Study Finds Organizations with Advanced High-Potential Strategies Are 12 Times More Effective at Improving Business Results

MINNEAPOLIS, March 8, 2012 /PRNewswire/ -- Companies with advanced, formal strategies for identifying and developing high-potential talent are 12 times more likely to positively impact business growth and bottom-line results than organizations with immature or disorganized strategies, according to a recent research study by Bersin & Associates and sponsored by PDI Ninth House, a global leadership solutions firm.

PDI Ninth House collaborated with Bersin & Associates, a premier global provider of world-class human resources, talent, and learning research and consulting, to develop The Art and Science of Building a High-Potential Strategy^®. The study aimed to determine how strategies specifically focused on developing high-potential employees — defined as employees with the potential, ability and aspiration to reach successive leadership positions — affect business performance.

In addition to helping improve business growth, study findings revealed advanced high-potential talent development strategies can also benefit the following business areas:

• Key leader retention – When an organization has an advanced high-potential development strategy, it is three times better at improving its ability to retain key positions, as compared to organizations with less mature strategies.
• Bench strength – A high-potential talent development strategy can help build an organization's bench strength — which represents the strength and readiness of potential successors to move into key positions critical to an organization's business performance. Study results showed organizations with advanced strategies were more than twice as likely to have a ready and capable bench of potential employees ready for next-level positions.
• Global business management – Organizations with more advanced strategies demonstrated they are nearly twice as likely to be able to address global business needs.

"This research validates the potential rewards for a company that chooses to invest in high-potential talent development strategies," said Cori Hill, director, High-Potential Leadership Development, PDI Ninth House. "When companies make a concerted effort to identify, cultivate and promote high-potential leaders, the business results will follow."

PDI Ninth House recommends companies adopt best practices displayed by organizations that have realized business gains from high-potential talent investment. According to the research, organizations that leverage advanced high-potential talent development strategies for business success feature several common characteristics, including:

• Use of a systematic, organization-wide process for identifying and developing high-potential leaders that differentiates current performance, long-term potential and readiness for next-level assignments.
• Long-term planning (two or more years in advance) to fill critical positions and forecasting talent needs and requirements for each position.
• Use of established criteria to identify, calibrate, select and engage high-potential talent.
• Consistent, organization-wide implementation of targeted, individualized development plans that include coaching, mentoring and action learning, as well as experiential and stretch assignments — and match with the business needs of the organization.
• Support of talent through all career transitions and promotions to prevent derailment and ensure acclimation at each level of career development.
• Full executive engagement in developing high-potential talent.  
• Close tracking and evaluating of the business impact of high-potential talent development to keep it on track.

About the Study

The study, The Art and Science of Building a High-Potential Strategy, gathered findings using a quantitative survey of 295 talent managers from four global regions to identify best practices, process design, roles and responsibilities, business challenges, and trends in high-potential development strategies. From a qualitative perspective, the study also drew information from in-depth interviews with five senior business leaders and HR managers.

"This research demonstrates that organizations operating at much higher maturity levels drive improved business results and therefore are more satisfied with their high-potential programs," said Laci Loew, senior analyst, Bersin & Associates and author of the study. "Through this research with PDI Ninth House, we are enabling more organizations to learn about best practices that drive effective high potential talent development strategies."   

About PDI Ninth House:

PDI Ninth House is the world's premier global leadership solutions company. For more than four decades, we have provided integrated assessment, development and coaching solutions around critical leadership and business challenges that most directly impact each leader's success and the success of their organization. For more information, contact PDI Ninth House at 1.612.339.0927 (in the U.S. 1.800.633.4410) or visit its website at www.pdinh.com.

SOURCE PDI Ninth House