HIPO Manager Guide

CEB Corporate Leadership Council

© 2015 CEB. All rights reserved

Introduction
What it does:
The HIPO Manager guide assists managers in defining the importance of High Potential Employees and their role with these
employees.
How to Use it:
Provide to managers to use as a reference and in helping them distinguish between high performance and high potential.
You may wish to use this guide in its entirety, or you may select specific sections you find most relevant for your managers. The
following six sections are available for your use (in this order):
1. Defining High Potential (current slides 3–4)
2. Understanding the HIPO Manager Role (current slide 5)
3. Communicating HIPO Status (current slides 6–7)
4. Creating HIPO Development Plans (current slides 8–9)
5. Identifying Development Opportunities for HIPOs (current slide 10)
6. Rewarding and Recognizing HIPOs (current slides 11–12)

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Defining High Potential
How to Define A high-potential employee (HIPO) is defined as someone who is capable of rising to and succeeding at a more senior,
High Potential: critical role. An employee’s potential is defined in terms of his/her personal aspiration, functional ability, and
engagement, as described below:

High-Potential Employee

Aspiration Engagement
Does the Is the employee
employee want to happy at the
be promoted? company?

Ability
Does the employee
have the skills
necessary to succeed?

Source: CEB, Realizing the Full Potential of Rising Talent Volume I: A Quantitative Analysis of
the Identification and Development of High-Potential Employees, Washington, D.C.: CEB, 2005, p. 5.

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Defining High Potential (Continued)
Develop High- High-potential employees (HIPOs) are more than 50% more beneficial to the business than non-HIPO employees, yet very
Potential few employees fall into this group. Half of the workforce has less than a 5% chance of advancing to and succeeding at the
next level, creating a large gap in leadership. Likewise, only 8% of employees have better than a 75% chance of
Employees to succeeding at the next level, creating a finite number of candidates with the potential to succeed in critical roles. Given the
scarcity of HIPOs, the rising gap in leadership skills, and the high impact HIPOs can have on the business, organizations
Drive Business must carefully identify and develop those with potential.
Outcomes:
Distribution of Workforce Probability of Performing in the Top Quartile in a More Senior Role

Number of
Employees

Current Probability of Success in a More Senior, Critical Role

Source: CEB, Realizing the Full Potential of Rising Talent Volume I: A Quantitative Analysis of
the Identification and Development of High-Potential Employees, Washington, D.C.: CEB, 2005, p. 19.

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 Understanding the HIPO Manager Role

Your Role as a HIPO Manager

As a manager, one of your roles is to identify and develop HIPOs. While only half of managers are effective at doing this, managers who are successful at these
activities can see up to 45% better business results. Use the lists below to understand behaviors that help and hinder employee potential.

Top Drivers of Employee Potential Top Detractors of Employee Potential

Do: Do Not:
 Demonstrate that the organization is committed to the  Rotate the employee through business units frequently
employee’s development  Change the employee’s manager frequently
 Structure challenges within job experiences to develop the  Involve the employee with organizational politics
employee  Force the employee to work with team members the individual
 Help the employee build strong relationships and networks dislikes
 Provide clear goals and objectives to the employee

Sources: CEB, The Business Case for Developing and Managing High-Potential Talent, Arlington, VA: CEB, 2009, p. 5.
CEB, Realizing the Full Potential of Rising Talent Volume I: A Quantitative Analysis of
the Identification and Development of High-Potential Employees, Washington, D.C.: CEB, 2005, p. 10.
CEB, Realizing the Full Potential of Rising Talent Volume II: Strategies for Supporting the Development of High-Potential Employees ,
Washington, D.C.: CEB, 2005, p. 41.

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 Communicating HIPO Status

Provide Consistent Communication

While not all companies choose to communicate high-potential status to employees, those that do must be sure to provide consistent communication across the
organization. Inconsistent messaging from line managers regarding the company’s HIPO management processes leads to confusion among employees as to the
purpose and value of HIPO talent management activities, potentially causing employee disengagement.
Manage career expectations as HIPOs enter the HIPO program:
 Communicate to the HIPO that he/she must continually strive to re-earn his/her high-potential status.
 Describe what the implications of participating in the HIPO program are.
 Do not emphasize fast-tracking the employee, as this puts great pressure on the participant, and the organization may not be able to deliver.
 Emphasize that as business needs change, talent needs may also change—HIPO pools are not static; rather, they represent a point of view at a point in time.
 Inform the employee that participation in the HIPO program is voluntary.
 Stress the fact that the HIPO designation is a notation of work potential, not a guarantee of job security.

