Critical skills and capabilities are the “competencies” around which organizations build their strategic human resources processes (see model on p. 91). Organizations begin this strategic alignment by identifying the competencies needed to perform successfully in their specific environment and to reach their organization’s specific vision and strategy. Once a competency model has been developed and validated, it is used as the foundation for streamlining recruiting, staffing selection, development, succession processes, and performance management. The framework for describing leadership success will also be aligned with the current and future business strategy in order to aid the organization in meeting its financial goals and objectives. So when it comes to preparing for the demographic shift, each organization will want to first identify its unique competencies desired and then consider integrating the Top 5 Competencies Most Lacking in the Next Generation of Leaders according to the Executive Development Associates and Pearson 2009/2010 biennial Trends in Executive Development Research:³

Across organizations and industries large and small, we find these competencies to be both necessary and lacking in next generation leaders. High Potential and Emerging Leader programs specifically will want to address these competencies as potential gaps in their rising leadership talent pool.