HighPotential

High-potential, or HiPo, refers to employees who demonstrate the capacity, motivation, and aspiration to advance to more senior or critical roles within an organization. In talent management, identifying HiPo individuals is used to build a leadership pipeline and assure a supply of capable leaders for succession planning. The term is applied across industries and encompasses potential for growth beyond current duties.

Identification and assessment: Organizations use multiple signals to identify high-potential individuals, including sustained superior performance, rapid learning, strong problem-solving, and career aspiration. Assessment methods commonly include performance ratings, 360-degree feedback, leadership simulations, assessment centers, and potential analyses. Tools such as the nine-box grid are used to map performance against potential, guiding development decisions.

Development approaches: HiPo programs emphasize deliberate development rather than rewards. They typically combine stretch assignments, job rotations, coaching, mentoring, leadership training, and exposure to strategic projects. Progress is monitored with predefined milestones and feedback loops to ensure readiness for progressively more challenging roles, with the aim of reducing time to succession.

Considerations and critique: While HiPo programs can strengthen leadership pipelines and retention, they also risk bias in identification, uneven access, or overemphasis on potential labels. Mislabeling can overlook broad talent and create resentment. Effective programs emphasize fairness, diversity, transparent criteria, and alignment with business strategy, and integrate with broader talent management and succession planning efforts.

Related concepts: Succession planning, talent management, leadership development, potential versus performance, and the nine-box grid.