Amoco, Anheuser-Busch, Chrysler, Motorola, Wrigley. Great Midwestern companies that failed to adapt to global competition and ended up being acquired. Many others have suffered the same fate or declared bankruptcy, and now the ongoing disruption from globalization and technological change is putting our legacy companies under further pressure.
As digitization sweeps across China’s economy and transforms consumers’ expectations and behavior, companies in every sector are scrambling to keep up. They must reimagine customer experiences, win at e-commerce, and harness digital technology to reshape their operations and organizations.
CHROs today face an ever more difficult challenge – identifying and developing the talent to drive the transformation required in today’s organizations, individuals who can solve problems quickly and in new ways, with the fortitude to navigate in uncertainty and to accept and overcome failure through an onslaught of data and marketplace changes.
Companies are investing more aggressively than ever in executive recruiting, assessment and development. Yet despite this higher level of input, the development tends have little or no impact for executives in a fast-changing market environment; the implication being the methods used to select and develop talent have not kept pace with the changing requirements for
In the cover article of the June 2014 Harvard Business Review, Claudio Fernández-Aráoz argues that potential—even more than skill and experience—must be the deciding factor as companies recruit and promote executives in a fast-changing, talent-scarce world.
The rapidly evolving business world has exposed the inadequacies of existing models for assessing potential. Past performance and current capabilities offer no guarantee that an individual will succeed in dramatically different work roles and environments of high-velocity change. Now, however, a new model of potential, encompassing the four deep personal traits that foretell great leadership, is providing the accuracy, rigor, and discipline that you need to uncover the real promise in people and manage it for competitive advantage.
Ensuring that diversity programs and objectives fulfil their promise requires a rigorous model of potential that neither confuses it with experience and performance nor leaves it to the mercy of intuition. The model developed by the Egon Zehnder research team gauges executive potential by assessing the degree to which an individual possesses four leadership traits that predict the development of executive ability.
Automotive OEMs must work in fundamentally new and different ways to deliver the Connected Car that consumers so clearly desire. The shift begins with objectively assessing and developing leaders’ potential to drive deep strategic change and build more open cultures that effectively integrate diverse expertise.