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 	  	  	  	  	  	  	  	  	  	  	  	  	              Talent Pool or Talent Puddle:       Where’s the Talent in Talent Manag...
Talent Poolor   Talent Puddle:   Where’s the Talentin Talent Management?    by Marc Effron and Miriam Ort
The new corporate focus on talent issues could                      dramatically increase the impact and influence of Tale...
redeeming HR’s increasingly tattered reputation         true business partner whose contribution to theby producing someth...
•   Simplify our Work: We must radically                         strategy models.    simplify and simultaneously add value...
field to the core business processes. On-          Simplify our Work    boarding programs could go beyond a surface       ...
must forget most of what we know about                 we need to approach the design and   creating TM processes. This is...
Focus On: One Page Talent Management    Implementation is the key to success and simple processes are the key to implement...
accountability down to the supervisory level.              is to address those vital few things that are                  ...
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Talent pool or talent puddle

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Talent pool or talent puddle

  1. 1.                             Talent Pool or Talent Puddle: Where’s the Talent in Talent Management? by Marc Effron & Miriam Ort               Courtesy of The Talent Strategy Group
  2. 2. Talent Poolor Talent Puddle: Where’s the Talentin Talent Management? by Marc Effron and Miriam Ort
  3. 3. The new corporate focus on talent issues could dramatically increase the impact and influence of Talent Management. Are we letting that opportunity slip through our hands? These should be heady times for those in firms you’ll hear an amazingly similar refrain, Talent Management. CEOs fueled by Good to “There are very few people in this field to begin Great dreams are increasing their investment in with and nearly none that we consider world-class building leaders. Companies fighting increased talent.” Or stated another way by the head of the competition from China and India are recognizing HR search practice at one of the big three firms, that great talent is their only competitive “There are really only 8 people in this field who advantage. Individual leaders are realizing that are any good.” Imagine that comment being made continually growing their capabilities is the only about Finance, Marketing or any other function! sure path to success. With talent issues like these dominating the agendas of nearly every Another metric is the lack of “talent factories” organization, Talent Management (TM) for talent management. With the notable practitioners should be the new corporate “rock exception of organizations like Bank of America, stars.” Pepsi and GE, there are almost no companies known for their ability to produce great Instead, this enhanced focus on talent building professionals in this field. Alumni from has produced an ironic result. After years spent organizations like these are planting the seeds in begging to be put in the game, many players in their new firms, but growing great TM talent takes TM are underperforming on the field. Their time. Although few would acknowledge it, the promises to build leaders more quickly and sheer lack of success building great TM practices effectively, if only given the chance, are showing in most companies, as judged anecdotally by the little effect. Their practices still reflect the same stories, presentations and complaints of TM bloated, impractical approaches that have long practitioners themselves, shows that even TM caused line managers’ eyes to roll. Companies admits it’s not getting the job done. Now that expecting their TM professionals to deliver heat is being applied to the TM talent pool, it’s superior results are discovering the sad, quickly evaporating into a talent puddle. surprising truth -- there’s not enough talent in talent management. The Opportunity of a Lifetime One of the most troubling aspects of this TM Talent Pool or Talent Puddle? talent shortage is that we’re currently blessed with A compelling metric of this talent shortage a once in a lifetime opportunity. Executives are comes from those closest to the market. If you looking to HR and TM to deliver the leaders they speak with leaders in the largest executive search need. If we achieve this goal, we offer the hope ofTalent Pool or Talent Puddle? 1
  4. 4. redeeming HR’s increasingly tattered reputation true business partner whose contribution to theby producing something that executives truly business is clearly visible on the balance sheet.value – more great leaders. While line managersmight not embrace HR staples like compensation First, let’s be transparent about our challenges.matrices and interview training, they’ll put a bear We emerged from the soft side of a softhug around anything that helps them create a profession. Most of us in TM come from training,high performing team. If we do our job well, TM organization development, leadership develop-can single-handedly change HR’s seat at the table ment and other fields not traditionally known forfrom a high-chair to an arm chair. having a hard business “edge.” Few of us have had accountability for a balance sheet or been Success will also establish us as the driver of responsible to make a payroll. We haven’t alwaysthe talent engine within our companies. We will been as knowledgeable about business in generalshift our reputation from being the provider of as we should have been. We don’t always feel aassessments and tools to being the trusted advisor burning passion for the commercial realities ofon the most important talent