High-Potential Programs: How to Train Your Future Executives

Building a Leadership Pipeline from Within

Every organization needs a strong bench of future leaders ready to step up. With waves of experienced executives retiring and a competitive market for top talent, companies are realizing they must build a leadership pipeline from within. High-potential employee programs (often called HiPo programs) are designed to identify and prepare rising stars to become tomorrow’s executives. These initiatives help bridge the leadership gap by accelerating the development of employees who exhibit the aptitude and ambition for senior roles. For HR professionals and business leaders, the stakes are high: failing to cultivate internal talent can lead to costly external hires and a lack of continuity in leadership. In fact, studies have shown that external hires are significantly more likely to fail in new leadership roles than internally grown leaders, and a strong internal development program can dramatically improve retention and performance outcomes. Companies that invest in their high-potential talent not only nurture future executives, but also send a clear message to employees that there are growth opportunities, boosting engagement and loyalty. Before diving into how to train your future executives, let’s explore why these programs matter and how to implement them effectively.

Organizations across industries are facing a leadership succession challenge. A generation of senior leaders is reaching retirement age (often termed “the Great Retirement”), leaving many companies scrambling to fill critical leadership gaps. Simply hiring outsiders for executive roles isn’t a reliable solution, it’s costly and risky. Research indicates that external hires for leadership positions are far more likely to underperform or leave prematurely compared to candidates groomed from within. By contrast, companies with robust leadership development practices see significantly better business outcomes and retention. For example, one industry survey found that 59% of organizations reported improved employee retention as a result of their leadership development programs, and the likelihood of leadership failure drops when talent is developed internally. High-potential programs address this by accelerating leadership readiness among the best and brightest employees, ensuring there’s a steady supply of qualified internal candidates for key roles.

Equally important, top talent expects development. In a recent LinkedIn report, 94% of employees said they would stay at a company longer if it invested in their career growth. Millennials and Gen Z professionals, in particular, are drawn to employers that demonstrate a commitment to developing their people. A lack of growth opportunities is often cited as a major reason why promising employees quit. High-potential programs show your rising stars that you value their future, which boosts morale and loyalty. These programs can thus be a powerful retention tool, preventing competitors from poaching your high performers.

However, simply having a HiPo program is not enough, it must be effective. Approximately two-thirds of large companies have some form of high-potential or emerging leader program in place. Yet research by Harvard Business Review found that only about 24% of senior executives at those firms felt their programs were actually a success. In other words, many organizations are investing in high-potential initiatives but not seeing the desired results. Common pitfalls include picking the wrong people (confusing high performance in a current role with true leadership potential), offering generic training that doesn’t translate to real skills, or failing to secure leadership buy-in. The good news is that by understanding these pitfalls, HR leaders can design programs that truly deliver value, turning high potentials into capable leaders who drive the organization forward.

In summary, high-potential programs matter because they proactively build your leadership pipeline, reduce the need for risky external hires, improve retention of top talent, and ensure your company has the right leaders ready when you need them. Next, we’ll look at how to identify the employees who belong in such programs.

Selecting the right participants is the foundation of any successful high-potential program. A common mistake is to assume that a high performer is automatically a high potential. In reality, high performance in one’s current job doesn’t always equate to high potential for leadership roles. For example, an outstanding individual contributor might lack the interest or people skills to excel as a manager. High-potential employees (often called “HiPos”) are defined not just by what they achieve today, but by traits indicating they could take on significantly greater responsibilities in the future. These traits typically include:

• Leadership traits and behaviors: They may already exhibit leadership in informal ways, for instance, mentoring teammates, taking initiative to improve processes, or volunteering for stretch assignments beyond their job description. They show emotional intelligence in working with others and stay calm under pressure.
  
  
• Learning agility: High potentials are quick learners who adapt to new challenges. They seek feedback, learn from mistakes, and handle unfamiliar situations effectively. This adaptability suggests they can grow into larger, more complex roles.
  
