Chapter I: Managing the HIPO Pipeline

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HIPO Development Scorecard

Headquartered in the United States, General Motors Corporation is the worlds largest maker of cars and trucks. In 2004, the company generated revenues of about $193 billion (146 billion) and employed 346,000 people.

Description To ensure that General Motors has the skills and leaders needed to execute on future business projects, the company establishes a means of evaluating, in aggregate, HIPOs development and career progress over time. Regional and functional talent scorecards provide views of the quantity, quality, and ow of HIPOs through the talent pipeline, and enable the organization to enforce executive accountability for closing identied talent gaps. Goal GMs goal is to enhance the quality of the organizations HIPO talent pipeline by making leaders accountable for meeting accelerated HIPO development and career progression goalsas measured by a scorecard of talent metrics. Key Differentiating Feature Rather than relying on outcome metrics such as number of ready now successors, or the retention rate of HIPOs, General Motors HIPO scorecard assesses the health of the talent pipeline using a comprehensive set of metrics, including a measure of the development of HIPO career progression through the pipelinea critical indicator of the depth and quality of talent in the organization. Additionally, GM differs from standard practice by holding business leaders and HIPOs themselves accountable for meeting accelerated career development expectations. Results GMs constant tracking of HIPO movement through the talent pipeline has enabled the company to identify and mitigate future talent and leadership risks.

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Practice Driver
In assessing the quality and depth of their talent pipelines, the majority of Council members rely on metrics such as the number of ready now successors, and the retention rate of HIPOs; few organizations, however, evaluate the velocity of HIPO development. General Motors Corporation indicates that speed of HIPO development, in addition to volume and quality, is a critical metric; the automotive company believes strongly in the importance of evaluating HIPOs development pace, given the urgency of developing their skills within an accelerated time frame.

Static View
Most organizations assess the health of their talent pipeline through a static view of the quantity and quality of HIPOs...
Metrics Used to Assess Talent Pipeline Health

77% 65% 58%

Percentage of Organizations Using Metric

15%

Number of Ready-Now Successors

= 121.

Quality of Successors in Succession Plan

HIPO Retention Rate

Speed of HIPO Promotion Relative to Non-HIPOs

but cannot provide insight into a critical metricvelocity of movement of high-potential employees through the pipeline.

Are They Where They Need to Be?

You might think that 10 to 15 years is a long time to realize your HIPOs potential, but if you look at the amount of critical experiences they need to go through to develop the capabilities needed in the future, then time is short. As a result, the organizations ability to measure how fast HIPOs are moving through the pipeline becomes critical. Tom Thivierge Director, Global Talent Management General Motors Corporation

Source: General Motors Corporation; Corporate Leadership Council Managing Investments in Rising Talent Survey, 2005; Corporate Leadership Council research.

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Component #1: Assess Quantity, Quality, and Movement of HIPOs Through the Talent Pipeline
General Motors tracks measures of HIPO pipeline quality, evaluating the number of HIPOs by level, HIPO education, and diversity of the HIPO pool; these measures enable an at-a-glance view of the organizations talent at senior, mid- and junior levels. The company also assesses HIPO velocity, assessing HIPOs promotion speed and time in role; GM benchmarks HIPOs pace versus non-HIPOs as a measure of the organizations success in accelerating HIPOs development.

Assessing Talent Pipeline Health (Part I)

GM assesses the health of the talent pipeline by measuring both HIPO skill acquisition and movement through the pipeline
GMs Talent Portfolio Metrics and Scorecard Data Illustrative
Regional Talent Scorecard: Asia Talent Metrics HIPO Pipeline Quantity Number of HIPOs by level Annual voluntary attrition: HIPOs versus non-HIPOs Percentage of HIPOs with an advanced degree Pay satisfaction: HIPOs versus non-HIPOs Average annual merit and bonus for HIPOs versus nonHIPO group (percent of non-HIPO merit) Diversity of HIPO pools (includes women of color, non-U.S. citizens, as well as minorities) HIPO Velocity Percentage of HIPOs moving into critical roles Average time in job: HIPOs versus non-HIPOs Average number of HIPO promotions per year (Percentage U.S. versus non-U.S., percentage female versus male and percentage minority versus non-minority
95%

GM HIPO Pools (By Level) Senior Leader Potential 30 1% (2%)

100%

Long-Term Incentive Executive Potential 200 5% (5%) 95% 92% (75%) 150% 50%

Executive Potential 1,000 3% (6%) 90% 88% (70%) 140% 60%

Manager Potential
2,500

4% (5%) 86% 85% (75%) 135% 65%

98%
(73%)

170%
40%

80% 24 months (3648 months) 25

78% 24 months (3648 months) 100

65%

36 months (48 months)

5

36 months (36 months)

500

HR monitors HIPO ow through the pipeline by tracking HIPO progress against accelerated career expectations

and focuses business unit leaders attention to areas where HIPOs are not meeting accelerated career goals.

Positive: High level of condence in HIPO quality and depth

GM Talent Scorecard Coding Cautious: Some concerns about either quality or depth

Negative: Major reservations about quality and depth

Source: General Motors Corporation; Corporate Leadership Council research.