decisions. Most our organizations.importantly, we will accomplish what most of usseek from this profession – a We haven’t integratedmeaningful, positive impact HR processes in a way that “Our risk is as large as ouron business results. truly maximizes their opportunity. Failure to deliver potential to build talent. Our risk is as large as our Our solutions have beenopportunity. Failure to de- will be seen by our criticized as tooliver will be seen by our complicated and tooorganizations as yet another organizations as yet another academic. We’ve oftensign that HR doesn’t work. sign that HR doesn’t work.” insisted that thoseTM will be dismissed as solutions, even if rejectedanother HR fad, another by our customers, were stillfailed quick fix brought to you by those folks who the “right” ones. Overall, we haven’t consistentlyjust don’t seem to get the business. With the proven to our organizations that we add the valuedebate about HR’s long-term value as a function we know is possible.still raging, this would signal victory for those whofeel that blowing up HR is the best solution. It’s a healthy list of challenges and overcoming them requires making some fundamental andMaking it Work difficult changes in who we are and what we do. If Here’s the good news – it ain’t over yet. While our hopes for talent management as a profession,we do have a shovel in our hands, the hole’s not and for ourselves as practitioners, are to succeed,very deep yet. We still have a chance to achieve we must:the true potential of this field if we make some • Elevate Practitioner Quality: We mustsubstantial changes, quickly. The solutions improve our capabilities and businesssuggested below aren’t intended to be simple, fast orientation, injecting an operations mentalityor popular with the TM and HR community. into our Talent Management practices. WeThey’re intended to position us for long-term must fall in love with business. We must teachsuccess as the preeminent group within HR – the others to do the same.Talent Pool or Talent Puddle? 2
  5. 5. • Simplify our Work: We must radically strategy models. simplify and simultaneously add value to the o More MBAs: It’s possible to learn work we do. This means challenging every business fundamentals in many ways, but convention about how talent processes should the MBA still provides the most broad- be designed and, in many cases, starting from based knowledge of how business works. scratch. The rigorous business thinking and• Define the Field: We must define the analytical skills that help engender love of boundaries of what we do, staking claim to the business are also most easily gained those areas of HR where we have the greatest through this course of study. This rigor is potential impact. We can’t start improving the essential in evaluating the true business quality of what we do until we agree on exactly impact of, and need for, TM processes. It what it is. also instills a discipline and toughness that helps in making the difficult calls andElevate Practitioner Quality trade-offs that ultimately create a top The most difficult challenge we face is elevating company for leaders.the quality and capabilities of those who do this o More Line Managers: Even if we needwork. Declaring that we must elevate practitioner to pay a 50% premium to get them, wequality isn’t intended to disparage anyone in TM. need to attract more line managers intoSo let’s start by stipulating that everyone in our this field. We may only get them for afield has good intentions, are good people and temporary assignment, but even a year orgenuinely have the best interests of the business two in this area will deliver a bracing doseat heart. With that said, the facts still suggest that of reality into many TM practices. Afterthere are meaningful gaps between what many their experiences, these line managers willTalent Management practitioners offer and what also be great ambassadors of TM withinour businesses need. We can largely close these their organizations.gaps if we know business, love business and havea production mindset to building leaders. • Love the Business: We should be fascinated by, and have a deep and unabiding curiosity• Know the Business: We must understand about, business and how it works. We should the financial, operational and strategic love how a new product is created, the selling realities of business and our organization’s process, the journey from raw material to business. We should be able to speak to the finished product and the constant struggle to challenges and opportunities in our business keep the customer satisfied. It’s a highly environment with as much fact-based intangible thing but one that can only help TM knowledge as any other business leader at the professionals’ effectiveness. Call it passion for table. How do we get there? business or intellectual curiosity or any other o Basic Business Literacy: At a label that works for you, but acknowledge that minimum, everyone in TM should have a it’s a rare quality in this field. degree of business literacy that includes the ability to understand company We can select for passion through a great financial statements, the basics of how a interview process, but it’s tough to say how we good or service is produced and an inspire this in others. One step might simply operative knowledge of one of the classic be thoroughly exposing those entering thisTalent Pool or Talent Puddle? 3
