Sector discussion meeting 2nd July 2024 – Best Practices on Management Assessment

Held on Tuesday 2nd July 2024 at 16h CET via Teams conference call, members of the Association meet to discuss Best Practices on Management Assessment, with the participation of 18 members.

The goal of these meetings is to exchange information, help each other, and share what we are currently working on to see if we can collaborate. To strengthen relationships between members, it is important to have API and each other in mind while working day to day.

Eva Gombás led our discussion on Management Assessment to share valuable information and best practices among members, aiming to enhance collective knowledge and efficiency.

For Starge Leadership in Hungary, the primary purposes of Management Assessment are to support customers in the external and internal selection process and assist talent development through discovering leadership and growth potential of their leaders. Approximately 150-200 assessments are conducted annually. They manage large-scale projects such as currently a post-acquisition integration for four companies involving around 6000 people. This includes assessing about 100 senior managers and directors to help select management for merged companies and provide development recommendations for those selected and those remaining.

The assessment process begins with evaluating client needs and project purpose, aligning with company strategy, and focusing on six core competencies (for example customer and solution orientation, change, resilience, ownership, alignment and cooperation, and learning agility). Additional technical skills and cognitive abilities are included as needed. Methods used include the Hogan Personality Questionnaire, supplemented by interviews, case study and situational examples.

Effective communication with candidates is crucial. Participants are informed about the process and receive detailed information, ensuring transparency and objectivity. Each participant receives a detailed report and can provide feedback before the final report is sent to the client. The assessment report typically includes key objectives, a high-level review of major competencies, overall advice on meeting requirements, development potential, detailed explanations of conclusions, opportunities, and risks, and proposed actions for development. Reports are customizable based on the project and presented to the client.

Key strengths templates are used, and often scale from 1 to 8 for competencies, depending on the project’s requirements. After the assessment, presentations are made to the client about each participant individually, accompanied by an executive summary of the overall process results. For instance, statistics from the Hogan assessment provide valuable information. Different cultures and leadership styles within the assessed group can be analysed, allowing several conclusions to be drawn from the statistics. Additionally, Hogan profiles can be presented in one chart for a comprehensive overview to discover potential factors which enhance or obstruct cooperation in the management team. This type of representation is often implemented within a summary of the top executives’ profiles.

During the meeting, Ken McGovern asked why Hogan was selected over DISC or other tools. Eva explained that Hogan was chosen because it can be easily translated into competencies. They use all three Hogan modules, emphasizing competencies such as resilience and change. Eva then asked the team about other questionnaires they use.

Marina Vergili from Brazil mentioned that DISC is a popular tool already widely used within companies, leading to lower demand in assessments. Instead, they use Hogan and OPQ due to their strong relationship with competencies, though establishing a direct relationship from Hogan to competencies remains a challenge. She noted that business cases, once common in Brazil, are now less frequent due to time and cost constraints, with the executive summary being reserved for very senior positions. Additionally, assessments in Brazil are conducted for both local and international recruiting, and there is potential for collaboration with members of API Network outside Brazil.

Purificación Mora from Spain shared that DISC is a reliable, time and cost-effective tool for identifying communication styles. It is useful for assessment and selection processes, professional promotions, executive coaching, career development, and understanding how professionals prefer to be managed and communicated with. As headhunters, using DISC helps improve placement efficiency and differentiates us in a crowded market.

Peter Mason explained that while they offer assessments for final candidates in their searches, this is usually an exception. He recommended assessing both the candidate and their prospective supervisor to ensure a good fit. Purificación asked Eva about the length of the Hogan report, to which Eva responded that it depends on the client agreement. The full insight report is 20 pages, while the flash report is 4-5 pages. In addition to individual assessment reports, a comprehensive report on the entire project is shared. She also adds that previously, accessing well-written business cases was challenging, but now they use AI to create these cases.

Håkan Svennerstål highlighted that recent research shows personality is more important than intelligence. He stressed the need for Psychology as a science to better understand and measure personality. Hakan no longer uses Hogan, preferring tools supported by recent research. He emphasized the importance of including 360-degree feedback in assessments to gain insights from colleagues, managers, and subordinates, which can expedite the assessment process. Hakan recommended separating assessments for senior executives, middle management, and talent, noting that senior assessments should focus more on societal and business aspects, while talent assessments are more online based, with top executive meetings being conducted in person. However, 360-degree feedback is not suitable for executive searches.

The meeting provided a comprehensive overview of the current practices and preferences in Management Assessment across various regions. The discussion highlighted the importance of selecting appropriate assessment tools, with a strong emphasis on the Hogan Personality Questionnaire due to its competency alignment. The participants shared valuable insights into regional preferences, such as the use of DISC and OPQ in Brazil and Spain, and the evolving nature of business cases.

The exchange of ideas underscored the necessity of effective communication with candidates, and the integration of 360-degree feedback for a holistic assessment approach. The meeting also brought attention to the differing needs for senior executives, middle management, and talent assessments.

Overall, the session fostered a collaborative environment for sharing best practices and highlighted the continuous improvement in assessment methodologies, ensuring that all members can benefit from shared knowledge and experiences.