Hogan High Potential Talent Report

By 18 July 2017Focus

An Instrument to Develop Core Competencies for Emerging Leaders


Leadership matters

Smart organizations recognize that in order to succeed, they need to develop a steady pipeline of talented high-potential employees ready to take the leadership reins when needed, but only about one out of three companies is actually prepared to succession planning.

The highest-performing organizations make it a top priority to prepare talented people for advancement. Studies show organizations with strong leadership are 13 times more likely to outperform their competition, and three times more likely to retain their most talented employees. CEO personality alone can account for a 29% variance in profitability. And research suggests that top management has a much greater impact on organizational performance than even the CEO.

It’s hard to develop leadership potential

According to a global study, only 15% of North American and Asian companies and only 30% of European companies have enough qualified successors to fill key positions.

Most organizations struggle to find accurate and useful ways to develop people with the most potential for success as leaders. Some people who appear to have leadership potential are often not effective leaders; conversely, many effective employees are overlooked for promotion because they do not self-promote enough to get noticed.

Hogan simplifies things

Before organizations can identify and develop high-potential employees, they have  to define potential in a manner that works across all departments and job levels. And in attempting to do so, many organizations end up with a complex concept of potential that satisfies no one.

As there are no established best practices for identifying high-potential employees, current processes are plagued by bias and politics, and produce mixed results at best. Hogan simplifies the process by defining high potential as the ability to build and lead teams that can consistently outperform the competition.

The reason most high-potential programs struggle to produce results is that they’re missing one thing: science. Hogan’s model of high potential is built on 30 years of independent research and validated on more than 21,000 global managers across every industry. It is based on Hogan’s three core assessments and considers nine competencies within three dimensions:

  1. Leadership foundations
    The degree to which people are able to manage their careers, are rewarding to deal with, and are good organizational citizens.
  2. Leadership emergence
    The degree to which people stand out from their peers, build strategic business relationships, exert influence, and are viewed as leaders.
  3. Leadership effectiveness
    The degree to which people are able to build and maintain high-performing teams, and drive those teams toward organizational success.

For further information:

Hogan High Potential Talent Report The politics of Potential


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