I recently stumbled across a Harvard Business Review article titled 21st-Century Talent Spotting by Claudio Fernández-Aráoz. The article addresses problems and challenges in spotting talent. Written in 2014, it may as well have been written yesterday. He highlights the problems faced by organizations over the past few decades. Most were geared towards hiring and developing talent that emphasized “competencies”, but Fernández-Aráoz notes, “...21st-century business is too volatile and complex - and the market for top talent too tight - for that model to work anymore.”
Rather than “competencies”, he recommends focusing on potential.
Fernández-Aráoz cites five key indicators firms should assess when looking for potential: the right motivation, curiosity, insight, engagement, and determination.
He defines motivation as “a fierce commitment to excel in the pursuit of unselfish goals.”
Additionally, his research shows the other four indicators are the hallmarks of potential:
Curiosity - the ability to seek new experiences, knowledge and feedback, as well as an openness for learning and change.
Insight - the ability to gather and make sense of information.
Engagement - a certain level of emotional intelligence culminating in the ability to communicate a vision and connect with people.
Determination - the ability to go on despite challenges and bounce back from adversity.
If this sounds familiar to a seed investor, I’d wager that’s because assessing potential is critical in selecting the right startups and founders.
The similarities continue, “Geopolitics, business, industries and jobs are changing so rapidly … it is therefore imperative to identify and develop people with the highest potential,” says Fernández-Aráoz.
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