute to the company? No No No No No 5

Do I proactively support this employee’s development through training and challenging learning opportunities? Yes Yes No Yes Yes 1

Employee’sCareerGoalsRisk Low Low Med High Low 9Retention Risk (Based on Number of “No”s) Low Low Med High Low

Retentionchecklistsincludefoursetsofquestionsrequiringmanagerstotruly“know”theiremployees.

Thechecklistprovidesarealitycheckformanagersontheirknowledgeoftheirteams.

Whencomplete,thechecklistprovidesaroughmeasureoftheteam’s—andkeyindividuals’—turnoverrisk.

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Source: Novartis; China HR Executive Board research.

FROM AWARENESS TO ACTION

Manager “To-Do List”Illustrative

Su

sie

Wo

ng

Ben

Pen

g

Lily

Wu

Gra

ce C

ho

u

Kev

in L

iu

Retention Risk Category Step 1: Improve Team ManagementCareer Goals Create a development plan that focuses both on skills for the current job and for future jobs

Offer new types of projects across functional or divisional area to employee

Work with employee to ensure he or she can attend training events

Job–Interest Alignment Demonstrate the organization’s values and recognize employees for exhibiting them

Manager–Employee Relations

Recognizeemployee’saccomplishmentsbothpubliclyandprivatelyConductregularmeetingswithyourteam—formallyandinformallyStep 2: Target Action Steps to Areas of Concern

Career Goals Discuss the value the employee brings to the organization

Learn about the employee’s career goals and personal aspirations

Job–Interest Alignment ExpressyourownenthusiasmandpassionforthejobRegularlycheck-inwithyouremployeeandaskabouttheirworksituation

Manager–Employee Relations

Inquire about his or her work motivations—pinpoint why he or she is working here

Ask questions to learn what is important to him or her

Ensure employee understands communications about pay and feels open to ask questions

Work–Life Balance Satisfaction

Discussreasonsfornotedhealthorattitudechanges(e.g.,tiredness,moodswings)Learnabouttheemployee’spersonalinterestsoutsideofworkAsk how the employee works best

Discuss options for employees’ work hours, work style, work load, etc.

Directions:Identifyandincorporatethefollowingstepsinyourinteractionswithyourteam,basedontheirspecificretentionrisks.

Suggested follow-up steps focus on actions that are within the manager’s control…

…and can easily be incorporated into daily routines and interactions.

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MISTAKE #2: EQUATING CURRENT HIGH PERFORMANCE WITH FUTURE POTENTIAL

Percentage of Designated Employee Population Who Are HIPOsBy Employee Characteristics

While being a high performer is almost a prerequisite to being a HIPO (only 7% of HIPOs are not high performers), current performance is, by itself, a poor indicator of employee potential.

■■ Tenure,experienceinturningabusinessaroundorevenleadershipcapabilitiescannotpredictanemployee’sprobabilityofbeingsuccessfulatthenextlevel.

Total Sample

Involved in Two or More Turnarounds

and Experience Managing at Least Five

People

Five or More Years of Tenure

Rated “Strong” or

“Very Strong” on People

Management Competencies

High Performers

Per

cent

age

of

Des

igna

ted

P

op

ulat

ion

Who

Are

HIP

Os

Source: Realizing the Full Potential of Rising Talent, CLC Human Resources.

Average EmployeeEmployees with Experience

or Strength in Leadership SkillsHigh-Performing

Employees

8.2% 8.3% 8.5%

17.2%

28.7%Identifying potential based on tenure or experience produces poor and inconsistent results…

…while reliance on competencies or performance are only moderately more accurate.

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WHY HIGH PERFORMERS ARE NOT ALWAYS HIGH POTENTIAL

Probability of success at the next level: 44%


Characteristics■■ Engaged Dreamers are employees with a great deal of engagement and aspiration but only average ability.

■■ Unless the organization can develop requisite skills, the probability of success in the next level is virtually zero.

