Chapter 11 - Effective talent management Flashcards
What is talent?
Talent: those individuals who can make a difference to organisational performance, either through their immediate contribution or in the longer term by demonstrating the highest level of potential
What is talent management?
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
Outline the UK Code provisions on talent management
‘The board should establish a nomination committee to lead the process for appointments, ensure plans are in place for orderly succession to both the board and senior management positions, and oversee the development of a diverse pipeline for succession’
‘The annual report should describe the work of the nomination committee, including: the process used in relation to appointments, its approach to succession planning and how both support developing a diverse pipeline’
According to the Chartered Professional Accountants of Canada, what are the key questions to ask when considering board recruitment?
- What are the requirements for electing or appointing directors?
- What should the size and composition of the board be?
- Do the board and its committees have mandates or charters?
- Are board roles clearly documented?
- What skills and experience does the board need in its directors?
- 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?
first 5 relate to context, 6 and 7 are specific behavioural related attributes
What did the CEO Genome Project find on CEO and executive director competencies?
- Introverts are found to be slightly more successful
- CEO’s educational background does not correlate to performance
- Important attributes: 1) decisiveness 2) ability to engage stakeholders 3) adaptability 4) reliability
- If a leader is two excel in two or more of the above attributes, this will distinguish high-performing CEOs to weaker candidates
According to Richard Leblanc, what are the 5 components of an effective NED? E-SIMA
- Effective interpersonal and social style
- Strategic and advisory orientation
- Integrity and loyalty
- Monitoring and oversight orientation
- Analytical and thinking skills
What does Principle F say about the quality of the chair
Principle F:
* Chair leads the board and is responsible for its overall effectiveness.
* They should demonstrate objective judgement and promote a culture of openness and debate.
* They must facilitate constructive board relations and contribution of all directors.
What does the FRC Guidance on Board Effectiveness outline as chair competencies
- Mentoring, developing and advising
- Empathetic
- Team builder
- High level of integrity
- High ethical standards
What competencies should a general director display?
Think board attributes quadrant - i.e. competence, commitment and attributes and character
What does the FRC Guidance say about board recruitment?
Nomination committee is responsible for board recruitment, taking into account the company’s strategic priorities and the main trends and factors affecting the long-term success and future viability of the company.
What are the recommendations by the 2017 ICSA report on the stakeholder voice in board decision-making re: board recruitment?
- Nomination committee to take into account stakeholder perspective when recruiting
- Reserve one or more board positions for directors drawn from a stakeholder group, such as the workforce
- ‘blind’ applications
What does board induction involve?
- Sharing director role descriptions, board and committee mandates/charters, the directors’ fiduciary responsibilities, organisation’s key governance information and relevant overview details of the organisation and its past and current main activities, customers, projects and strategic priorities
- The emotionally intelligent co-sec will also support the new director by providing more behaviourally and psychologically focused information about the personalities and current cultural patterns that exist in the boardroom
What does the 2017 ICSA Report on stakeholder voice say RE: board induction
- A more systematically oriented induction will involve a focus on building relationships with key stakeholders
- Partnering a NED with an ED may speed up the process of the induction
- Set aside 10 days in the first year for stakeholder and cultural induction
Outline a model to board learning and development
Charles Jenning’s 70/20/10 model:
* 70% spent through on-the-job experiential learning i.e. through experience
* 20% through mentoring and coaching
* 10% through formal opportunities such as qualifications or coaching via classroom setting/modules
What is the purpose of a succession plan?
- acts as an insurance policy to reduce the risk of unplanned board exits
- may reduce the potential for board conflict due to political jostling for future board positions
- role of co-sec is often to manage the process formally, but also informally
