TALENT MANAGEMENT AND DEVELOPMENT

‘Talent’ has become understood as theperson who possesses talents rather thanthe skills and abilities they excel in.thinking of the DoH, accept David Guest’sargument (cited in Warren, 2006:29) thattalent management isIn relation to managerial positions, talenthas been presented as:‘an idea that has been around for a longtime. It has been relabelled and thatenables wise organisations to reviewwhat they are doing. It integrates someold ideas and gives them a freshnessand that is good’.‘A code for the most effective leadersand managers at all levels who canhelp a company fulfil its aspirationsand drive its performance. Managerialtalent is some combination of a sharpstrategic mind, leadership ability,emotional maturity, communicationsskills, the ability to attract and inspireother talented people, entrepreneurialinstincts, functional skills, and the abilityto deliver results’ (Michaels, et al, 2001,p. xiii).So ‘talent’ can be seen to refer to thoselimited number of people who possess thehighest quality of managerial and leadershipskills.Talent management refers to ensuring thatthese people are identified or recruited,developed, and retained, in such a way thattheir outstanding contribution can be fullyachieved. It has been defined as:Some of the older ideas that have beenincorporated include elements fromrecruitment and retention strategies throughto career development, workforce planning,succession planning and leadershipdevelopment initiatives.1f. The need for localdefinitions of TalentManagement‘ the systematic attraction,identification, development,engagement/retention and deploymentof those individuals with high potentialwho are of particular value to anorganisation’ (CIPD, 2008:7)We were asked to develop benchmarksfor talent management in Yorkshire andthe Humber, but this is impossible to do,because there is currently a consensusthat there is no single approach to talentmanagement. Rather, there is a plurality ofperspectives, and organizations are advisedto develop their own talent managementstrategies and programmes thatcomplement their culture, market andunique circumstances.Now, some writers refer to talentmanagement as a fad, as the latest set ofmanagement buzzwords, and dismiss theconcepts. Others, more in line with theCIPD research, for example, has shownthat there are many varied approaches totalent management, and there is no blueprintfor achieving effective talent management3across all organisational contexts. Eachorganisation will have different resourcingrequirements and issues and it is these thatshould determine the talent strategy thatan organisation adopts. The key messagehere is the importance of understandingand valuing the variety of approachesand ensuring that the best approach isdeveloped to suit particular local andcontextual circumstances. Organisationsneed to develop their own local meaningof talent rather than seeking to adopt someuniversal or prescribed definition, in shortA coherent Talent Management strategyrelies on organisations to create theirown definition that meets their specificneeds and circumstances.Local definitions of talent thereforeneed to be:Organisation-specificHighly influenced by the businesscontext, the industry and the nature ofthe workDynamic and flexible enough to developas organisational priorities change.Importantly, talent management in eachorganisation is conditioned by theapproach and definition of talentadopted by the organisation.www.bradford.ac.uk/management

