Tag: CEO

  • If Everyone Is a High Potential, No One Is

    If Everyone Is a High Potential, No One Is

    Why Succession Plans Break Down During Talent Reviews

    The CHRO knew something was off before the meeting even started. She was facilitating a talent review with her executive team. The agenda was clear. The framework was sound. The definitions of performance and potential had been shared in advance.

    And yet, as the conversation unfolded, a familiar pattern emerged. One by one, leaders advocated for their people.

    • “He’s one of my strongest performers.”
    • “She consistently exceeds expectations.”
    • “I’d hate for her to miss out on development opportunities.”

    By the end of the discussion, the high-potential box was crowded. Undeniably, too crowded.

    And the CHRO was left with a problem she knew well: If everyone is a high potential, no one is.

    Where Succession Plans and Talent Reviews Break Down

    This is not a leadership failure. In fact, most leaders understand performance. They manage it every day. They are experienced in writing performance reviews.

    Potential, however, is more abstract, and far easier to misapply.

    So, in talent reviews, performance sneaks up as a proxy for potential.

    • High performers are mislabeled “High Potential” and ready to take on more.
    • Dependable leaders, solid performers, are assumed to be able to move up.
    • And few people are willing to say, out loud, “This person may be exceptional where they are, and not suited for a significantly bigger role.”

    That reluctance is human. It is also where succession risk enters the system.

    What the CHRO Had to Do Next

    Midway through the meeting, the CHRO paused the discussion.

    She did not challenge anyone’s assessment of performance. She had studied past performance reviews. She knew they were accurate.

    She challenged the criteria being used to assess potential. She reminded the group of the company’s definition (recommended by Gartner research):

    Potential is the likelihood that someone can successfully grow into roles of greater scope and complexity, based on:

    • Aspiration – Do they genuinely want broader accountability and enterprise impact?
    • Ability – Do they have the cognitive capacity, learning agility, and judgment required at the next level?
    • Engagement – Are they committed to the organization and its long-term direction?

    Then she asked a different question. “Where has this person already operated at a higher level of complexity than their current role requires?”

    Instantly, the room got quieter, leaders understanding the implication of the question.

    Why Leaders Inflate Potential (Even with Good Intentions)

    As the discussion continued, the underlying dynamics became visible:

    • Leaders wanted to protect their top performers.
    • They knew high potentials received more investment in training and development.
    • They knew high potentials get more visibility and access to the CEO.
    • They wanted their teams to look strong.
    • They wanted credit for developing strong talent.

    It wasn’t political; however, it was predictable.

    Without strong facilitation, talent review calibrations drift toward advocacy instead of assessment.

    The Turning Point in the Room

    The meeting shifted when the CHRO reframed the goal.

    “This is not about who deserves more,” she said. “This is about who can handle more complexity, sooner, with less support.”

    She separated performance evidence from potential evidence.

    • Strong results stayed on the table.
    • Enterprise judgment, learning agility, and hunger for scope became the focus.
    • Several names moved, not because they were weak, but because the bar was clearer.

    By the end of the meeting, the high-potential population was smaller, sharper, and far more defensible.

    Why This Matters to the CEO and the Board

    Boards are not impressed by full boxes, but they are reassured by credible differentiation.

    When potential is inflated:

    • Succession plans look robust but fail under scrutiny
    • Training and development investments are diluted
    • The senior leadership team loses credibility with the Board when challenged on readiness

    When potential is rigorously defined and consistently applied:

    • Risk becomes visible
    • Decisions improve
    • Trust in the process and results increases

    That is the difference between a talent review and a talent strategy.

    The CHRO’s Real Role

    CHROs are not there to document leader opinions. They are there to:

    • Define potential clearly
    • Reinforce it relentlessly
    • Challenge leaders respectfully
    • Protect the integrity of the process when pressure shows up

    Talent calibration is not about consensus. It is about decision quality.

    If you are facilitating talent calibration meetings and feel the tension between performance and potential, that tension is not a failure of the process. It is the work. When handled with discipline and clarity, it becomes one of the most powerful levers HR has to reduce succession risk and earn lasting credibility with the CEO and Board.

    Learn more about succession planning and execution.

    Learn more about the author, Christy Suerth

  • Will Your Organization’s Talent Review Fail?

    Will Your Organization’s Talent Review Fail?

    And What High-Performance Organizations Do Differently for Talent Reviews

    After facilitating more than 100 talent reviews across industries, I have seen a pattern that leaders rarely recognize. Organizations meticulously maintain their physical assets, yet neglect their human assets.

    In manufacturing, machines are inspected daily for safety, calibration, and production output.

    In telecommunications, towers are checked constantly for compliance, signal quality, and operational integrity.

    But when it comes to talent, the only asset capable of creativity, judgment, and innovation, talent assessment becomes an after-thought.

    This oversight is not because leaders do not care. It is because most organizations have never built a disciplined, repeatable system for evaluating and developing their people. And the consequences are some of the costliest problems in business.

    Below are the issues I see most often in broken talent review processes, and they represent the highest financial and organizational impact.

    The Most Common and Most Costly Breakdowns in Talent Reviews

    1. The Wrong People Are Rated “Top Talent”

    High performers are often identified based on popularity, visibility, or personal affinity rather than measurable contributions or leadership behaviors. This leads to misallocated development dollars, stalled innovation, and top performers leaving because they feel unseen.

    Impact: Millions in hidden losses from disengagement, misaligned promotions, and failed succession bets.

