Part I provided the short list of “stop doing” behaviors that block most companies’ path forward to Strategic Talent Management (STM) and cause them to miss out on huge gains in financial performance and organizational health.
- Stop pretending that résumés inform hiring decisions;
- Stop ignoring the importance of formal job analyses;
- Stop courting legal and regulatory noncompliance; and
- Stop hiring and/or indulging unfit front-line managers.
Strategic Talent Management aligns Talent Strategy and Workforce Plan with Business Strategy. That’s how STM delivers the highest ROIs, NPVs and IRRs available to any company, while actually reducing business and financial risk.
Here’s the short list of “start doing” behaviors that serve as the foundation and force field for successful STM implementation:
- Start formulating and executing a Business Strategy that serves as a “real system of value creation [and capture] – a clearly defined purpose tightly backed by a set of mutually reinforcing parts.” – Cynthia A. Montgomery;
- Start putting the science of [employee] selection to work; the requisite knowhow has been around as the legal and regulatory standard in the U.S. since 1978:
- use job analysis to find out what it takes to perform in each particular job or role;
- use valid job-related assessments, with high predictive validity to select individuals who have what it takes for job performance and job learning;
- Start using the economics of employment to inform talent management decisions and processes in money terms; and
- Start upgrading front-line managers, as a top organizational priority.
If the CEO, CFO and CHRO together implement this straightforward start/stop agenda, the rewards from STM will compound for years to come.
To foster STM success, TEFEN Management Consulting wholeheartedly endorses the recommendation of Ram Charan, Dominic Barton and Dennis Carey. In their Harvard Business Review article, “People Before Strategy: A New Role for the CHRO”, these esteemed advisors recommended that: “… the CEO should create a triumvirate at the top of the corporation that includes both the CFO and the CHRO. Forming such a team is the single best way to link financial numbers with the people who produce them.” Charan, Barton and Carey named their triumvirate “G3”. TEFEN can help any G3 accelerate results, capably and confidently.
By: Dick Melrose, Tefen Professional Associate