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10 DEADLY SINS
 THE




                                 OF TALENT MANAGEMENT
                                      COSTLY MISTAKES THAT DROWN AN
                                  ORGANIZATION IN A SEA OF MEDIOCRITY.




                                                         JON
                                                      BARTOS
Copyright © 2012 by Jon Bartos                     www.rpmdashboard.com
THE 10 DEADLY SINS
                                                                                       of Talent Management
JON BARTOS

   Talent wins. If you look at the most admired and successful companies all around the world, those
   who have figured this out and found a way to get the best talent, top the list. Apple was named the
   most admired company in America in 2011 by Forbes Magazine for the fourth year in a row due to its
   “blistering speed of product development.” Berkshire Hathaway has been on the Forbes list of most
   admired organizations year after year. They are known for their keen eye for buying organizations at a
   discount and running them extremely efficiently. From Southwest Airlines’ service and efficiency focus
   to the exceptional brand management of Proctor and Gamble, there are many organizations who share
   the “Most Admired Company” status based on a myriad of different business concepts and classifications.

   More importantly, whether selected for product management, exceptional service, investing, or for
   any other category, these organizations all have one thing in common. They take the talent game
   seriously and make finding and growing the best talent a top priority. Do you think Apple
   employs good Product Managers? They are known to have the best Product Managers in the world
   today! How did they get the talent? They, like others in the group, got the best talent by either
   developing it from within or acquiring it from outside. The bottom line - talent wins.

   It is not easy to get where these “Most Admired” organizations are and it is even harder to stay there.
   There are several costly mistakes that can keep an organization from ever reaching its potential and kill
   the chance of it ever joining the list of most admired companies.


            1. Fail to Make a Team of                            this doesn’t happen with your organization, focus
            “A” Players a Priority                               on bringing “A” players into your organization in


1            According to Brad Smart, author of Top
             Grading, “A” players – the top 10% of
             performers in any given field or position
                                                                 every position.

                                                                 “A-players contribute more, innovate more, work
                                                                 smarter, earn more trust, display more resourcefulness,
             at a given compensation level, produce as           take more initiative, develop better business strategies,
   much as 8-10 times that of “B” player – the next              articulate their vision more passionately, implement
   25%. They are the movers and shakers in organiza-             change more effectively, deliver higher quality of work,
   tions. When hiring managers choose candidates                 demonstrate greater teamwork, and find ways to get
   who can potentially do the job, versus hiring candi-          the job done in less time for less money.”
   dates who will be top performers in the job, they             - Brad & Geoff Smart, 200710
   are bringing their organizations closer and closer
   to mediocrity. The more H2O or ice you add to                 2. Pay Below Market Value
   your drink, the more the flavor is weakened. B                 for Talent



                                                                                                                2
   and C players dilute organizations. The disparity in
   talent often leads to missed sales targets, delays in         We have all heard of the phrase,
   product introductions, and the lack of cost cutting           “You get what you pay for.” This
   measures to help the organization attain further              has never been truer than when
   profitability and remain competitive. To insure                it comes to paying for great

              3 | THE 10 DEADLY SINS OF TALENT MANAGEMENT | by JON BARTOS
                                        Copyright © 2012 by Jon Bartos
THE 10 DEADLY SINS
                                                                                            of Talent Management
JON BARTOS

talent. When the demand is high for talent and the                 ing manager. The next step is a Caliper test that is sent
supply continues to get lower―unless a firm has an                  to the candidate. If the candidates makes it through
unbelievably strong eValue Proposition (a great reason             the 5 screens and the test, they are called a few weeks
to work for that company opposed to any other alter-               later and do a series of personal interviews – where
native) it is extremely difficult to attract “A” players            the interviewers try to catch the interviewee messing
and the candidate pool will be filled with those who are            up. Any little mistake will mean dismissal from the hir-
unhappy or already out of a job. Don’t forget, the top             ing process. If the candidate is successful through all of
talent is typically happily employed and making things             this, they are still not done. They are then called up to
happen. When you pay below market value for talent,                spend a day with a psychologist to take a series of tests
you attract the wrong people, the B and C players. This            and face a battery of questions including “How was
will force you to make the best decision in your inter-            your relationship with your Father?” If that goes well,
view process based on some of the worst talent in the              they get to move to the next phase. The offer must go
market place. You may hire the best B or C player avail-           to the CEO to be signed off on. The total process lasts
able from the pool you have to choose from, however,               close to 2 months from start to finish. I am sure I don’t
they will still be a B or C player. They will still miss           have to tell you, this organization struggles hiring any-
performance targets and bring your organization closer             one and has many positions open for longer than 1 year.
to that middle ground of mediocrity. It is critical to find         Due to the limited supply of “A” players in the market,
out what compensation it will take to bring the “A”                the length of the hiring process is a very important
players on board to your organization. Paying market               consideration. A good hiring process should last no
rates insures you remain competitive in the talent game.           longer than 3 weeks, any longer and candidates will
                                                                   leave the process. They decide to stay where they are,
            3. Maintain a Long, Arduous                            they find other opportunities to pursue and they take
            Hiring Process                                         other jobs. Make it a priority to keep your hiring pro-



3
                                                                   cess down to 3 weeks or less to insure you don’t lose
             The purpose of a hiring and interview-                the best talent.
             ing process is to identify the top potential
             prospects for a position, to interview them
             to insure they have the experience, skillsets         4. Hire Based on Interviewing
             and track record that you are looking for
and to SELL the candidates on why they should work
for your organization opposed to any other alternative.
It is not a contest to see who can make the other blink,
trip up or an endurance race.
                                                                   Skills

