11. Effective talent management Flashcards
(39 cards)
Who, technically, is in charge of board talent management?
The chair, aided by the nomination committee
3 stages in evolution of talent management
Historical - ‘war for talent’
- there are only so many talented people, which orgs are fighting for
Current - ‘competency-based’
-understanding that talent can be nurtured, so core competencies are seen as key
Emerging - ‘systemic’ approach
- Consideration of how external stakeholders are kept in mind during process
CIPD’s definition of talent management
The systematic attraction, identification, development, engagement/retention and deployment of those individuals with high potential who are of particular value to an organisation
Which two ideas are present within talent management definition - ‘The systematic attraction, identification, development, engagement/retention and deployment of those individuals with high potential who are of particular value to an organisation’
- What processes talent management involves
- The belief that talent is fixed - only some can ever be ‘high performers’ (though this has faced a backlash over the last decade or so)
What is meant by shift from ‘talent management to people management’?
Reduced focus on skills and more focus on a holistic approach to cultural fit
4 reasons why leaders recruited internally have higher leader success rates (per research)
- Greater fit and understanding of context
- Have stronger and more extensive relational networks
- Greater commitment and purpose to organisation
- Having more aligned values
5 elements of talent management
Board director:
- Recruitment
- Induction
- Learning and development
- Performance management
- Succession
5 questions which boards should ask re. recruitment before looking at individual competencies and talent (context)
What are the requirements for appointing directors? - governance requirements
What should the size and composition of the board be? - consider cohesion, culture, stakeholders to satisfy
Do the board and committees have mandates or charters? - re. scope of responsibilities
Has the board established position descriptors for board roles? - as above but for individuals
What skills and experiences does the board need in its directors? - likely dictated by current and future org strategy
Two questions that board should ask re. specific behavioural attributes re. recruitment, once context is understood
What personal qualities and behavioural skills does the board need in its directors?
What skills, experience and personal qualities should board and committee chairs have?
CEO Genome Project 10 year study found which 4 behaviours/competencies to be the most indicative of a high-performing CEOs * also largely apply to other execs
Decisiveness
The ability to engage stakeholders
Adaptability
Reliability
Dulewicz and Gray found which 4 competencies to be most key for NEDs
And another generally considered absolutely critical
Integrity
Change-oriented
Listening
Judgement
Strategic and Visionary leadership
2012 Korn Ferry report found that 92.9% of directors questioned believed what was the most important characteristic of boards that have effective conversations?
Quality of the chairman
(simple) Role of chair per UKCG Code
Lead the board and be responsible for its overall effectiveness in directing the company
5 key characteristics/attributes of a strong chair
- Team/relationship builders
- Encourage challenge, contributions and consensus
- High levels of integrity and ethical standards
- Strong critical-thinking ability
- Strong leadership ability
What was charismatic perspective on board recruitment and why did it often lead to CG failures?
Use of existing contacts and often educational alumni networks to search for prospective candidates for positions, followed by unstructured interviews
Naturally leads to board that are homogenous in their diversity due to bias in candidate preference
Prevailing recruitment process (5 steps)
- Talent identified through showing competence in best-practice, skills, attributes
- Due-diligence process, often involving matching competencies against director profile competency matrix
- Competency-based interviews
- Vetting process (CV checks, etc.)
- Nomination and appointment
Prevailing recruitment process - through which means might talent be identified (searched for)? (3)
- ‘Demographic echo-chamber’ of personal contacts
but importantly, also
- Agencies
- Formal advertising
Considerations when identifying talent in recruitment process (4)
- How can character of potential recruits be measured
- What are the necessary expertise/experience/competencies - often based on strategy
- Geographical / regional differences and potential cohesion issues
- Diversity (requirements / targets / benefits)
3 areas to consider re. balanced boards (for PLCs)
- Majority non-exec
- 33% women if premium listing
- Need for stakeholder representation
Two methods to ensure sufficient stakeholder voices on the board
- Reserve one or more positions for directors drawn from particular stakeholder group, such as workforce
- Extend selection criteria for NEDs to include experience or understanding of one or more stakeholder groups
At which point in talent management process does the CoSec become even more fully involved?
Board induction
What will an effective board induction be a part of?
An ongoing mentoring or coaching relationship that is focused on both providing the knowledge a director needs, and supporting the development of key competencies (relational, emotional, resilience, etc.)
What will a successful director induction involve? (6)
Provision of info re.:
- Director role descriptions
- Board/committee mandates/charters
- Fiduciary responsibilities
- Key governance information
- Overview of org and its activities, customers, projects and strategic priorities
- Focus on building relationships with key stakeholders
Which of 6 main elements of director induction would be most associated with a systemic approach?
- Focus on building relationships with key stakeholders