  6. 6. field to the core business processes. On- Simplify our Work boarding programs could go beyond a surface No less a challenge than changing ourselves is knowledge of the business and instead require changing our approach to designing and that time be spent learning key organization implementing TM practices. One can barely processes. How much more successful would identify what the core objectives are in much of a new TM practitioner be if her orientation the TM work being done today. We give our included a week in your R & D center, a week clients complicated selection processes, com- working on a new marketing campaign, a petency models that proscribe in nit level detail week in your factory and a week with your exactly what managers should do and sales force? That month-long investment performance management processes that stretch would likely provide a more sound foundation to multiple pages. and do more to inspire passion than anything you do today. When these practices don’t work, it’s blamed on lack of support from the business. We roll our• Take A Production Mindset to Building eyes and wonder when they’ll “get it,” while our Leaders: The TM role is managers sit in their often seen as a craftsman offices wondering the same – an individual tasked “Here’s where things get thing about us. Research, with helping each leader tough. To start, we must practice and common achieve their ultimate sense tell us that TM potential. So it’s a forget most of what we know practices are only effective challenging thought to if they’re successfully many in our field that we about creating TM processes.” implemented. So we must should treat producing focus on designing our leaders like producing processes with successful widgets. The reality is that TM is a production implementation by managers as a primary goal. job. We are responsible to turn out a specific number of leaders over a specific period of We can achieve this by making two time with a specific set of capabilities. We are fundamental changes: no different than a plant manager. Our responsibility is to deliver the most powerful • Radically Simplify our Processes: If element for the production of the goods or implementation is the key to successful services in our company – qualified leaders. outcomes, then making processes simple is the key to successful implementation. Most This doesn’t mean that we don’t produce managers will gladly use any HR tool or larger individual or societal benefits from this process that delivers more value than the process. Creating highly skilled, self-aware, effort required to use it. If we can redesign our talent building leaders has a multiplier effect processes to always meet this value/effort that can meaningfully impact their families, balance, we will see a marked increase in the their communities and society. It is important effectiveness of our services. How do we get to realize that this is a wonderful ancillary there? benefit – not our primary goal. Here’s where things get tough. To start, weTalent Pool or Talent Puddle? 4
  7. 7. must forget most of what we know about we need to approach the design and creating TM processes. This is tough because implementation of any process by asking the many of us have spent a lifetime acquiring fundamental question, “What is the essential knowledge and capabilities to achieve “expert” business goal of this process?” We then need status in our field. Besides our own to start with a blank slate and an open mind experiences, we’ve worked hard to gain that and design the simplest possible process expert knowledge through consultants, that uses the least amount of academicians and peers. We attend the information necessary to achieve those conferences, read the books and listen to the results. speakers. We like to feel that we know the “best practices” in our area fairly well. But We started using that exact approach at “best practices” according to who? Where is Avon to redesign every talent process (i.e. the foundation, where are the facts, that justify performance management, development how we design and implement TM practices? planning, engagement survey) we had at Avon. We started calling this While there is signi- approach “One Page Talent ficant research support- “We need to start with a blank Management” because we ing what we do (i.e. slate and an open mind and typically found that we assessment and feed- could fit the essential back, coaching, perfor- design the simplest possible material on just one page. mance management), We applied this approach there is no evidence process that uses the least to creating new processes supporting the compli- for performance manage- amount of information” cated way in which we do ment, development plan- it. Where is the evidence ning and talent reviews, that a competency model and in developing a new with 8 headings and 15 descriptions under leadership capability model. Our success each helps anyone? Or that a goal setting metrics were the only ones that mattered – process involving anything more than just managers successfully using these tools. We listing a goal and a metric improves the were gratified that not only were Avon’s outcome? Or that providing 360° feedback on managers using the tools, they were thanking every possible leadership behavior actually us for creating them and making them simple helps to change any leadership behavior? to use. We have become so self-referential as a Add Value to Each Practice: Taking work out field that we are now all equally smart (or of complex processes is one approach to equally dumb) about how to do this work. We improving TM effectiveness. Adding additional don’t challenge the fundamental assumptions value to each practice is another. As an example, about the effectiveness of these practices. We at Avon we applied our One Page Talent don’t ask, “Is there a radically different way to Management approach to both our new do this that would deliver better results?” engagement survey and our new 360 assessment process. Both of these processes tend to present To achieve the value from TM practices, managers with overwhelming and complexTalent Pool or Talent Puddle? 5
