One of the most important people-related questions businesses strive to answer of is whether a talent has the potential to perform in the present and build for the future. Consequently, talent management teams within organisations place in a lot of effort and emphasis on getting the science of predicting potential right.
This white paper intends to outline the philosophy and research underlying the Propel Potential Model. In addition, this review will explain the benefits of adopting a holistic assessment for potential that includes the three elements of Capability, Character and Commitment.
This white paper intends to outline the philosophy and research underlying the Propel Potential Model. In addition, this review will explain the benefits of adopting a holistic assessment for potential that includes the three elements of Capability, Character and Commitment.
What is potential?
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As a starting point, it is important to create an equal understand and dissect the term potential. Potential is typically defined as the culmination of an individual’s capability, motivation, characteristics and aspirations to advance in a more senior and strategic role (Silzer & Church, 2009).
Interestingly, whilst these days half of organisations have a high-potential identification programme to appropriately identify and curate a leadership pipeline (Church & Rotolo, 2013), nearly 40% of internal moves made by ‘high potentials’ in an organisation end in failure (Martin & Schmidt, 2010). One reason for this is the lack of differentiation between high performers and high potentials. |
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It has been well established that past performance is a valid predictor of future performance and therefore, an assessment process that solely considers past performance would indeed identify high performers.
Potential, on the other hand, is about what the individual can do in the future and predicting this purely based on past behaviours would neither be valid nor inclusive. As mentioned previously, the formula for measuring potential includes motivation, personal characteristics and aspirations, in addition to capability based on past performance.
Potential, on the other hand, is about what the individual can do in the future and predicting this purely based on past behaviours would neither be valid nor inclusive. As mentioned previously, the formula for measuring potential includes motivation, personal characteristics and aspirations, in addition to capability based on past performance.
Why do we need to measure potential?
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According to Bauer (2011), half of all senior external hires in corporations fail within the first 18 months. This is primarily due to high emphasis on an individual’s past experience and the lack of a holistic multi-trait, multi-method assessment approach that looks not only at the end results an individual achieves themselves, but also ‘how’ they get things done.
Measurement of potential demonstrates how different aspects of an individual come together to independently and collectively contribute to long-term success in a proposed role. Similarly, potential also considers the ability to adapt and strive in a particular company, whilst maintaining a certain level of learning agility, which has been shown to be a better predictor of high potential than even job performance (Dries, Vantilborgh & Pepermans, 2012). |
How is potential measured?
Potential can be measured by considering three distinct aspects of an individual, i.e., their capability, character and motivations or in other words commitment. Capability is can be defined as an individual’s competence and ability to perform in a certain role. It is is based on past and present performance, behaviours and cognitive ability.
Capability is often assessed by organisations through competency frameworks. These are typically designed for the sole purpose of identifying what key skill areas are required for success in a given role, i.e. teamwork, drive for results, or digital fluency. Traditionally, leadership potential theories focused only on competence, however more recent theories like transformation leadership, authentic leadership, leader-member exchange theory have taken into account the character of a leader and how that impacts their overall effectiveness (Yukl, 2010). In other words, However, without understanding an individual’s values and personality traits, a crucial building block in the identification of an individual’s potential is missing.
Character is defined as the quality of judgement and decision-making of an individual, that is based on their personal characteristics, preferences and life-guiding principles. It is necessary to not only understand what an individual can do, but also how they carry their day-to-day responsibilities. In other words, assessing an individual’s character gives organisations an insight into how someone engages with the world around them, what they reinforce, how they engage themselves and others in conversations and what they value and choose to act upon.
Commitment, is the last building block pertaining to an individual’s potential. It relates to whether someone with the right capability and character has the right drive and aspirations to act on their potential. For example, an individual may demonstrate highly competent behaviours and possess the appropriate characteristics to be successful in a senior role, however, if they do not desire to take on a leadership role as the next step in their career progression, they would be less likely to experience success when progressing to that role. In conclusion, the assessment of commitment needs to be added to the model. Just as important as competence and character, is an individual’s motivational areas and commitment towards a certain role and organisation.
In summary, capability reflects what a person can do; character influences the choices people make about what to do; commitment refers to the effort someone will put into doing it. If any of these three pillars are deficient, the shortfall will undermine the other pillars and ultimately lead to performance problems for individuals, teams, leaders, organisations and related stakeholders.
Capability is often assessed by organisations through competency frameworks. These are typically designed for the sole purpose of identifying what key skill areas are required for success in a given role, i.e. teamwork, drive for results, or digital fluency. Traditionally, leadership potential theories focused only on competence, however more recent theories like transformation leadership, authentic leadership, leader-member exchange theory have taken into account the character of a leader and how that impacts their overall effectiveness (Yukl, 2010). In other words, However, without understanding an individual’s values and personality traits, a crucial building block in the identification of an individual’s potential is missing.
