Richard Mackinnon's presentation from our Building Capability Conference, May 2013

1. Capability vs
Potential
Implications for Recruitment
Dr. Richard A. MacKinnon
17 May 2013

2. Overview
• Understanding the difference between capability and potential
• What does potential look like in your organisation?
• How does this inform your recruitment strategy?
• Identifying the risk of subsequent derailment
• Managing applicant expectations through realistic job previews
• The impact of a changing job market on your model of potential

3. Capability versus Potential

4. Capability versus Potential
• Capability to do what now, versus potential to do what in the future?
• Potential to move up the ladder of seniority? Potential to lead the business?
• Is potential limited?
• Yes. And that's not a bad thing. We can't expect everyone to rise to the top.
• Exposure to high potential schemes can be a self-fulfilling prophecy through
intensive development and exposure to key decision-makers.
• Exploitation of potential isn't inevitable, it must be nurtured by the organisation.

5. Who assesses Potential?
• Subjectivity is a frequent challenge: the “tap on the shoulder” approach
• Frequently, line managers have input into this.
• Personality factors associated with leadership potential can appear
disruptive at more junior levels.
• Managers aren't always great at objectively spotting potential.
• The reverse is also true: managers may not want to release talented
individuals to other roles.
• Capability now and potential are often conflated, leading to frustration
and disappointment on both sides.

6. What does “Potential” look like
in your organisation?

7. Some challenging questions…
• Do you have a formal definition of “potential”?
• Do you have more than one?
• How recently have you revisited how this fits with your strategy?
• Might you be simply cloning today’s top performers?
• Are you being as objective as possible in measuring potential?
• Have you any evidence that your “high potential” employees actually
make a difference?

8. Considering Potential
• It's important to have a shared understanding.
• There may be multiple models: leadership potential, potential to be a technical
expert, potential to pick up supervisory duties.
• Models of potential must be revisited periodically, to ensure alignment with the
business strategy and its operating environment.
• Think how much the recent financial crisis will have impacted what is required of
people in a range of sectors in the UK.
• Don't steal other organisations' models - akin to using their competency
frameworks.
• But certain personality aspects, in combination with raw cognitive ability, are
generally predictive of leadership success.

9. A philosophy for understanding Potential
• Talent is an investment, and accurate decision-making is vital
• Identifying potential and then developing it is therefore critical
• Understanding derailment risks and managing these is key for
individuals to fulfil their potential and deliver for the organisation
• Person/situation fit is a key factor in exploiting potential
• We must consider appetite for advancement
• Openness and transparency in processes to identify and develop
• Objective assessment leads to defendable decisions and facilitates
evaluation and calculation of ROI

10. Talent Q’s Model of Potential
Emotional Domain Strategic Domain People Domain
Resilience Analytical Capacity Collaborating with others
Ambition Learning & Improving Networking
Courage Developing Strategies Positive Impact
Seeking & Embracing
Change
Demonstrating Integrity

11. How should all this inform your
recruitment strategy?

12. How should all this inform your recruitment strategy?
• In short, it should.
• Potential is just one part of a joined-up talent management strategy
• It should not be viewed in isolation.
• Recruitment activities should therefore reflect this in both methods and
models
• For example, using selection tools that can predict future performance
as well as what is required now
• This requires recruiters and L&D practitioners to work in partnership

13. Linking Recruitment and Development
Robust selection
methods
On-boarding and
development
exploration
Identification of
Potential
Development
Support
Validation and
Feedback into
selection

14. Managing the Risk of
Derailment

15. Managing the Risk of Derailment
• This can happen in two ways:
• You select extreme personalities and let them run amok in the
organisation
• Your high potential programmes exacerbate pre-existing negative
behaviours

16. Managing the Risk of Derailment
• In terms of the recruitment stage, it's key to be sensitive to the potential
downside of what look like strengths.
• Consider what sort of profiles you are selecting against and keep an eye
out for extreme personalities.
• They shouldn't be a sole deciding factor, but should be factored in to on-
boarding and development activities
• Consider the design of assessment exercises in assessment centres
• Use a data-driven approach to developing role profiles - as opposed to
gut feel.