                                                                   I have worked with multitudes of
                                                                   hiring managers over the last 10 years
                                                                   and it pains me to say that the major-
                                                                                                                    4
                                                                   ity of hiring today is based on the interviewing skills of
I currently work with a Fortune 100 client who has                 the candidate and the personal chemistry developed
their corporate headquarters located 2 hours away                  during the interview process. Whenever you hear a
from any major city. This aspect alone makes the                   hiring manager say, “I will know in the first 5 minutes if
interview process seem like an ironman triathlon. That             they are the right person for the job or not”, it be-
is just the beginning. After a series of interviews with           comes blatantly apparent that the final evaluation and
the internal recruiter, the candidate then does a phone            hiring decision will not be based on the track record
screen by HR followed by a phone screen with the hir-              of success, skill sets or even experience of the candi-


                      4 | THE 10 DEADLY SINS OF TALENT MANAGEMENT | by JON BARTOS
                                               Copyright © 2012 by Jon Bartos
THE 10 DEADLY SINS
                                                                                             of Talent Management
JON BARTOS

date. The hiring manager is allowing the personal               Believe it or not, I recently I had one interviewer share
chemistry to influence and possibly bias the decision.           with a candidate, “We are a flat company. If you are
This is unfortunate as there are many individuals out           looking to get promoted anytime soon, this is not the
there who are professional interviewers. They can               right place for you.” By not realizing the mistake that is
eloquently answer any question, explain why they got            being made, this hiring manager is sabotaging his hiring
downsized and make it look like it was a promotion.             efforts and doing a better job of chasing “A” players out
The reality is however that even though they are a              the door faster than you can spell the word exit .
good conversationalist and there is rapport, they will
ultimately continue to perform at about the same                When the goal is to hire top talent, it is imperative to
level as they performed at their last 5 companies.              map out the potential career path available, even if the
Keep in mind, maybe they are so good at interviewing            path is dependent upon many variables. As long as the
for a reason? They may have had lots of practice at it.         possibility exists, the position will hold a much higher
                                                                chance of attracting the caliber of talent desired. This is
Interviewers should focus on the tangibles:                     not only important for hiring but also for keeping exist-
                                                                ing top performers from getting dissatisfied and happy
1. EXPERIENCE (previous activity and practice either            with their career growth with your organization.
in doing the specifics of the open position or some-
thing similar)                                                  6. No Outside Agencies – Job Boards Only
2. PROVEN SKILL SETS (documented abilities in job               or Feeding Frenzy
performance and achievement)
3. TRACK RECORD of SUCCESS (demonstrated                        Finding and attracting the top talent
examples of repeated success), and
4. ACCOUNTIBILITY (substantiated responsibility
and delivery). Don’t get caught up in the professional
interviewer’s gift of gab. Institute an interviewing
                                                                and “A” players is not easy. It’s ironic
                                                                that despite this fact, many companies
                                                                continue to think they can accom-
                                                                plish this task independently and save
                                                                                                                   6
and hiring process focused on the big four and make             money by not using outside execu-
intelligent hiring decisions based on facts, not friend-        tive recruiting agencies and eliminating the recruiting
ship.                                                           fees. What this does however is place the burden on
                                                                internal HR and recruiters to rely strictly on referrals,
5. Lack of Defined Career Paths                                  ads and the job boards for sourcing talent. When this
                                                                happens, the chances of filling any position with an “A”
           Top performers get promoted. They set                player become extremely slim. Referrals are great but
           career goals and are focused on over achieve-        are very limited in volume. Current employees may


5          ment in the areas that they are measured.
           They are driven by what they need to do
           to get to the next level. The biggest reason
           “A” players consider a new opportunity and
                                                                be enticed to share names of potential prospects to
                                                                collect the bonus but a name is only the beginning.
                                                                Someone will still have to call the referrals to qualify
                                                                them and to get them interested in the position and
           changing jobs is the potential for advancement.      the company. This in itself can be a daunting task as it
They want the ability to develop and grow their experi-         is a common practice today for many people to not
ence, skills and knowledge. They are often risk takers          return phone calls.
and enjoy the challenge a new environment presents.