Character is defined as the quality of judgement and decision-making of an individual, that is based on their personal characteristics, preferences and life-guiding principles. It is necessary to not only understand what an individual can do, but also how they carry their day-to-day responsibilities. In other words, assessing an individual’s character gives organisations an insight into how someone engages with the world around them, what they reinforce, how they engage themselves and others in conversations and what they value and choose to act upon.
Commitment, is the last building block pertaining to an individual’s potential. It relates to whether someone with the right capability and character has the right drive and aspirations to act on their potential. For example, an individual may demonstrate highly competent behaviours and possess the appropriate characteristics to be successful in a senior role, however, if they do not desire to take on a leadership role as the next step in their career progression, they would be less likely to experience success when progressing to that role. In conclusion, the assessment of commitment needs to be added to the model. Just as important as competence and character, is an individual’s motivational areas and commitment towards a certain role and organisation.
In summary, capability reflects what a person can do; character influences the choices people make about what to do; commitment refers to the effort someone will put into doing it. If any of these three pillars are deficient, the shortfall will undermine the other pillars and ultimately lead to performance problems for individuals, teams, leaders, organisations and related stakeholders.
What is the Propel Potential model?
In a span of 10 years, Propel has partnered with over 200 organisations to design and deliver leadership assessment and development solutions, supporting them in the achievement of their strategic goals through the identification and placement of high-potential talent. While doing so, time and time again the best results were only achieved when it was considered whether an individual had the capability to do a certain job, the right character to fit in a specific corporate culture and the commitment to drive themselves and the organisation forward to success.
The culmination of different people's data points after assessing for an individual’s capability, character and commitment can indicate the effectiveness of their past and current performance and provide an indication of their future potential, all of which are proven to be necessary to understand an individual’s potential for future roles.
Therefore, the Propel Potential model aims to assess an individual’s general potential through the measurement of the 3Cs, i.e. capability, character and commitment as defined in the table below.
The culmination of different people's data points after assessing for an individual’s capability, character and commitment can indicate the effectiveness of their past and current performance and provide an indication of their future potential, all of which are proven to be necessary to understand an individual’s potential for future roles.
Therefore, the Propel Potential model aims to assess an individual’s general potential through the measurement of the 3Cs, i.e. capability, character and commitment as defined in the table below.
What makes the Propel Potential Model even more powerful than its holistic and all-encompassing nature is that the original body of research was based on how leaders managed to navigate through the last financial crises and the findings of the previous crisis can be linked to a large extent to the current one which in turn makes the model as relevant and important as ever before.
Jeffrey Gandz, Carol Stephenson, Mary Crossan and Gerard Seijts at the Richard Ivey School of Business conducted the research piece and wrote a report called ‘Leadership on Trial’. For that purpose, they interviewed more than 300 business, public sector and non-profit leaders about the role that organisational leadership played before, during and after the economic crisis of 2007. The findings are reflected in the Propel Potential Model above.
Jeffrey Gandz, Carol Stephenson, Mary Crossan and Gerard Seijts at the Richard Ivey School of Business conducted the research piece and wrote a report called ‘Leadership on Trial’. For that purpose, they interviewed more than 300 business, public sector and non-profit leaders about the role that organisational leadership played before, during and after the economic crisis of 2007. The findings are reflected in the Propel Potential Model above.
References
Church, A. H., & Rotolo, C. T. (2013). How are top companies assessing their high-potentials and senior executives? A talent management benchmark study.
Dries, N., Vantilborgh, T., & Pepermans, R. (2012). The role of learning agility and career variety in the identification and development of high potential employees.
Gandz, J., Crossan, M., Seijts, G.H., & Stephenson, C. (2010). Leadership on trial: A manifesto for leadership development. London, Ontario: Richard Ivey School of Business.
Martin & Schmidt (2010). How to keep your top talent. Harvard Business Review, 88.
Silver & Church (2009). The Pearls and Perils of Identifying Potential.
Church, A. H., & Rotolo, C. T. (2013). How are top companies assessing their high-potentials and senior executives? A talent management benchmark study.
Dries, N., Vantilborgh, T., & Pepermans, R. (2012). The role of learning agility and career variety in the identification and development of high potential employees.
Gandz, J., Crossan, M., Seijts, G.H., & Stephenson, C. (2010). Leadership on trial: A manifesto for leadership development. London, Ontario: Richard Ivey School of Business.
Martin & Schmidt (2010). How to keep your top talent. Harvard Business Review, 88.
Silver & Church (2009). The Pearls and Perils of Identifying Potential.