CATALYST Issue 4 | Page 54

D Diversity | Catalyst performance of subordinates most likely to yield the highest payoff.” These elites have also been seen as ‘force multipliers’, modelling behaviours that positively influence not just their own performance, but that of their colleagues and teams too. Extraordinary claims have been made about their business-enhancing power: twice as productive; three times more likely to succeed in next-level promotions; hitting the sweet spot of ability, aspiration and engagement that most people at work can only dream of. It’s unsurprising, then, that the HR community has embraced HiPos. Debates about whether the focus should be on performance or potential, and how potential can be identified, abound. There’s no shortage of job evaluation and assessment processes and tools, leadership competency and reward matrices and best practice guidelines for succession planning – all aimed squarely at keeping top talent motivated, engaged and, crucially, in company. With the stakes so high, it’s little wonder that HiPo programmes have proliferated. Some research suggests that companies can spend more than a quarter of their total learning and development budgets on their ‘stars’. Cultural impacts Increasingly, though, questions are being asked about this focus on HiPos, whether that’s the process by which they are identified and nurtured, the cultural impacts of this focus on the few at the expense of developing the talent of the many, and, crucially, whether they really do provide desired outcomes. Marcus Buckingham, author of Nine Lies about Work, targets potential as his Lie #7 and has strong views about the efficacy – and ethics – of focusing on the talent development of the chosen few: “If all humans have the ability to learn and grow (and they do), then potential is nothing more than just ‘human-ness’… How explicitly awful to cloister opportunity off to an elite few, while preventing others from seeing everything that they could be. There is no such thing as potential, and it is both impractical and immoral to act as though there is.” Even more equivocal critics are beginning to question the validity of their HiPo programmes. If, unlike Buckingham, we believe that potential exists, there is still the problem of how we define and measure it. We all feel uncomfortable about Elon Musk’s homage to Jack Welch’s (now outdated) “rank and yank” philosophy, cutting his workforce based on the 10% of alexandermannsolutions.com 54 “It’s a fact that human beings are terrible at rating others” workers scoring lowest in an annual round of appraisals, but can we be confident that the data driving HiPo programmes at the other end of the spectrum is any more robust or reliable? Americas-based David Swanz, from Alexander Mann Solutions, fears that talent- management decisions are often based on questionable data. “It’s a fact that human beings are terrible at rating others,” he says. “Idiosyncratic rater effect shows that 61% of any rating will say more about the rater than the person being rated, and that’s before taking into account important cultural differences around the world.” It’s not surprising, then, that using a sub-set of this data to identify HiPos is under fire, bad news for the commonly used 9-Box talent grid and similar identification tools. Writing for the Harvard Business Review blog in 2017, Jack Zenger and Joseph Folkman shared research claiming that more than 40% of individuals in