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A Comprehensive Guide for HR Leaders on Maximizing Development Opportunities for High-Potential Employees

Introduction: The Power of the 70-20-10 Development Model

The 70-20-10 development strategy is a proven framework designed to foster the growth and progression of high-potential employees (HiPos). This model suggests that 70% of learning and development comes from on-the-job experiences, 20% from social learning (coaching, mentoring, and networking), and 10% from formal education (training, workshops, and courses). For HR leaders, the challenge lies in designing a development strategy that balances these three components while aligning with the organization’s talent strategy.

This guide provides HR leaders with a comprehensive approach to effectively implement a 70-20-10 development strategy for HiPos. We’ll explore how to design an impactful strategy that maximizes growth opportunities and prepares HiPos for future leadership roles within the organization.

Step 1: Understand the Components of the 70-20-10 Model

Before diving into the specifics of designing a strategy, it’s critical to understand the essence of the 70-20-10 model and its significance for developing HiPos.

The 70-20-10 Breakdown:

70% – Experiential Learning: This is the cornerstone of development, as it focuses on real-life, hands-on experience. Leaders are developed through challenging projects, job rotations, and stretch assignments that push them outside their comfort zones and force them to learn on the job.
20% – Social Learning: This element leverages feedback, coaching, mentoring, and peer interactions. HiPos are exposed to experienced leaders, networks, and collaborative settings where they can exchange ideas and get advice.
10% – Formal Education: While this is the smallest portion, it’s still crucial. Formal learning might include training programs, executive education, seminars, and industry conferences that provide HiPos with critical knowledge and skills.

Practical Example:

In a financial services organization, a HiPo identified for leadership might spend 70% of their time managing a cross-functional project team, 20% participating in coaching sessions with senior leaders, and 10% attending a leadership development course on financial strategy and risk management. This well-rounded approach ensures both the practical application of skills and the theoretical knowledge needed for future roles.

Step 2: Identify HiPo Development Needs and Organizational Goals

Before creating a tailored 70-20-10 development plan, it's essential to identify the key leadership competencies HiPos need to develop in alignment with the organization's strategic goals. The best development strategies are those that blend individual aspirations with the company’s business priorities.

Steps to Align HiPo Development with Organizational Goals:

Assess Current Leadership Competencies: Identify the core competencies required for leadership roles within your organization. These competencies could range from strategic thinking to change management or people development.
Review Organizational Goals and Challenges: Understand where the business is headed. For example, if the company is expanding internationally, the leadership development strategy should focus on cross-cultural leadership and global market strategy.
Conduct HiPo Assessments: Evaluate current HiPo skills, using 360-degree feedback, behavioral interviews, and leadership assessments to identify gaps in skills and experience that need to be addressed.

Practical Example:

In a technology company focusing on innovation and rapid product development, HiPos may need to develop competencies in agile leadership, digital transformation, and entrepreneurial thinking. By aligning the development strategy with these competencies, the company ensures that their leadership pipeline is prepared to drive business outcomes.

Step 3: Design the 70-20-10 Strategy

With a clear understanding of the HiPo’s development needs and organizational goals, the next step is to design a 70-20-10 strategy that includes targeted learning experiences for each component of the model. The strategy should be personalized to each HiPo’s growth trajectory while still being scalable across the organization.

Experiential Learning (70%):

This is where the bulk of development happens. Experiential learning involves real-time challenges that allow HiPos to apply leadership concepts in a practical context.

Stretch Assignments: Assign HiPos to lead high-stakes projects or initiatives that align with the organization’s goals. These should be outside their current scope to challenge their capabilities.
Job Rotations: Offer HiPos exposure to different functions, geographies, or business units. This helps them understand the broader organization and develop a wider skillset.
Leadership Simulations: Use business simulations or action learning projects that mimic real-world challenges. This allows HiPos to practice decision-making and leadership in a controlled environment.

Social Learning (20%):

Social learning involves leveraging the knowledge, experiences, and feedback of others to accelerate development.