Characteristics■■ Unengaged Stars are employees with a great deal of aspiration and ability.

■■ They hesitate to believe that working for the organization is in their best interest and do not fully believe in their work or organization.

Characteristics■■ Misaligned Stars lack the drive and ambition for success at the next level.

■■ Despite their outstanding ability and commitment to the organization, they simply don’t “want it” enough.

Frequency: 10% of High Performers Who Are Not High Potential

Frequency: 43% of High PerformersWho Are Not High Potential

Frequency: 47% of High Performers Who Are Not High Potential


Engagement

Aspiration

Engagement Ability

Aspiration

Engagement Ability

Source: Corporate Leadership Council High-Potential Management Survey 2005.

Seventy-one percent of high performers have limited potential for success at the next level due to shortcomings in ability, aspiration, or engagement.

■■ Deficienciesinabilityaremostdetrimentaltoanemployee’schancesoffuturesuccess,followedbydeficienciesinengagementandaspiration,respectively.

Type #1: Engaged Dreamers Type #2: Unengaged Stars Type #3: Misaligned Stars

Aspiration

Ability

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MISTAKE #3: DELEGATING DOWN THE MANAGEMENT OF TOP TALENT

Percentage of HIPOs Rating Their Managers as Effective or Highly Effective

Managers are becoming less effective at developing direct reports given business pressures and conflicting priorities.

■■ High-potentialemployeesareconcernedabouttheirdevelopmentandarelesstolerantwiththisdecreaseinmanagers’capabilities.

■■ Eventhoughmanagerswillcontinuetoplayakeyroleasaconduitbetweentheemployeeandtheorganization,theorganizationneedstotreatitsHIPOsasacorporateassetandmanagetheirdevelopmentaccordingly.

Distribution of Managers’ Time Spend per Week, 2008 Versus 2009In Hours

Percentage of Employees Who Experienced or Anticipate Change in Manager1

2008 2009

27

26

53

33

23

5637% No

63% Yes

2008 2009

56%49%

1 Change in manager or senior leader in the last six months or anticipation of change in the next six months.

Source: CLC Human Resources Manager Survey, CLC Human Resources Rebuilding the Employment Value Proposition.

People Management Activities

Non–People Management Activities

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REFINE DEVELOPMENT GOALS

HIPO Development Review Board Agenda

Across the course of a 90-minute development review, senior leaders provide the HIPO with constructive feedback on their development goals.

HIPO Opening Comments

HIPOs present their goals, aspirations, and development questions, defining ideal outcomes from the meeting.

(20 minutes)

HIPO and Review Board Discussion

1. Assess Viability of HIPO Career Plans Group tests the achievability of HIPO career proposal in light of Barclays’ needs.

2. Generate Ideas and Insights into Development Plan■■ Board shares stories of past development successes and failures as they relate to HIPO’s goals.

■■ Board provides specific development suggestions—e.g., special projects, useful contacts, or personal effectiveness insights.

■■ Group determines how board members can offer ongoing career support.

(60 minutes)

All-Party Debrief

HR debriefs board and HIPO separately, ensuring that all parties have provided candid feedback and thoroughly understand next steps.

(10 minutes)

Source: Barclays Bank PLC.

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19

60% No

15%14%

11%10% 10% 10% 10%

8%7% 7% 7% 7%

6%5% 5% 5% 5%

4%3%

(1%) (1%) (1%)

MISTAKE #4: SHIELDING RISING STARS FROM EARLY DERAILMENT

Rotational programs could have a significant impact on an employee’s potential. However, most programs don’t provide significant returns due to their short duration and failure to place HIPOs in a place where they need to make impactful decisions.

■■ Potentialgrowswhenemployeesarepushedoutsidetheircomfortzoneinnew,personal(andattimespainful)ways.