Part Two:Developing a Talent ManagementSystem: Guidance from the literature2a. Health warning: lackof an evidence baseDespite the paucity of evidence in relationto the effectiveness of the different practicesof talent management, there is no shortageof advice on how to design and implementtalent management systems. What followsmust therefore be understood to be lackingan evidence base.2b. What is TalentManagement inPractice?Although each organization should designand implement its own, unique talentmanagement strategy, there are someguidelines available which suggest thattalent management programmes shouldrefer to the following.Each organization shouldDevelop a strategy and anaccompanying set of practices which arefuture oriented, integrated and result inmeasurable outcomes;Ensure that talent management is amajor HR responsibility, incorporatingrecruitment, selection, performancemanagement, succession planning,professional development, diversity andculture;However, the boundaries between HRand talent management are blurred buttalent management is seen as morewww.bradford.ac.uk/managementproactive than HR, so the HR functionmay need to change its culture;Ensure that its strategy allowsdevelopment of both individuals andorganisations.However, there is one area about which thereis no consensus, and this concerns whichparts of the organization should be includedin the talent management programme.Programmes mayfocus solely on nurturing of future seniormanagers and leaders (exclusive) ormay develop high potential employees inall parts of the organisation (CIPD, 2009)so as to fully reflect talent and diversityissues (inclusive).This leads to several potential categories inwhich talent management programmes mayfall. The following typology, developed byPaul Iles, summarises the positions:Inclusive approaches focused ondeveloping each individual employee;Inclusive approaches focused ondeveloping social capital moregenerally, throughout all networks in theorganization;Exclusive approaches focusing ondeveloping elite, identified individuals;Exclusive approaches that focus onkey positions/roles and identifying anddeveloping talent to fulfil those roles.associated with talent managementreinforces this exclusive approach – it refersto high potential/ high fliers/ rising stars/future leaders. Many organisations using anexclusive mode identify senior job roles andseek to link individuals identified as havingtalent to these roles (Mode D above). Thephilosophy here is that each organisationhas a number of key positions which mustbe filled and there needs to be in placea stream of key workers to occupy thesepositions – the talent pipeline.This is the approach recommended bythe McKinsey Report in 1998, and it is theapproach favoured by the Department ofHealth.However, in 2008 the McKinsey ConsultingGroup published an up-dated report ontalent management. This cites researchwhich shows how important is thecontribution of ‘B players’ because ‘top talentis more effective when it operates withinvibrant internal networks with a range ofemployees’ (Guthridge, Komm and Lawson,2008, p. 55). The McKinsey ConsultancyGroup is therefore now advocating inclusiveapproaches to TM which: targets talentdevelopment not just at ‘A players’ but atthe ‘B players’ found at all levels throughoutthe organization; develops different rewardsystems and benefit packages for differenttypes of employee and; strengthens the HRfunction.Currently, (CIPD, 2010) most organisationshave adopted an exclusive approachwhich aims to develop and grow futuresenior managers. Much of the language4

An inclusive approach therefore focusesnot so much on the key people or keyroles but more on recognising the uniquecontributions and talents of all staff. Thisapproach has the advantage that it doesnot single out a certain proportion of theemployees as ‘talent’ or ‘talented’ and thusdoes not demotivate excluded staff. TheCIPD survey (2010) found that less exclusiveapproaches tend to be adopted in only asmall minority of organisations, especiallyin relation to talent and diversity initiatives,although the editors of a special edition ofPublic Personnel Management (2008) ontalent management suggest that the moreinclusive approaches are better suitedto public sector organisations. Such anapproach involves segmentation of talentpools, e.g. through recognising groupsof employees who may not be senior butwhose roles are crucial for organisationalsuccess, and focusing on the developmentalneeds of these groups (Bersin, 2010).Indeed, if McKinsey’s recent report is correct,those organizations adopting an inclusiveapproach to talent management are aheadof the field, with others needing to catch upwith them.A hybrid approach may be appropriate. Thiswould foster an exclusive approach for keysenior managerial roles, using commoncriteria for such roles. In the NHS this isarguably identifiable through the NHS TopLeaders programme recently launched bythe National Leadership Council. Thesemanagers need to be part of vibrantand dynamic teams, so programmes formanaging all the talents and reflecting local5needs/local populations/local circumstancesetc. should be designed. There could bescope for generic skills for chief executivesand aspiring directors across NHSorganisations, but again, there may bedebates as to whether this crosses the healtheconomy or becomes specific to sector(acute, mental health, PCT etc) or levelof work (senior to more junior managerialand clinical levels) or professional groups(clinicians, HR professionals, financeprofessionals, etc). Our research in NHSYorkshire and the Humber, as the secondreport shows, suggests a far more radicalapproach is favoured.2c. What do TalentManagementprogrammes involve?There is no universal approach – talentmanagement is organisation-specific.Context determines the talent managementstrategy, and therefore each organisationshould find its own approach. The needs ofthe organisation should be key to developinggood objectives for talent managementschemes. The CIPD’s Learning andDevelopment Survey (2009) found that thetop two most effective talent managementactivities are in–house developmentprogrammes and coaching. Formalprogrammes are increasing in popularity.More formal programmes include a mix ofthe following:Contents of a Talent ManagementSystemSupport from the leadership teamA retention strategyStrong leadership of the programmeLeadership developmentSuccession planningStrategic directionSystems of rewardsEmployer branding – ‘this is a goodplace to work’Labour market intelligenceperformance managementlearning/traininghigh-potential employee developmentindividual professional developmentrecruitment strategiesengagementcompensation and rewardsretention strategiesorganisational developmentassessmentcompetency managementteam developmentcareer planningcritical job identificationintegrated HRM systemsworkforce planningdiversity initiativesacquisition of outsourced or contract talent(Based on Chambers et al, 1998;Garrow and Hirsh, 2009; Israelite, 2010)www.bradford.ac.uk/management

