Secrets of Business Value by Peter Robinson

Author:Peter Robinson
Language: eng
Format: epub
ISBN: 9781909623156
Publisher: Panoma Press
Published: 2013-10-23T00:00:00+00:00

In a 1987 survey, it was found that, in 78% of organisations with ‘hidden’ high-potential classifications, the employees were aware of it 90% of the time. Such communication is still a sensitive area. Complete openness about who is on the HMP (higher management potential) list runs the risk of those not included being disappointed and the frustration for high-potentials whose expectations are not met.

The main reason companies do not communicate openly is the fear that their process is too subjective or unfair. On balance it appears that transparency wins over secrecy.

The Management and Reward of Talent

In addition to the regular education and development programmes of all employees, the nurturing of high-potentials needs to go much further. It needs to involve self-directed learning and other types of training. Best practices for the leadership development track (also known as the HMP programme) have been shown to include on-the-job development, targeted mentoring, coaching, education and a variety of job experiences. Board members and senior business leaders need to be fully committed to, and involved with, the HMP development programme. High-potentials need visibility with senior executives, as well as leadership role models.

At Hitachi Data Systems (HDS), concentrated, short-tern exposure to executive management is afforded to HMP candidates through assignments as temporary Executive Assistants at 5-day sales conventions. The annual conventions include senior guest speakers from the Board of Directors. The candidate plays host to the visiting guest Executive for the duration of the convention. This process enables the Executive to provide an assessment of the candidate and, equally importantly, allows the candidate to see the Executive in action throughout the week.

IBM run a so-called ‘President’s Class’ for high-potentials. The 2-week class, run two or three times a year, is designed and staffed by faculty members from schools like Harvard Business School and INSEAD. Graduates of the class are then given special commissions, frequently foreign assignments, during which they are subjected to close performance monitoring and mentoring.

The rotation of candidates through appropriate jobs is also undertaken by many organisations. A study in 1988 showed that 84% of firms used job rotation as the primary strategy for developing high potentials. In most high-performing companies, progress through the HMP programme is accompanied by the setting of goals and targets which, although stretching, are designed to be motivating. There is a fine line between a challenging assignment and an overwhelming one.

Rewards and Incentives

Although being on the HMP list is regarded by many companies as a reward in itself, the best companies include monetary compensation in the overall benefits package for a qualifying candidate. The reward must be aligned to the building of lasting strength for the company. It is frequently set up as a long-term incentive plan, based on cumulative performance over a period of time, usually every two years.

A common mantra of many companies is: ‘Our most important asset is our people’. Our proposition is that enterprises of every size – micro, small, medium and large – should, and can, do more than just pay lip service to this mantra.

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