Executives, who realize early enough that having an effective leadership and talent management structure is essential to the success of any organisation, often integrate it into their processes. They understand that it takes the right team and the right skills to win. Indeed, it can be quite challenging to effectively manage the various talents and leadership available to a company’s advantage. Some leaders have invested heavily on training exercises but still have not recorded significant returns on investment.
Hence, there is a need to understand certain imperatives.
First of all, there is a correlation between a company’s leadership and talent management capabilities, and its overall profitability. While bearing in mind that most companies haven’t recorded adequate returns on investment in this area, it is indisputable that effective talent management and leadership can positively impact a company’s financial performance.
Secondly, there are six leadership and talent management capability levels. Each of these levels represent the basis on which companies are rated and the higher a company climbs the more profitable it becomes. They include Strategy, Leadership and Talent Model, Talent Sourcing, People Development, Engagement and Culture.
Strategy refers to the need for leadership and talent to be planned for both short and long-term company goals. Next is the Talent Model. After identifying what is needed, companies must also determine what competencies best fill the skill-gaps and develop clear company standards or a model of management processes like a recruitment and rewards system for leadership and talent.
Talent sourcing is a way to harness existing and prospective talents, as well as incorporate an effective succession plan for potential leaders. People development embodies training, opportunities and tools provided to build, prepare and retain the talents within the organisation. Engagement is a way to continuously utilize the top talents and leaders to the company’s advantage; encouraging and assigning them appropriately to enhance the overall financial performance of the company. Hence, the right people are placed in their areas of strength.
Lastly is, Culture. As fresh talents acclimatize to the company overtime, it is important to instill the corporate values of the company in them, and offer them more responsibilities and leadership positions.
Depending on a company’s ability to maximize all six capability levels, it would fall into any of the following categories – Talent magnets, low performers, average performers, high potentials, high performers and at the bottom of the pyramid, the talent laggards.