                     5 | THE 10 DEADLY SINS OF TALENT MANAGEMENT | by JON BARTOS
                                                Copyright © 2012 by Jon Bartos
THE 10 DEADLY SINS
                                                                                             of Talent Management
JON BARTOS
It is becoming common knowledge that “A” players are             Companies who excel in the art of talent acquisition
not looking at or responding to print ads nor do they            understand that using the right executive recruiter or
have their resumes posted on job boards. They cannot             search firm is not a cost-prohibitive transaction, it is
be located by a keyword search. Why? The answer                  an investment. By engaging an experienced resource to
is quite simple, most are happily employed, knocking             deliver top talent, the “A” players who will outperform
the cover off the ball and over-achieving with one of            the competition, companies gain a strategic advantage,
your competitors. They don’t have the time or desire             allowing them the best choice from the absolute best
to look at job boards or ads because they are NOT                talent available. A decision in the long run, that results
looking for a job and they will not know anything about          in an exponential ROI!
your open position. This leaves the “B” and “C” players
who have their resumes posted are actively searching             7. Stop Interviewing When Empty Seats
the job boards to answer your ads and apply for your             are Filled
job. Many of the candidates in this arena have been
downsized from their positions due to lack of perfor-            It is often normal for organizations
mance or their job was expendable. The process of
posting ads and searching job boards will yield results
but result will yield the best candidates available – from
the worst talent pool.
                                                                 to stop all talent acquisition once
                                                                 current open positions are filled.
                                                                 Not a good idea. As the unemploy-
                                                                 ment rate continues to drop below
                                                                                                                  7
                                                                 8%, the shortage of good talent will
Feeding Frenzy - Using Multiple Recruiting Firms on the          only get worse. If a company adopts the principle of
Same Search                                                      only hiring the best talent in the market, the Time-to-
                                                                 Fill (TTF) metric will continue to grow as the talent
The only thing worse than not using outside agencies             pool narrows and the “A” players become more dif-
to find “A” talent, is to use as many recruiting agencies         ficult to find. Open positions for periods of 6 to 12
as you can on the same search. This creates a non-               months will become common. The cost of an open
exclusive, contingency search environment and to the             position can often be astronomical and may impede
executive search firms who participate, this means the            the achievement of company initiatives.
Indy 500. The search parameters change from “How
do we find you the best talent in the market?” to “How            How do we combat this problem? NEVER STOP
quickly can we fill this search to beat the competition?”         INTERVIEWING. There are limited “A” players in the
Searches of this nature are a race and it becomes not            marketplace and no one has a crystal ball that can tell
about the quality of talent, it’s all about speed. The           when they are ready to make a change. Life happens,
initial results will yield a large number of candidates to       an acquisition can take place, project funding changes
choose from, the majority however will be job board              or a new CEO can come on board putting their own
and database candidates. Again, typically not the “A”            team in place with them. Whatever the situation may
players that perform at the top 10% of the spectrum.             be to cause an “A” player to consider another em-
When multiple firms are competing in a race, 9 times              ployment opportunity, it is critical for a company in
out of 10, it will lead to making the best choice out of         today’s market to be prepared and open to interview-
the worst talent available in the market. Do you really          ing them, whether a position is currently available or
want to start those engines?                                     not. By simply eliminating the phrase and the mindset
                                                                 that “We have no openings” and replacing it with the



                      6 | THE 10 DEADLY SINS OF TALENT MANAGEMENT | by JON BARTOS
                                                 Copyright © 2012 by Jon Bartos
THE 10 DEADLY SINS
                                                                                             of Talent Management
JON BARTOS
mantra “We can always make an opening for an “A”                 below the minimum acceptable level, give them an
player,” the potential for maximizing your talent base           opportunity to make up the difference. If they are not
and growth increase tenfold.                                     willing or unable to do that then tough management
                                                                 decisions need to be made.
8.Tolerate Low Performers
                                                                 9. Lack of Training and



                                                                                                                 9
               Jack Welch, past CEO of GE and one of             Development


8              the top CEOs of all time, made a policy
               each year of letting the bottom 10%
               of the performers go in every division.
               The idea was to replace them with “A”
               players, thus continually building his
                                                                 Leadership and training is critical to
                                                                 “A” players. They know their value
                                                                 and they expect to advance and grow
                                                                 within the organization. Management
               organization with an influx of strong              guru, Peter Drucker, developed the concept of a
new talent. It’s great to have a wonderful culture in            knowledge worker in 1959. Drucker was one of the
an organization where everyone is happy and there                first to predict major changes in society based on this
is no goal pressure. Allowing individuals however, to            idea. He saw the shift of business and the economy
miss performance targets year after year has tre-                away from success in manufacturing or the ability to
mendous consequences. It conditions the company                  make products to success from the ability to gener-
and the employees to accept and tolerate below                   ate and use knowledge. When companies equipped
level behavior and drowns the organization in a sea              employees with information through training, devel-
of mediocrity. No matter how good your product                   opment and education, they then could make better
or service is, without great talent, your organization           decisions which allowed them to perform better and
can’t compete. Bill Gates of Microsoft summed it up              thus the organization would grow.
succinctly: “Take away my 20 best people, and virtually
overnight, Microsoft becomes a mediocre company.”                You can bet that the most admired companies on
                                                                 Forbes list have extensive training and development
Poor performance management and lack of employee                 plans for every employee that not only focus on what
development and accountability can degrade the tal-              they can do to improve their performance, but also
ent management process and drive “A” players away                to help them with their future career goals within
from the organization. For those companies who                   the organization. Educated employees tend to take
truly seek to be at the top of their game, it is critical        responsibility for their productivity. They are innova-
to set minimum standards of expectation for perfor-              tive and often manage themselves. A study on talent
mance at all levels of the organization and to consis-           in 2009 found the when comparing organizations with
tently monitor and evaluate behavior based on the                high quality development programs, against those
criteria once established. Steve Jobs of Apple, stated           that did not, the median revenue per employee was
in his interview with Walter Isaacson, “I realized that          doubled. This is a clear indication that employee
A players like to work with A players, they just didn’t like     training programs can actually pay for themselves.
working with C players.”
                                                                  “What’s worse than training your employees and
Do not become tolerant of sub-par performance and                losing them? Not training them and keeping them.”
risk losing your top producers. When employees fall                                                        - Zig Ziglar



                       7 | THE 10 DEADLY SINS OF TALENT MANAGEMENT | by JON BARTOS
                                                  Copyright © 2012 by Jon Bartos
THE 10 DEADLY SINS
                                                                                           of Talent Management
 JON BARTOS
 10. Absence of Performance                                       organizations use business analytics and business
 Management System                                                intelligence five times more than lower performing
                                                                  organizations.
 Business intelligence is the new buzzword in corporate
            America. You can’t read the Wall Street Jour-         I am a firm advocate of establishing a culture of perfor-
            nal or just about any other business publica-         mance based on metrics. This belief led to the develop-
            tion for that matter without hearing about            ment of the RPM Dashboard System by Revenue


