Talent's progress

Is there a perspective that can throw light not only on the progress of  employees, but also on the effectiveness of people management in the organization? Tracking the changes in the positioning of employees on the talent grid over a period of time can be an excellent option!

There are many ways in which the progress of an employee ('talent') in an organization can be depicted. The most concrete one is in terms of the roles the employee takes up in the organization. Then there are aspects like compensation, responsibility level etc. that can also be used to track the progress of an employee in the organization.

In this post, let's look at the progress of employees in the organization in terms of a more abstract (though very widely used) representation - in terms of the changes in the mapping of the employee to the performance-potential grid. This grid, often called the talent grid, is typically a 9-box one, with box 9 corresponding to high performance coupled with high potential. 

If we track the changes in the positioning of the employees on the talent grid over a period of time, say for 3-5 cycles of talent review process that lead to the mapping of the employees on this grid, the trends emerging from the same can give us very interesting insights on the effectiveness of Talent Management in the organization. 

Ideally, employees should shift right and/or up on the grid. This would mean that the Talent Management in the organization has managed to help the employees to improve their performance and/or potential. Similarly, if the general trend in an organization is that employees would shift left and/or down and then out of the grid (and the organization!) it can be an indicator of lack of effectiveness of people management in the organization. 

Of course, these movements are also dependent on the employees (their performance and demonstrated potential). However, the overall trends in the movements on the grid (for a group of employees) can provide valuable indications on the effectiveness of people management in the organization.  These employees went through the selection process of the organization before they started featuring in the talent grid and hence the organization can't easily disown them or their movements on the talent grid! 

Yes, there could be other factors at play. For example, if the organization has imposed some sort of normalization on performance ratings and/or on potential ratings, this would limit the percentage of the employees who can be in box 7, 8 and 9 (the boxes in the talent grid that denote the best talent positioning). Also, if 'long term' performance (and not recent performance) is what drives the positioning on the performance axis of the grid, the degree of  'fluctuation' along the performance axis of the grid is likely to be lower. 

There is also this interesting phenomenon of stickiness of the ratings, especially potential ratings.  The extreme case is when the organization takes the stated or unstated position that the 'potential' is a non-modifiable factor, in which case no movement on the potential axis would be possible. Mercifully, most organizations consider potential to be some sort of a combination of ability, aspiration and leadership and somewhat modifiable. 

All this assumes that the definition, the rating scale and the calibration norms for performance and potential (that lead to the positioning on the talent grid) remains consistent over the years/over the period used for trend analysis. Else, there is a possibility of scenarios similar to that of 'reducing poverty by redrawing the poverty-line'!  

There could also be deeper factors like the tacit definition of 'what good looks like' and  the unstated assumptions regarding people management in the organization  (e.g. 'we hire a person based not only on the fit to the current role but also on the fit to the future roles' or 'we hire people mainly to solve a particular problem at a given point in the organization's journey'). 

As we have seen in 'Type N and Type O Organizations', in  the case of 'Type N' organizations, the relatively new employees have a great advantage over the other employees, though this advantage vanishes quite quickly as they become 'old' (tenured)! This can lead to rapid changes in the grid positioning as the employees tend to get over-positioned on the grid initially and then shift left and down (and out!) very quickly. This creates a lot of action (and an illusion of progress) on the people management front, though over a period of time it might become apparent (if the organization is open to see it) that quality of talent in the organization hasn't improved and that 'the new is not really outperforming the old'!

 So, where does this leave us? Though Talent's progress (or lack of it) on the performance-potential grid is a rather abstract way of capturing the Talent trajectory', it can indeed provide very useful insights on the effectiveness of people management in the organization! While the movement of a particular employee on the grid is mainly a function of the performance and demonstrated potential of the employee, the trends in these moves at the group level points to the effectiveness (or lack of it) of people management in the organization. These organization level trends can also be very useful in unearthing the unstated assumptions that the organization has made on people and on people management!

Any comments/ideas? 

The sticky case of ‘the stickiness of potential ratings’!

In this post, we come back to one of the most amorphous areas in HR – potential assessment, its uses and its implications. As we have seen in  ‘Using assessment centres for evaluating potential – A leap of faith?’ and in ‘The paradox of potential assessment’, there are multiple perspectives on even the most fundamental issue related to potential assessment – ‘potential for what?’ For the purpose of our discussion here, let’s focus on ‘the potential for taking up higher level jobs in the organization’.

Now let’s come to the issue mentioned in the title of this post – stickiness of potential ratings (i.e. the extent to which the potential rating of an employee remains the same as he/she progresses in his/her career in the organization). This is not an ‘academic issue’  as the way define and interpret potential has very significant implications for both the employees and the organization.

In a way, the core issue comes down to the following questions

1. Can the potential of an employee change during his/her tenure in the organization?
2. What are the implications if potential is not a modifiable factor? 
3. Even if potential can’t change, can the potential rating change?

Let’s start with the first question (Can the potential of an employee change during his/her tenure in the organization?). The answer depends on how we view the alchemy of potential. If we consider potential as some sort of stable personality trait then the potential of an employee should remain the same during his/her tenure in the organization. If we consider potential to be a modifiable factor, then the potential of the employee can change if the employee works on it.

Since potential often gets linked to important decisions like promotions, development investment and compensation, this assumption (on the modifiability of potential) has important  implications. For example, if the potential of the employee corresponds to his/her current role/level, and if we assume that potential is not modifiable, the employee can’t get promoted. It also means that the organization can’t put this employee in the succession plan for a higher position. If the employee continues at the current level for a long time, it is possible that the of the employee becomes too costly a resource for the contribution possible at that level. So, in a way, both the employee and the organization are stuck. The only hope for the employee to move to a higher level position is to find another organization that measures potential differently! On the contrary, if we assume that potential is modifiable then both the employee and the organization can take steps to develop the potential and this makes promotions possible.

Now, this brings us to the most important question. Can potential change? While there are differing views on this, most of the current thinking tends to gravitate towards the position that potential is at least partially modifiable. So there is hope for both the employees and the organizations!

Now let us come to the third question (Even if potential can’t change can the potential rating change?). The short answer is that it depends on our definition of potential and the norms we agree on. For example, if we define ‘high potential’ as someone who can go two responsibility levels up in the organization (from the current level he/she is at) and the person gets promoted by one level, then the potential rating can come down by one step (e.g. to something like ‘advancement potential’) unless the person has (or has developed) more potential to still go two levels up (from the new level after promotion). However, this kind of an approach (of reducing potential ratings on promotion) can lead to inconsistent investment in  (and inconsistent engagement with) the people who were rated ‘high potential. Considering that this is usually a very small (and very valuable) population this can lead to significant negative consequences. 

Hence, my opinion is that unless we have a very good reason to do so (e.g. we have a lot of new data to show that we had made a mistake when we rated the person as ‘high-potential’), we shouldn’t down-grade the 'high-potential' ratings. Yes, it will make the high-potential ratings more sticky. Of course, since we are considering potential as a modifiable factor, an employee can work on developing his/her potential with help from the organization and hence move up from  the ‘advancement potential’ category to the ‘high-potential’ category. This can also help the organization to grow more talent internally to take up the senior positions in the organization!

Any comments/suggestions?