Executive Corner This is a fortnightly column featuring leaders in the executive search industry Character assessments aid succession planning by Chris Johnson An online test can reveal an individual's underlying abilities When any senior employee leaves a company, the standard move made by the employer is to promote the next in line. It may be the most logical thing to do, but it also leads to repeated instances of the "classic" management problem – people with insufficient training and experience being given roles for which they are unsuited or clearly out of their depth. The problem generally occurs because the process of succession planning has overlooked certain obvious facts. "There can be a large difference between successive levels of management and it should be the norm rather than the exception to expect problems when promoting people," says John Bower, director of behavioural profiling for St. George's Human Potential. "These can best be solved, though, by doing an assessment that has a high predictive accuracy." Mr Bower points out that the challenge with succession planning is to find someone who will be good in a certain role in two to five years' time. This is much harder than hiring a person who can already do the job, and entails an understanding of "underlying attitudinal factors", which are unlikely to change much over time. It also requires a training programme to enhance personal growth and development. "Repeated studies have shown that the determining factor in long-term performance is the right mindset and attitude," notes Mr Bower. "Someone who has those is able to pick up the skills and knowledge they need." Consequently, when assisting clients with succession planning, he will first see which of a pool of candidates has the greatest potential for specific future roles. Then, it is a matter of identifying gaps in their abilities which must be addressed before any promotion. Armed with this information, it is possible to arrange training courses, coaching or other assistance to keep people on the fast track. The determining factor in long-term performance is the right mindset and attitude Using technology "During the process, you should identify not just one person who could be promoted, but at least two or three," he adds. "However, technology now makes it easier to find potential candidates who may be a little outside the usual search area but who should still be included in the succession planning." In particular, Mr Bower is referring to the technology developed by Harrison Assessments for which St. George's has been appointed as master distributor in Hong Kong since 2003. This is used to identify individual personality traits and assess special strengths and aptitudes. "It helps to distinguish between a potential superstar and a person who may have the right training and qualifications but is going to fail," Mr Bower explains. "We can spot the difference between someone who wants to be a leader and someone who actually has the abilities needed to lead." The programme can be used to assess people for any level of management or any type of role. In practical terms, candidates have 30 minutes to complete an online test. They are presented with groups of eight work-related items and asked to rank them in order of preference. This exercise is designed to measure around 150 separate factors which have been demonstrated to have a critical impact on work performance. The questions relate to such things as comfort with making decisions, communication, leading a team, levels of motivation, and dealing with problems. Accurate reading Basically the same questions are used in all cases, but the resulting interpretation is done differently to assess suitability for the role under consideration. Line or HR managers are taught to make an accurate reading of each candidate's profile. "It is thought-provoking and provides a lot of information in a very short space of time," says Mr Bower. "It is the equivalent of about eight hours of traditional multiple-choice questions and covers all the key factors. After the assessment we can match an individual to the main requirements of a job and see which new competencies will be needed to make a difference." The original inventor of the system had a strong background in mathematics and a unique range of experience in industrial psychology and counselling. Later research and modifications have made it easier to pinpoint even subtle differences between mindsets and provided a scientific basis for making predictions. The degree of accuracy achievable in predicting future performance is now as much as 95 per cent. "Tests are constantly being researched and developed, but the core foundation has been pretty stable for the last 12 years," says Mr Bower. "Enhancements are usually to improve the ease of use and for increasing the accuracy of prediction when the tests are carried out by someone who is not trained in psychology." He adds that effective succession planning can be carried out by companies of any size and at any point in a person's career. However, making the whole process work depends on establishing a partnership between managers who understand the job requirements and consultants who are expert in applying the technology. "Broadly, Hong Kong employers are getting better at planning systematically, but there is still a long way to go before they use the full potential of their employees and add maximum value to their companies," Mr Bower says. Reading mindsets Good succession planning should identify more than one candidate per role Online tests to reveal character traits and aptitudes are a key part of the process Even subtle differences between candidates can be clearly identified Individuals can receive tailor-made training in the soft or technical skills they need Taken from Career Times 4 November 2005 Your comments are welcome at [email protected]