Imagine this: An organization is seeking a key financial officer. Because of their location, the position is very difficult to fill. Two of their staff accountants have leadership potential, which they’ve identified, but neither has leadership experience or their CPA, which is a requirement of the position. Time constraints force the company to hire an experienced financial leader from the outside and provide competitive compensation, relocation assistance, and extensive orientation to the company.
Promoting from within is rarely possible if leaders wait until the position opens to begin identifying potential candidates. If the leadership team of the above organization had been identifying prospective leaders consistently and investing in their education, training, and development, they would have had a leader in house when the position opened. They would have dodged the high compensation for an experienced professional, the relocation allowance, and the costs invested in orientation to the company. Furthermore, the right leader from within the organization has employee respect and knowledge of roles and processes from day one.
Identifying leadership potential requires conscious observation of behaviors. What characteristics can indicate leadership potential?
They Show Above-the-Bar Performance
Performance and attendance that exceed expectations are two very early indicators of a potential leader. Potential leaders personally invest in the success of the organization through commitment to their role. They show relentless drive and hunger for increased knowledge and success.
They are Solution Oriented
Potential leaders are solution oriented. They never bring a problem to the table without a viable solution and an understanding of the shortcomings or potential issues each solution may bring. They are quick to identify problems in processes whose solutions may improve the organization.
They Display an Organizational Viewpoint
One surefire way to spot a potential leader is to identify those are able to see the big picture. They understand what others do in the organization and the value of each role. They express agreement with their supervisor often and display an understanding of their supervisor’s responsibilities. They understand the discernment process and trust the administration team.
They Make Decisions
Potential leaders analyze data to make sound decisions. They weigh out pros and cons and take risks when beneficial to the company. They seek guidance when necessary, but require very little in the decision making process. Strong leaders must be able to make decisions based on data presented and very few employees show this kind of commitment to a decision.
They Do the Right Thing
A potential leader claims their mistakes regardless of their fear of repercussion. They make ethical business decisions, always choosing what is right over what is easy or may benefit themselves. They stand up against unethical behavior and refuse to participate.
They Appreciate Feedback
In order to be a good leader, an employee has to be able to take feedback constructively. Employees who show increased drive following constructive feedback indicate high potential for leadership ability.
Supervisors and management should seek to identify leaders as early as possible; some are evident as early as during the screening process. Identified leaders should be provided with coaching and mentoring, educational opportunities, and insight into the management process. It should be clearly communicated to them that the leadership team believes they have the potential to advance within the organization. They may be promoted slowly to more demanding positions to test their mental fortitude, people skills, commitment, and ability to learn and evolve.
Because leaders promoted from within are tested over a much longer period of time and in more complex ways and trained specifically for the organization, most companies find that there is less risk involved then when hiring from the outside.