Which combination of actions is chosendepends on the understanding of talentwithin each organisation. For example,if talent is understood and defined assenior management, the initiatives mostlikely to be included would be successionplanning, executive coaching, externalexecutive education programmes etc. Ifa wider and more inclusive approach totalent management is chosen, the rangeof activities would also include new hiretraining, performance management, careerdevelopment, management development,employee opinion surveys etc. (Israelite2010, p.7)It should be noted that embedding andinstitutionalising talent managementpractices takes time (Israelite, 2010).Guidelines on talent management anddevelopment programmes state they should:be oriented towards the future anddynamic;be adjusted so that they always alignwith strategybe continuously evaluated;have an impetus towards ensuring theorganisation improves itself and marketsitself well so as to attract and retain thebest talent;be focused towards answering threemain questions:For what part of theorganisation? what kind ofjob roles?Where can we find the right kind ofpeople and when should we startdeveloping them?What development outcomes are welooking for?Informed by workforce planning;Part of the equality and diversityprogramme so ensuring less traditionaltalent pools such as migrant orolder workers are included (inclusiveapproach);tailored both for organizational andindividual needs (inclusive approach)A talent management plan for an individualmay include: a development plan; a mentor;learning from others; personal coaching,shadowing and mentoring; a role modelin senior management; secondments;attending seminars and conferences;membership of an action learning set (Cookand Macaulay, 2009).be dialogical, i.e. involving a twoway process about career and skillsdevelopment in which active listeningtakes place;www.bradford.ac.uk/management6

Benchmarking v. ChecklistingBenchmarking is unwise, as talent management programmes should be organisation-specific. However, when developing a talent managementprogramme there are a number of questions that can be used as a framework for exploring talent management and talent development at a locallevel: Checklist for developing a Talent Management systemHave you? 1. Made talent a priority and explained why it is a priority?2. Demonstrated senior management support?3. Recognised the changes taking place in the psychological contract?4. Created policies and practices to enhance the organisation’s attractiveness to current and potential talented staff?5. Made line managers accountable?6. Created opportunities for self-development and learning?7. Provided support to individual development?8. Ensured realistic job reviews?9. Provided challenging and career enhancing work experiences?10. Redefined the role of the HR managers?11. Built the talent pool/s internally?12. Created a culture and climate that will persuade the right people to stay?13. Improved your forecasting techniques?14. Developed policies to deal with uncertainty of demand for and supply of talent?15. Considered replacing succession planning with portfolio competencies (Cappelli, 2008)?This will produce a group of employees who can fit into a range of different jobs.16. Considered how to calculate the return on investment of talent management?17. Balanced employer and employee interests so as to nurture long-term commitmentand preserve the investment in developing talent?18. Linked macro- and micro, i.e. ensured the needs of individuals and the needs ofthe organisation are considered at the same time and are made mutually beneficial?19. Built a talent-enabling organisational culture7www.bradford.ac.uk/management

Finding outmore about TalentManagementThere are numerous publications advocatingspecific approaches to talent management,with a large number of consultancy firmsoffering their services. For example, aswe were writing this report we received anemail from a company called Research andMarkets Ltd. offering to sell a 90 page report,containing case studies from the magazinetalent management Review, for 243 Euros(hard copy) or 365 Euros (electronic version).To illustrate the types of advice available,we are focusing on just one model. This isthe work of Bersin et al (2010). We are notadvocating this as an approach, but usingit to illustrate current thinking about talentmanagement and the sort of guidelines thatcan be found. You will see that the adviceprovided appears comprehensive, but themodel is untested and its effectiveness inpractice is unknown.Bersin (2010) and his colleagueshave developed a ‘high impact talentmanagement model’ which seeks todevelop integrated organisational processesaimed at attracting, managing, developing,motivating and retaining key people in theorganisations (p.19). The model is elaborateand includes all the main HR activitiesand functions, linked with learning anddevelopment and compensation processes.It provides a useful framework in terms oftalent management activities specifically,based on four core functions:www.bradford.ac.uk/managementExample of ‘a high impact talent managementmodel’ (Bersin et al, 2010)1. Talent acquisitionSourcing, recruiting and staffingAssessmentEmployer brandRecruitmentSelection2. PerformancemanagementGoal settingGoal alignmentCoachingManager evaluation360 degree assessmentCompetency assessmentSelf-evaluationDevelopment planning3. Succession planningand managementCalibration meetingsTalent reviewsCareer planningTalent mitigation plan4. LeadershipdevelopmentFormat programmesStretch assignmentsExecutive educationCoachingMentoringJob rotationAssessmentEvaluation8

