1. SO YOU THINK YOU HAVE GOT WHAT IT TAKESMEASURING POTENTIAL THE 4TH EA HR SUMMIT Rwanda, Kigali Paul Russo

2. Talent Review Matrix PERF. A P PR A IS A L Ready Now Well Placed Ready Now/Short Term Prom. Succession Planning Excellent, clearest example of superior performance and outstanding potential Consistently produces exceptional results; demonstrates some potential Consistently produces exceptional results, but shows very little potential High >3.25 Well Placed Long Term Prom. Short Term Prom. Consistently meets, and sometimes exceeds expectations; demonstrates some potential Consistently meets and sometimes exceeds expectations, and has demonstrated a great deal of potential Consistently meets, and sometimes exceeds expectations; shows very little potential Middle 3.0 – 3.25 Take Action Take Action or Wait And See Wait And See Not delivering results; demonstrates some potential Not delivering results; demonstrates a great deal of potential Not delivering results as expected; shows very little potential Low < 3.0 Moderate 2.5 – 3.25 Low < 2.5 High > 3.25 Performance Management Actions POTENTIAL Ready Now = 0 to 1 Years Short Term Prom.- 1 to 2 Years Long Term Prom.- 2 to 3 Years Adapted from Michael M. Lombardo & Robert W. Eichinger.

3. Jackson Leadership Performance- Potential Matrix 3

4. WHAT IS POTENTIAL? There is an ever widening range of opinions on how to measure potential. For some, it is about behaviors or competencies,and assessing whether the person is operating in an upper performance quartile. For others, it is about describing behaviors needed for success at different hierarchical levels (cf., the Drotter model ) and assessing whether the person is demonstrating such behaviors associated with roles above where they are currently deployed. Great for those on the way up but if you’re at the top, you stand a clear chance of under performing! For others, it is about searching for some illusive ingredient (self awareness, continuous learning, and agility are such emerging themes) not yet fully identified.

5. Dictionary Definitions Reviewing some dictionary definitions, you will find references to: In linguistics, the potential mood. The mathematical study of potential is known as potential theory; it is the study of harmonic functions on manifolds. This mathematical formulation arises from the fact that, in physics, the scalar potential is irrotational, and thus has a vanishing Laplacian. In physics, a potential may refer to the scalar potential or to the vector potential. It can even be a term used to describe energy – do we really only want energetic people? Lost?????

6. Pragmatic View For most of our purposes, in the business world, it is important to ensure the contextual fit with our respective needs. For example, if the organization is seeking a cultural transition, having leaders who can quickly flex, adapt and role model the required new culture may be sufficient to say potential is the ability to deliver new behaviors quickly. When a current high brand fashion retailer set about identifying what potential was for them, they identified three factors. First, what behaviors distinguished current exceptional performance Second, what capabilities and behaviors supported the brand (after all the brand is sacrosanct) Third, recognizing success today is not the same as predicting success for tomorrow; they identified a set of behaviors that support a person’s ability to respond to changing circumstances, including self awareness, personal development, intellectual agility and business acumen.

7. Emerging Important Factors Reflecting on the many different models in use, four key factors keep emerging as important, even if they are applied in different ways. 1. General Intelligence – The ability for an individual to assimilate quickly new and complex data, make sense of it, spot themes and trends, balance hard and soft data, and make contextually significant decisions. 2. Emotional Drivers – The core drive and resilience to face the competitive world, balanced with self awareness, humility and the ability to adapt and flex style, learn continuously and engage others to achieve beyond their own expectations. 3. Business Acumen – In today’s world, this is not only about understanding business and financial models but also understanding business politics, and creating and navigating networks to achieve results. 4. Historic Performance Record – Last year’s annual performance rating is not enough; rather, is there a sufficient record of the person facing new challenges and bringing to bear those capabilities and behaviours that enable them to succeed time after time? A cautionary warning on this factor still needs to be sounded, as learned by recent stock market losses, ‘past success is no guarantee of future success’ but it is an indicator!

8. In Summary: Need to create a framework relevant for your business but bear in mind that, in an ever-changing competitive world, the skills required today for tomorrow may keep changing. This gives real credence to models containing self awareness and personal development as key elements in assessments of potential.

9. SO NOW TO MEASURING! Psychometrics. 360 Degrees Feedback. Competency Based Interview. Assessment/Development Centers Psychological Assessments

10. IN CONCLUSION When measuring potential ensure that you build a business-relevant framework that articulates what it means to have potential in your business, ensuring that factors that make people successful today and that can meet future needs are included. Secondly, use a combination of assessment methodologies to ensure a quality result (comprehensive, valid,reliable, differentiating, useful and defensible).

11. HR is a science…..social or otherwise….

12. Questions Please?