Asahi Europe & International Limited

Geraldine Percival

At some point in our lives, we were told we ‘have the potential’. This was based on the perception that, with hard work, we are likely to achieve a higher level of performance. The focus was almost always future-orientated.

Rating potential has long been the cornerstone of talent management; the problem is that there is little scientific research on what potential actually is, and multiple ‘correct’ models of potential are presented by consulting firms, each containing a different set of criteria. Popular potential models tend to focus on and describe factors that have been proven to predict high performance rather than potential and often ignore the situational factors (e.g., culture fit, which significantly impacts the perception and rating of both potential and performance).

To dig deeper into understanding the potential, a good starting point was to review and benchmark the multiple potential models available to understand how each conceptualises potential. This exercise resulted in several key insights. More specifically, there is no single (scientifically validated) definition of potential. How an organisation defines potential and the criteria it uses to rate potential is often related to the company’s strategy. The criteria may also change according to the business context. Research also tells us that an individual’s ability to realise their potential depends on the extent to which they fit the unique requirements of the business context and culture. This means that when rating potential, it is important to consider the factors that might allow potential to flourish. Potential is a multi-dimensional construct that is dynamic, as people and organisations are constantly changing.

The potential is the trajectory of what a person could realistically do in the future. Performance is about what a person has done or achieved in the past. At Asahi, we recognise that people make a difference and acknowledge that our people grow and develop differently and have different interests and aspirations. To succeed, we need the right combination of people with differing talents to help the organisation achieve its strategic objectives. Our approach to talent management is inclusive – that is, everyone is talented. However, we rate the potential to enable us to identify those individuals who we believe have the best chance to grow their capabilities and progress. Rating potential is an input into succession, helping us to plan development so that our people can continue to learn and have rewarding, challenging careers that are right for them.

“Potential is a multi-dimensional construct that is dynamic, as people and organisations are constantly changing”

We rate potential by applying an enterprisewide model to ensure that we have structured and consistent discussions about our people. We are also clear that potential is one of the lenses we use to understand people, and it helps inform the pace and scale of their development. We also have a good understanding of the person’s strengths, skills, competencies, and aspirations. The potential is one piece of the puzzle.

We have defined potential as the person’s capacity for growth, considering their capability to deal with complexity, learn, lead, and drive. Therefore, the potential is:

• Regarding the scale and pace of risk, we are willing to take it with a person.

• It’s not a guaranteed trajectory; it’s the probability of following a certain path.

• An input to an output. Rating potential helps the individual and business plan development and pace progression (for succession).

• Not related to a person’s age, mobility, career stage, or the opportunities available (e.g. a specific role).

• Relatively stable and should not change year-on-year. From our research and practical application, there are a few learnings that may help your approach and practice when rating potential: 1. Be clear on the why (Why do we rate potential?)

• Rating potential is one of the lenses used to understand people and should help inform their development. 2. Be clear on what and stick to it.

• Select a potential model and stick to it!

• Strong performance does not necessarily pre-suppose high potential.

• Development actions may not change a person’s potential but should be aimed at actualising potential, as demonstrated in on-thejob performance. 3. Support the show to ensure base skills and drive consistency:

• Offer annual refresher training for managers and HR to remind everyone of the criteria, process, and bias when rating potential.

• Apply the practice of calibrations to bring objectivity to the potential identification.

• Keep the discussions fact-based by talking about people using the criteria of the potential model. Managers require ongoing coaching to stick to the criteria and not add in additional criteria (e.g., age, mobility) and nuances from potential models gained from previous organisations) that may conflict with the company’s standard.