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Component #1: Assess Quantity, Quality, and Movement of HIPOs Through the Talent Pipeline (Continued)
In addition to measures of quantity and velocity, GM also evaluates the organizations ability to deliver key development experiences to high-potential employees by looking at HIPOs experience in challenging roles such as cross-functional moves, turnaround positions, and start-up opportunities. The organization rolls up all HIPO development metrics into a single assessment of pipeline strength by level in the organization. Positive scores indicate success, while cautious and negative ratings indicate the need for focused attention on the HIPO pool.

Assessing Talent Pipeline Health (Part II)

GM monitors the impact of learning and development on HIPO career progression and assesses overall talent pipeline health based on quantity, quality, and movement of talent
GMs Talent Portfolio Metrics and Scorecard Data Illustrative HR monitors HIPOs acquisition of critical development experiences and the career impact of those experiences.
(Continued) Regional Talent Scorecard: Asia Talent Metrics HIPO Development and Impact of Development Percentage of HIPOs with cross-functional experience Percentage of HIPOs with international experience Percentage of HIPOs with business turnaround experience Percentage of HIPOs with start-up experience Number of HIPOs coached and average performance transition cycle time improvement after coaching Percentage of HIPOs attending leadership development training and percentage promoted after training versus those not trained HIPO Action Plan Completion Percentage of talent action plans completed (TARGET: 90%) Percentage of bench strength action plans completed (TARGET: 90%) Overall Pipeline Assessment 90% 99% Positive 90% 96% Cautious 70% 92% Positive 79% 90% Cautious 88% 60% 58% 20% 20 (4 months) 50% (20%10%) 78% 30% 20% 10% 20 (5 months) 50% (10%15%) 64% 20% 15% 5% 10 (3 months) 40% (15%15%) 55% 10% 5% 2% 8 (4 months) 60% (20%10%) GM HIPO Pools (By Level) Senior Leader Potential Long-Term Incentive Executive Potential Executive Potential Manager Potential

HR assesses the overall health of the talent pipeline based on quantity, quality, and movement of talent.
GM Talent Scorecard Coding Cautious: Some concerns about either quality or depth

Positive: High level of condence in HIPO quality and depth

Negative: Major reservations about quality and depth

Source: General Motors Corporation; Corporate Leadership Council research.

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Component #2: Create Manager and HIPO Accountability for Closing Identied Talent Gaps
GMs HIPO Development Scorecards inform action planning related to high-potential employee development; low-scoring business areas identify their talent gaps and determine appropriate actions to bring talent quantity, quality, and velocity up to standard. The organization enforces action planning activities by assigning ownership to business unit leaders, building talent-related metrics into their incentive plans, and asking HIPOs themselves to take advantage of available developmental resources.

What Gets Measured Gets Done

GM creates annual region- and function-specic talent action plans focused on the most critical talent gaps identied by the Talent Scorecard...
Sample GM Talent Action Plan Talent Action Plan: Asia Identied Talent Gaps Action Deadline August 30 Owner of Action PB GS #1 Promotion impact from coaching interventions Assess effectiveness of coaching interventions is too low in Executive Potential pool

#2 HIPO development speed is too slow; average Analyze performance, development, and promotion August 30 time in role for Manager potential is equal to issues related to manager potential pool promotion rate of non-HIPOs

...and holds both business leaders and HIPOs accountable for achieving talent plan objectives and accelerated career development expectations
GM Strategies for Meeting Talent Plan Objectives Local Ownership Regional and functional talent action plans drive local ownership of talent outcomes
Action Plan Action Plan

Executive Accountability CEO review of talent action plans ensures urgency around execution

CEO

Business Unit Leader

Executive Incentives GM includes talent plan goals in executives compensation plans

HIPOs Accountability HIPOs who decline developmental moves knowingly risk being exited from the HIPO pool
GMs (Typical) Three Strikes and Youre Out Rule
EXIT

Action Plan

#1 Rotation Declined #2 Rotation Declined #3 Rotation Declined HIPO

Source: General Motors Corporation; Corporate Leadership Council research.

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Council Assessment: HIPO Development Scorecard

Caveat In addition to closely monitoring the health of the HIPO talent pool, GM also conducts broader talent planning assessments regarding the organizations overall ability to staff future business operations. Implementation Tips Local AccountabilityGM measures HIPO metrics at the business unit level, as well as the regional and corporate level. The company has found that by localizing accountability, executives are more willing and able to impact HIPO development goals. HIPO AccountabilityGM makes HIPOs aware of the accelerated progression expectations that are placed upon them, and removes from the HIPO pool any individuals who decline multiple developmental rotations, or who are not on target to meet accelerated development progression. The organization nds that openness about development progression goals further speeds HIPO development.

Organizational Road Map for Action

Move beyond a static evaluation of the quantity and quality of HIPOs in the organization and assess HIPO development progress against accelerated career expectations. Assign clear accountability and action steps to leaders in closing development gaps in the HIPO pipeline.

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