
Manager: "Pam, I've got a new opportunity for you. I'd like you to lead the new branding task force, in addition to your regular responsibilities. While you're at it, how about if you start having regular meetings with old Charlie, our VP of Marketing? I'll bet you two would have a lot of interesting things to talk about."
Pam: "Oh, OK, I guess so.... but why me? I've got a full plate already, and this assignment is completely outside of the scope of my job. What am I supposed to talk to Charlie about? I've never even met him?"
Manager: "Hey, don't worry about it, this is all a part of your development. By the way..... how attached are you to where you're living now? Would you consider relocating? Have you ever been to Buffalo?"
Two months later:
Manager: "What do you mean you're resigning? We have big plans for you... why, you were going to be the next VP of Marketing!"
Pam: "Well, that sure would have been nice to know. That's the position my new company has offered me. I'm leaving here because you kept throwing all these random "opportunities" at me, and then you told me I'm going to have to relocate to Buffalo!"
Too Heavy:

Manager: "Dwight, I've got great news for you. Now you have to keep this a secret, because I'm not supposed to be telling you this (wink wink). Me and the rest of the management team just did this "high potential assessment" exercise, and guess what? You're going to be the next VP of Marketing! We ranked you and all your peers on this nine box matrix, and you were the only one in the "A1" box. Yeah, that's you, Dwight old buddy, you are an A1!! Congratulations!"
Dwight: "Uh, gee, thanks. That's great, I'm honored. So what does all this mean?"
Manager: "Well, first of all, if you're going to be a VP, you need to start acting like a VP. I'm going to have you start to run some of my meetings, and working with me on the budget. Oh, I'd like to have you coach a couple of your co-workers; that would be good practice for you, and I'm sure they'll appreciate learning from the best. This is going to be great, we'll have you ready for that VP position in no time!"
Two Months later:
Manager: "Dwight, I need to talk to you about something. Your co-workers have been complaining to me about your behavior. They say you've been acting really obnoxious lately, running around like someone anointed you their boss. I have to say, you've been getting a little arrogant with me too. Oh, and old Charlie isn't feeling too well these days. I can't believe he said this, but he thinks you've been slipping something into his coffee. Is this true?"
Just Right:

Manager: "Jim, I'd like to talk to you about your career path and your development. First of all, I want you to know that I'm really impressed with your work, and I see you as having potential to grow beyond your current responsibilities. I'm not the only one who feels that way, the rest of the management team does too. You're seen as someone with a lot of creativity, vision, and leadership ability."
Jim: "Wow, that's awesome. Thanks! I'm glad to see my hard work has been noticed. While I really love what I do, I have aspirations to do more."
Manager: "That's great. How do you feel about Marketing? You seem to have a real knack for that kind of work. It's a growing department, so there may be opportunities in that area if you're interested."
Jim: "Sure, that sounds great. I have a degree in Marketing"
Manager: "Well, let's talk about how we could get you ready for that kind of an opportunity if it ever opened up. Of course there's no guarantees, so let's make sure your development plan is focused not only on this option, but others as well, in addition to making you stronger in your current role. First off, how would you like to lead the new branding task force? I know it would be a stretch for you, but it would be great development and exposure, and would help develop your influence skills as well. I could talk to Charlie, our VP of Marketing, about being a mentor for you."
Two years later:
Charlie retires, Jim is named as his replacement, and everybody lives happily ever after.
In summary, follow these guidelines for high potential notification:
1. Don't tell someone they are an "A1", a successor, or even a "hipo". Skip the labels.
2. Do let your best people know that they are valued and discuss potential future opportunites (with no gaurentees).
3. Be clear with people about their development plans. Let them know if a project is for development and why.
4. Careers and development should be a two-way discussion. Find out what the employee desires and inform them about company needs.