Commit to development for all employees:

 Highlight that the organization is committed to the employee’s development, regardless of program participation.
 Make conversations about career potential part of the annual performance review and development planning process.
 Provide an overview of the HIPO identification process and explain what criteria is considered.

Source: CEB, Realizing the Full Potential of Rising Talent Volume II: Strategies for Supporting the Development of High-
Potential Employees, Washington, D.C.: CEB, 2005, pp. 31–40.

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 ‘Communicating HIPO Status (Continued)

Manage Expectations for HIPOs and Non-HIPOs

After reviewing the basic considerations and strategies of communicating HIPO status to employees, use the below sample scripting to get ideas of how to
best convey key messages during HIPO status conversations.

Key Messages to Employees Identified as HIPOs Key Messages to Employees Not Identified as HIPOs
 “Over the past few months, we have made a concerted effort to seek out,  “Continued participation in this talent pool is never a guarantee, nor is it
identify, and get to know some of our best talent across the organization. even always expected or desirable.”
We have identified you as a critical asset to the organization.”
 “Talent pool nomination evaluations are not static. They just represent a
 “Based on that review, you have been identified as someone for whom we point of view at a point in time.”
would like to provide targeted developmental opportunities to prepare you
 “Individuals can and will rotate out of the pool, and may rotate back into the
for other leadership roles that may evolve as the needs of the business
pool in future evaluation cycles.”
grow.”
 “Evaluations are position-specific. You may be viewed as a HIPO in one
 “You have been selected for this because you exhibit .”
position but not in another.”
 “Some development opportunities may involve intensive coursework,  “Take ownership of your own development.”
participation in special projects/task forces, mentoring/coaching, or a job
change, with the possibility of relocation.”  “I have been really impressed by your development in areas,
especially in your work on and projects.”
 “Opportunities may require a great deal of commitment, energy, and time
(Indicate the person’s greatest strengths, offering specific examples.)
on your part. It will be your responsibility to take full advantage of
opportunities, seek out the support you need, and provide accurate  “Your goals indicate , and I see you as .”
information on your history and progress.” (Discuss your assessment of the person’s performance.)
 “This is not a promise for a promotion, specific position, or a raise.”  “To help you achieve those goals, we should focus on , and I
will help you by doing .” (Provide specific examples of how
 “It is your decision to participate in this program; if you decide not to, that
you will help this person with development opportunities.)
decision will not be held against you.”
 “My goal is to help you continue (or increase) alignment of your career
 “Identification as a HIPO is not static—as business needs change, talent
goals with how you are seen in the company.”
needs may change as well, so it is possible that you will not be identified as
a HIPO in the future.”

Source: CEB, Realizing the Full Potential of Rising Talent Volume II: Strategies for Supporting the Development of High-
Potential Employees, Washington, D.C.: CEB, 2005, pp. 31–40.

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Creating HIPO Development Plans

Create Achievable and Actionable Development Plans

Development plans should be written by the HIPO with support from you, the manager. Use the list below to ensure that your HIPO’s development plan is
written effectively:

Critical Activities of HIPO Development Plan Creation

Engage HIPO in creating his/her development plan

Align development plan with the individual’s career aspirations

Include realistic development goals and career expectations

Focus goals on no more than one or two development areas

Include a plan of action to achieve each goal

Focus on development activities where the HIPO can leverage strengths and develop weaknesses

Align each development activity with a specific competency needing development

Include potential “stretch roles” for HIPO

Ensure that the plan will build skills and abilities that will help the HIPO achieve both short- and long-term career goals

Suggest both formal and informal training opportunities that align with the HIPO’s interests and goals

Offer available resources to support development activities

Provide clear steps of how you will assist the HIPO in achieving his/her development goals

Establish achievable timeframes

Set clear success measures

Maintain the development plan as a living document that continuously reflects changes in the HIPO’s situation and skills

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Creating HIPO Development Plans (Continued)

Individual Development Plan Template

Help your HIPO create a personalized development plan using the form below, keeping in mind the guidelines discussed on the previous page.

