Essential Components of a High Potential Development Program

According to our recent survey report, leadership development is L&D’s #1 top priority right now.

Great leaders are critical to organizational success. Leaders, after all, set a clear vision and direction for their team, inspire and motivate their employees, and ensure goals are met and high-quality results are consistently delivered. But as a record number of employees reach retirement age (an era that many are calling “The Great Retirement”), organizations are scrambling to identify talent to fill leadership gaps left by exiting employees.

That’s where high potential employee programs come in.

In this article, we’ll dive into all things high potential programs—what they are, how they benefit your organization, and the essential components of high potential development programs.

Let's get right into it!

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What is a high potential program?

High potential programs, also known as HIPO programs, are specific programs aimed at accelerating the development of future leaders and top performers at a company.

Most large organizations have career development tracks termed "high potential programs." Georgia Tech shares a resource listing over a dozen reputable companies with HIPO programs.

These programs ‌give employees with the greatest potential special experiences to help them advance within the organization. These programs allow the participants an expanded view of the company's culture, challenges, and vision.

In a separate article, we outline the characteristics of high-potential employees. These include proactivity, an eagerness for new opportunities, a propensity to stay calm under pressure, and an investment in the success of the company. Use the criteria outlined to identify which employees you should pay special attention to.

‍High potential vs high performer: What’s the difference?

Though the terms “high potential” and “high performer” are often used interchangeably, it’s important not to conflate them.

High performers are employees who consistently meet or exceed their current job requirements. They are reliable, productive, and often excel in their specific role. High potentials are employees who show the potential to grow into leadership positions or take on roles with greater responsibility. High potentials demonstrate adaptability, ambition, and a learning mindset that prepares them for future challenges.

Some other characteristics of high potential vs high performer include:

	High Performer	High Potential
Focus of Impact	Their primary impact is in their current role, as they deliver exceptional results within established processes and expectations.	Their impact is both present and future-oriented. High potentials are expected to drive long-term success for the organization by stepping into new roles and tackling complex challenges.
Growth Potential	While high performers may excel in their role, they may not necessarily have the interest, adaptability, or skills to move into a higher-level or different role. Their expertise often lies in specific technical or functional areas.	High potentials possess traits such as learning agility, leadership ability, and adaptability, which position them for success in more strategic roles and responsibilities beyond their current position.
Skills and Development Needs	These employees typically need skill enhancement and resources that further optimize their current job performance. They benefit from training and tools specific to their role to keep them at the top of their field.	High potentials require development opportunities that prepare them for future roles, such as leadership training, cross-functional experience, and mentorship. They need support in areas like strategic thinking, people management, and decision-making.
Motivation and Career Ambitions	They may be highly satisfied and engaged in their current role and might not necessarily seek or thrive in roles with higher levels of ambiguity or leadership demands.	High potentials often have a desire to grow within the organization and aspire to take on new challenges. They are motivated by opportunities that stretch their abilities and prepare them for advancement.

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Though every high potential employee should be a high performer, not every high performer is a candidate for future leadership or strategic positions—nor do they always want to be. Some high performers would prefer to remain in individual contributor positions, remaining the backbone of operational success and delivering consistent, dependable results.

Organizations benefit from recognizing and developing both groups to ensure these employees' job satisfaction and overall impact in the company.

Why is it important to have high-potential programs?

High potential programs are a way to develop the internal talent pipeline in your organization. Starting these programs puts resources behind HR teams to identify, develop, and promote top talent.

Additionally, a HIPO program is a way of showing aspiring leaders that your organization wants to nurture their passion and ambition—a win-win for both the employees and the company.

These programs provide an avenue for a focused approach to high potential development for employees.

Here are 5 reasons why high-potential programs are important:

1. A HIPO program prepares future leaders

High potential programs provide potential leaders with the opportunity to broaden their exposure to senior leaders and the organization‌. It is a chance for aspiring leaders to develop a network of peers with similar goals and get mentorship to help them realize their potential. High potential programs are thus crucial for leadership development. They include leadership mentoring or development programs.

2. A HIPO program is exclusive to high performers, which is motivating

High potential programs are specifically for high-performing individuals within the organization. It is based on an in-depth analysis of workforce needs and how it aligns with personal learning opportunities for participants.

Only a select group can access this opportunity and exposure to a fast-paced career progression. This motivates employees to put in the work and also assures them their talents are being put to good use. Our high potential mentoring program handbook outlines how to mentor these individuals.

3. High potential programs raise the standard of performance

You may think that HIPO programs only help those employees selected. But they have positive effects across the company culture.

High potential programs help develop leaders who can create and manage highly effective teams within the organization. They gain skills that help them analyze team composition, leverage information sharing, and resolve conflicts.