Imp

act

on

Em

plo

yee

Po

tent

ial

Mo

dif

y W

ork

to

Ad

apt

to

Ch

ang

ing

Cir

cum

stan

ces

Cre

ativ

ely

So

lve

Pro

ble

ms

Per

suad

e S

enio

r M

anag

ers

to

Take

Diffi

cult

Act

ion

s

Use

Sp

ecia

l Ski

lls t

o H

and

le

Wo

rk C

risi

s

Use

Sp

ecia

lized

Ski

ll fo

r D

aily

Tas

ks

Iden

tify

New

Way

s to

Wo

rk

Wo

rk w

ith

Oth

er D

epar

tmen

ts

En

gag

e in

Bu

sin

ess

Fo

reca

stin

g o

r P

lan

nin

g

Mak

e D

ecis

ion

s T

hat

Co

uld

D

amag

e O

rgan

izat

ion

Rep

uta

tio

n

Un

der

stan

d M

arke

ts, C

om

pet

ito

rs,

or

Cu

sto

mer

s

Co

nsi

der

Glo

bal

Cu

sto

mer

Nee

ds

Wo

rk w

ith

Th

ird

Par

ties

Acq

uir

e N

ew S

kills

to

C

om

ple

te U

nfa

mili

ar P

roje

cts

Mak

e D

ecis

ion

s O

uts

ide

Exp

erti

se

Mak

e D

ecis

ion

s T

hat

May

D

issa

tisf

y C

ust

om

ers

Han

dle

Wo

rk C

risi

s

Des

ign

New

Pro

du

cts

Acq

uir

e N

ew C

ust

om

ers

Inte

ract

wit

h E

xist

ing

Cu

sto

mer

s

Nu

mb

er o

f B

usi

nes

ses

Lau

nch

ed

Nu

mb

er o

f C

ou

ntr

ies

Wo

rked

In

Nu

mb

er o

f F

un

ctio

ns

Wo

rked

In

Jobexperiencethatpersonallychallengesemployeestomoveoutsideoftheircomfortzoneandbecomeactive“changeagents”willhavethegreatestimpactondevelopment.

“Iambeingaskedtocontributetomyfullpotential”

40% Yes

Source: Realizing the Full Potential of Rising Talent, CLC Human Resources.

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From CLC HUMAN RESOURCES™www.clc.executiveboard.com

© 2010 The Corporate Executive Board Company. All Rights Reserved. CLC6372310SYN

43

HIPOs HAVE A LARGER APPETITE FOR RISK

Preference for Risk TakingHIPO Versus Non-HIPO Employees

To accelerate development, organizations should expose HIPOs to high-risk, high-return opportunities.

■ Rather than continuing to excel in their current role, HIPOs prefer to be in situations where they have increased accountability, need to develop new skills, and are working for higher stakes.

Per

cent

age

of

Em

plo

yees

Who

…

…Prefer to be Accountable for Decision Making

50%

42%

37%

32%30%

27% 27%25% 25%

20%

…Are Comfortable with Risk Taking

…Prefer Projects That Require

New Skills

…Prefer High-Risk, Unpredictable

Environment With High Returns

…Prefer High-Risk Projects With Unpredictable

Returns

Source: CLC Human Resources Employment Value Proposition Survey.

HIPO Employees

Non–HIPO Employees

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From CLC HUMAN RESOURCES™www.clc.executiveboard.com

© 2010 The Corporate Executive Board Company. All Rights Reserved. CLC6372310SYN

47

EVALUATE BUSINESS CHALLENGES TO MEETINDIVIDUAL DEVELOPMENT NEEDS

Criteria to Uncover New Crucible Roles

Leverage discrete business challenges to fulfi ll demand for crucible roles.

■ When HIPO demand outpaces crucible role supply, use these business-driven criteria to identify or create positions that match HIPOs’ strengths and development needs.

■ Dynamic crucible roles can be either temporary or permanent, depending on the specifi c business need.

■ Dynamic roles typically last three to four years and are most frequently used to increase organizational maturity at newer operating locations and during acquisitions.