10          KPI’s, ratios and dashboards. Today is the age
            of information. Technology has created an
            environment where unbelievable amounts of
            data and information can be retrieved at the
                                                                  Performance Management (www.rpm-usa.com). RPM is
                                                                  a cloud-based tool that measures the primary perfor-
                                                                  mance metrics for sales and business development, the
                                                                  ones that are significant to the main recruiting functions.
            click of a button. Why would we not take              It also measures the ratios, the performance indicators
 advantage of this opportunity to evaluate and refine              that tell us how good we are at every step in the sales
 performance based on trends and insight that we now              cycle. This tool allows for immediate insight to perfor-
 have at our fingertips? This detailed level of information        mance information, allowing for smart decisions to be
 is called Business Intelligence and allows us the ability        made. It targets the individual areas of weakness and
 to do just that, revolutionizing performance manage-             provides access to training for areas that need it most.
 ment capabilities overnight.                                     As a manager, the best asset of a good performance
                                                                  management system is that it puts the focus back on
 A good business intelligence system allows a company             individual accountability and individual performance to
 to set clearly defined goals, track activity metrics and          goal. Don’t let the competition leave you behind. Invest
 results in a concise and timely format and provides the          in a good business intelligence system for your firm and
 ability to evaluate the data effectively. More important,        get the insight you need to grow your business.
 however is the capability of the system to present
 the information in a way that it can be easily read and          Focus on elimination of these costly mistakes to
 problem areas diagnosed quickly. The underlying value            increase your chance of success!
 of any performance management tool is that it can pin
 point the specific areas of deficiency to performance              When all said and done, eliminating these 10 errors
 targets – allowing the employee to receive targeted              in talent management can be a very daunting task. The
 training and coaching to immediately improve perfor-             most successful and admired companies around the
 mance and maximize potential. A secondary benefit                 globe work hard at avoiding the deadly sins in talent
 of a good BI system is that it also shares the positive          management. They make it a priority to interview, hire
 achievement of the participants by identifying areas             and retain the very best talent. They understand the val-
 where performance exceeds expectations, giving op-               ue of an “A” player and they put tremendous effort in to
 portunities for recognition and reward.                          build, train, measure and motivate the best talent. If your
                                                                  organization struggles with hitting performance goals, it
 Adopting a performance management system is no                   may be time to see if any of 10 sins are being committed.
 longer a luxury. It is a necessity for any company who           Nearly all problems in business today are people related.
 wants to achieve success in today’s competitive mar-             The bottom line is still this….Talent Wins!
 ket. In a recent study from the MIT Sloan Management
 Review and IBM, they surveyed over 3000 top per-                 “People are not your most important asset.The right people
 forming companies in 100 different countries. Among              are.” - Jim Collins
 the key results of study were that top performing

                     8 | THE 10 DEADLY SINS OF TALENT MANAGEMENT | by JON BARTOS
                                              Copyright © 2012 by Jon Bartos
THE 10 DEADLY SINS
                                                                                                         of Talent Management
JON BARTOS




                                                                                                                     JON BARTOS
                                                                                       Jon Bartos is a premier writer, speaker and
RPM:                                                                                   consultant on all aspects of human capital and
• measures performance metrics that are key to                                         achievement. As President and CEO of Jonathan
  sales and business development                                                       Scott International, he has achieved industry-
• provides ratios that act as performance indicators                                   leading success. He is one of an elite group
• offers instant insight into individual and team                                      of executive recruiters who have billed over
  performance                                                                          $1 million annually. In a 10 year period from
• clearly highlights areas of potential improvement                                    1999 to 2009, he cashed in over $10 million in
  and helps users attain goals                                                         personal production. Jon has established Jona-
• is a valuable management tool that provides                                          than Scott International as a top 10% executive
  accurate and up-to-the-minute data, metrics,                                         search and contract staffing firm. The office has
  and ratios                                                                           won over 17 international awards in the MRI
                                                                                       Network, including International Billing Manager
www.rpm-usa.com                                                                        of the Year and Top 10 SC Office. Jon also com-
                                                                                       petes nationally in Masters Track and Field and is
Smart, Bradford D., Ph.D., (2005) TopGrading: how leading companies                    a four time National Champion in the Pole Vault.
win by hiring, coaching and keeping the best players. Penguin Group
(USA) Inc., 375 Hudson Street, New York, NY                                            To help organizations develop culture of
                                                                                       performance and to help individuals in the
Welch, Jack (2001) Jack: straight from the gut. Warner Books, Inc.,
                                                                                       selling profession reach their potential, Jon
1271 Avenue of the Americas, New York, NY
                                                                                       developed the RPM Dashboard, a total
Drucker, Peter F. (1999) Management Challenges for the 21st century.                   revenue performance management system
Harper Collins, 10 East 53rd Street, New York, NY                                      for the recruiting, staffing and consultative
                                                                                       industry that allows offices and individuals to
Isaacson, Walter (2011) Steve Jobs. Simon and Schuster, 1230 Avenue                    set goals, get a series of weekly dashboard views
of the Americas, New York, NY
                                                                                       of performance metrics and receive specific
Lavalle, Steve, Hopkins, Michael, Lesser, Eric, Shokley, Rebecca,                      suggestions for immediate improvement of
Kruschwitz, Nica(2010)                                                                 critical areas. www.rpm-usa.com. If you or
                                                                                       your organization is ready to take it to the next
Analytics: The new path to value, IBM Global Services, Route 100                       level, contact Jon at 513-701-5910 or
Somers, NY 10589                                                                       jon@jonbartos.com.



