3 Fatal Talent Management Flaws

Talent is the single greatest competitive advantage of 21st century firms. Relationships are the new currency. The ability to create, develop, maintain and leverage relationships is the leading indicator of success in today’s marketplace.

How is your organization handling talent? Here are 3 fatal talent management flaws to keep an eye on:

1. Downward Spiral

Hiring great people, tossing a little oversight their way, but doing nothing to develop, measure or drive performance is a great way to start a downward spiral. Especially if those great hires cost a pretty penny. Eventually, this downward spiral ends with termination for cost reasons, or departure for career development opportunities.

2. Uphill Battle

The uphill battle is snatching anybody and everybody and tossing them into a high performance culture with very little preparation. Some firms make a living on the backs of burnouts, developing holdover strategies to mitigate the risks associated with this model of talent management. Poor investment in acquisition can lead hires that do not match core values and culture, lack character, or do not demonstrate the necessary capabilities to perform assigned tasks. 

3. Internal Collapse

Hire great people. Drive excellent performance. Fail to manage or develop. This recipe begs for an unsatisfied workforce. Great people doing great work without any ability to scale, develop, promote or reward will ultimately end with internal collapse. This is exactly what it looks like: a pit. A few people or departments may climb out the other side by force of will or sheer luck, but most will collapse to the lowest point.

4. Sustainable Systems

Managing talent requires proficiency and excellence in each of the 4 pillars. In the same way you align your business strategy to your vision, values and purpose, you must also align your talent strategy to those same principles. Hire great people. Place them in quality infrastructure. Commit to their success, advancement and development. Measure, analyze and encourage high performance. 

That's the recipe for talent management that creates a competitive advantage. 

**Addendum: many have asked where "retention" falls into this framework. Retention is a lagging indicator. Successful retention emerges from implementation and activation of leading indicators (ie. the 4 pillars).