Management

Talent Management

Approaching the assessment of potential across the organisation encourages broader thinking about possi-
ble future organisational roles and enables a richer and deeper approach to succession planning.

Potential describes ‘work that can be done in the future’ and can change over time especially where
impacted by work, life of developmental influences.
Assessing potential is more than assessing current performance. Assessing ‘promotability’ involves
assessing performance, skills and motivation through observed behaviour.
Unsupported inferences (subject to halo or bombshell effect) can result in faulty conclusions.
Potential strongly depends on the individual’s capacity to and willingness to accept stretch targets.
It is acknowledged that while various (unique) characteristics contribute to an individuals potential, but using
a framework, provides a legally defensible starting–point.

INDEX
INVENTORY APPROACH ................................................................................................................................ 2

TALENT STANDARDS...................................................................................................................................... 3

TALENT MATRIX .............................................................................................................................................. 4

DEVELOPMENT NEEDS .................................................................................................................................. 5

4-BOX MATRIX ................................................................................................................................................. 6

TALENT MANAGEMENT PROCESS ............................................................................................................... 7

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Inventory approach

The use of an inventory approach to talent management highlights the human dimension in the context of
the overall business strategy;
• Identifies the existing leadership talent in the field using a common standard
• Identifies the leadership gaps
• Identifies high growth individuals

The inventory process also produces various outcomes and actions;

• Provides a framework for feedback on performance and career planning
• Provides a foundation for creating meaningful development plans
• Provides insight on issues like diversity, so that appropriate actions can be taken
• Provides data and direction for creating effective staffing, such as ensuring that ‘the right person in the
right job’
• Enables a metric for reporting purposes

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Talent Standards
In the table below are some applied definitions of 4 levels of potential considered best practice for high
performing organisations.

Level 4 – High Performer + High Potential (HiPo)

• Exhibits competencies that could be applicable two organizational levels up

• Exhibits operating, technical and professional skills that are broad and deep
• Has a good self perception and is a fast learner
• Actively seeks new challenges
• Self motivated and dedicated to the organization
• Demonstrated excellent performance under first time conditions
• Thrives on ambiguity
• Demonstrates a low tolerance for failure
• Creates and maintains strong partnerships and informal networks
• Takes advantage of diversity

Level three – High Performer (High)

• Exhibits competencies that could be applicable one organizational level up

• Exhibits operating, technical and professional skills that are broad and deep
• Has a good self-perception and is a fast learner
• Demonstrated good performance under first time conditions
• Maintains strong partnerships and informal networks
• Deals with ambiguity
• Aspires to higher level challenges and opportunities

Level two – Good Performer (Good)

• Exhibits good competence that at current organizational level

• Has a good self-perception and is a fast learner
• Copes effectively with diverse personalities, ideas and backgrounds
• Regularly works at building new skills
• Adds new skills when the job calls for it
• Has a business perspective below current position
• Aspires to challenges, but at the same organizational level
• Maintains partnerships at all organizational levels
*An individual with potential rating of 3 or 4 but wishes to stay at their current level should be given a rating of 2

Level 1 – Low Performer + Low Potential (LoPo)

• Exhibits competencies below that which would be expected

• Demonstrates little effort to build new skills or to keep current skills sharp
• Shows little self-motivation
• Does not understand what is required of the job
• Is focused on self rather than the team

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Talent MATRIX
There are a number of choices in terms of succession planning which depend on employee potential and
performance ratings.
Ensuring the correct development pathway is the key to maximized performance.