                           9 | THE 10 DEADLY SINS OF TALENT MANAGEMENT | by JON BARTOS
                                                           Copyright © 2012 by Jon Bartos
10 DEADLY SINS
 THE



         OF TALENT MANAGEMENT
                                     COSTLY MISTAKES THAT DROWN AN
                                 ORGANIZATION IN A SEA OF MEDIOCRITY.




                                                            JON
                                                         BARTOS
Copyright © 2012 by Jon Bartos                       www.rpmdashboard.com
10 DEADLY SINS
  THE


          OF TALENT MANAGEMENT
                                     COSTLY MISTAKES THAT DROWN AN
                                 ORGANIZATION IN A SEA OF MEDIOCRITY.




                                                           JON
                                                        BARTOS
Copyright © 2012 by Jon Bartos                      www.rpmdashboard.com
The 10 Deadly Sins of
  Talent Management
                                     Costly mistakes that drown an
                                 organization in a sea of mediocrity.




                                                         JON
                                                      BARTOS
Copyright © 2012 by Jon Bartos                     www.rpmdashboard.com

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The 10 Deadly Sins of Talent Managment

  • 1. 10 DEADLY SINS THE OF TALENT MANAGEMENT COSTLY MISTAKES THAT DROWN AN ORGANIZATION IN A SEA OF MEDIOCRITY. JON BARTOS Copyright © 2012 by Jon Bartos www.rpmdashboard.com
  • 2. THE 10 DEADLY SINS of Talent Management JON BARTOS Talent wins. If you look at the most admired and successful companies all around the world, those who have figured this out and found a way to get the best talent, top the list. Apple was named the most admired company in America in 2011 by Forbes Magazine for the fourth year in a row due to its “blistering speed of product development.” Berkshire Hathaway has been on the Forbes list of most admired organizations year after year. They are known for their keen eye for buying organizations at a discount and running them extremely efficiently. From Southwest Airlines’ service and efficiency focus to the exceptional brand management of Proctor and Gamble, there are many organizations who share the “Most Admired Company” status based on a myriad of different business concepts and classifications. More importantly, whether selected for product management, exceptional service, investing, or for any other category, these organizations all have one thing in common. They take the talent game seriously and make finding and growing the best talent a top priority. Do you think Apple employs good Product Managers? They are known to have the best Product Managers in the world today! How did they get the talent? They, like others in the group, got the best talent by either developing it from within or acquiring it from outside. The bottom line - talent wins. It is not easy to get where these “Most Admired” organizations are and it is even harder to stay there. There are several costly mistakes that can keep an organization from ever reaching its potential and kill the chance of it ever joining the list of most admired companies. 1. Fail to Make a Team of this doesn’t happen with your organization, focus “A” Players a Priority on bringing “A” players into your organization in 1 According to Brad Smart, author of Top Grading, “A” players – the top 10% of performers in any given field or position every position. “A-players contribute more, innovate more, work smarter, earn more trust, display more resourcefulness, at a given compensation level, produce as take more initiative, develop better business strategies, much as 8-10 times that of “B” player – the next articulate their vision more passionately, implement 25%. They are the movers and shakers in organiza- change more effectively, deliver higher quality of work, tions. When hiring managers choose candidates demonstrate greater teamwork, and find ways to get who can potentially do the job, versus hiring candi- the job done in less time for less money.” dates who will be top performers in the job, they - Brad & Geoff Smart, 200710 are bringing their organizations closer and closer to mediocrity. The more H2O or ice you add to 2. Pay Below Market Value your drink, the more the flavor is weakened. B for Talent 2 and C players dilute organizations. The disparity in talent often leads to missed sales targets, delays in We have all heard of the phrase, product introductions, and the lack of cost cutting “You get what you pay for.” This measures to help the organization attain further has never been truer than when profitability and remain competitive. To insure it comes to paying for great 3 | THE 10 DEADLY SINS OF TALENT MANAGEMENT | by JON BARTOS Copyright © 2012 by Jon Bartos
  • 3. THE 10 DEADLY SINS of Talent Management JON BARTOS talent. When the demand is high for talent and the ing manager. The next step is a Caliper test that is sent supply continues to get lower―unless a firm has an to the candidate. If the candidates makes it through unbelievably strong eValue Proposition (a great reason the 5 screens and the test, they are called a few weeks to work for that company opposed to any other alter- later and do a series of personal interviews – where native) it is extremely difficult to attract “A” players the interviewers try to catch the interviewee messing and the candidate pool will be filled with those who are up. Any little mistake will mean dismissal from the hir- unhappy or already out of a job. Don’t forget, the top ing process. If the candidate is successful through all of talent is typically happily employed and making things this, they are still not done. They are then called up to happen. When you pay below market value for talent, spend a day with a psychologist to take a series of tests you attract the wrong people, the B and C players. This and face a battery of questions including “How was will force you to make the best decision in your inter- your relationship with your Father?” If that goes well, view process based on some of the worst talent in the they get to move to the next phase. The offer must go market place. You may hire the best B or C player avail- to the CEO to be signed off on. The total process lasts able from the pool you have to choose from, however, close to 2 months from start to finish. I am sure I don’t they will still be a B or C player. They will still miss have to tell you, this organization struggles hiring any- performance targets and bring your organization closer one and has many positions open for longer than 1 year. to that middle ground of mediocrity. It is critical to find Due to