Matching HIPOs to Business Challenges

1. Is there a senior position in the business unit that would be a crucible role if its risks were divided among two or more HIPOs?

2. Is there a lack of organizational maturity at an operating location, within a business unit, and/or function?

3. Do the leaders at this location have development needs that match HIPO strengths?

4. Is there a large unique or special project that could address HIPOs’ core development areas?

5. Is there a high-quality people manager who can oversee the HIPO in his or her new role?

Determining the Crucible Role’s Viability and Sustainability

1. Do we need to create an entirely new position or can the new role be an aggregate of select duties relating to existing roles?

2. Will this position be “deactivated” or be held by non–HIPOs once the HIPO moves on to a new role? Will it still be a crucible role?

3. If it is deactivated, can the position be reactivated if another HIPO needs a similar development opportunity?

4. Is the scope of the position signifi cant enough to create pressure to deliver, but not setting HIPOs up to fail?

At a new operating location, one HIPO did signifi cant upward coaching of a new-to-organization leader and instilled company values in the workforce while running back-offi ce operations for the fi rst time.

Methanex created a new crucible role by combining elements of four back-offi ce operations—Human Resources, Finance, Public Aff airs, and Safety—to create “Director of Corporate Resources.”

OVERVIEW DYNAMIC CRITERIA ROLE MATCHING SUPPORT NETWORK RESULTS

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MISTAKE #5: EXPECTING STAR EMPLOYEES TO SHARE THE PAIN

Increase in Desire for Job Recognition During the DownturnOctober 2008–March 2009

Employees in general, and HIPOs in particular, show an increased desire for recognition in their work.

■■ Employeeswhoclaimthattheirmanagersareeffectiveatdifferentiatingrecognitionshoweffortlevels10percentagepointshigherthanthosewhosaytheirmanagersuseamore“democratic”approach.

■■ HIPOscaremoreabouttherecognitionitselfthanthesizeofanyreward,aslongastherecognitionisinlinewiththeircontribution.

■■ Only11%agreethattheirmanagersdifferentiaterecognitionaccurately,leavingahugeopportunityuntapped.

Per

cent

age

of

Res

po

nden

ts

Rat

ing

in T

op

Fiv

e

42%

36%

30%Oct. 2008

Nov. 2008

Dec. 2008

Jan. 2009

Feb. 2009

Mar. 2009

Employeedesireforrecognitionhasincreasedby15%.

Source: CLC Human Resources Rebuilding the Employment Value Proposition, CLC Human Resources Managing in the Downturn, CLC Human Resources HIPO Study.

“My Manager Differentiates Recognition Accurately”

44% Disagree

45% Neutral

11% Agree

DERF 10-4231

Catalog # ■■ CLC6055710SYN

Title ■■ HO: Six Mistakes to Avoid

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DERF Thisisa2009CLCmerchthatdidnotgothroughCSG

Catalog # ■■ CLC9184848489

Title ■■ Low- and No-Cost Recognition Ideas

LOW- AND NO-COST RECOGNITION IDEAS (CONTINUED)

Top Ideas for Forms of Recognition

Top Ideas for Development Opportunities

■■ Give special assignments to people who show initiative.

■■ Ask people to present a summary of what they learned at a conference or seminar during a department meeting.

■■ Complete an on-the-job special assignment.

■■ Represent company at external event.

■■ Attend a leadership training workshop.

■■ Establish mentor relationships with senior executives.

■■ Provide opportunity to manage one or more direct reports.

■■ Manage a new project or initiative.■■ Work on a cross-functional team or taskforce.

Top Ideas for Tokens of Appreciation

■■ Post a thank you note on an employee’s cube.

■■ Create and post an “Employee Honor Roll” in reception area.

■■ Make a thank-you card by hand■■ Swap a task with an employee for a day—his/her choice.

■■ Establish a “Behind the Scenes” award specifically for those whose actions are not usually in the limelight.

■■ Give a shiny new penny for a thought that has been shared.

