feature Talent management In the last of a three-part series on talent management, Sarah Cook and Steve Macaulay look at implementation I n the face of the recession, implementing a costeffective talent strategy is vital for every organisation. In the short and medium term, organisations face particular challenges in retaining and motivating the key people they will need in the future. In the long term, the talent pool is the future. The foundations of a successful talent growth strategy extend well beyond the boundaries of a single initiative. They include a firmly embedded learning culture with emphasis on a partnership approach to development and career management, an effective performance management process that identifies and develops potential and feeds into organisational strategy, and line management actively involved in planning and building for the future. This means that a climate in which talent thrives has implications not just for L&D but for engagement, recruitment, reward and pay, and organisational culture and design. involve influential groups in open debate and gain their commitment, or at least defuse any obstruction. • Short-term and parochial thinking This can undermine organisation-wide strategic initiatives. By mixing different groups, for example via development programmes, introducing individuals to networks and mentoring, barriers can come down. Developing line managers’ skills can increase their confidence in being involved in identifying and developing talent. • Geographical and cultural distances The costs and time involved in meeting face-to-face often restrict full understanding and communication across the organisation. Despite the growth of e-mail and video conferencing, there seems to be no substitute for faceto-face working to cement relationships and appreciate diversity. Exposing task groups to organisation-wide issues and cross-functional working effectively widens their horizons. Major barriers to talent management L&D professionals often have to contend with blocks and barriers that reduce or negate their good intentions, but there are means of overcoming these issues: • Silo mentalities Sometimes short-sighted and insecure managers can seek to protect their territorial boundaries. It is therefore essential to 44 TJ Developing line managers’ skills can increase their confidence in being involved in identifying and developing talent September 2009 www.trainingjournal.com Aetna: shifting a local mindset to thinking company-wide Aetna is a diversified US company offering healthcare, dental, pharmacy, group life, disability and long-care insurance and employee benefits. As a result of employee surveys, one area it identified for improvement was talent management. Its vision was to build talent that was not only deep but also broad, so everyone in the company could develop. It realised that this new approach to talent management represented a significant cultural shift. Part of the challenge in making the new system work was shifting the mindset to Aetna talent, rather than the talent in specific areas. As one approach, Aetna set up a talent management system that can be accessed online across the company. This allowed any part of the business to draw on the central talent pool, and this came to be seen as a practical benefit of a company-wide strategy. Building blocks for successful talent management Establish competency benchmarks As a starting point, it is important to spend time identifying the right competencies to develop in your organisation for the future. As an illustration, one panEuropean international aerospace company we have worked with used the following core leadership competencies as a strategic leadership benchmark. The company saw it needed to adopt a much more responsive and international outlook and, therefore, its future managers needed to move away from the structured, inward-looking feature engineering roots that had served them well in the past. The implications were that its leaders needed to develop stronger personal influence, not rely on formal authority, increase their awareness of cultural and interpersonal issues and draw on a wider repertoire of approaches to get things done. They needed to be more tolerant of ambiguity and, at the same time, push harder to get things moving and put their undoubted knowledge into action, as they engaged more with their customers, partners and suppliers. Such substantial change required a comprehensive strategy of development on many levels but, as in this case, competencies can serve as a basis for a talent assessment and development agenda to move the organisation ahead. Personal responsibility The success of talent programmes can often centre on giving individuals responsibility for their own development. Rather than rigid central control, best practice talent management programmes often provide opportunities for individuals to select their development path via a series of blended learning solutions. PwC: talent management through an active pipeline PwC, a huge global organisation employing more than 140,000 people in 149 countries, takes talent management very seriously. As a consultancy that stands or falls by the quality of its people, it takes a proactive stance. Tim Richardson, head of leadership development and talent management, said in a podcast in 2007: “We’ve got an active pipeline management going on, so we’re looking at them and tracking them through their career from a manager, through to senior manager, director