17. What are employers looking for?
Our analysis of graduate role profile templates illustrates that graduate
recruiters consistently emphasise some personality traits over others
Most important Moderately Important Least Important
Conscientious Methodical Supportive
Communicative Decisive Consultative
Influencing Achievement-oriented Relaxed
Socially Confident Flexible Resilient
Analytical Conceptual Creative

18. Derailment could be facilitated by:
• Ignoring clear behavioural issues while “performance” is excellent
• Encouraging development and focus on a sub-set of traits, rather than a
more rounded development plan
• Rewarding attainment of KPIs and ignoring “softer” development needs
• Waiting until too late before engaging in development or addressing
unhelpful behaviours

19. Can you have too much of a good thing?
• Employers typically adopt a threshold approach to selecting employees.
• This is represented by looking for “just enough” or “more than” on a
range of personality traits.
• Unless used mindfully, this approach neglects the risks associated with
“too much” of some aspects of personality.
• These form the basis for either career limiters or derailers.

20. “Career Limiters” and “Derailers”
• Certain clusters of behavioural preferences can be actively encouraged
by organisations, but can simultaneously represent “double-edged
swords”.
• Our model posits two ends of each scale:
• “Career limiters” represent clusters of behaviour which can serve to
delay or even prevent career advancement
• “Derailers” are behavioural which can bring a promising career to an
early end

21. Derailment risks
Hyper-
sensitivity
Isolation Eccentricity Iconoclasm
Exhibitionism
Over-
confidence
Over-
dependence
Micro-
Management

22. Hyper-sensitivity
Lacking sensitivity and
subtlety of perception
Shrewd
perception and
judgment
Emotional
fragility,
anxiety,
paranoia

23. Eccentricity
Conservative thinking,
sticks to convention,
“lazy” thinking
Unconventional,
creative,
develops novel
ideas
Poor listeners,
focused on
novelty over
substance

24. Iconoclasm
Too passive and
complacent, swayed by
majority, focused on others’
opinions
Tough-minded,
able to break with
convention, make
difficult decisions
Excessive rule-
breaking,
intolerant and
insensitive to
others

25. Over-confidence
Modest, avoiding
leadership roles, avoiding
competition and negotiation
Confidence, self-
belief, drive and
competitiveness,
positive self-
concept
Arrogance, lack of
self-awareness or
own limitations,
need to win and
eclipse others

26. Micro-management
Unreliable and careless in
detail, rules and processes.
Rely on spontaneity rather
than planning
Highly methodical
and structured,
paying attention to
data and evidence.
Conscientious.
Inflexible
adherence to rules,
details and
processes.
Analysis paralysis.

27. Managing Expectations

28. Managing Expectations
• We can sometimes make problems for ourselves by over-selling the
roles that applicants will actually fill.
• Role descriptions can and do impact who applies for a role.
• We can be over-optimistic about the responsibilities they can reasonably
be expected to take on
• We can present a sunny-side up picture of the organisation and the role
• Consider presenting a more balanced picture and emphasise the hard
work but also the rewards.
• Presenting a more realistic preview of an employee’s journey through
the ranks allows them to picture how their potential can be realised

29. Considering the Changing Job
Market

30. The Changing Job Market
• Recruitment activity should adapt to reflect changes in the socio-
economic environment.
• The next few years will see significant changes to what the graduate
market looks like.
• Increased emphasis on apprenticeships and in-house professional
training.
• The recession has a “bumping down” effect on who applies for what
roles
• All this will serve to blur the boundaries of how we have previously
viewed talent

31. A challenge but also an opportunity
• These changes represent an opportunity to revisit legacy approaches to
categorising talent and potential.
• Recruiting organisations can approach the challenge with creativity and
solutions that are fit for purpose.
• Again, a future focus is required, with models constantly under scrutiny
for utility and return on investment.
• An emphasis on objectivity and data represents a firm foundation for all
of this.

32. Key take-aways
• Potential needs to be viewed in the context of the organisation
• Ask yourself: “Potential to do what?”
• Adopt a future focus and revisit your models of what “good” is
• Using objective measures in recruitment facilitates identification of
potential
• Literal take-away: Talent Q whitepapers outlining potential and
derailment available on USB sticks

33. Thank you.
richardmackinnon@talentq.co.uk