■■ Recognize employees who actively serve the community.

■■ Create an Above and Beyond the Call of Duty (ABCD) Award.

Top Ideas for Public Acknowledgment

■■ Publish a “kudos” column in the department newsletter, and ask for nominations throughout the department.

■■ Publicly recognize the positive impact on operations of the solutions employees devise for problems.

■■ Create a “Wall of Fame” to honor high achievers and special achievements in your organization.

■■ Make a photo collage about a successful project that shows the team that worked on it.

■■ At a monthly staff meeting, award an Employee of the Month and invite coworkers at the meeting to say why that person deserves the award.

Top Ideas for Awards and Perks

■■ Provide low-cost gift certificates (e.g., iTunes or Amazon MP3 downloads).

■■ Conduct an office outing, such as going bowling or to the zoo.

■■ Allow employees to leave two hours early one Friday afternoon.

■■ Take employees to lunch as a thank you and allow employees to choose the restaurant.

■■ Provide an assigned parking space for “Employee of the Month.”

■■ Offer concierge services, both on-site and off-site (virtual) to recognized individuals.

■■ Appoint a financial adviser to meet with selected employees and provide guidance on their financial planning issues.

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MISTAKE #6: FAILING TO LINK YOUR STARS TO CORPORATE STRATEGY

Maximum Impact of Senior Executive Team on Discretionary Effort1

HIPOs are acutely aware of the organization’s health and direction. Their trust in senior leadership is critical for both their rational and emotional commitment.

■■ Whileemotionalcommitmentdriveseffort,itisrationalcommitmentthatdrivesretention—acriticalriskwithHIPOs.

■■ Employeeswhoseetheconnectionbetweentheirworkandthestrategyoftheorganizationshowengagementlevelsupto30%higher.

1 Each bar represents a statistical estimate of the maximum total impact on discretionary effort each lever will produce through its impact on rational and emotional commitment. The maximum total impact is calculated by comparing two statistical estimates: the predicted discretionary effort level for an employee who scores high on the lever and the predicted discretionary effort level for an employee who scores low on the lever. The impact of each lever is modeled separately.

Reciprocitypays:Seniorexecutiveswhoareopentoinputandcommittotheiremployeesreceiveheightenedeffortinreturn.

Maximum Impact of Commitment Type on Intent to Stay1

Source: CLC Human Resources Driving Employee Performance and Retention Through Engagement.

Astrongrationalcommitmenttotheorganizationleadstothestrongestincreaseinintenttostay.

Rational Commitment

Emotional Commitment

Imp

rove

men

ts

in In

tent

to

Sta

yIm

pro

vem

ents

in

Inte

nt t

o S

tay

Is O

pen

toN

ew Id

eas

Dee

ply

Car

es

Abo

ut E

mpl

oyee

s

Mak

es E

mpl

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Dev

elop

men

t a

Prio

rity

Is C

omm

itted

to

Cre

atin

g N

ew J

obs

Mak

es E

ffor

t to

Avo

id L

ayof

fsSt

rong

in L

eadi

ng

and

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agin

g Pe

ople

Stro

ng in

Str

ateg

y

Sele

ctio

n an

d Im

plem

enta

tion

Stro

ng in

Pers

onal

Cha

ract

eris

tics

Stro

ng in

Day

-to-

Day

Proc

ess

Man

agem

ent

22.9% 20.7% 19.7%15.9% 14.4% 15.6% 15.6% 15.3% 14.0%

Rational—Organization

Rational—Team

Emotional—Organization

Emotional—Manager

Emotional—Job

Rational—Manager

Emotional—Team

50.0%38.8% 38.6% 33.7% 33.2% 30.0% 25.4%

DERF 10-4231

Catalog # ■■ CLC6055710SYN

Title ■■ HO: Six Mistakes to Avoid

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SPONSOR YOUR BEST TALENT

Candidate Selection Process

Head of function or business unit nominate HIPO employees with final membership contingent on agreement of entire strategy committee.

