Whenever it becomes necessary to fill a role above the bottom operating level, many organizations favor the policy of favoring internal candidates over external applicants. This is a sound policy that optimizes the use of existing talent and is felt as fair by those already working in the organization.

Then the question comes up of whether there actually exist suitable internal candidates, and if so who are those best qualified for the vacant positions.

RO theory presents two precise recommendations on how to make these decisions:

Regarding criteria for the evaluation of candidates, use the Three Factor Method:

1. Potential, or Current Potential Capability.
2. Skilled knowledge required by the role.
3. Candidate’s personal commitment with the tasks in the role.

We create the conditions within which managers can make sound, reliable evaluations of each of these three factors for candidates they know personally and whom they have observed at work. We do not support the use of external specialists for internal candidates, whereas we recommend it for the evaluations of applicants from the labor market.

Frequently, those charged with the responsibility for the selection process prefer to rely on evaluations from external professionals. The alleged reasons are that their own people are not qualified to make fair evaluations, that “objective� evaluations are better, and others.

In reality, managers always have reliable information for selection purposes on candidates with whom they have shared the work environment. Actually, if the right conditions are created, this kind of information is more valid and precise than that an external specialist might offer.

It is true, on the other hand, that even though this kind of information exists, it cannot be made available. This is because evaluators lack accurate and mutually comparable means to express their evaluations, or as a consequence of defects in structure or human resources systems. This is one of the problems in which we can be of help.

In fact, our task is not to make the internal selection as such, but to create the right conditions for making good decisions. Once this has been done for the first time, the internal selection system becomes installed in the organization for its use from then on.

The stages of our work are:

ROLE SPECIFICATION

• Written specification of the role, that includes its mission, required competencies, vertical and lateral role relationships.
• Measurement of level-of-work by the time-span of discretion method.

GATHERING OF INFORMATION ON INTERNAL CANDIDATES

• Evaluation of potential (Current Potential Capability) of internal candidates.
• Use of internal sources of information on candidates’ skilled knowledge, experience and relevant personal circumstances.

THE DECISION STRUCTURE

• Specification of accountabilities and authorities of the immediate manager, of the MoR (Manager Once Removed) and of the human resources unit in the selection process.

I want to know how to evaluate potential of people already working in the organization.
I want to know how the level-of-work of work roles is measured.