This improves the overall performance of the organization. Participants gain personal leadership styles with which they can influence other employees to do their job well.

4. A HIPO program engages senior leaders as mentors

High potential programs are a way of engaging senior leaders in ‌teaching and mentoring high-performing employees. They also act as role models for participants.

These interactions ensure ‌high potential employees receive optimum exposure to mentoring and promotional opportunities within the organization. It also exposes executives to candidates within the organization who are deserving and highly qualified for top job openings.

Getting executives involved is critical to nurturing a high potential employee's development.

5. A HIPO program provides an opportunity for participants to expand their personal and professional network

Depending on the setup of your HIPO program, participants ‌develop a network of interprofessional peers. Through internal and external development, networking and mentoring events, high potential employees get the chance to be mentored by seasoned executives from diverse backgrounds and experiences.

Additionally, they build relationships with their peers within the program, who can hold them accountable, provide unique insights into business challenges, and encourage growth.

High potential programs ensure talented employees have the organization's commitment to their personal and professional development.

Examples of high-potential programs

Here is a list of high-potential leadership programs run by top companies around the world:

BMW, one of the largest industrial organizations in Germany, runs their AcceleratiON program for high-potential employees. This 18-month program rotates participants through departments and locations, completing projects that align with BMW’s core business areas.
BP has a place as one of the world's largest energy companies. Their Euro Graduate Program offers a unique 2-year program where graduates engage in job rotations that span different teams and functions, providing a broad view of BP’s operations and a comprehensive foundation in both technical and business skills.
Phillips has been in existence since 1891 when they introduced their first product, an incandescent light bulb. Their Leadership Talent Identification and Business Courses aim to cultivate management and strategic skills in emerging leaders.
The last one we will mention is Rolls-Royce, which offers its Leadership Development program, crafted for mid-career professionals with demonstrated leadership potential. Rolls-Royce partners with institutions like the Tuck School of Business at Dartmouth College to offer in-depth executive training programs.

Now that we know what high-potential programs are, why they're important, and have looked at a few HIPO program examples, let's turn to walk through how you can start building your own high-potential program for employees.

What's included in a high-potential program?

A high-potential development program is key to keeping talented employees engaged and ready for future positions. What are the key elements to ensure a measurable ROI on your HIPO program? We discuss them below.

Mentorship from leaders

Your HIPO program should include mentorship. Pair high potentials with executives or senior leaders within the organization to learn from their managerial skills and experience.

You can have a brief training session where mentors and mentees learn their roles in the relationship. Mentors can provide guidance and help them define their paths.

Learning and accountability from peers

Peers within the HIPO program can hold each other accountable and provide relevant feedback throughout. A tool like Colleague Connect can help match HIPO program participants for peer mentoring.

Group sessions

You should have aspects of the program that include group sessions. This enables relationship building and the chance for participants to learn from each other.

Make a mentoring circle with a diverse group of people from different backgrounds, divisions, or departments within the workplace, providing a variety of experiences to share and learn‌ from.

Personal development plans

Personal development plans (PDPs) create a structured approach for talent growth and maximize the long-term benefits of investing in promising employees. They do this through:

Targeted skill development: PDPs allow high potential employees to focus on specific skills and competencies essential for future leadership roles.
Employee engagement and retention: Offering a PDP helps engage HIPO employees and shows your organization’s commitment to their long-term career.
Accountability and progress tracking: PDPs set measurable goals and deadlines that help both employees and HIPO program administrators track development progress over time.

Focused projects to build key skills

Get participants involved in cross-functional projects that help them hone new skills. This includes assigning projects to individuals for the specific reason of helping them gain certain skills and experiences they'll need as leaders.

This is also a way of aligning the employees with the organization's challenges and connecting them with new experiences.

Steps to launching a HIPO program

Ready to start your high potential program? Follow these steps:

Define objectives: Clarify what success looks like and the specific outcomes you want for your high-potential talent.
Identify candidates: Use performance reviews, manager recommendations, and assessments to select high-potential employees.
Design the program: Outline activities like mentorship programs, skill-building workshops, and job rotations aligned with development goals.
Leverage technology: Use software like Together’s development programs platform to facilitate mentorship matching, organize events, track progress, and manage administrative tasks, enhancing efficiency and participant engagement.
Measure and iterate: Continuously collect feedback, evaluate KPIs, and refine the program.

Start your high-potential program today

Investing in human capital compounds to yield long-term growth. High potential programs are a key strategy to retain top talent.

Running a high-potential program isn't easy without the right tools. Especially if you have dozens of talented employees to develop, you can start your high-potential leadership program right away on Together.

With Together’s development programs software, deliver world-class development programs for high potential employees with tools like employee matching, task automation, event & content hosting, and more. Learn more about how Together can level-up your high potential employee program by speaking to one of our experts today.