All of the above are integrated with thebusiness strategy, critical talent strategy,target metrics and measurement, processgovernance and systems strategy. They areunderpinned by competency managementincluding job profiles, corporate values,leadership competencies and functionalcompetencies.The underlying understanding of the modelis that “talent management is not squashingtogether of HR roles but something quitedifferent: applying strategic HR disciplinesto your company’s business needs.” (Bersin2010, p. 28). Hence talent managementis about ‘building a process infrastructurethat supports business goals’ (ibid). Thisrequires that the HR function is redesigned.However, Bersin warns against underminingtalent management by promoting it purelyas an HR initiative. Rather, a systemwide approach should be adopted andorganisational leaders should be activelyinvolved. The talent management strategy,Bersin argues, has four key elements:performance management, competencymanagement, leadership development andlearning and development. They should all fittogether in an integrated talent managementapproach and fit increasingly as the processevolves. Below are a few relevant remarkson each of them (following Bersin 2010, pp.36-42).PerformancemanagementThe core of talent management: set therules for discussion and evaluationShould be built around the organisationalculture (hence can be competitive orhighly collaborative)Involves processes such as goal setting,goal alignment, self-assessment,management assessment, 360 or peerassessment, competency analysis ordiscussions, development planningCompetencymanagementUnderstand your organisation’s corecompetencies, leadership competenciesand role competenciesLeadershipdevelopmentStrategic roleOrganisations can be at different stagesof maturity, but building strong leadershipdevelopment is vitalAlternative guidelines to those of Bersinet al (2010) can be found in a publicationby the CIPD (2010). For this, a team fromNottingham Business School developeda tool for assessing the organisationalneeds, the CIPD online talent management,development and evaluation tool (CIPD,2008). It contains step-by-step guidance onthe development of such processes andcheck lists of questions organisations shouldbe answering at the different stages of thedesign and implementation. The CIPD haspublished a range of documents on talentmanagement.Fewer may be betterLearning anddevelopmentKey to talent management in itsfunction to provide deep levels of skillsdevelopment across the organisationCareer development9www.bradford.ac.uk/management

Part Three:Examples of Talent Management Systemsin Practice3a: An example fromthe US HealthcareSectorThe most detailed case studies on theimplementation of talent management comefrom the US. Here we have focused on acase study of a healthcare organisation,Mohl’s (2010) account of the Children’sHealthcare organization in Atlanta. Althoughthere are vast differences between the healthsectors of the US and UK, this case studydemonstrates some of the complexities oftalent management in practice.Facing a number of challenges, includingrapid growth and the need for sustained highquality services, the organisation gatheredan integrated HR team driven by thestrategic vision of the senior vice presidentof HR. A People Strategy was developedwhich addressed the perspectives of theemployees, the management and theorganisation. The employees’ perspectiveengaged with the ways in which theemployees could best employ and utilisetheir skills and abilities as well as how theycan grow and contribute to the mission ofthe organisation. The managers’ perspectivefocused on how they can utilise their timeand energy to find, engage, develop andretain the talent. The organisational levelinvolved setting a general direction andspecific annual targets in key areas. Theowner

The current state of knowledge about Talent Management 1 1a. The Context: Short history, speedy growth but absence of knowledge 1 1b. Why has management of talent become so important? 1 1c. Talent Management in the NHS 1 1d. Talent Management in recession or times of retrenchment 2 1e. What is Talent Management? 2 1f.