Talent Scorecard
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_,--_L_e_S_I_ie_W_"_B_I'"_a_k_S_iC_k_,_P_h_"_D_"_ TALENT SCORECARD How to ensure your company is managing talent strategically C ompanies worldwide are struggling to find and retain the caliber of leaders their businesses need. The increased market intensity and demand for top-shelf, experienced leaders arrive at a time when our population of potential leaders is declining. Stagnant hiring in the early 1980s has resulted in fewer experienced leaders available. On top of that, U.S. census data indicates that the population of potential leaders is shrinking. In short, we have a challenging business environment and fewer experienced leaders to navigate it. These challenges represent opportunities to fundamentally change and measurably improve how talent is managed. We must treat talent management as a business imperative and bring it to the strategic planning table- where it belongs. Whether starting new companies or preparing the leaders oftomorrow, the most successful companies hire great talent, make sure that talent is aligned with the company's strategy and culture, develop that talent aggressively and reward that talent well, in alignment with their desired culture and future strategy. To manage talent strategically, organizations must do three things: 6 Smart Business Pittsburgh I February 2011 Align business and talent strategies" Every aspect of the talent strategy should link directly to the business strategy and its execution. Anything not directly linked is probably working against the core strategy by consuming time and resources and confusing managers about what is most important. Once the business plan is formulated, the first question to ask is, "Are the current people processes ready to hire, develop and manage leaders to support this business plan for the next three to five years?" Make sure that the competencies for which you are hiring match the skills that leaders will need to execute the business plan. Ensure that leadership development is based upon values that support where the company is headed. Track the talent profile" Talent metrics should be established, tracked and acted upon as part of the business portfolio. They should garner the same attention as other bottom-line metrics. Talent metrics are not second-class measures - they are a vital part of your business portfolio and the best indicator of your future capacity to execute. Ignoring or ascribing second-class status to talent metrics is a good way to be caught off-guard in midstream. Decision- makers should have a "talent scorecard" to monitor the quality of available talent and track gaps in key talent pools. These data can be used to adjust hiring and development practices and to drive individual accountability for enabling the business strategy. No matter how brilliant the strategy, it takes people to execute it. It is too easy to be captivated by plans to secure additional market share or tap new markets but fail to ask, "Do we have the people to get the job done?" and "What will it take to ensure we have the talent we need?" Require each business in the enterprise to provide a talent strategy commensurate with the operating plan for executing their business strategy. Without an equivalent talent plan, the business strategy becomes a false promise. Do not approve business plans that fail to address finding, developing and managing talent to execute the strategy. « Look ahead, not behind" Develop tomorrow's leaders for tomorrow's challenges. Talent management should be based on where the company is going, not where it has been. Most performance management effort is oriented toward evaluating past performance. While understanding how a person has just performed against current expectations is important, it is equally important to ensure that leaders are assessed against the future demands of the business - three to five years down the road - not just the challenges being faced today. LESLIE W. BRAKSICK, Ph.D., is co-founder of CLG Inc. (www.clg.com) and author of "Preparing CEOs for Success: What I Wish I Knew" and "Unlock Behavior, Unleash Profits." Braksick consults with top executives and their boards on issues of executive leadership succession and effectiveness and strategy execution, including merger integration. Reach her at [email protected]. an eg
Transcript of Talent Scorecard
_,--_L_e_S_I_ie_W_"_B_I'"_a_k_S_iC_k_,_P_h_"_D_"_
TALENTSCORECARDHow to ensure your company is managing talent strategically
Companies worldwideare struggling to findand retain the caliber
of leaders their businessesneed. The increased marketintensity and demand fortop-shelf, experienced leadersarrive at a time when ourpopulation of potential leadersis declining. Stagnant hiringin the early 1980s has resultedin fewer experienced leadersavailable. On top of that, U.S.census data indicates that thepopulation of potential leadersis shrinking.In short, we have a
challengingbusinessenvironmentand fewerexperiencedleaders tonavigate it.These
challengesrepresentopportunities tofundamentallychange andmeasurablyimprovehow talent ismanaged. Wemust treat talentmanagementas a businessimperativeand bring it tothe strategicplanning table-
where it belongs.Whether starting new
companies or preparing theleaders oftomorrow, themost successful companieshire great talent, make surethat talent is aligned withthe company's strategy andculture, develop that talentaggressively and reward thattalent well, in alignment withtheir desired culture andfuture strategy.To manage talent
strategically, organizationsmust do three things:
6 Smart Business Pittsburgh IFebruary 2011
Align business and talentstrategies" Every aspect ofthe talent strategy shouldlink directly to the businessstrategy and its execution.Anything not directlylinked is probably workingagainst the core strategyby consuming time andresources and confusingmanagers about what ismost important. Once thebusiness plan is formulated,the first question to ask is,"Are the current peopleprocesses ready to hire,develop and manage leadersto support this businessplan for the next three tofive years?" Make sure thatthe competencies for whichyou are hiring match theskills that leaders will needto execute the businessplan. Ensure that leadershipdevelopment is based uponvalues that support wherethe company is headed.
Track the talent profile"Talent metrics should beestablished, tracked andacted upon as part of thebusiness portfolio. Theyshould garner the sameattention as other bottom-linemetrics. Talent metrics arenot second-class measures -they are a vital part of yourbusiness portfolio and thebest indicator of your futurecapacity to execute.Ignoring or ascribing
second-class status totalent metrics is a goodway to be caught off-guardin midstream. Decision-makers should have a "talentscorecard" to monitor thequality of available talentand track gaps in key talentpools. These data can beused to adjust hiring anddevelopment practicesand to drive individualaccountability for enablingthe business strategy.No matter how brilliant the
strategy, it takes people toexecute it. It is too easy to becaptivated by plans to secureadditional market share ortap new markets but fail toask, "Do we have the peopleto get the job done?" and"What will it take to ensurewe have the talent we need?"Require each business inthe enterprise to provide atalent strategy commensuratewith the operating plan forexecuting their businessstrategy. Without anequivalent talent plan, thebusiness strategy becomes afalse promise. Do not approvebusiness plans that fail toaddress finding, developingand managing talent toexecute the strategy. «
Look ahead, not behind"Develop tomorrow's leadersfor tomorrow's challenges.Talent managementshould be based onwhere the company isgoing, not where it hasbeen. Most performancemanagement effort isoriented toward evaluatingpast performance. Whileunderstanding how a personhas just performed againstcurrent expectations isimportant, it is equallyimportant to ensure thatleaders are assessed againstthe future demands of thebusiness - three to fiveyears down the road - notjust the challenges beingfaced today.
LESLIE W. BRAKSICK, Ph.D., is co-founder of CLG Inc. (www.clg.com) and author of "PreparingCEOs for Success: What I Wish I Knew" and "Unlock Behavior, Unleash Profits." Braksick consultswith top executives and their boards on issues of executive leadership succession and effectivenessand strategy execution, including merger integration. Reach her at [email protected].
an eg
