Leadership & Strategy

Strategic Talent Management(STM)

Super Specialisation

First Lecture

Prof. V.K. Chhabra

 The objectives of STM is

Transformation of the organization through human resource capital

management,

Developing tomorrow’s Leaders for the competitive world

Integration of Talent management process

at all levels and for every employee

 Leadership & Strategy
(Bill Gates of Microsoft/ Narayan Murthy of Infosys)
 Core competencies & strategies
(Bill Gates of Microsoft/ Narayan Murthy of Infosys)
Core Competencies and Strategy

The resources and capabilities that have been

Core determined to be a source of competitive advantage
competencies for a firm over its rivals

An integrated and coordinated set of actions taken

Strategy to exploit core competencies and gain a competitive
advantage

Business-level Actions taken to provide value to customers and

gain a competitive advantage by exploiting core
strategy competencies in specific, individual product markets
 Contrasting Competencies vs. Skills
(IT engineer Vs hardware technician)
Competencies
Competencies

Competencies Skills

• Behavioral categories that influence • Knowledge & experience required for

job performance such as building jobs
relationships, managing stress,
planning & organizing

• People are “effective or ineffective” at • People “know or don’t know” skills

competencies
• Skills are developed through a mix of
• Competencies are primarily developed formal training, education &
as a result of on-the-job learning experience

• Most people struggle to assess their

• People can assess their own skills if
own effectiveness with regard to
given clear definitions for proficiency
competencies
levels
 Age of Talent Management

We have moved from

the industrial age,

through the information age,

to the age of talent.”

 Measuring the Success of Talent Management

“Takeour 20 best people away and I can tell you that

Microsoft would become an unimportant company”
 Talent = Competitive Advantage

“The only unique asset that a business has for gaining a sustained

competitive advantage over rivals is its workforce—the skills and

dedication of its employees. There is no other sustainable

advantage in the modern, high-tech, global economy.”

Indra Nooyi, CEO PepsiCo

If you want 1 year of prosperity, grow grain.

If you want 10 years of prosperity, grow trees.

If you want 100 years of prosperity, grow people.

Ancient Chinese Proverb
 Source of Value: People

Percentage of Market Value Related to…

38% 62% 80%

Intangible
Assets

Tangible
Assets
62% 38% 20%
1980 1992 2002

Intangible Assets : people, R&D, innovations, brand, patents etc

 Perspectives on Talent Management

People are not your most valuable asset ……..The RIGHT people are

Organizations need to get the right people on the bus and in the right seats to succeed.

Good coaching, training, mentoring, etc. is not likely to make up for bad selection

Talent is not an inherent quality, it can be developed and nurtured. Talent can convert from zero to
hero

It is much cheaper to develop a star than it is to go out and buy one.

Candidates = Talent, Leadership and application of knowledge.

Talent will only multiply in an inspiring organisation

 Transition from HR to Talent Management

HRM WAYS TM WAYS

• HR is responsible for people • All managers, starting with the CEO,

management are accountable for strengthening
their talent pools

• HR provides pay and benefits • We shape our organizations, our jobs,

• Recruiting is like purchasing
• HR thinks development happens in
training programs
• HR treats everyone the same and
likes to think that everyone is
equally capable
even our strategy, to appeal to
talented people
• Recruiting is like marketing
• TM fuels development primarily
through stretched jobs, hedging and
mentoring
• We affirm all our people, but invest
differentially in A, B and C players
 TALENT DEFINED
 Talent is defined as the competencies of current and future employees
in relation to the firm’s current and future strategic business goals.

 Having “talent” thus means that a firm has the employees who
possess the desired position characteristics and requirements needed
to achieve the business goals.

 Talent is thus different from performance, and is related to the person

and not the position.

 Unlike a “ natural resources” (which get depleted) or “capital or money”

(which loses its economic value). Talent generates value and matures
with experience and passing of time
 Strategic Talent Management: Introductory Perspective

• Talent management is also known as HCM (Human Capital

management)or HRMS (HR Management Systems)

• This term "talent management" is usually associated with competency-

based human resource management practices

• Talent management refers to the process of developing and integrating

new workers, developing and retaining current workers, and attracting
highly skilled workers to work for a company

• Strategic talent management is the integration and flow of talent through

out the organization at all levels.
 Strategic Talent Management: Introductory Perspective

 Talent management is a process that emerged in the 1990s and continues to

be adopted, as more companies come to realize that their employees’ talents
and skills drive their business success

 It consists of those individuals who can make a difference to organisational

performance, either through their immediate contribution or in the longer-
term by demonstrating the highest levels of potential.

 The major aspects of talent management practiced within an organization

must consist of performance management, leadership development,
workforce planning, identifying talent gaps, etc

 Ultimately, organisational success is the most effective evaluation of talent

management
 Strategic Talent Management: Introductory Perspective

 A talent management system must be worked into the business

strategy and implemented in daily processes throughout the
company as a whole

 It cannot be left solely to the human resources department to attract

and retain employees, but rather must be practiced at all levels of
the organization

 There has been a clear shift from talent attraction to talent

engagement, organizational development and people development.
 Person-Organization Fit

Individua a t ion
l a niz
Org
e s
l u
es y Va
l u on alit
Va Pers
Expe Rew
ct a rds Stru
ation ctu
s re
Interes Abilitie
ts s re
lt u Man
Knowle
d Cu ag
ge eme
n t
Goals ies

ves
g
t rate
S

ti
s

Objec
ill
Sk
 Person-Organization Fit

 Personality and work group (cultural fit):

 Conscientiousness (careful, hardworking, organized, etc.)
 Agreeable (cooperative, good-natured, tolerant, etc.)
 Extroversion (sociable, gregarious, talkative, etc.)
 Emotional stability (anger, worry, insecurity, etc.)
 Openness to experience (flexible, curious, open to ideas, etc.)

 Personal values and organization values.

 Personal interests and organization opportunities.

 Expectations and rewards.

 Talent Management is …

• One Part Mindset

• One Part Practices

• One Part Technology

Giving Those that Have the Talent Mindset the

Capability to Deliver
 Five Lessons for Talent Management

1. Make talent management a top priority in your organization:

Recognize that you can have a brilliant strategy, but without the talent to
execute it, it will never materialize

2. Develop a comprehensive approach, as well as a commitment to

track, develop, reward, and keep top talent.

3. Ensure that HR plays a strategic role:

HR should be anticipate trends in the outside environment that affect the
management of talent in the company and identify their implications with
respect to the ability of your company to execute its strategy.
 Five Lessons for Talent Management

4. Develop a well-crafted story that describes your company’s

mission and values:
Every employee must have a clear idea of what the company stands for
and live those values every day

5. Understand why people join your company, why they stay,

and why some of them leave:
Develop an action plan to accentuate the positives and minimize the
negatives
 Strategy and Talent Together for Sustained Performance

Strategic and
Organization
Alignment

Talent and Leadership and

Performance Executive
Management Development

Organization Alignment and Leadership and Executive

Effectiveness
Core Offerings
• Strategic Alignment
• Culture Alignment
• M&A and Post-Merger Integration
• Fast Consolidation
Effectiveness
Core Offerings
• Executive Coaching
• Executive & Leadership Education
• Executive On-boarding
• Senior Team/Board Effectiveness
Talent Management
Core Offerings
• Succession Planning
• Workforce Planning
• High-Potential Engagement
• Executive Compensation

Core Capabilities
• Leadership Assessment
• Competency Model Development
• Executive Coaching and Leadership Development programs
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Effective Talent Management for Retention
 THANK YOU

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CORE COMPETENCIES