Strong job performance requires different skill sets than effectively leading a team.
A business development executive consistently outperforms their colleagues, achieving exceptional quota attainment and win rates. After topping the sales ranks for two years, they are promoted to sales manager. However, they struggle with delegating tasks, motivating their team, and resolving conflicts in this new role. It becomes evident that their ability to close deals does not translate into leading a team effectively.
This failure highlights a common mistake within the sales organization: equating high performance with high leadership potential. Many companies mistakenly assume that the skills that make people top performers are the same as those needed for effective leadership. However, the skills required for individual high performance often differ substantially from those necessary for leading a high-performing team.
Identifying future leaders within an organization is more complex than simply evaluating job performance. Many organizations incorrectly rely on performance metrics alone and fail to recognize potential leaders who possess the necessary qualities for leadership roles.
To distinguish between high-potential employees and high performers, organizations must look beyond key performance indicators and assess individuals’ soft skills, emotional intelligence, adaptability, and learning agility. Additionally, companies should implement a structured approach to talent identification and development, including regular talent assessments and career development opportunities.
To avoid the trap of equating performance with potential, organizations should define what success looks like for future leadership roles and actively seek out individuals who demonstrate the required traits and competencies. By creating Success Profiles for key positions and developing strategies to fill any skill gaps, organizations can unlock the leadership potential of their talent and ensure a robust leadership pipeline for the future.
High Performance
High performance entails the continual delivery of successful outcomes over an extended period within a specific role. When assessing the potential transition of high performers into future leadership roles, organizations must evaluate two key factors: the similarity of the new role and whether the individual achieved success independently or through collaborative efforts.
High Potential
Potential, however, pertains not to the present condition but rather to future possibilities. It concerns an individual’s capability and enthusiasm to cultivate the necessary attributes for excelling in a distinct role. Assessing potential involves observing exceptional performance in settings that diverge from the individual’s current position.
How can organizations differentiate between a high-potential employee and a high performer?
Organizations must delve beyond mere key performance indicators to discern who possesses the qualities of a great leader.
Firstly, high performers excel in their assigned tasks, relying on individual skills, technical expertise, or unique problem-solving approaches. However, leadership necessitates different competencies like people management, strategic thinking, and the ability to inspire and motivate others. Thus, an outstanding individual performer might find it challenging to transition into a leadership role.
Secondly, spotting potential leaders requires recognizing soft skills and traits not readily apparent from performance metrics. These traits include emotional intelligence, adaptability, a propensity for assuming responsibility, and learning agility. Unfortunately, quantifying these qualities proves challenging, complicating the identification of potential leaders.
Moreover, potential leaders might be unaware of their own leadership potential. Without proper guidance and development, these individuals might go unnoticed, failing to fully realize their leadership capabilities.
Lastly, many companies lack a systematic approach to identifying leadership potential. The absence of a structured process, encompassing regular talent assessments and career development opportunities, impedes organizations’ ability to identify and nurture future leaders.
Most organizations aim to promote from within. However, a very low percentage are satisfied with the outcomes of their high-potential programs. Are you part of that group?