SYMPOSIUM
ARE YOU A NET CREATOR OR DESTROYER
OF TALENT? SEVEN INDICATORS OF
ORGANIZATIONAL HEALTH FOR
TALENT-INTENSIVE ORGANIZATIONS
TED HARRO AND LESLIE A. MILLER
In the past two years, there has been an increased focus
on the importance of managing organizational talent. A
simple search of “talent management” in Google Scholar
yields more than 150,000 hits of scholarly literature. In
this literature, organizational executives, scholars, and
experts in organizational excellence emphasize that the
success of an organization rests on the quality of human
talent (Bingham, 2008; Staron, 2008). As stated by
Bingham, “People are the only sustainable competitive
advantage” (p. 1). During a recent interview, Melanie
O’Connor, a leading advisor in Australia, shared that
“talent management is the key differentiator for business
success” (Staron, 2008, para. 2).
As organizational consultants, we hear organizational
leaders talking about employees as their most valuable
asset. We hear organizational leaders discussing the im-
portance of hiring the right people and developing peo-
ple. We hear organizations talking about the importance
of retaining key talent and developing high performers
for succession planning purposes. However, for all of the
much-talked-about value that companies place on peo-
ple, we have observed that many continue to act as
though they see people as simply another part in their or-
ganization’s machine—simply a cost to be managed. In
some industries and companies, viewing people as equip-
ment that can easily be replaced might work fine, from
an economic point of view. However, most organizations
JOURNAL OF LEADERSHIP STUDIES, Volume 3, Number 1, 2009
©2009 University of Phoenix
62 Published online in Wiley InterScience (www.interscience.wiley.com) • DOI:10.1002/jls.20096
are made up of groups of people who are critical to the
current and future health of the enterprise, not simply a
cost to be managed. Leaders of firms that see people as
critical to the health of the enterprise should think about
a critical question if they want to thrive in the future:
Are we a net creator or destroyer of talent?
Service-driven companies are focusing on very care-
fully measuring and improving their standing with cus-
tomers (Johnson & Gustafsson, 2000; Szwarc, 2005).
Whether they use more formal measures such as the
Net Promoter or CBI Scores, or other formal or infor-
mal measures of customer satisfaction, service-driven
companies track their reputation with customers. We
completely agree with this focus, but our experience
tells us that the staff delivering the services has signifi-
cant impact on customer satisfaction.
For example, consulting firms live and die by their rep-
utation with and the loyalty of clients (Bushnell, 2008;
Kraus, 2005; Perry, 2006). Satisfied clients pay their bills
on time, are open to expanded engagements, and make
references to prospective clients. Exceptionally satisfied
clients even refer consulting firms to people in their net-
works without any prompting from the consulting firm
members themselves. Dissatisfied clients cause all sorts
of problems, including loss of respect (Czerniawska,
2003) and client relationships (Iyer, Acker, & Condon,
2006), financial (write-offs), and brand woes.
 SYMPOSIUM
In service-intensive businesses such as professional
service firms, one of the biggest long-term drivers
of client satisfaction is an organization’s ability to
attract, retain, develop, and promote top-notch people
(O’Connor & Fiol, 2004). Weaknesses in these areas
may not appear immediately. Months and even years
may pass without any noticeable effect on the business
even when the talent engine is faltering. But over the
long haul, firms ignore warning signs at their peril,
especially because remedies to talent issues often take a
long time to have an obvious impact. If the ultimate
client question is, “Would you recommend us as a sup-
plier to your friends?” then the ultimate talent question
perhaps is, “Would you recommend our organization
as an employer to your professional colleagues or grad-
uate school classmates?”
To help clients focus on what they might hear in re-
sponse to this question, organizational consultants often
ask clients to initially reflect on one simple question:
To what extent do your systems and culture (the un-
written rules of appropriate behavior) create a consis-
tent, positive flow of talent necessary to support your
future growth? Organizational consultants then typi-
cally recommend that leaders examine seven indicators
to see how the organization rates on talent creation:
1. Recruitment success: When you are competing for
top-notch talent, what is your offer-to-acceptance
or win rate? Net creators win more often than not.
2. Recruitment quality: What rating would your first-
line managers (and clients, if applicable) give to the
quality of recruits into entry or midlevel roles over
the past three to five years? Net creators see an up-
ward trend in these ratings.
3. Retention: How well do you hold onto your high-
value talent, particularly when they hit critical tran-
sitions in their careers? Those transitional periods
reveal what we call your firm’s stickiness, the company’s
ability to hold on to the best people even when they
tend to naturally explore their career options. Net cre-
ators have sticky career paths that keep highly desir-
able people engaged and enthusiastic about their
long-term prospects at the company.