the limited supply of “A” players in the market, out what compensation it will take to bring the “A” the length of the hiring process is a very important players on board to your organization. Paying market consideration. A good hiring process should last no rates insures you remain competitive in the talent game. longer than 3 weeks, any longer and candidates will leave the process. They decide to stay where they are, 3. Maintain a Long, Arduous they find other opportunities to pursue and they take Hiring Process other jobs. Make it a priority to keep your hiring pro- 3 cess down to 3 weeks or less to insure you don’t lose The purpose of a hiring and interview- the best talent. ing process is to identify the top potential prospects for a position, to interview them to insure they have the experience, skillsets 4. Hire Based on Interviewing and track record that you are looking for and to SELL the candidates on why they should work for your organization opposed to any other alternative. It is not a contest to see who can make the other blink, trip up or an endurance race. Skills I have worked with multitudes of hiring managers over the last 10 years and it pains me to say that the major- 4 ity of hiring today is based on the interviewing skills of I currently work with a Fortune 100 client who has the candidate and the personal chemistry developed their corporate headquarters located 2 hours away during the interview process. Whenever you hear a from any major city. This aspect alone makes the hiring manager say, “I will know in the first 5 minutes if interview process seem like an ironman triathlon. That they are the right person for the job or not”, it be- is just the beginning. After a series of interviews with comes blatantly apparent that the final evaluation and the internal recruiter, the candidate then does a phone hiring decision will not be based on the track record screen by HR followed by a phone screen with the hir- of success, skill sets or even experience of the candi- 4 | THE 10 DEADLY SINS OF TALENT MANAGEMENT | by JON BARTOS Copyright © 2012 by Jon Bartos
  • 4. THE 10 DEADLY SINS of Talent Management JON BARTOS date. The hiring manager is allowing the personal Believe it or not, I recently I had one interviewer share chemistry to influence and possibly bias the decision. with a candidate, “We are a flat company. If you are This is unfortunate as there are many individuals out looking to get promoted anytime soon, this is not the there who are professional interviewers. They can right place for you.” By not realizing the mistake that is eloquently answer any question, explain why they got being made, this hiring manager is sabotaging his hiring downsized and make it look like it was a promotion. efforts and doing a better job of chasing “A” players out The reality is however that even though they are a the door faster than you can spell the word exit . good conversationalist and there is rapport, they will ultimately continue to perform at about the same When the goal is to hire top talent, it is imperative to level as they performed at their last 5 companies. map out the potential career path available, even if the Keep in mind, maybe they are so good at interviewing path is dependent upon many variables. As long as the for a reason? They may have had lots of practice at it. possibility exists, the position will hold a much higher chance of attracting the caliber of talent desired. This is Interviewers should focus on the tangibles: not only important for hiring but also for keeping exist- ing top performers from getting dissatisfied and happy 1. EXPERIENCE (previous activity and practice either with their career growth with your organization. in doing the specifics of the open position or some- thing similar) 6. No Outside Agencies – Job Boards Only 2. PROVEN SKILL SETS (documented abilities in job or Feeding Frenzy performance and achievement) 3. TRACK RECORD of SUCCESS (demonstrated Finding and attracting the top talent examples of repeated success), and 4. ACCOUNTIBILITY (substantiated responsibility and delivery). Don’t get caught up in the professional interviewer’s gift of gab. Institute an interviewing and “A” players is not easy. It’s ironic that despite this fact, many companies continue to think they can accom- plish this task independently and save 6 and hiring process focused on the big four and make money by not using outside execu- intelligent hiring decisions based on facts, not friend- tive recruiting agencies and eliminating the recruiting ship. fees. What this does however is place the burden on internal HR and recruiters to rely strictly on referrals, 5. Lack of Defined Career Paths ads and the job boards for sourcing talent. When this happens, the chances of filling any position with an “A” Top performers get promoted. They set player become extremely slim. Referrals are great but career goals and are focused on over achieve- are very limited in volume. Current employees may 5 ment in the areas that they are measured. They are driven by what they need to do to get to the next level. The biggest reason “A” players consider a new opportunity and be enticed to share names of potential prospects to collect the bonus but a name is only the beginning. Someone will still have to call the referrals to qualify them and to get them interested in the position and changing jobs is the potential for advancement. the company. This in itself can be a daunting task as it They want the ability to develop and grow their experi- is a common practice today for many people to not ence, skills and knowledge. They are often risk takers return phone calls. and enjoy the challenge a new environment presents. 5 | THE 10 DEADLY SINS OF TALENT MANAGEMENT | by JON BARTOS Copyright © 2012 by Jon Bartos
