The five critical X factors are: 1) Situation Sensing (reading and aligning with your boss's priorities), 2) Talent Accelerating (developing and leveraging the potential of your team), 3) Career Piloting (adapting quickly to new roles and challenges), 4) Catalytic Learning (curiosity and translating insights into action), and 5) Complexity Translating (simplifying complex information for different audiences).
Employees can identify if they are on the high-potential list by noticing cues such as being invited to exclusive events, assigned to high-visibility projects, promoted faster than peers, or sent to leadership development programs that others are not invited to.
Companies may keep high-potential lists secret to avoid creating internal competition, maintain a collaborative culture, or test borderline candidates without setting unrealistic expectations. They also fear inflating egos or causing disappointment if someone falls out of the pool.
Simulations are used to test mid-level employees' decision-making, strategic thinking, collaboration, and financial acumen. These assessments, often conducted by external organizations, help determine if an employee has the potential to become an executive.
During a talent review meeting, supervisors discuss employees' readiness for advancement, their track records, and the skills they need to develop. Employees are categorized as 'ready now,' 'ready in the future,' or 'not ready,' and matched with opportunities that align with their development needs.
Career piloting refers to the ability to adapt quickly to new roles, build trust with new teams, and navigate unfamiliar challenges. High-potential employees often have 'herky-jerky' careers, moving into roles outside their expertise, which helps them develop a broad skill set.
Complexity translating involves simplifying complex information into actionable insights for different audiences. This skill is crucial for senior leaders, as it helps them communicate effectively with stakeholders, tailor messages to specific groups, and drive organizational focus.
The biggest misunderstanding is that these programs are seen as ranking systems or unfair. In reality, they are development tools designed to push employees with potential to grow and excel, rather than simply labeling them as 'stars.'
Employees should ask their boss or HR about their status in the high-potential pool before making a decision to leave. Knowing their status can help them make informed career choices and avoid leaving prematurely.
Lateral moves are often grooming opportunities to expand an employee's perspective and skills in areas they lack experience. These moves prepare them for future executive roles, even if they appear to be sideways steps at the time.
How can you tell if you’re on your company’s leadership fast track?
Jay Conger**, a leadership professor at Claremont McKenna College, notes that many organizations quietly maintain and update lists of high-potential employees.
In this episode, he offers advice for what to do if you suspect you’re on the list. In addition, Conger shares his research on the five critical “X factors” that distinguish high-potential employees. Discover what these traits are and how you can leverage them to enhance your career.
Key episode topics include: leadership, career planning, developing employees, leadership development, talent management.
HBR On Leadership curates the best case studies and conversations with the world’s top business and management experts, to help you unlock the best in those around you. New episodes every week.
· Listen to the original HBR IdeaCast episode: Does Your Firm See You as a High Potential? (2018))
· Find more episodes of HBR IdeaCast).
· Discover 100 years of Harvard Business Review articles, case studies, podcasts, and more at HBR.org).