Talent Wins

1. Forge the G3: CEO, CFO, and CHRO as the Core Leadership Team

"The G3 is the most important and most powerful tool at the disposal of any modern CEO."

Leadership triumvirate. The G3, consisting of the CEO, CFO, and CHRO, forms the core leadership team in a talent-driven organization. This group aligns financial and human capital decisions, ensuring that talent considerations are central to all strategic decisions.

Elevating HR. By including the CHRO in this core group, companies acknowledge the critical role of talent in driving value. The CHRO must be a business-savvy leader capable of linking talent strategies to business outcomes.

Collaborative decision-making. The G3 meets regularly to discuss and decide on crucial business matters, integrating financial, operational, and talent perspectives. This approach ensures a holistic view of the company's challenges and opportunities.

2. Identify and Nurture the Critical 2 Percent of Value Creators

"The potential of your company depends on this group."

Disproportionate value creation. The critical 2 percent are employees who create outsized value for the company. They may not be the highest-ranking executives but are key influencers, innovators, and problem-solvers throughout the organization.

Continuous assessment. Identifying and nurturing this group is an ongoing process. It requires:

• Regular talent reviews
• Performance analysis
• Skill assessment
• Career development planning

Strategic deployment. Once identified, these high-value employees should be placed in roles where they can maximize their impact. This may involve cross-functional assignments, special projects, or leadership positions that leverage their unique abilities.

3. Leverage Digital HR Tools for Data-Driven Talent Decisions

"We are entering an era in which data-driven software analysis will become a standard part of any talent decision."

HR technology revolution. Modern HR software provides powerful analytics capabilities that enable more informed talent decisions. These tools can help with:

• Recruiting and hiring
• Performance management
• Retention prediction
• Career path planning
• Skills gap analysis

Data-driven insights. By leveraging these tools, companies can make more objective and effective decisions about talent acquisition, development, and deployment. This data-centric approach reduces bias and improves overall talent management outcomes.

Continuous improvement. As AI and machine learning capabilities advance, these tools will become even more sophisticated, offering predictive analytics and personalized recommendations for talent management strategies.

4. Align the Board with the Talent-First Transformation

"You want the board to become a powerful tool to help you realize and sustain a talent-first organization."

Board engagement. Educate and involve the board of directors in the talent-first transformation. This includes:

• Regular talent discussions in board meetings
• Board member involvement in talent reviews
• Renaming the compensation committee to the "talent and rewards committee"

New metrics. Introduce a new definition of TSR: Talent, Strategy, Risk. This shifts the board's focus from purely financial metrics to a more holistic view of the company's health and potential.

Diversity focus. Make diversity a key topic in board discussions, ensuring that the company is attracting and retaining a diverse talent pool that reflects its customer base and society at large.

5. Design an Agile, Platform-Based Organization for Talent Optimization

"Agility is often seen, incorrectly, as the opposite of stability. In fact, as you'll see in this chapter, true agility will make your company more—not less—stable than a traditionally hierarchical organization."

Flexible structure. Design an organization that allows for rapid reallocation of talent based on changing business needs. This may involve:

• Cross-functional teams
• Project-based work
• Internal talent marketplaces

Platform thinking. Move away from rigid hierarchies towards a platform model that enables talent to flow to where it's most needed. This approach facilitates:

• Rapid innovation
• Knowledge sharing
• Skill development

Meaningful work. Ensure that the organizational design supports employees' desire for purpose and meaning in their work. This involves clear communication of company mission and how individual roles contribute to larger goals.

6. Reinvent HR as a Strategic Value Creator

"The time has come to remake and releverage HR into much more of a creator of value and competitive advantage."

Strategic partner. Transform HR from an administrative function to a strategic business partner. This involves:

• Developing business acumen in HR professionals
• Integrating HR into strategic planning processes
• Focusing on talent as a key driver of business value

Data-driven decisions. Leverage HR analytics to make informed decisions about talent acquisition, development, and retention. This requires investing in technology and developing analytical skills within the HR team.

Talent value leaders. Create a new role of Talent Value Leader (TVL) who works closely with business unit leaders to drive talent strategy and performance. TVLs should have:

• Strong business understanding
• Data analysis skills
• Influence and communication abilities

7. Customize Talent Development for Continuous Growth

"Scaling individual talent isn't a once-a-year program; it's a never-ending, never-completed process best supported by ongoing feedback."

Continuous feedback. Replace annual performance reviews with ongoing feedback and development conversations. This allows for:

• Real-time course corrections
• Rapid skill development
• Increased employee engagement

Personalized development. Create customized learning and development plans for each employee, especially those in the critical 2 percent. This may include:

• Stretch assignments
• Mentoring programs
• External learning opportunities

Skill-based compensation. Develop compensation systems that reward skill development and value creation rather than just tenure or position. This encourages continuous learning and aligns individual growth with company needs.

8. Implement an M&A Strategy Focused on Acquiring Top Talent

"Companies are no longer just competing against their neighbors for talent—they are competing at a global scale."

Talent acquisition focus. View M&A as a strategy for acquiring critical talent and capabilities, not just assets or market share. This involves:

• Assessing talent as part of due diligence
• Planning for talent integration early in the process
• Retaining key talent post-acquisition

Acquihires. Consider acquiring smaller companies primarily for their talent, especially in fast-moving technology sectors. This can quickly bring in specialized skills and innovative thinking.

CHRO involvement. Make the CHRO a key player in M&A strategy and execution. Their insights on talent and culture can be crucial for successful integrations and realizing the full value of acquisitions.

9. CEO as Chief Talent Officer: Driving the Talent Agenda

"Implementing this new talent playbook will change everything about how you lead."

Talent-first mindset. As CEO, prioritize talent considerations in all strategic decisions. This means:

• Regularly reviewing talent pipelines
• Participating in key hiring decisions
• Championing talent development initiatives

Time allocation. Dedicate significant time to talent-related activities, including:

• Meeting with high-potential employees
• Participating in talent reviews
• Engaging with external talent pools

Lead by example. Demonstrate the importance of talent by:

• Actively participating in learning and development programs
• Mentoring high-potential employees
• Sharing your own career development journey

Last updated: October 3, 2024