Imagine you have a superstar sales rep who always delivers, consistently being your top performer. Then one day, your sales manager leaves for a better opportunity, and you immediately think of your top performer as the perfect replacement.
Or maybe there’s a creative marketer who’s helped you build some of your largest client portfolios. When you need someone to step into a leadership role, once again, she’s the first person that comes to mind.
These are common situations I see as a leadership coach when business owners call me—often after the damage has been done. What’s happened in these cases? These high performers were promoted without the proper preparation for a leadership role.
You might recognize one of these scenarios, and if so, you probably don’t look back on it fondly. So, what should you have done before promoting your top performer? It’s crucial to assess their potential, not just their performance. While performance is based on past success, potential is about predicting future behavior and leadership capabilities. The skills that make someone a great performer don’t always translate to leadership skills.
According to the Corporate Executive Board, only 1 in 7 high performers actually demonstrate the traits of high potential. High potentials are not only top performers but also show the capacity to grow quickly and succeed in leadership roles. They also align with the company’s values and culture.
Defining Potential in High Performers
So, how do you define potential? Many small business owners I’ve worked with already have a sense of the qualities they look for in future leaders. Research shows that high-potential employees stand out in three key areas: aspiration, capability, and engagement.
Aspiration – High potentials are driven to take on more responsibility and authority. They’re motivated by factors like:
- Immersion: Do they seek out roles that demand more personal commitment?
- Activity: Do they thrive in fast-paced, multitasking environments?
- Political Power: Do they want the chance to influence decisions?
- Interest: Are they attracted to varied, intellectually challenging roles?
- Autonomy: Do they prefer roles where they can control how they work?
Capability – High potentials have the skills needed for future success, including learning agility, the ability to adapt to change, and self-management.
Engagement – Engagement refers to how committed an employee is. It’s measured by:
- Emotional Commitment: Do they value and believe in the company’s mission and long-term success?
- Rational Commitment: Do they see staying with the company as in their best interest?
- Discretionary Effort: Do they go above and beyond, consistently giving extra effort?
- Intent to Stay: Are they committed to staying with the company long-term?
You might be asking, “How do I measure these factors?” My suggestion is to start with a career conversation with your high performer. Ask about their goals and see how they align with your company’s needs.
Employees who excel in aspiration, capability, and engagement are the best candidates for leadership roles. If they score highly in one or two areas but not all three, they may be valuable team members but may not be ready for higher responsibility.
For smaller companies, I recommend focusing on two key criteria for potential:
- The ability to advance within the same functional area or take on more responsibility.
- The ability to take on different roles across departments.
So, before you promote your high performer into a leadership position, take a moment to assess their potential. Ask yourself:
- Do they have the drive, leadership skills, and engagement to succeed in a leadership role?
- Remember, performance alone doesn’t guarantee leadership potential.
