‘Tales from the talent war’, by Dominic Midgley, Director, April 2011

This article is quite typical of those in the Director, excellent choice of topic, some great insights but a lack of depth that leaves you wanting more.

It starts by drawing attention to the risks taken by companies who rely on a few talented individuals whose creativity is critical to growth and maybe even survival. It makes the distinction between those companies that are ‘process driven’ and therefore less likely to be dependent on individuals, and those that are ‘people facing’ and are therefore highly vulnerable because of this dependence. I was not entirely convinced that this kind of black and white distinction is as easy as was implied – would Johnson and Johnson (J & J) agree that they are not people facing? - but it nevertheless provides a useful framework for the rest of the article.

Johnson and Johnson are featured as an example of what leading companies are doing to develop top management talent and to overcome the dangers of their being underdeveloped and ‘hoarded’ by bosses who do not want to lose them. J & J’s solution is a leadership development programme for high performers which is very similar to those we see in many top companies. The author then quotes a recent article in HBR which suggests that 70% of those chosen for such programmes are found not to be suitable for top level jobs. This is not too surprising and is probably a desirable weeding out process but the reasons for the failure of the 70% are interesting. Based on three requirements for top level success – engagement, aspiration and commitment - there are three types of drop-out:

• Engaged dreamers, who have engagement and aspiration but not ability
• Disengaged stars, who have ability and aspiration but lack commitment
• Misaligned stars, who have ability and engagement but lack aspiration

For the people facing businesses it is suggested that losing people probably means losing clients and future innovations. The article therefore suggests that, rather than identifying winners and organising development programmes, the priority should be retention via personal development opportunities. The key people must be given freedom to grow in ways that suit them, rather than feeling like a ‘cog in a machine’. This includes including them in high performing teams with people of like minds and potential, so that they can feel they are both contributing and learning.

There is another reference to Harvard, this time to Professor Boris Groysberg in whose book – ‘Chasing Stars’ – there is an interesting quote from an experienced bank executive, that running the research department of an investment bank is like ‘managing a movie set with 100 Jack Nicholsons’. Groysberg’s work shows that, in this type of job, those who move around from one company to another usually face a sharp drop in performance after moving; thus it is in the interests of all companies to maximise retention of the key creative people in the sector. It should also be a warning to those who try to steal people from competitors; retention of creative talent is the key to success.

There is a further interesting quote from an HR Director in a people facing business; ‘Creative people will only stay if you can offer them a great place to work, in which to express their cleverness, and other clever people to work with’. Yet the same HR Director is defeatist when it comes to competition, suggesting that nothing can stop competitors from stealing your best people if they really want them.

The article closes by saying that, despite the above arguments, some companies believe they can solve the retention problem by the traditional route of throwing money at it. The surprising example is Apple who have tied their second (to Jobs) creative genius Jonathan Ive to a golden handcuff deal worth $80 million. Yet there are reports that he is still reluctant to commit himself full time to Silicon Valley. The eventual outcome will be interesting to watch.

Overall this is a thought provoking article that lacks depth but still encourages you to read the books that are quoted. I will certainly do so – look for reviews in future blogs.

Click here to read the article in full:
http://www.director.co.uk/MAGAZINE/2011/4_April/talent-war_64_08.html