  
• Ambition and engagement: They express a desire to advance and take on leadership responsibilities. Importantly, their motivation is aligned with helping the organization succeed, not just personal promotion. They are highly engaged, with a strong sense of ownership in the company’s mission and goals.
  
  
• Ability to handle complexity: Future executives need strategic thinking and the ability to deal with ambiguity. HiPos often show signs of being able to think beyond their current tasks, understand broader business challenges, and navigate change well.
  
  

It’s crucial for HR and leadership teams to develop clear criteria for “potential.” This might involve defining specific competencies or “X factors” that a future leader in your organization should have, such as strategic vision, decisiveness, influencing skills, and so on. Many companies use tools like the 9-box grid (assessing performance vs. potential) or leadership assessments to help identify HiPos objectively. The key is to separate short-term performance from long-term potential. As one leadership study noted, only about 10% of people might be “natural” leaders, but another 20% show high leadership potential if properly developed, meaning the talent is there if you know what to look for.

A structured, data-driven selection process will ensure you’re betting on the right people. Consider forming a nomination or talent review committee that evaluates candidates against the agreed criteria. Use multiple inputs: manager nominations should be balanced with assessment results and even interviews or case studies to gauge leadership qualities. Bias can easily creep in if we rely solely on manager recommendations or tenure; thus, having diverse perspectives in the selection discussion is important. Also, decide whether your program will be open (employees know who’s in it and how to qualify) or confidential. Increasingly, experts recommend some level of transparency to avoid rumors and resentment. Communicating what qualities the company values in future leaders can even inspire a broader group of employees to develop those traits in themselves.

In sum, identifying high-potential talent is about looking beyond who is performing well now and finding who, with the right development, could lead at higher levels soon. Once you have a strong pool of nominees identified, the next step is to design a development program that will actually prepare them for executive roles.

A high-potential program should be thoughtfully designed with clear goals and components. It’s not just a series of training courses; it’s a comprehensive talent development journey. Here are key components of an effective HiPo development program:

• Alignment with organizational strategy: Begin with the end in mind. Clarify how developing these individuals will support your company’s future needs. For instance, if the business plans to expand into new markets or launch new products, the HiPo program might emphasize global leadership skills or innovation mindset. Tying the program to specific strategic objectives ensures it has purpose and executive support. As an example, one construction firm created a HiPo program specifically to break down silos between regional teams and build strategic thinking for expansion, within three years, 20 out of 21 participants were still with the company and contributing at higher levels, illustrating the impact of a well-aligned program.
  
  
• Clear objectives and success metrics: Define what success looks like for your HiPo program. Vague goals like “develop leadership skills” can be hard to measure. Instead, set concrete targets such as: a certain percentage of leadership openings will be filled by program graduates (internal promotion rate), improved retention of high-potential employees versus the norm, or participants achieving promotions faster than they would otherwise. For example, you might aim for 75% of HiPo participants to move into a bigger role within 18 months of completing the program. Having these metrics not only focuses the program design but also helps win executive buy-in by showing the ROI in terms of talent outcomes.
  
  
• Mentorship and executive sponsorship: Mentoring is often cited as the cornerstone of high-potential programs. Pair each HiPo employee with a seasoned leader or executive who can provide guidance, share knowledge, and advocate for them. Mentors help participants navigate challenges and broaden their perspective beyond their current role. Many high performers have never been exposed to high-level strategic thinking or tough leadership dilemmas, a mentor can bridge that gap through regular one-on-one coaching. Executive sponsors (such as C-suite members visibly supporting the program) also signal that developing future leaders is a priority. Senior leaders can kick off program events, lead workshops, or simply interact with participants, which greatly boosts program credibility.
  
  
• Personal development plans: Each participant should have an individual development plan outlining the specific skills and experiences they need to acquire. This plan might include targeted competencies (e.g. financial acumen, project leadership, cross-cultural communication) and development actions to build them. It should be tailored, high potentials are not all the same level or destined for the exact same roles. For instance, an emerging leader in finance might need different grooming than one in operations. A personalized plan ensures training efforts actually address each person’s growth areas. These plans should be revisited and updated periodically as the participant progresses.
  
