reinventing your business by reinventing your talent

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Reinventing Your Business By Reinventing Your Talent

Jim Bethmann, Senior Partner, Heidrick & Struggles

If you always dowhat you’ve always done,you’ll always get what you’ve always got

Where is your executive talent taking you?

Past success assumes continued success

Success reinforces

neural pathways

Success creates

difficulties seeing

alternatives

Organizations follow the same direction!

If you don’t reinvent your business strategy – if your company continues doing what it’s been doing – where are you likely to be in five years? Or less?

Reinventing is essential for continued success

Reinventing your business as your customers, markets, and industry evolve is more than a good idea – It’s essential!!

And, it’s nearly impossible to reinvent your business without reinventing your talent!

Why? ...

1 2003 Survey of 730 Global CEOs by The Conference Board

Top 5 factors most important to CEOs success:1

• Developing and retaining potential leaders1

• Top management succession2

• Talent identification and growth3

• Customer Retention4

• Managing M&A and alliances5

The Current State

McKinsey study “War for Talent” Conclusions:

• Talent management cannot be isolated from business strategy.

• Companies achieve the best outcomes by actively involving senior leaders in talent development during the early stages of strategy formation.

• Those that rely solely on HR to drive their strategy for talent are missing an opportunity to align the workforce with the business.

• Executives should find ways to make line managers responsible for developing the skills of employees.

What CEOs Can Do!

• Assess current leadership talent1

Group Dynamics in Executive Teams

© 2006 by Lore International Institute, Inc.

What CEOs Can Do!

• Assess current leadership talent1

• Align key target positions in talent management program2

• Systematically develop internal leadership talent4

• Determine whether to “make or buy” appropriate talent mix3

Lore’s Strategic Succession Management Process

© 2006 by Lore International Institute, Inc.

What CEOs Can Do!

• Assess current leadership talent1

• Align key target positions in talent management program2

• Systematically develop internal leadership talent4

• On-board external leaders effectively5

• Determine whether to “make or buy” appropriate talent mix3

New Leader Assimilation

© 2006 by Lore International Institute, Inc.

A HR Director should be able to tell their CEO • What are best practices for succession management?

• What are projected trends in talent requirements for future business success?

• How will demographic trends affect talent availability?

• How can you best manage the organizational change required for a successful succession management process?

• How can you create ongoing metrics for monitoring the succession management process and outcomes?

Conclusions: You can reinvent your talent in four ways

Develop your current leaders

Challenge your potenti

al leaders

Hire outside talent

Grow your

potential

leaders