  • 5. THE 10 DEADLY SINS of Talent Management JON BARTOS It is becoming common knowledge that “A” players are Companies who excel in the art of talent acquisition not looking at or responding to print ads nor do they understand that using the right executive recruiter or have their resumes posted on job boards. They cannot search firm is not a cost-prohibitive transaction, it is be located by a keyword search. Why? The answer an investment. By engaging an experienced resource to is quite simple, most are happily employed, knocking deliver top talent, the “A” players who will outperform the cover off the ball and over-achieving with one of the competition, companies gain a strategic advantage, your competitors. They don’t have the time or desire allowing them the best choice from the absolute best to look at job boards or ads because they are NOT talent available. A decision in the long run, that results looking for a job and they will not know anything about in an exponential ROI! your open position. This leaves the “B” and “C” players who have their resumes posted are actively searching 7. Stop Interviewing When Empty Seats the job boards to answer your ads and apply for your are Filled job. Many of the candidates in this arena have been downsized from their positions due to lack of perfor- It is often normal for organizations mance or their job was expendable. The process of posting ads and searching job boards will yield results but result will yield the best candidates available – from the worst talent pool. to stop all talent acquisition once current open positions are filled. Not a good idea. As the unemploy- ment rate continues to drop below 7 8%, the shortage of good talent will Feeding Frenzy - Using Multiple Recruiting Firms on the only get worse. If a company adopts the principle of Same Search only hiring the best talent in the market, the Time-to- Fill (TTF) metric will continue to grow as the talent The only thing worse than not using outside agencies pool narrows and the “A” players become more dif- to find “A” talent, is to use as many recruiting agencies ficult to find. Open positions for periods of 6 to 12 as you can on the same search. This creates a non- months will become common. The cost of an open exclusive, contingency search environment and to the position can often be astronomical and may impede executive search firms who participate, this means the the achievement of company initiatives. Indy 500. The search parameters change from “How do we find you the best talent in the market?” to “How How do we combat this problem? NEVER STOP quickly can we fill this search to beat the competition?” INTERVIEWING. There are limited “A” players in the Searches of this nature are a race and it becomes not marketplace and no one has a crystal ball that can tell about the quality of talent, it’s all about speed. The when they are ready to make a change. Life happens, initial results will yield a large number of candidates to an acquisition can take place, project funding changes choose from, the majority however will be job board or a new CEO can come on board putting their own and database candidates. Again, typically not the “A” team in place with them. Whatever the situation may players that perform at the top 10% of the spectrum. be to cause an “A” player to consider another em- When multiple firms are competing in a race, 9 times ployment opportunity, it is critical for a company in out of 10, it will lead to making the best choice out of today’s market to be prepared and open to interview- the worst talent available in the market. Do you really ing them, whether a position is currently available or want to start those engines? not. By simply eliminating the phrase and the mindset that “We have no openings” and replacing it with the 6 | THE 10 DEADLY SINS OF TALENT MANAGEMENT | by JON BARTOS Copyright © 2012 by Jon Bartos
  • 6. THE 10 DEADLY SINS of Talent Management JON BARTOS mantra “We can always make an opening for an “A” below the minimum acceptable level, give them an player,” the potential for maximizing your talent base opportunity to make up the difference. If they are not and growth increase tenfold. willing or unable to do that then tough management decisions need to be made. 8.Tolerate Low Performers 9. Lack of Training and 9 Jack Welch, past CEO of GE and one of Development 8 the top CEOs of all time, made a policy each year of letting the bottom 10% of the performers go in every division. The idea was to replace them with “A” players, thus continually building his Leadership and training is critical to “A” players. They know their value and they expect to advance and grow within the organization. Management organization with an influx of strong guru, Peter Drucker, developed the concept of a new talent. It’s great to have a wonderful culture in knowledge worker in 1959. Drucker was one of the an organization where everyone is happy and there first to predict major changes in society based on this is no goal pressure. Allowing individuals however, to idea. He saw the shift of business and the economy miss performance targets year after year has tre- away from success in manufacturing or the ability to mendous consequences. It conditions the company make products to success from the ability to gener- and the employees to accept and tolerate below ate and use knowledge. When companies equipped level behavior and drowns the organization in a sea employees with information through training, devel- of mediocrity. No matter how good your product opment and education, they then could make better or service is, without great talent, your organization decisions which allowed them to perform better and can’t compete. Bill Gates of Microsoft summed it up thus the organization would grow. succinctly: “Take away my 20 best people, and virtually overnight, Microsoft becomes a mediocre company.” You can bet that the most admired companies on Forbes list have extensive training and development Poor performance management and lack of employee plans for every employee that not only focus on what development and accountability can degrade the tal- they can do to improve their performance, but also ent management process and drive “A” players away to help them with their future career goals within from the organization. For those companies who the organization. Educated employees tend to take truly seek to be at the top of their game, it is critical responsibility for their productivity. They are innova- to set minimum standards of expectation for perfor- tive and often manage themselves. A study on talent mance at all levels of the organization and to consis- in 2009 found the when comparing organizations with tently monitor and evaluate behavior based on the high quality development programs, against those criteria once established. Steve Jobs of Apple, stated that did not, the median revenue per employee was in his interview with Walter Isaacson, “I realized that doubled. This is a clear indication that employee A players like to work with A players, they just didn’t like training programs can actually pay for themselves. working with C players.” “What’s worse than training your employees and Do not become tolerant of sub-par performance and losing them? Not training them and keeping them.” risk losing your top producers. When employees fall - Zig Ziglar 7 | THE 10 DEADLY SINS OF TALENT MANAGEMENT | by JON BARTOS Copyright © 2012 by Jon Bartos