  
• Cohort-based learning and peer networking: Bringing your high potentials together as a group provides added benefits. Group workshops or roundtables allow them to learn from each other’s experiences and build a network of peers across the organization. Peer connections break down silos and create a support system that often lasts beyond the program itself. Consider including group projects or case studies where participants collaborate to solve a real business problem, this not only develops teamwork and cross-functional understanding, but may also produce useful insights for the company. Many successful programs have a cohort identity (sometimes even a name for the class of participants) and mix in group learning sessions to foster camaraderie and knowledge sharing.
  
  
• Supportive resources and infrastructure: To run smoothly, a HiPo program may require dedicated resources. This can include a learning platform or portal to track assignments and progress, assessment tools (like personality or 360-degree feedback instruments) to increase self-awareness, and content like leadership course modules or business simulations. Some organizations leverage technology like learning management systems or even AI-driven simulations to give high potentials practice in decision-making without real-world consequences. Ensure also that managers of HiPo participants are engaged, they should be briefed on how to support their employees’ development, cover for them when they attend training, and provide stretch opportunities.
  
  

When designing the program, duration and pacing are practical considerations. Many high-potential programs run around 12 to 18 months, which seems to balance giving enough experiences without losing momentum. If the program is too short, participants may not get deep development; too long, and they (or the business) may lose focus or the company strategy might shift. A good practice is to structure a mix of ongoing monthly activities and quarterly milestones or intensives. For example, a monthly cadence might include a smaller activity (like a webinar, reading, or lunch-and-learn), while each quarter features a bigger element (like a workshop or presentation to executives).

Lastly, maintain transparency and fairness in program design. Communicate clearly what the program entails to both participants and the wider organization. This helps manage expectations and minimize any sense of elitism or secrecy. Employees who weren’t selected might wonder “Why not me?” Being open about selection criteria and encouraging everyone to continue developing themselves can mitigate frustration. Some companies publicly celebrate the launch or graduation of a HiPo cohort, which reinforces that the company values leadership growth and that opportunities will come in the future for others who prepare themselves. The design phase sets the stage, but what truly makes high-potential programs impactful is the actual development experiences they provide, which we explore next.

Training high-potential employees requires going beyond traditional classroom training. These future leaders need a rich mix of experiences to stretch their capabilities. A proven approach to guide leadership development is the 70-20-10 model (originally developed by the Center for Creative Leadership), which many organizations adapt for their HiPo programs:

• 70% Challenging Assignments: The bulk of development comes from on-the-job experiences. High potentials should be given stretch assignments that push them outside their comfort zones and let them tackle real, high-impact business challenges. This could mean leading a critical project, heading a task force to solve a pressing company problem, rotating into a different role or department, or even a short-term international assignment. Such assignments force HiPo employees to develop new skills (strategic thinking, project management, influencing others) in a practical context. For example, an emerging leader might be asked to spearhead a new market entry analysis or lead a cross-functional team in implementing a new system. These “trial by fire” experiences are invaluable in preparing them for the complexities of executive roles.
  
  
• 20% Learning from Others: Mentoring, coaching, and peer learning make up the next portion. We’ve already noted the importance of assigning each HiPo a mentor or coach from senior leadership. In addition, encourage participants to build networks and learn collaboratively. This can include things like learning circles where they discuss leadership case studies together, or a “buddy system” linking HiPos to share feedback and hold each other accountable on goals. Job shadowing is another effective method, spending time observing a senior executive in their day-to-day role can demystify what higher-level leadership involves. Also, consider external networking or learning: attending industry conferences or leadership forums can expose them to fresh ideas and broaden their perspective beyond your company.
  
