High potentials are typically defined as individuals who demonstrate superior performance and possess the talent to move up the career ladder. They actively seek out challenging assignments and want to take on greater responsibilities. These up-and-coming leaders are vital to fill the talent pipeline, and they ensure that every organizational level has an adequate number of talented employees with the right experiences and competencies to succeed now and in the future.

Many organizations identify their high potentials based on their work performance in past and current roles. Further, many organizations provide a one-size-fits-all training solution to prepare high potentials for future roles. Organizations that identify their high-potential employees based on their past performance should use this approach with caution. The Corporate Leadership Council conducted a study in 2005 titled “Realizing the Full Potential of Rising Talent” and found that some 71 percent of high performers were not, in fact, high potentials. These high performers had limited success at the next level due to shortcomings in their abilities, motivation, aspirations, engagement and capacity to learn from new job assignments. On the other hand, the same study found that 93 percent of high potentials were high performers.

So, if talent leaders cannot use past performance to identify high potentials, what can they use?

The High-Potential Profile
A 2010 Korn/Ferry study was conducted at McGladrey, a national accounting, tax, and business consulting firm employing approximately 7,000 professionals and associates in nearly 90 offices across the United States. The purpose of the study was to investigate how high potentials were different from seasoned executives. A 360-degree feedback instrument was administered to 30 managing partners from three functional areas. Fourteen participants were executives, and 16 were identified as high-potential leaders. All participants were assessed on 29 leadership competencies by three different rater groups: boss, peers and direct reports. Each of the competencies was rated on a five-point scale, ranging from 1 — a serious issue — to 5 — a towering strength. Further, each of the 29 leadership competencies was rated by the senior executive team to reflect its importance to organizational success, ranging from 1 — not important — to 3 — mission critical.