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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