This brilliant Harvard Business Review article below covers two critical aspects when it come to identifying talent and developing people:

First of all, the inconvenient truth that not everybody has potential, as 21st century self-improvement theories like to suggest.

Second, it gives highly valuable advice on how to actually identify high potential in your organization. 

Based on my own corporate experience as well as in my work as Leadership Advisor and Executive Coach, many companies take a wrong approach in identifying talent. That is first and foremost confusing performance with potential, and related to this, the wrong assumption that past performance in one role can predict future performance in another.

If you are in a leadership role or in HR, you should  focus on ability, social skills, and drive when you lookout for talent in your organization.