11 - Effective Talen Management

Question 1

Accenture Report (2005) assessing the top 10 current business issues for senior executives

Answer 1

“attracting and retaining skilled staff” topped the list -35% respondents selecting this issue.

Question 2

2011 CIPD study on talent

Answer 2

41% of roganisations saw economic situation led to an increased focus on talent management

52% felt tha tcompetition for talent was even greater now, with the pool of available staff talent having shrunk sharply

Question 3

CIPD (2018) definition of talent

Answer 3

“those individuals who can make a difference to organisational performance, either through their immediate contribution or in the longer term by demonstrating the highest levels of potential”C

Question 4

CIPD (2018) definition of talent management

Answer 4

“the systematic attraction, identification, development, engagement/retention and redeployment of those individuals with high potential who are of particular value to an organisation”

Question 5

2014 ICSA study reported (re NEDs)

Answer 5

“Our collective view ten years ago 50% of NEDs were poor. This has improved […] that’s improved by 25%. So 75% of boards are performing and that means 25% still need developing”W

Question 6

What has NED performance improved?

Answer 6

1. governance codes
2. increasing public scrutiny
3. greater stakeholder expectations
4. better appreciation of CSR
5. increased stakeholder engagement
6. increasing awareness of talent management processes themselves

Question 7

Various elements of talent management (5)

Answer 7

1. board director recruitment
2. board director induction
3. board director L&D
4. board director performance management
5. board director succession

Question 8

CEO Genome Project

Answer 8

10 year study of 17,000 C-suite executives and 2,000 CEOs.

Introverts slightly more successful.

CEO educational background not correlated to performance.

Boards twice as likely to select a candidate that seems highly confident but this has little connection to their future success

Found that out of 30 competencies, if a person excels in >2, distinguished high performing CEOs from weaker: 1. decisiveness, 2. ability to engage stakeholders, 3. adaptability, 4. reliability.

Question 9

Simon Wong (2011) on greater directors (6)

Answer 9

1. think like an owner
2. know their companies
3. prepared to roll up sleeves
4. take charge of priorities
5. hire a collaborative CEO
6. protect their authority and independence

Question 10

2012 Korn Ferry report on most important characteristic

Answer 10

92.9% of directors questioned believed the “quality of the chairman” was the most important characteristic of boards that have effective conversationsK

Question 11

Kakabadse (2019) differing views of chair

Answer 11

There is a significant difference between how chairs and NEDs view chair performance compared to how EDs view chair performance.

On a scale of one to nine, exectuive scores averaged around two points lower on all views measured for the chair.

Question 12

Dulewicz et al. on Chair qualities

Answer 12

Outstand chairs have a high level of integrity and show high ethical standards

Question 13

L&G and Zygos Partnership Report 2017 on SIDs

Answer 13

“If a SID does their job well, you should never notice. When things are going well, it can feel like there’s nothing to do, but you need to keep your lines of communication open.”

Question 14

ICSA 2017 on director recruitment

Answer 14

“When recruiting any director, the nomination committee should take the stakeholder perspective into account when deciding on the recruitment process and the selection criteria.”

Question 15

Jennings approach to L&D

Answer 15

70% - on-the-job experiential learning

20% - mentoring and coaching conversations

10% - “just-in-case” formal training-type learning

Question 16

“Rank and yank”

Answer 16

Yearly assessment forcing normal distribution of team members.

10% were exited; 10% were bonused/promoted

Popularised in General Electric (GE) - until relatively recently common practice.

No evidence base for practice - found to reduce overall performance and engagement through significant anxiety, ill feeling and team conflict. Now largely abandoned.

Question 17

What are the components of performance management?

Answer 17

1. performance measurement or assessment
2. performance development

Question 18

What might a Director be assessed on? (4)

Answer 18

1. fulfilment of their role description
2. contribution of specific skills
3. diverse outlook
4. personal attributes

Question 19

Effective and actionable feedback on development goals (12)

Answer 19

1. All feedback potentially useful - “motivational” or “developmental”
2. High performing teams require >3 pieces of motivational feedback for everyone piece of developmental
3. Don’t do the “feedback sandwich” - message gets confused
4. Give motivational feedback immediately after event and developmental once emotion has reduced.
5. Motivational = “I appreciate”; Developmental = “I encourage”
6. Provide feedback on specific behaviours, rather than identity
7. Provide examples.
8. > et people know about common reactions to feedback (i.e. pattern of shock, anger, denial, rationalisation, acceptance and then renewed action), so they can notice their own reaction.
9. Emphasise that feedback is “true” from another person’s perspective, but that this also does not mean it is the truth. We can choose how we respond in a way that benefits both ourselves and others.
10. With written feedback process, confidentiality can be maintained online or via third-party.
11. Role model feedback good practice by asking for and giving feedback regularly if you are a team leader.
12. Giving feedback often reinfores status differences - first ask people what they think and use feedback as last resort.

Question 20

Leblanc on CEO remuneration

Answer 20

“I normally restructure the CEO’s pay package to include non-financial metrics, such as leadership, employee engagement, customer satisfaction, company culture, CEO succession planning, and/or board relations”

Question 21

Three time horizons for recruitment in FRC’s Guidance for Board Effectiveness

Answer 21

1. contingency planning
2. medium-term planning
3. long-term planning