    2. Leadership Potential Is Mislabeled

    Many organizations confuse high performance with leadership readiness. As a result, they accelerate people into roles they are not equipped to handle, while overlooking those who actually demonstrate strategic thinking, emotional intelligence, and team leadership capacity.

    Impact: Failed promotions, team instability, and burnout created by leaders who were never prepared to lead.

    3. Talent Data Is Anecdotal, Not Evidence-Based

    Without clear criteria and structured evaluation, talent reviews devolve into a series of stories, opinions, and selective memories. This results in inconsistent ratings, inequitable decisions, and a leadership bench that is built on bias rather than reality.

    Impact: Weak succession pipelines and increased legal and reputational risk.

    4. No Real Follow-Through After the Meeting

    Organizations spend hours debating talent but do not convert insights into action.

    No development plans. No accountability. No leadership conversations. No tracking.

    The result is a process that “feels good” but creates no measurable change.

    Impact: Zero ROI on talent investments and persistent leadership gaps.

    5. Burnout and Flight Risk Go Undetected

    Without structured diagnostics, leaders fail to see early warning signs of burnout, misalignment, and attrition risk.

    By the time someone quits, the organization is already facing productivity loss, replacement costs, and operational disruption.

    Impact: Costly turnover that could have been prevented months earlier with simple, systematic monitoring.

    The Resounding Truth: Human Assets Are Undermanaged

    Across every industry I have worked in, one truth stands out.

    Companies rigorously protect the assets that sit on their balance sheets but they do not rigorously protect the assets that create their future.

    Physical assets deteriorate without maintenance.

    Human assets deteriorate without development, clarity, and leadership.

    Organizations lose their best people not because talent reviews are missing. They lose them because talent reviews lack structure, discipline, and follow-through.

    What High-Performance Organizations Do Instead

    They treat talent as a core operating system:

    • Clear, evidence-based criteria
    • Calibrated evaluations
    • Strength-based talent placement
    • Succession pipelines that reflect reality
    • Leadership accountability for development
    • Annual and quarterly check-ins
    • Diagnostics that surface risk before it becomes crisis

    This is not “HR work.” This is business continuity work.

    The organizations that get this right outperform their peers in retention, innovation, engagement, and speed of execution.

    If you are concerned about leadership gaps, flight risk, or legal exposure tied to biased talent decisions, let’s talk. A brief call can show you exactly where your risk sits, and how to eliminate it.

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  • Engagement Scores Miss the Mark. How To Measure Thrivability and Prevent Burnout

    Engagement Scores Miss the Mark. How To Measure Thrivability and Prevent Burnout

    In boardrooms and executive team meetings, the conversation is shifting. Engagement scores miss the mark.

    I’ve seen it firsthand. I worked with a CEO who wasn’t interested in another “engagement survey.” He wanted to know something deeper: How are our people really doing?

    Just yesterday, a colleague told me his CEO asked about “thrivability.” Not retention. Not engagement. But whether employees were truly able to thrive in the culture.

    This tells me something: leaders are starting to realize that thrivability is becoming a core business metric. It’s one they can’t afford to ignore.

    Why Thrivability Matters in Preventing Burnout

    Many organizations talk about well-being. And while well-being matters, it often stops at programs or perks: meditation apps, gym memberships, wellness stipends. Well-being can mean employees are “okay.”

    Thrivability goes further. It asks: are people energized, purposeful, and contributing in ways that drive performance?

    • Retention isn’t enough. Keeping burned-out employees on the payroll costs more than turnover. Thrivability ensures people are energized, not just hanging on.
    • Innovation and agility require energy. Thriving employees contribute ideas, solve problems, and see possibilities others miss.
    • It signals cultural health. When thrivability is high, you’ll see resilience, adaptability, and trust across the organization.

    Thrivability isn’t just surviving. It’s flourishing. And that difference is what drives business outcomes.

    How to Put Thrivability into Practice

    If you’re wondering how to measure and apply this inside your organization, start small:

    1. Ask different questions. Move beyond “Are you engaged?” to “What restores your energy at work?” or “Do you feel your work matters?”
    2. Track energy as a metric. Pulse surveys at the end of the week can reveal whether teams are consistently depleted or restored.
    3. Leverage validated tools. The Maslach Burnout Inventory (MBI) and Areas of Worklife (AWL) Survey are gold standards for understanding where employees are at risk of burnout—and where thriving is most possible. Unlike engagement surveys, they identify the root causes of depletion.
    4. Link to business outcomes. Compare thrivability scores with retention, innovation metrics (patents, ideas submitted), or even customer satisfaction.
    5. Pilot with leaders. Ask managers to track team thrivability and discuss results in staff meetings—make it visible and actionable.
    6. Embed in scorecards. Thrivability deserves a spot next to revenue, margin, and customer experience. What gets measured gets managed. For more ideas, read my article about how one company used KPIs to prevent burnout.

    The Executive Imperative: Measure What Matters

    Forward-thinking CEOs are already asking their teams about thrivability.

    Because companies don’t burn out. People do. And when your people thrive, your business thrives.

    Question for Leaders:
    If you could add one thrivability measure to your scorecard tomorrow, what would it be?

    (And if you’re curious about how tools like the Maslach Burnout Inventory and Areas of Work Life Survey reveal these answers, send me a note. I’m always happy to share how organizations are using it.)

    Thrivability is quickly becoming a leading indicator of organizational performance. I believe in the next five years, boards will begin expecting it reported alongside earnings and customer growth.

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    Learn more about the cost of burnout by reading Burnout Doesn’t Send You an Invoice but It’s Already Draining Your Bottom Line