PerformanceÖ 2 3 4 5

0-5% 65-75% 20-25% 0-5%

ÕPotential

(4) High Performer + High

to
2

Potential
Seen as a priority for a
levels up
advance

new assignment. May

Top 40

(2) Good Performer need accelerated devel-

Able

Employees who need a opment with exposure to

A

development plan and senior managers

stretch assignments (3) High Performer
to
1

Ready for promotion

advance
level up
Able
B
Expanded role
at same level

(1) Low Per-

former + Low
Potential
Employees
needing to be
C

managed
at

against short
term objectives
current level

Bottom 40
Difficulty
D

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Development Needs
There are a number of choices in terms of succession planning which depend on employee potential and
performance ratings. Ensuring the correct development pathway is the key to maximized performance.
(4) High Performer + High Potential (HiPo)
Who are they What they need

• High performers with leadership potential • Cross functional assignments

• Critical employees • Leading a team
• Regrettable losses because of excellent • Special projects
performance and growth potential
• Exposure / mentoring by senior managers

(3) High Performer (High)

Who are they What they need

• Critical employees • Assignments

• Regrettable losses because of excellent • Mentoring by others
performance and growth potential
• Broader scope
• Great People whose expertise has helped
• Recognition of their career path and the
develop the organization
importance of their contribution

(2) Good Performer (Good)

Who are they What they need

• Consistent reliable performers • Challenge, stretch assignments to achieve higher

levels of performance
• Career employees who would be a regrettable
loss • Pair them with a HIGH performer
• Limited potential for senior management • Ensure skills levels are there to enable excellent
positions performance
• Have the ability to grow across the organization
• Backbones

(1) Low Performer / Low Potential (LoPo)

Who are they What they need

• Not meeting job expectations • Challenge, stretch assignments to achieve higher

levels of performance
• Need to improve to stay in organization
• Pair them with a HIGH performer
• Can be a mismatch between aspirations and job
responsibility • Ensure skills levels are there to enable excellent
performance

(0) Too soon / New to position

Who are they What they need

• Not enough evidence to rate performance • Focus on skills and experience

• High potential is assumed • Set expectations
• Need to be closely monitored for cultural fit, • Coaching
performance and job satidfaction
• 30/60/90 (USA) day development plan

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4-Box Matrix
While the 9-Box may be favoured in literature it’s implementation is difficult, which is why a 4-box is favoured
as a generally accepted alternate.
Management’s role is to move performance to toward excellence. External factors like the force of
competition or the introduction of new products will limit performance. For instance, a HiPo (box 4) may drop
a level if not kept up-to-date with new technologies.

Box 4 (HiPo) Box 3 (High)

Highly Competent Competent at all levels
Exceeds all objectives Meets objectives
(all the time) (all of the time)
Names? Names?

Box 1 (LoPo) Box 2 (Good)

Low Potential Competent at most levels
Low Performance Meets all objectives
Not meeting the job expecta- (most of the time)
tions Names?
Names?

Once the talent pool is known, gaps can be identified and the profile can be monitored on a year-by-year
basis.

2007 Overall = # 2008 Overall = #

Box 4 Box 3 Box 4 Box 3

# # # #
(%) (%) (%) (%)

# # # #
(%) (%) (%) (%)

Box 1 Box 2 Box 1 Box 2

The organisation has a commitment to provide employees with accurate and timely feedback. This feedback
is essential for each employee’s continuous development, a belief borne out by research that shows that an
employee’s failure to develop can often be traced to a lack of accurate feedback.

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Talent MANAGEMENT PROCESS

Management’s role

• Assessments against performance at review time

• Sharing of the framework and the judgment of potential as per the model
• Discussion of the box number and the overall reason for the assessment
• Share strengths and areas for development
• Discuss career aspirations
• Work together on creating development plans (including training, stretch assignments, coaching, etc.)
which are appropriate to meet the individual’s development needs as well as the needs/objectives of the
business

Process

Supervisor and Manager reviews Manager Schedules Manager conducts

manager meet Performance summary the feedback feedback
Career goals
Discuss the assessment, session Assists with development
the justification and any Leadership development
approx. 30-45 min. In plan
factors that need to be feedback form
length Coaches
considered Consults with HR as
Private/no interruptions
appropriate

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