How to identify and develop future leaders

Competent leadership is vital to the success of any organisation. Research has shown that businesses with strong leadership are more likely to retain talented staff and outperform their competitors.

Although many organisations recognise the importance of leadership, relatively few have a clear process for identifying future talent.

Do organisations really think about succession planning? And if they do, what processes are in place to recognise and develop emerging leaders?

Why high-potential employees matter

One of the biggest challenges facing many organisations is the identification, retention and development of high-potential employees.

Studies have suggested that many talented employees become disengaged and begin planning to leave their organisation.

Retaining these individuals is essential if businesses are to build strong leadership for the future.

The value of high-potential staff

Talented employees often:

• Complete a significant proportion of the work.
• Learn new tasks quickly.
• Are rewarding to work with.
• Communicate effectively.
• Make good decisions.
• Take responsibility for mistakes.
• Show respect for others.

The challenge for organisations is identifying who these people are and ensuring they are developed appropriately.

Identifying future leaders

Many organisations identify talented employees through appraisal systems and recommendations from line managers.

However, both methods can introduce bias.

There is also a risk that the wrong individuals are promoted into leadership positions, while genuine high-potential employees become frustrated and eventually leave the organisation.

Some traditional approaches also reward visible behaviours rather than leadership potential.

This can sometimes encourage individuals to become overly competitive, arrogant or excessive risk-takers.

If these behaviours are promoted into senior leadership positions, they can create significant challenges for the organisation, including poor decision-making and a lack of follow-through.

Potential doesn't always predict performance

Research has also shown that people identified as high-potential employees in junior roles do not always become high performers once promoted into senior positions.

This highlights the importance of using robust assessment methods rather than relying solely on observation or previous performance.

The role of personality assessment

As Ryan Ross, Vice President of Global Alliances at Hogan, commented:

"The main problem with traditional forms of high-potential identification is that they tend to ignore context and rely on past assessment. Personality assessment gives you an unbiased, empirical view of candidates' leadership potential."

Rodney Warrenfeltz, Hogan Managing Partner, also noted:

"Personality assessment and feedback provide a clear understanding of your strengths and weaknesses, and how those strengths and weaknesses compare to those of others."

Supporting leadership development

Assessment tools such as the Hogan Assessment can help organisations better understand the strengths, development areas and leadership potential of their people.

Used alongside coaching, training and development, these insights allow businesses to provide more targeted support for high-potential employees.

Ultimately, identifying and developing future leaders is about much more than filling senior roles.

It is about creating a strong leadership pipeline, retaining talented people and giving individuals the opportunity to reach their full potential while helping the organisation succeed.