Coaching: Pair HiPos with experienced executives or external coaches who can provide guidance, feedback, and real-time advice.
Mentorship: Create formal mentorship programs where HiPos are mentored by senior leaders. This encourages knowledge sharing and helps them develop new perspectives.
Peer Learning Groups: Facilitate peer coaching groups or leadership forums where HiPos can engage in knowledge-sharing and feedback sessions with their peers.

Formal Education (10%):

While experiential and social learning make up the bulk of development, formal education remains important for providing theoretical foundations, broadening perspectives, and acquiring new leadership tools.

Executive Education Programs: Offer HiPos access to top-tier leadership programs such as Harvard’s Executive Education, INSEAD, or Wharton to refine strategic leadership and decision-making.
Workshops and Seminars: Organize targeted training sessions in key leadership areas, such as conflict management, financial acumen, or change leadership.
Industry Conferences: Support HiPos in attending industry events to broaden their knowledge and network with other senior leaders in the field.

Practical Example:

For a global manufacturing company, a HiPo in an operational role may have the following development plan:

70% Experiential Learning: Leading a cross-continental production improvement project aimed at optimizing supply chain efficiency.
20% Social Learning: Participating in monthly leadership roundtables with senior executives and attending bi-monthly coaching sessions with the Chief Operating Officer.
10% Formal Education: Completing an online course in supply chain strategy and attending an industry conference on sustainable manufacturing practices.

Step 4: Implement and Support the Strategy

Creating a development strategy is only part of the process. The next step is ensuring that HiPos have the resources and support needed to execute their development plans effectively.

Implementation Tips:

Clear Communication: Ensure that both HiPos and their managers understand the purpose of the 70-20-10 strategy and the expectations. Regularly communicate the importance of this balanced approach to learning and development.
Provide Access to Resources: Make sure HiPos have the tools, programs, and platforms to access coaching, mentoring, and learning resources.
Foster a Learning Culture: Encourage a culture of continuous learning within the organization. This means normalizing discussions about career progression and leadership development and providing the necessary resources to support them.

Practical Example:

In a consulting firm, HiPos identified for leadership may be given access to an internal learning portal that houses resources like recorded coaching sessions, leadership courses, and project management tools. Additionally, bi-monthly development workshops with senior leaders can ensure they stay engaged with their learning and growth.

Step 5: Monitor, Evaluate, and Adjust the Strategy

The final step in designing a successful 70-20-10 development strategy is continuous evaluation and adjustment. Development plans should be flexible to account for changing business needs, evolving competencies, and shifts in career aspirations.

Monitoring Progress:

Regular Check-ins: Schedule quarterly meetings to assess progress against the HiPo’s goals. Evaluate whether the 70-20-10 model is being followed effectively and make adjustments where necessary.
Feedback Loops: Use feedback from mentors, managers, and peers to understand how well the HiPo is applying their learning and achieving their goals.
KPIs and Metrics: Track performance metrics such as leadership readiness, project success rates, or cross-functional collaboration to determine the effectiveness of the strategy.

Practical Example:

A global retail company regularly assesses whether their HiPos are demonstrating the competencies outlined in their 70-20-10 development strategy through quarterly reviews and 360-degree feedback. Adjustments are made as necessary, such as enrolling HiPos in new leadership development programs or assigning them to different stretch assignments to fill any remaining gaps.

Conclusion: Creating a Dynamic Development Strategy for HiPos

The 70-20-10 model is a proven and versatile framework for developing future leaders within an organization. By blending experiential learning, social learning, and formal education, HR leaders can ensure that their HiPos are receiving a well-rounded development experience that prepares them for the challenges of tomorrow’s leadership roles.

For HR leaders, the key to success lies in understanding the unique needs of each HiPo, aligning their development with organizational goals, and continuously adapting the strategy to ensure long-term success. By doing so, organizations can create a robust leadership pipeline that drives growth, innovation, and sustained business success.