Solving the Talent Paradox

Too much talk and not enough action inhibit an organization's ability to compete in the talent wars.

"What distinguishes the high-performing companies from the average performing was not better HR processes, but the fundamental belief in the importance of talent."- Michaels, Handfield-Jones and Axelrod

This fundamental finding from the McKinsey research in "The War for Talent" is beautiful in its simplicity. You have to believe in something before it can happen. Just as the first step in building an effective global organization is the leader's belief in the value of the global enterprise, a global mindset, so the key to building a successful, agile and innovative organization in today's environment is a talent mindset.

At one level, today nearly everyone espouses the value of talent. Phrases about talent are embedded obsessively in the new business lexicon. But this has led to the Talent Paradox: plenty of talk but not enough action.

The Talent Paradox exists for two reasons. First, in spite of leaders' words about the value of their human capital and the importance of developing it, they revert to old command and control practices. Leaders continue to view talent as a cost, something to be controlled and replaced on a regular basis. This isn't surprising, because this is the way these leaders were trained, mentored, developed and socialized. It is the only model they understand.

The second reason for the Talent Paradox is that a small but growing number of leaders really do get it. They understand the difference between an enduring talent mindset and a few glib words. They know talent has an essential place in building a strong, successful organization. What they don't know is how to "operationalize" it. They struggle with executing and implementing a talent mindset within their enterprise. This also isn't surprising, because more than 80 percent of change initiatives fail because of poor implementation and follow through.

The foundation for the Talent Mindset Index comes from the McKinsey research. It includes McKinsey's recommendations for actions that a leader can take to instill a talent mindset deep within an organization. These actions include the following:

* Establish a gold standard for talent.
* Get actively involved in people deep within the organization.
* Drive a simple, probing talent review process.
* Instill a talent mindset in all managers.
* nvest real money in talent.
* Ensure that leaders hold themselves and their managers accountable for the strength of the talent pools they build. (Michaels, Handfield-Jones and Axelrod)

While these guidelines are a good start, they are not specific or comprehensive enough to facilitate real change. Therefore the Human Capital Institute developed the following 28 criteria for helping organizations implement a talent mindset. These criteria are clustered within the areas of executive commitment, alignment, talent acquisition, the talent review process, responsibilities, resources, culture and results.

HCI's Talent Mindset
* Executive commitment index

1. Executives have a deep conviction in the importance of talent.
2. Talent is reflected in the company's mission statement and values.
3. Talent standards are set high and there is a shared commitment to this standard.
4. As much time is spent on talent as on budget issues.
5. Executives spend at least 30 percent of their time on talent issues.

* Alignment

1. Strategy drives the most effective use of human capital.
2. Performance management, reward and recognition systems promote the best use of talent.

* Talent acquisition

1. Executives do not hesitate to bring in new talent if current skill levels are low.
2. The company always looks for top talent, regardless of open reqs.
3. The company's value proposition is compelling to top talent.

* Talent review process

1. Senior management is directly involved on a regular basis with 2 to 5 percent of employees.
2. A replicable review process is performed at least once a year and is integrated into the business.
3. Talent is segmented based on its impact on the business.
4. Talent is assessed on both performance and potential.
5. The company invests in top performers and potentials.
6. Bench strength of at least two people for high-value positions.

* Responsibility

1. Executives are held directly responsible for building talent pools.
2. Managers are held directly responsible for developing talent.
3. Managers are properly trained in coaching and developmental activities.
4. Employees clearly understand who is responsible for their development.

* Resources

1. The organization develops talent through virtual teams, flexible job assignments, stretch objectives and new national/global assignments.
2. Proper resources are assigned.
3. Individual development plans are developed and supported.

* Culture

1. Culture promotes candid feedback and continuous learning.
2. Culture promotes collaboration and risk.

* Results

1. Engagement and other data are gathered on a regular basis.
2. Data are segmented so top talent issues are clear.
3. Executives believe that significant progress can be made in one year.

The Talent Mindset Index offers a set of practical guidelines on how to implement a talent mindset throughout the enterprise. It provides a way to monitor and track how companies and organizations conduct themselves in today's highly competitive environment. When the ability to leverage and optimize talent within the enterprise is heightened, the Talent Paradox becomes less of a dilemma, and effective implementation is a distinct possibility.

Reprinted from  Human Capital

David C. Forman is Chief Learning Officer of the Human Capital Institute, where he designs HCI's Certificate and Designation programs. Forman is the author of the textbook for The Principles of Human Capital Management course, and recently developed twenty new HCI certificate series courses.
Contact HCI at (866) 538-1909.