Every year, the Texas Bankers Foundation acknowledges bankers who exemplify the exceptional qualities of up-and-coming industry leaders within Texas. They embody our optimism for the future of community banking and inspire confidence in those poised to lead the industry in the years ahead. These individuals, identified as high achievers by their senior management, have demonstrated exemplary performance within their banks while actively engaging in community initiatives.
As we envision the future of banking in Texas and the long-term viability of our community banks, it is imperative that we prioritize the ongoing identification of these future leaders from within our own organizations. Internal candidates offer invaluable organizational knowledge and established relationships, positioning them for success and facilitating smoother transitions into new roles compared to external hires. Internal advancement of these future leaders also reinforces company values and fosters motivation among employees.
Despite these advantages, identifying and nurturing emerging leaders internally presents its own set of challenges. One such challenge being the subjective biases that naturally occur when identifying high-potential talent if there is a lack of objective criteria. Additionally, the absence of succession planning may lead to last-minute decisions to fill leadership positions.
To address these challenges, it is important to establish transparent criteria for identifying emerging leaders and develop a strategic approach to talent management. By providing clarity and guidance, organizations can empower aspiring leaders to engage in meaningful conversations with their managers about their career aspirations and readiness for leadership roles.
When evaluating potential emerging leaders within your organization, exceptional performance in one’s current role may not necessarily indicate leadership potential.
Effectiveness as an individual contributor does not guarantee success in a leadership position. While participation in informal leadership roles during group projects is valuable, it should not be the sole measurement for identifying emerging leaders.
Disparities in opportunities for formal or informal leadership roles across the organization may inadvertently exclude certain individuals from consideration. When past behavior cannot be assessed due to a lack of leadership experience, three areas can be considered to predict readiness for a leadership role: a person’s personality, motivation and awareness of leadership skills.
Personality: How are they wired?
When identifying employees for a first-time leadership role, look for signs of four core characteristics that reveal whether they have the disposition to be successful. These personality characteristics set emerging leaders up to manage the challenges and complexity of a leadership transition and position.
Leadership promise
Do they have the motivation to lead? Will they enjoy the additional responsibility? Will they enjoy getting work done through others? Are they an enabler? Can they tap into the skills and abilities of others?
Development orientation
How does the individual receive constructive feedback? Can they learn from the past? Are they motivated to improve their own performance and capabilities?
Mastery of complexity
Are they able to make decisions with limited information? Can they grasp new concepts? Can they adapt to change?
Balance of results and values
Do they embody the organization’s values? Are they role models? Are they driven to achieve results?
Motivations: What do they want?
Before offering an emerging leader that big promotion, it is important to find out whether they are motivated to take on the challenges and rewards of a leadership position. Do they genuinely want to be a leader? Or do they perceive it to be the only way to progress in their career?
Awareness: What do they understand?
How do you assess leadership capabilities in an employee who has not developed leadership skills or demonstrated leadership behavior? In the absence of behavioral data, we recommend looking at what an employee understands about leadership competencies and behaviors. In other words, find out what they think effective leadership looks like. Do they have a good idea of what is needed to be successful in the job? If they know what a good leader does, there is a greater likelihood they will demonstrate that behavior in a leadership role.
You can also identify emerging leaders by evaluating their approach to a range of key characteristics that align with leadership potential:
Visionary thinking
Emerging leaders often demonstrate the ability to envision the future and develop strategic plans to achieve organizational goals. Look for individuals who exhibit forward-thinking perspectives and propose innovative ideas to drive progress.
Adaptability
Effective leaders are adaptable and can navigate through change with resilience. Assess how candidates respond to unforeseen challenges and their willingness to embrace new ideas or methodologies in dynamic environments.
Collaborative skills
Leadership is not solely about individual achievement but also about fostering collaboration and teamwork. Identify candidates who excel in building strong relationships, communicating effectively and inspiring others to collaborate toward shared objectives.
Problem-solving abilities
Strong leaders possess the capacity to analyze complex problems, identify root causes and develop practical solutions. Evaluate candidates’ problem-solving skills by assessing their approach to overcoming obstacles and addressing organizational challenges.
Emotional intelligence
Leaders with high emotional intelligence demonstrate empathy, self-awareness and the ability to manage interpersonal relationships effectively. Look for individuals who exhibit empathy towards others, regulate their emotions and communicate with tact and sensitivity.
Resilience
Leadership roles often entail facing setbacks and obstacles. Assess candidates’ resilience by evaluating their ability to bounce back from failures, persevere through adversity and maintain a positive outlook amidst challenges.
Continuous learning
Effective leaders are committed to ongoing growth and development. Look for candidates who demonstrate a thirst for knowledge, actively seek feedback and invest in self-improvement through continuous learning initiatives.
Benefits of emerging from within
Looking inward to identify emerging leaders fosters a sense of independence among employees. It grants them the autonomy to make decisions without constant approval from supervisors, enabling them to swiftly address team needs with the best possible solutions.
This approach can streamline processes and promote efficiency. Likewise, it creates a shift in perspective, moving away from the traditional model of new leaders imposing their ideas from above. Instead, leadership evolves organically over time through team interactions, with natural leaders emerging from within the organization.
By nurturing a supportive culture, organizations empower potential leaders to rise from within, leveraging peer support and executive endorsement. This collaborative environment cultivates a sense of ownership and fosters care and collaboration among team members. When peers have a say in selecting their leaders, it cultivates a culture of mutual trust and accountability.