Name: Manager:
Title, Department: Date:
 
Date of Next IDP
Manager Support Target Meeting
Development Review (completed by Completion (completed by
Objective Category Action Steps manager) Success Measures Date manager)
Example: Improve Business Network employee 1. Completion of January 1, 2011 December 30, 2010
quantitative skills Acumen 1. Identify rotation opportunity in with peers in positions
the finance function rotation in finance
and business acumen with quantitative skills function
2. Enroll in university training 2. Manager feedback on
classes on business statistics quantitative ability
3. Present quantitative business 3. Business case
case to manager/executive team presentation feedback
Objective #1:   1.   1.    
2. 2.
3. 3.
Objective #2:   1.   1.    
2. 2.
3. 3.
Objective #3:   1.   1.    
2. 2.
3. 3.
Long-Term Career   1.   1.    
Goal/Objective: 2. 2.
3. 3. 

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 Identifying Development Opportunities for HIPOs

Select High-Impact Development Opportunities for HIPOs

Consider the development opportunities below to build key HIPO skills:

Key Skills Sample Development Activities to Build Key Skills

 Cut costs  Generate revenue

Accountability/Results Delivery  Handle a large budget  Take responsibility for P&L

 Take a business unit through a redesign/major

Change Management change initiative

Collaborating with Different Personality  Increase team diversity  Work with a geographically dispersed team
Styles  Lead those different than self

 Build partnerships (internally and externally)  Develop individuals and team

Development of Self and Others  Build technical skills

 Manage a declining business  Take over a situation with inherent problems

Innovative Problem Solving/Risk Taking  Modify work to adapt to changing circumstances  Work in a high-stakes environment

 Manage a high-performing team  Work with a top-performing leader

Leadership and Support  Work directly with senior management

 Allocate project resources  Develop department strategy

Strategic Thinking  Build and act on short-term strategic plan  Participate in a long-term strategy planning session

 Assess employee performance  Hire/fire employees

 Develop work plans to guide direct reports  Influence across divisions
Supervisory Skills  Establish strong peer networks  Manage difficult/unpleasant people issues
 Handle multiple layers of management

Source: CEB, Realizing the Full Potential of Rising Talent Volume II: Strategies for Supporting the Development of High-
Potential Employees, Washington, D.C.: CEB, 2005, p. 13.

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 Rewarding and Recognizing HIPOs

HIPO Retention Interviews: Identify Individuals’ Concerns and Preferences

You should hold frequent, open conversations with your HIPOs in order to surface concerns, individual preferences, and job interests. During these
conversations, you should obtain the following information from their HIPOs:

 How happy is the HIPO in his/her current role and at the company in general?
 In what areas is the HIPO currently contributing?
 What are the HIPO’s individual interests?
 Are there any specific projects on which the HIPO would like to work?
 Are there any specific external development opportunities in which the HIPO is interested?
 What challenges is the HIPO currently facing?
 What resources or development opportunities does the HIPO feel he/she needs to be more
effective?
 What concerns does the HIPO have about the company and/or his/her personal career and
development?

Based on the information obtained during these conversations, you should identify opportunities that will address the individual HIPO’s specific preferences and
areas of concern. The following page provides a “menu” of reward and recognition opportunities from which you may choose.

Source: CEB, Managing in the Downturn: Four Imperatives to Drive Employee Innovation and Performance, Arlington, VA:
CEB, 2009, p. 22.

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 Rewarding and Recognizing HIPOs (Continued)

Utilize a “Menu” of a Reward and Recognition Opportunities for HIPOs

Taking into consideration the HIPO’s individual preferences and development needs, select from one of the below options to offer your HIPO.

Short-Term Development Long-Term Development Reward and Recognition

Opportunities Opportunities Opportunities

 Attend an external business seminar
 Complete an on-the-job special assignment
 Attend a senior leadership meeting
 Attend a special-interest forum (such as a
women in leadership forum)
 Represent the company at an external event
 <Enter company-specific option here>
 <Enter company-specific option here>
 <Enter company-specific option here>
 Join an external networking group
 Participate in a rotational program
 Own a long-term, high-impact project
 Collaborate with more senior leaders on a
project
 Work with peers in other divisions to create a
cross-functional project
 <Enter company-specific option here>
 <Enter company-specific option here>
 <Enter company-specific option here>
 Enjoy a flexible work schedule
 Be recognized publicly for a specific
achievement or contribution (e.g., in a company
newsletter, business unit e-mail)
 Leave early on a Friday or come in late on a
Monday
 Receive a handwritten note from a high-level
executive
 <Enter company-specific option here>
 <Enter company-specific option here>
 <Enter company-specific option here>

Source: CEB, Managing in the Downturn: Four Imperatives to Drive Employee Innovation and Performance, Arlington, VA:
CEB, 2009, p. 22.

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