■■ Selectionofparticipantsbasedonpastperformance,andpotentialvaluetocorporation.

■■ Strategycommitteemembersnominateemployeesbasedon(informal)assessmentofpastperformance,likelyfuturecontributionwithfinalselectionmadebyentirestrategycommittee.

Source: Anheuser-Busch Companies, Inc.

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BAnheuser-Busch

Strategy Committee

Jim Susan Lori Brad Katie Gina Jen Carol Jeff

Past Performance

Leadership Ability

Breadth of Thinking

Potential FutureContribution

Breadth of Experience

Yes No Yes No No No Yes Defer? Yes

Individualswithstrongpotential,pastperformancebutlackinginbreadthofexperiencemaybenefitfrommembershiponshadowcabinet.

Individualswithweakertrackrecordsrelativetooveralltalentpoolnotyetreadyformembershipinpanel.

Individualalreadypossessesstrongbackgroundandbreadthofexperience;maydefermembershipifothercandidateswouldbenefitmorefromopportunity.

SBU #1 SBU #2 SBU #3

Strong

Moderate

Weak

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FAR FROM DAILY BUSINESS ACTIVITIES

Shadow Cabinet Logistics

Participants exposed to corporate agenda, develop executive instincts through regular consideration of strategic issues.

■■ Monthlymeetingsscheduledimmediatelypriortostrategycommitteemeetingpromoteconsistent,ongoingattentiontodevelopmentactivities.

Typical Agenda Items

■■ Stock repurchase proposals■■ Capital appropriation request for expansion■■ Deciding international venture strategy■■ Researching special assignments from strategy committee (e.g., possible acquisitions, evaluating current policies)

■■ Due diligence research on potential acquisitions■■ Review of financial performance■■ Evaluating reengineering or refurbishment plans

Time Commitment

■■ Shadow cabinet meets 10 times per year, one day prior to scheduled strategy committee meeting

■■ Total (estimated) time away from job: 20–25 days per year (includes travel and meeting time)

Thursday 19 October

Shadow Cabinet Meeting

■■ Rotate meeting chair■■ Consider committee agenda■■ Formulate recommendations■■ Rotate three members to present

recommendations at next day’s strategy committee

Friday 20 October

Strategy Committee Meeting

■■ Present shadow cabinet recommendations during strategy committee meeting

■■ Take notes on discussion to report back to next month’s shadow cabinet

Source: Anheuser-Busch Companies, Inc.

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BAnheuser-Busch

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TEN CRITICAL COMPONENTS OF A TALENT-DEVELOPMENT PROGRAM

A Core Set of Best Practices for Identifying and Managing Emerging Talent

1. Explicitly test candidates in three dimensions: ability, engagement, and aspiration.

2. Emphasize future competencies needed (derived from corporate-level growth plans) more heavily than current performance when you’re choosing employees for development.

3. Manage the quantity and quality of high potentials at the corporate level, as a portfolio of scarce growth assets.

4. Forget rote functional or business-unit rotations; place young leaders in intense assignments with precisely described development challenges.

5. Identify the riskiest, most challenging positions across the company, and assign them directly to rising stars.

6. Create individual development plans; link personal objectives to the company’s plans for growth, rather than to generic competency models.

7. Reevaluate top talent annually for possible changes in ability, engagement, and aspiration levels.

8. Offer significantly differentiated compensation and recognition to star employees.

9. Hold regular, open dialogs between high potentials and program managers, to monitor star employees’ development and satisfaction.

10. Replace broadcast communications about the company’s strategy with individualized messages for emerging leaders—with an emphasis on how their development fits into the company’s plans.

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CORPORATE LEADERSHIP COUNCIL®CORPORATE LEADERSHIP COUNCIL

CORPORATE EXECUTIVE BOARD


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six mistakes that drive away your rising stars - wangowango.org/ngonews/february11/clc.pdf ·...

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