  • 7. THE 10 DEADLY SINS of Talent Management JON BARTOS 10. Absence of Performance organizations use business analytics and business Management System intelligence five times more than lower performing organizations. Business intelligence is the new buzzword in corporate America. You can’t read the Wall Street Jour- I am a firm advocate of establishing a culture of perfor- nal or just about any other business publica- mance based on metrics. This belief led to the develop- tion for that matter without hearing about ment of the RPM Dashboard System by Revenue 10 KPI’s, ratios and dashboards. Today is the age of information. Technology has created an environment where unbelievable amounts of data and information can be retrieved at the Performance Management (www.rpm-usa.com). RPM is a cloud-based tool that measures the primary perfor- mance metrics for sales and business development, the ones that are significant to the main recruiting functions. click of a button. Why would we not take It also measures the ratios, the performance indicators advantage of this opportunity to evaluate and refine that tell us how good we are at every step in the sales performance based on trends and insight that we now cycle. This tool allows for immediate insight to perfor- have at our fingertips? This detailed level of information mance information, allowing for smart decisions to be is called Business Intelligence and allows us the ability made. It targets the individual areas of weakness and to do just that, revolutionizing performance manage- provides access to training for areas that need it most. ment capabilities overnight. As a manager, the best asset of a good performance management system is that it puts the focus back on A good business intelligence system allows a company individual accountability and individual performance to to set clearly defined goals, track activity metrics and goal. Don’t let the competition leave you behind. Invest results in a concise and timely format and provides the in a good business intelligence system for your firm and ability to evaluate the data effectively. More important, get the insight you need to grow your business. however is the capability of the system to present the information in a way that it can be easily read and Focus on elimination of these costly mistakes to problem areas diagnosed quickly. The underlying value increase your chance of success! of any performance management tool is that it can pin point the specific areas of deficiency to performance When all said and done, eliminating these 10 errors targets – allowing the employee to receive targeted in talent management can be a very daunting task. The training and coaching to immediately improve perfor- most successful and admired companies around the mance and maximize potential. A secondary benefit globe work hard at avoiding the deadly sins in talent of a good BI system is that it also shares the positive management. They make it a priority to interview, hire achievement of the participants by identifying areas and retain the very best talent. They understand the val- where performance exceeds expectations, giving op- ue of an “A” player and they put tremendous effort in to portunities for recognition and reward. build, train, measure and motivate the best talent. If your organization struggles with hitting performance goals, it Adopting a performance management system is no may be time to see if any of 10 sins are being committed. longer a luxury. It is a necessity for any company who Nearly all problems in business today are people related. wants to achieve success in today’s competitive mar- The bottom line is still this….Talent Wins! ket. In a recent study from the MIT Sloan Management Review and IBM, they surveyed over 3000 top per- “People are not your most important asset.The right people forming companies in 100 different countries. Among are.” - Jim Collins the key results of study were that top performing 8 | THE 10 DEADLY SINS OF TALENT MANAGEMENT | by JON BARTOS Copyright © 2012 by Jon Bartos
  • 8. THE 10 DEADLY SINS of Talent Management JON BARTOS JON BARTOS Jon Bartos is a premier writer, speaker and RPM: consultant on all aspects of human capital and • measures performance metrics that are key to achievement. As President and CEO of Jonathan sales and business development Scott International, he has achieved industry- • provides ratios that act as performance indicators leading success. He is one of an elite group • offers instant insight into individual and team of executive recruiters who have billed over performance $1 million annually. In a 10 year period from • clearly highlights areas of potential improvement 1999 to 2009, he cashed in over $10 million in and helps users attain goals personal production. Jon has established Jona- • is a valuable management tool that provides than Scott International as a top 10% executive accurate and up-to-the-minute data, metrics, search and contract staffing firm. The office has and ratios won over 17 international awards in the MRI Network, including International Billing Manager www.rpm-usa.com of the Year and Top 10 SC Office. Jon also com- petes nationally in Masters Track and Field and is Smart, Bradford D., Ph.D., (2005) TopGrading: how leading companies a four time National Champion in the Pole Vault. win by hiring, coaching and keeping the best players. Penguin Group (USA) Inc., 375 Hudson Street, New York, NY To help organizations develop culture of performance and to help individuals in the Welch, Jack (2001) Jack: straight from the gut. Warner Books, Inc., selling profession reach their potential, Jon 1271 Avenue of the Americas, New York, NY developed the RPM Dashboard, a total Drucker, Peter F. (1999) Management Challenges for the 21st century. revenue performance management system Harper Collins, 10 East 53rd Street, New York, NY for the recruiting, staffing and consultative industry that allows offices and individuals to Isaacson, Walter (2011) Steve Jobs. Simon and Schuster, 1230 Avenue set goals, get a series of weekly dashboard views of the Americas, New York, NY of performance metrics and receive specific Lavalle, Steve, Hopkins, Michael, Lesser, Eric, Shokley, Rebecca, suggestions for immediate improvement of Kruschwitz, Nica(2010) critical areas. www.rpm-usa.com. If you or your organization is ready to take it to the next Analytics: The new path to value, IBM Global Services, Route 100 level, contact Jon at 513-701-5910 or Somers, NY 10589 jon@jonbartos.com. 9 | THE 10 DEADLY SINS OF TALENT MANAGEMENT | by JON BARTOS Copyright © 2012 by Jon Bartos
  • 9. 10 DEADLY SINS THE OF TALENT MANAGEMENT COSTLY MISTAKES THAT DROWN AN ORGANIZATION IN A SEA OF MEDIOCRITY. JON BARTOS Copyright © 2012 by Jon Bartos www.rpmdashboard.com
  • 10. 10 DEADLY SINS THE OF TALENT MANAGEMENT COSTLY MISTAKES THAT DROWN AN ORGANIZATION IN A SEA OF MEDIOCRITY. JON BARTOS Copyright © 2012 by Jon Bartos www.rpmdashboard.com
  • 11. The 10 Deadly Sins of Talent Management Costly mistakes that drown an organization in a sea of mediocrity. JON BARTOS Copyright © 2012 by Jon Bartos www.rpmdashboard.com