  
• 10% Formal Training: The remaining piece is structured learning such as workshops, courses, or seminars. While it’s the smaller portion, it’s still essential to build foundational knowledge. Formal training might cover topics like finance for non-financial managers, strategic planning, people management, or communication and public speaking, any areas where a rising leader needs baseline competency. Many companies partner with universities or bring in external trainers for intensive leadership development modules. There are also excellent online programs and business simulations tailored for leadership skill building. The formal component ensures that HiPo employees have the theoretical frameworks and up-to-date knowledge they need to complement their hands-on experience.
  
  

In practice, a well-rounded HiPo program will blend these elements into a cohesive learning journey. For instance, over a year-long program, a participant might: take part in a kickoff leadership workshop (formal training), then immediately apply those lessons by leading a stretch project (on-the-job assignment) with the guidance of a mentor (learning from others). Each month might involve check-ins with their coach, scheduled learning sessions, and reflection on their project progress. Some organizations schedule quarterly “action learning” projects or hackathons where HiPos team up to solve a real business challenge and present solutions to executives, combining experiential learning with senior leader exposure.

Mentorship and coaching deserve extra emphasis as training strategies. According to DDI’s Global Leadership Forecast, 83% of high-potential employees want coaching or mentoring opportunities, and 66% want formal learning experiences as part of their development. This highlights that future leaders crave guidance and knowledge transfer from experienced colleagues. Setting up an internal coaching program or leveraging external executive coaches for your high potentials can accelerate their growth. Likewise, giving them a chance to practice leadership skills in a safe environment is valuable, this could be through simulations or role-playing difficult scenarios (e.g., handling a crisis or a tough personnel issue) to build confidence and competence before they face these in real life.

Don’t overlook creative development methods too. Some companies incorporate elements like reverse mentoring (where a HiPo might mentor a senior leader on areas like technology or new consumer trends, creating a two-way learning street), or cross-functional “tours of duty” (short rotations in different departments to broaden business acumen). Another idea is group innovation projects where participants collaboratively develop a new product concept or process improvement; this fosters entrepreneurial thinking and teamwork. The variety of training strategies is only limited by what will best prepare your talent for higher roles in your unique context. The goal is to provide holistic development, stretching their intellect, leadership skills, business knowledge, and people management capabilities so that when a bigger opportunity arises, they are ready.

High-potential programs are as much about engagement and retention as they are about skill-building. These employees are your future leaders, keeping them motivated and committed during the development journey (and beyond) is critical. Here are some best practices to engage and retain HiPo talent through the program:

• Communicate the “why” and the vision: From the start, clearly communicate to participants why they were chosen and what the program aims to achieve for them and the company. Emphasize that this is an investment in their growth and a path to more challenging opportunities. When HiPos understand how their development links to the company’s future success, they are more likely to be enthusiastic and see the bigger picture. Likewise, communicate to the wider organization that the program exists to build leadership bench strength, framing it as a positive, forward-looking initiative rather than an elitist club.
  
  
• Maintain transparency and fairness: As mentioned earlier, transparency in how people are selected and evaluated can prevent negativity. Let participants know the criteria they’re being assessed on and give regular feedback. For those not in the program, encourage managers to discuss individual development plans so everyone feels they have growth opportunities (even if not labeled “high potential” formally). Some organizations have found success with a “development for all” philosophy, where certain learning resources are offered to all employees while the HiPo cohort gets additional specialized experiences. This helps avoid a scenario where non-HiPos disengage or feel second-class.
  
  
• Recognition and progression: Ensure that milestones and achievements in the program are recognized. Something as simple as a shout-out in a company-wide meeting for completing a major project or obtaining a certification can motivate participants. Where possible, tie successful completion of the program to tangible career progression, if individuals meet the program goals, consider them first for any promotions or new roles that open up. This isn’t to guarantee promotions (which depend on business needs and openings), but showing a track record of program graduates moving up will signal to everyone that the program is effective and worth the effort. It also answers the “what’s in it for me” question that HiPo employees might have when juggling development activities on top of their regular job.
  