and partner. We’re looking at trying to accelerate people quickly, so we do offer benchmarking opportunities, benchmarking events, development centres, where people can test themselves against the capabilities that we’re looking for, get feedback and really work on key development plans. We’ve also got some emerging leader programmes which we’re running, both in the UK and around the world, where we’re trying to create networks of emerging leaders, which is what we’re looking for in the future.” Coaching Coaching has a valuable role in extending a person’s capabilities, particularly in their current role, which will also form a foundation for future roles. Effective coaches pay close attention to differing learning styles and the coachee’s best learning pace. Support and openness are key ingredients in the relationship. The coach must be able to: • Ask questions rather than tell people what to do • Actively listen • Understand the tools of facilitating and problem analysis and solving www.trainingjournal.com September 2009 TJ 45 feature • Giving feedback • Knowing when to challenge and when to support. Most learning professionals know Whitmore’s GROW model – Goal, current Reality, Options and Wrap-up. Whether or not you choose this model, a commonlyagreed framework for the aims and conduct of a coaching session is important. The primary responsibility for actions should lie with the coachee. Setting up a viable coaching culture requires thought to be given to how it will sit within the management and cultural norms, and how much support will be required. Consideration should be given to who should undertake this role: whether to use internal coaches to help develop your talent pool – they know the organisation – or bring in external expertise – they provide an external perspective but at a financial cost. Mentoring Mentoring is well suited to talent management, with its emphasis on developing a person’s potential for the future. This one-to-one process helps individuals learn and develop with a longer-term perspective. It focuses primarily on the person’s career and development, not the immediate task. The mentee benefits from having access to a sounding board to challenge assumptions and encourage wider thinking. Organisations employing mentoring for talent management may find it raises organisational issues. For example, some organisations find power relationships disturbed by mentors who can cut across the manageremployee relationship. Our experience indicates that effective mentoring requires attention to four key factors: • A clear, agreed set of objectives • Communications and development for all those involved • Careful matching of mentors and mentees 46 TJ September 2009 www.trainingjournal.com • Periodic evaluation and review of the effectiveness of mentoring. Sony Europe: mentoring on strengths Sony Europe developed a programme called ‘The Strengths Way’, reflecting its philosophy towards development, which is to focus on people’s strengths. The organisation has developed a mentoring scheme for graduates, high-potential employees, executives and executive successors. This scheme has been designed to focus on strengths and how they can be applied in the workplace. Its success has been that each group becomes a mentor to the next. In addition, the business has established mentoring arrangements with char­ities, which develops mentoring skills. Planned development through assigning responsibility A cost- effective development approach is using stretching responsibilities feature talent motivation should be given careful thought. Any financial reward must be part of a total approach to reward and recognition. The building society Nationwide has made it easy for managers to recognise its employees, through an online recognition system that allows employees to choose rewards from holidays to shopping vouchers. Executive development programmes Traditionally, talent The success of talent programmes can often centre on giving individuals responsibility for their own development within the organisation for development as well as for business purposes. Examples might be high-visibility improvement projects, taking on a new business area to develop multi-disciplinary contacts and knowledge, leadership of strategic initiatives, giving specialists generalist roles, or crossfunctional roles. Other aspects of talent management Recruitment All organisations need to mindful of their place in the wider recruitment market. Recruitment is part of the chain of development; those organisations in which career advancement is based on talent development will be attractive to join and will retain more employees. Careful induction will help in setting the right expectations. Some organisations are using the current recession to make targeted appointments to strengthen their talent pool. Reward The important role of reward in securing and fostering development has often involved a visit to a business school. Many blue-chip organisations build a high-potential talent programme linked to input from business schools, perhaps supplemented by company projects and input. Some people criticise overemphasis on external input as “too much training, too little development”. However, the ability to mix academic input and exchange with other people from different organisations can add a valuable new perspective. Former BBC Director-General Greg Dyke once commented: “If you run organisations, every so often you need to get out of those organisations and