  8. 8. Focus On: One Page Talent Management Implementation is the key to success and simple processes are the key to implementation. Here’s how we applied the One Page Talent Management approach during the design of our Performance Management process Identify the core business goal Ensure each associate understands their goals and is fairly evaluated at year end Identify the simplest process to achieve that Manager tells associate their goals Add complexity to the process only if it adds significant value • Document goals to allow managers and associates to clearly remember them  • Add a metric for each goal to ensure fair measurement  • Include a weighting for each goal for a precise measurement of overall performance  (Why: implies false precision in the ability to evaluate achievement, removes managerial discretion, suggests formulaic approach to rating) • Include labels for performance definitions, i.e. Strong Performer, Met Goals  (Why: adds no value, requires additional interpretation step, gives managers “crutch” to avoid tough conversations)information, unsupported by any practical advice page. Managers at Avon are now held account-about what to do next. In crafting our able to increase their survey scores by a setengagement survey report, we wanted to add percent each year – an objective hard-wired intovalue for managers without adding complexity. every VP and General Manager’s performanceWe thought that if we could “pre-analyze” each plan.manager’s survey for them, providing them withspecific advice about what to do, the survey would Returning to the underlying proposition thatquickly become a useful tool. implementation is the key to success, anything we can do that simplifies a manager’s ability to Our “one page” solution provided managers implement makes us more effective.with the essential information about their group’ssurvey results, including exactly which actions Define the Fieldthey could take to improve scores next year. The Finally, we need to establish the boundaries oflatter was accomplished through a proprietary our role in organizations. Our field is emergingalgorithm that identified which questions were the without direction, without a common definition ofsignificant drivers of engagement for each what we do. Today, TM professionals might ownindividual. Since almost every question was any combination of talent reviews, successionwritten in a way that suggested the activities planning, executive education, recruiting andrequired to increase it (i.e. “my manager provides coaching, with performance management,me with frequent feedback about my employee engagement and training often in theperformance”), increasing engagement scores was mix as well. Some focus exclusively on the “topas easy as doing exactly what was said on that 100” as defined in their organization; others haveTalent Pool or Talent Puddle? 6
  9. 9. accountability down to the supervisory level. is to address those vital few things that are missing – business knowledge and passion, a The sooner we identify the key practices, production mindset and a commitment toprocesses and outcomes we want to own, the simplicity. If we can successfully change how wefaster we’ll be able to start instituting the do Talent Management, the effectiveness of whatimprovements detailed above. A clearer defini- we do will dramatically increase.tion will also help dispel the image of TM assimply a re-labeling of HR, the next step after The good news is that we own this challenge“Personnel.” This clarification can happen in and we control our future. If we set highermany ways, from the laissez-faire (it naturally standards for ourselves and our teams, push downemerges over time based on common practice) to our egos just a bit to consider new ideas and holdthe highly structured (a professional organization ourselves accountable for the success or failure oflike Human Resource Planning Society or Society TM practices, we will move this profession tofor Human Resource Management (SHRM) where it needs to be. And, if we can’t do that,defines it for us). maybe what they’re saying about HR is true. Another option is that we – the people whoactually do this work – use our own formal and Marc Effron is President of The Talent Strategyinformal networks to agree on a rough definition Group. He is consultant, researcher and speaker on human resource and talent issues. He can be reachedof Talent Management. Through networking tools at marc@talentstrategygroup.com.like Linked-In™, we can establish a network ofTM professionals that can work collaboratively to Miriam Ort is Senior Manager, Human Resourcesget this done. This network might even evolve into for PepsiCo in Purchase, NY. She can be reached ata more formal organization for our field, much miriam.ort@pepsi.comlike SHRM serves HR generalists and World atWork focuses on compensation and benefits Marc and Miriam are the authors of One Page Talent Management: Eliminating Complexity, Adding Valueleaders. (Harvard Business Press, 2010). The bottom line is that until we agree on whatit is we do, it will be difficult to achieve significant This article is also available in edited form in The AMAimprovements. Handbook of Leadership by Marshall Goldsmith , John Baldoni and Sarah McArthur.Taking Charge While there’s not enough talent in talentmanagement, we have the opportunity to bothsolve that issue and elevate this field to its rightfulposition in organizations. We know from ourexperience that when what we do works, thepositive impact on individuals and companiesexceeds any other organizational lever. Wealready possess many of the capabilities we needto succeed. We are a well-educated, well-intentioned and experienced group. Our challengeTalent Pool or Talent Puddle? 7