  
• Active executive involvement: There is a saying that “people join companies, but leave managers.” In the context of HiPo programs, having senior executives deeply involved can significantly boost participants’ commitment. For example, if the CEO or other top leaders personally spend time with the cohort, through Q&A sessions, mentoring, or leading a training module, it demonstrates that the company’s leadership truly cares about developing talent. Participants often find these interactions inspiring; they gain insight into leadership challenges and see that even top executives have learned lessons along the way. Executive involvement also helps integrate the HiPo initiative into the culture. It sends a message that developing future leaders is part of how the organization operates, not just an HR silo project.
  
  
• Monitor workload and burnout: High potentials are usually already star performers with demanding jobs. Adding extra projects, courses, and meetings for the program could lead to burnout if not managed carefully. It’s important for their managers (and program coordinators) to ensure workloads remain reasonable. Provide support by possibly adjusting some regular responsibilities or bringing in interim help if a HiPo is taking on a major stretch assignment. Also encourage participants to speak up if they feel overwhelmed, and be ready to adapt the program pace if needed. The intent is to stretch them, but not to burn them out or set them up for failure. A well-run program should challenge participants while still making them feel valued and supported.
  
  

A well-executed high-potential program can significantly improve retention of those employees. When individuals see a long-term career path with growth in their current company, they have less reason to look elsewhere. We see evidence of this in case studies: for instance, software company Certinia launched a high-potential “Emerging Talent” program and reported an impressive 92% retention rate among participants, along with 67% achieving promotions, after the first year of the program’s implementation. Those kinds of results underscore how powerful investing in your people can be. Participants often form a strong bond with the company out of gratitude and excitement for their future, becoming even stronger champions of the organization’s mission.

Finally, always measure and iterate on your HiPo program. Track outcomes like retention, promotion rates, performance of graduates in their new roles, and feedback from participants. Share successes (for example, “our last HiPo cohort led three successful product launches” or “we promoted 10 new managers from the program this year”). Likewise, be honest about areas to improve. Perhaps participants wanted more exposure to customers, or the projects could be more challenging, use that feedback to make next year’s program better. Continuous improvement will keep the program relevant and valuable both to the business and the participants.

High-potential programs are not just a training initiative, they are a strategic investment in your company’s future. Developing future executives requires commitment from the top, careful planning, and a willingness to nurture talent over time. While it can be resource-intensive to run such programs, the payoff is a pipeline of capable leaders who understand your business, embody its values, and are ready to guide it through the challenges ahead. In an era of rapid change and intense competition for skilled leaders, organizations that excel at talent development gain a clear advantage. They suffer less disruption from leadership vacuums, save costs by promoting from within, and enjoy higher engagement from employees who see opportunities to grow.

For HR professionals and business owners, the message is clear: identify your high potentials early, give them the tools and experiences to thrive, and you will secure the leadership your organization needs for years to come. There is no one-size-fits-all formula, each company must tailor its high-potential program to its culture and goals. But the core principles remain the same: thoughtful selection, well-rounded development, real-world practice, mentorship, and an environment that encourages continuous learning. Done right, high-potential programs become a win-win: employees fulfill their career aspirations, and the company gains passionate leaders capable of turning vision into reality.

As you build or refine your program, remember that cultivating leaders is a journey, not a sprint. Stay patient and focused on the long term. Some participants will ascend quickly, others might take a winding path, and a few may decide leadership isn’t for them after all. That’s okay. By investing in people, you demonstrate that your organization values growth and progress. The true return on investment comes when one of these nurtured individuals steps into a critical role and navigates successfully, or when they drive innovation and positive change thanks to the confidence and skills they developed. Those moments are when you realize that your high-potential program has effectively trained a future executive who is now making a real difference.

In conclusion, training your future executives through a high-potential development program is both an art and a science. It’s about balancing formal training with experiential learning, setting high expectations while providing support, and challenging individuals while also cheering on their success. By following the best practices outlined above and continuously learning from what works in your unique context, you can create a program that truly prepares the next generation of leaders. And in doing so, you secure the future of your organization, one high-potential employee at a time.