4. Employee satisfaction: Many firms administer annual
employee satisfaction surveys. Does your organiza-
tion hold leaders personally accountable for acting
JOURNAL OF LEADERSHIP STUDIES • Volume 3 • Number 1 • DOI:10.1002/jls
on employee satisfaction scores and improving the
results? There may be no better indicator of your
talent brand than the reputation you have with cur-
rent staff—and their belief that you care enough
about their satisfaction that you take meaningful,
consistent action to increase it. Net creators take ac-
tion on survey results and see improved satisfaction
ratings year after year.
5. Employer reputation: When high-value talent does
leave, what story are they telling in the marketplace
about their experience with you? Net creators have
vibrant networks of alumni who tell others about
the positives of working at your firm long after their
departure. A simple survey of alumni would provide
a baseline for your firm’s current performance. (It
also gives you a reason to stay in touch with these
people, many of whom can be a tremendous source
of valuable future contacts).
6. Promotion success: What percentage of people in your
organization get promoted to roles with successively
higher responsibility? Of those who do get promoted,
how many successfully navigate the role transition to
acceptable performance within the expected period
of time? Most firms plan on a certain attrition rate,
but net creators watch this rate—and the time to per-
formance for recently promoted staff—for clues about
selection and development issues.
7. Promotion velocity: How long does it take a person to
reach new levels of responsibility and development
in your organization? Gifted people carry a ticking
clock in their heads. They think in terms of career
progression and accelerated timelines. If they sense
they are stalled, they quickly find other options.
Comparing your promotion track against others in
your market can provide some clues; however, the
comparison of promotion velocity in alternative ca-
reer tracks should be included. For instance, what
if a consultant jumps to industry? What sort of pro-
motion track would they expect in that other envi-
ronment? You can be sure that your star talent has
considered those alternatives as well as your tradi-
tional competitors.
When leaders examine these seven indicators, they
often realize that even though they have been talking
about the importance of talent, they have not necessarily
63
 SYMPOSIUM
been demonstrating that employees are the key to
sustainable competitive advantage. They often realize
that their long-term success is more at risk than their
short-term indicators may reveal. A discussion of these
seven indicators can result in leaders focusing on the
few areas that will make the biggest difference in the
long run. Solutions are rarely easy because they often
require reexamination and rethinking of the organiza-
tion’s unwritten rules. However, they are critical to the
long-term health of the firm. After all, you are either a
net creator or destroyer of talent, and as your talent
goes, so goes your organization.
References
Bingham, T. (2008). The talent factor. Public Manager, 37, 80–84.
Bushnell, D. (2008, January 17). Action firm says the key to success
is customer loyalty. Retrieved April 15, 2008, from Boston Globe
Web site: http://www.boston.com/business/articles/2008/
01/17/acton_firm_says_the_key_to_success_is_customer_loyalty/.
Czerniawska, F. (2003). Client! Manage that consultant! Consult-
ing to Management, 14(3), 1–4.
Iyer, P. W., Acker, J., & Condon, K. W. (Eds.). (2006). Business
principles for legal nurse consultants. Boca Raton: CRC Press.
Johnson, M. D., & Gustafosson, A. (2000). Improving customer sat-
isfaction, loyalty, and profit. San Francisco: Jossey-Bass.
64 JOURNAL OF LEADERSHIP STUDIES • Volume 3 • Number 1 • DOI:10.1002/jls
Kraus, J. (2005). Customer loyalty: The real payoff. Retrieved April 15,
2008, from http://www.destinationcrm.com/articles/default.asp?
ArticleID⫽5458.
O’Connor, E. J., & Fiol, C. M. (2004). Spinning a winning web: At-
tracting and retaining top performers. Physician Executive, 30(5), 40–43.
Perry, H. (2006). Sustainability of critically challenged organizations.
(Doctoral dissertation, Fielding Institute, 2006).
Staron, M. (2008). Talent management: Practical steps in getting
started. Retrieved November 10, 2008, from http://www.icvet.
tafensw.edu.au/ezine/year_2007/jul/staron_interview.htm.
Szwarc, P. (2005). Researching customer satisfaction and loyalty:
How to find out what people really think. Sterling, VA: Kogan Page.
Ted Harro is the founder of Noonday Ventures, a performance
improvement consultancy. He has an M.A. in Organizational
Communication from the University of Illinois at Chicago.
Ted may be reached at Ted.Harro@noondayventures.com.
Leslie A. Miller is a senior consultant with Noonday Ventures
and the owner of LanneM TM, LLC, a leadership devel-
opment consulting business. Leslie teaches and mentors doc-
toral learners in the School of Advanced Studies of University
of Phoenix. She has an M.S. in cognitive psychology from
Washington State University, and a Ph.D. in educational
psychology from the University of Maryland. Leslie may be
reached at Leslie.Miller@noondayventures.com.