meet people who work in a different world and understand the issues, the problems and what’s going to happen going forward because this world changes so fast.” Talent management in the recession According to the CIPD survey Fighting Back Through Talent Innovation, published in July, the recession has caused some changes of emphasis in developing talent, though few organisations have gone as far as putting their whole programme on hold. More in-house talent development is taking place and many organisations are focusing their development on essential people and groups. This is in line with a closer scrutiny of the efficiency and value for money of talent management systems and processes. www.trainingjournal.com September 2009 TJ 47 feature Also, there has been greater emphasis on the role of the line manager, for example in coaching and mentoring and the development of key performance areas. Organisational examples We have chosen two case studies to describe how talent management has been put into practice. They are set out in more detail in UK Talent Report by Shaun Tyson and Emma Parry of Cranfield School of Management, July 2007. Some organisations find power relationships disturbed by mentors who can cut across the manager-employee relationship Britvic: Using a talent toolkit, then targeting development In line with global business plans, Britvic’s head of organisation development worked with its operational board to develop a comprehensive talent management strategy. Starting with a selfdevelopment toolkit for 2,000 people, the top 500 managers also attended structured development workshops. The talent strategy includes both internal and external elements: employer branding, plus a management development programme for external recruits, using career management and development as an attractive proposition for recruits. Rigorous talent demand and supply planning is carried out through talent forums. The Accelerate programme is a successor development programme comprising a director-level mentor, use of cross-functional moves, strategic projects, external development programmes where appropriate, networking sessions, and career aspirations and planning sessions. Planned development opportunities foster business performance and individual engagement. At the most senior level, the operational board discusses and endorses the talent pool for the total organisation and the very senior board successors are discussed at PLC level. 48 TJ September 2009 www.trainingjournal.com Cobham: Clarifying talent and systematically developing it Cobham plc is a high-tech international company. It devised its talent management strategy over 18 months, with the HR director and senior management examining what already existed and what needed to be developed. It has defined ‘talent’ according to its three most important areas of impact and need. Firstly, those individuals with divisional leadership potential; secondly, graduates with high potential; thirdly, key technical skills groups – its “mission critical workforce”. 1. Divisional leadership People are identified that have high potential for management and have developed their leadership skills. There are three groups of individuals: a divisional highpotential pool, those with potential to be a divisional president or a direct report to divisional president level within five years, and those who will be in the top 16 in five years. Every member of the workforce above manager level undertakes a formal talent assessment twice a year. High potentials are those employees that fall into boxes one, two or four on their nine-box matrix. 2. Graduates Graduates are recruited from local universities to be part of a twoyear, company-wide programme, with each graduate undertaking a substantial six-month assignment in each division. 3. ‘Mission critical’ technical workforce Those with important technical skills are developed using a faculty system, with heads of faculty responsible for devising a technical curriculum and career paths. Highpotential individuals are identified and developed under their auspices. Conclusion A typical feature of the organisations we have highlighted is the degree of thought given to making talent management effective against a clear organisational strategy, with processes and practices that work in their context. Our insights into powerful talent management strategies suggest that success comes from such factors as: • Investing time in targeting the future talent needs of the organi­sation as part of business strategy, even in times of economic downturn • Discussing the issue of ‘talent’ openly. Our examples include targeted groups at all levels, not just management. Employers with strong talent management practices and who commu­nicate openly are perceived by their employees as having stronger and more effective leadership • Selectively and consistently investing in talent development and sticking with it, not turning the tap off • Business and organisational leaders, not just HR or L&D professionals, devoting time to talent management issues, spending quality time with highperforming people and actively participating in any planned activities. Sarah Cook is MD of strategic leadership and customer management specialist The Stairway Consultancy. She can be contacted on +44 (0)1628 526535 or at sarah@thestairway.co.uk. Steve Macaulay is a learning development consultant at Cranfield School of Management. He can be contacted on +44 (0)1234 751122 or at s.macaulay@cranfield.ac.uk.