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180                               assessing potential and future performance
                                   of this potential should be measured at several times during a career path in relation
                                   to development plans and opportunities offered by learning experiences. We discuss
                                   methods and techniques to predict (high) potential that are frequently applied within
                                   organisations. Next, we offer an overview of modern methods and procedures that
                                   relate to the process of human development, for example 360-degree feedback and
                                   development centres. A practical case study indicates that an organisation should
                                   adjust the methods for assessing potential and future performance to their human
                                   resource management policy, the departmental culture and the motivation and values
                                   of the participants. Tailor-made solutions, and a HD policy that sustains the process
                                   around development appear to be the main practical solutions that incorporate new
                                   insights in the area of potential analysis and human development.






                               INTRODUCTION
                               Organisations pay more and more attention to the assessment and measurement of po-
                               tential concerning human development and future performance. The reason for this
                               is that, on the one hand, the market is changing in terms of the demand from cus-
                               tomers and intermediaries. Being able to react more quickly, more flexibly and in a more
                               result-oriented manner calls for an adjusted human resource policy. A future-oriented
                               scope, the assessment of possibilities and a creative and result-oriented anticipation
                               of these possibilities are demanded more and more from management. On the other
                               hand, there are changes in the supply-side of the labour market. Due to demographic
                               developments (reduction in birth rate, more elderly people because of improvement
                               in health care) there is a great need for young people with potential now and this
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                               trend will continue in the future. The globalisation of markets, due among other
                               things to technical development (information technology) and economic growth (or the
                               building of a new economy in areas where this is needed) requires not only a work-
                               force with high potentials but one that possesses strong competencies. This change
                               also demands management to have an adjusted policy on recruitment, assessment and
                               development of the current or future employees, especially when it concerns people
                               with high potentials, people at managerial levels or people in areas where innovation
                               takes place. As a consequence, assessment and development techniques—being able
                               to judge the employees by their competencies and the development of potential and
                               future functioning—are becoming important tools for human resource management
                               within organisations.
                                 This chapter will handle the methods with which (management) potential and future
                               performance can be measured, predicted and developed. We will aim at the perspectives
                               in management development—and more generally human development—and the target
                               groups within organisations that are often associated with high potential in practice.
                               First of all, attention will be paid to several relevant developments that take place within
                               organisations. It is also important to be able to distinguish between ‘potential’ and ‘high
                               potential’. We adopt the definition of potential that Lohaus and Kleinmann (this volume)
                               introduced in their chapter, and will extend this to the competency approach that is now
                               very popular within organisations today. Also, we will present a model that puts emphasis
                               on process factors when measuring potential. Following, it is discussed which methods
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