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High Performance doesn’t necessarily mean High Potential. Both traits aren’t mutually exclusive and why confusion sometimes happens during appraisal time.

Performance reviews use the spectrum of delivery based on the level of the employee and what is expected of them in their job role.

So the markers start with ‘doesn’t meet expectation’ all the way to ‘exceeds expectations’ and even being identified as a leadership candidate.

That’s when the problem starts. A High Potential employee will naturally be a High Performer but it’s possible the High Performer won’t have High Potential.

The number of times I’ve heard of professionals being promoted to management roles and then becoming failures in the new role can’t be counted.

These high performing professionals failed at taking their teams along with them to the kind of results that they had in their individual capacity.

They lacked the leadership qualities required for the next rung up the corporate ladder. Yet they were promoted based on individual performance.

I worked with a young professional way in my Big Four days on a complex assignment involving multi-location client sites.

To top it, there was a mercurial Chief Financial Officer whose temper literally sat on his nose. He was new to India and still adjusting to our culture. The Audit Partner and I had to treat him with kid gloves.

The young professional was an Audit Executive and performed well. He got a 5 on the Bell Curve annual appraisal and  promoted to Senior Executive. Going forward he would lead a small team for the location audits.

The following year he got the job done but required a lot of supervision from myself and other Senior Executives on the job.

Forget about High Potential he didn’t even demonstrate High Performance!

I gave him a 3 for the assignment marking. When the annual appraisal time rolled in, the Audit Partner wanted to rank him a 2, one number short of asking the person to leave or get fired.

After consulting the other Senior Manager, I requested to at least mark him a 3 as he had delivered on other audit assignments.

I also suggested  counselling him about applying his potential and being able to manage a team even when under pressure.

I left the organization a few months later but kept in touch with some colleagues. I learned afterwards that counselling was ineffective and this professional was unable to perform at the new level.

He was subsequently placed at a client’s place in a low pressure job. It was a dignified exit. One hoped he was able to apply himself and achieve success.

Call it the Peter’s Principle if you want, which refers to a person reaching their own level of incompetence.

I’d prefer to consider whether the person really possesses the aptitude and potential to be a leader. Or even wants to be a leader. Perhaps they are motivated by other elements of their lives.

One can’t blame organizations either, because performance is visible, tangible and measurable.

Potential is more subjective, method of measurement used and depends upon the end goals of the organization.

Unless qualities like leadership aptitude and change management are included in appraisals, they will remain hidden factors for identifying the potential of the employee.

Identifying High Potential Employees

As I mentioned earlier, the idea of a high potential employee depends upon the employer’s end goals and what they identify as HiPo or High Potential.

In an interesting article that I read some time back there is a clear pattern common across all industries when identifying high potential employees.

That is, the payoff from employing top talent – defined as the vital few who account for the biggest chunk of organizational output — increases as a function of job complexity.

The article noted that talented employees are “force multipliers”, raising the performance bar for their colleagues, and particularly for their direct reports.

By word and deed, they model and teach winning behaviors that shape high-performing cultures. Adding a star performer to a team boosts the effectiveness of other team members by 5-15%.

No wonder studies show that companies making proportionally greater investments in identifying and developing top talent show stronger financial performance.

Identifying these talented individuals becomes important for the organization. They also need to ensure that the employee being identified as high potential does possess that potential.

Progressive organizations often establish their own benchmarks and normally look for professionals who

• Will perform well in a senior management role
• Have the ability to improve performance within their business sector
• Have the drive and determination to move to the top of the career ladder within the company

These benchmarks are communicated to their employees and you would recognize them as criterion in your annual performance plans.

These include key performance indicators, achievements and behaviours that are likely to make somebody suitable for promotion.

There are numerous tools used including 360 degree appraisal systems and even personality profiling.

A Harvard survey found that 98% of companies have some sort of system to identify high performers, a select group that represents only about 3 to 5% of the workforce.

Meanwhile, staying in those elite ranks is almost as challenging as getting there. The same survey found that up to 20% of these rising stars drop off the list each year.

How to demonstrate your High Potential to the Boss

Whether you want to climb up the ladder to senior management or be picked for interesting projects you need to be proactive.

Your boss needs to see your high potential and performance to champion you.

Your organization might have its benchmarks and criterion but that doesn’t mean you can’t take the initiative to stand out and be visible.

Competence at your current job and achieving targets is a starting point, but it takes more than that to advance. This is true for any stage of your career.

Displaying Your Potential Early in Your Career

When you’re new on the job, focus on fitting in and making connections. That groundwork will build a stable foundation for your future.

1. Deliver results on time. Track and document your accomplishments. Develop a reputation for exceeding expectations and completing assignments on time. Identify challenges where you can propose solutions.
2. Support your boss and strive to make your boss look good. Study their priorities so you know where to devote your efforts.
3. Focus on learning. Keep the big picture in mind as you find out all you can about your company and your industry. Ask lots of questions, be observant, and read the latest news. Be proactive in your professional development.
4. Be open to receiving feedback. Learn about yourself too. Invite others to let you know what they think about your work. Be open to criticism and thank your colleagues for their comments.
5. Apply your knowledge. For your lessons to have an impact, you need to translate them into action. Analyze information to discover its practical applications. Make a list of takeaways each time you pick a coworker’s brain or attend a training or conference.
6. Be humble. Let your actions speak for themselves. Contribute to the team and share credit with others. Develop your Emotional Intelligence.

Displaying Your Potential Later in Your Career

By the time you’re in mid or senior stages of your career, your competence tends to be taken for granted.

Now, you’re more likely to be appreciated and marked against intangibles like leadership, vision, emotional and social intelligence.

1. Develop a specialty. Be prepared to let go of some responsibilities so you can leverage your strengths. Identify what you’re good at and what you like to do.
2. Provide a role model and be a mentor. Think about the qualities you admire in your own role models and adapt them to suit your style. Reach out to new hires and offer constructive feedback to your peers.

3. Motivate others. Encourage others to pursue their passions too. Provide the employees you manage with opportunities to learn and grow. Empower them with meaningful work. In other words, be an influential leader.
4. Serve as a brand ambassador. Your behavior reflects on your company as you deal with clients or the general public. Ensure you understand the mission statement so you can put those values into action.
5. Take risks. You can act like an entrepreneur even if someone else owns the company. Take sensible risks that will allow you to stretch your skills and enhance your company’s position. Start off small and learn from experience so you can fine tune your judgement over time.

Demonstrating your potential to your boss will help you gain recognition and promotions. You will find a mentor and champion as you aim for the higher rungs of the corporate ladder.

Position yourself for success by strengthening your performance at the early stages of your career.

Later, you can count on your business savvy and close relationships to help you excel as a leader.