January 2009
Employee Development
Strategic talent management
Talent management and succession planning had taken a prominent role prior to the current economic downturn. In its wake, succession planning has taken somewhat of a secondary role, and talent management has been brought to the forefront as a strategic response. While a more strategic view of talent management is indeed mission critical, succession planning cannot be ignored; instead, it should be incorporated into an overall talent management program.
"A downturn is not the time to scale back mission-critical areas that impact the organization’s performance over time."
The retirement of baby boomers is still a looming reality, even if delayed by an erosion of 401(k) and retirement funds. Fortunately, companies have more time to manage this only recently recognized issue. Impending mass retirement, which companies haven’t had to plan for during past recessions, must be managed even during these difficult economic times. This issue—just as real as it was 12 to 18 months ago—still exists, and the need to develop a population of qualified leaders and managers still exists.
Companies must come to terms with how to invest their monies wisely to ensure that all aspects of operation essential to business success are sustained. A downturn is not the time to scale back mission-critical areas that impact the organization’s performance over time. Unfortunately, shortsighted thinking (fueled by bonuses and remuneration) that focused on short-term results has pushed many companies into deeper economic trouble. Business leaders must use their foresight to consider how current actions impact long-term performance. Foresight is especially important in learning and development, where the impact must be evaluated and judged over time. Immediate cuts can impact performance in both the short and long term.
A focus on strategic talent management must consider these performance-related consequences, carefully selecting areas for both emphasis and cuts. For instance, mission-critical programs should not be eliminated but the number of participants may be reduced in the short term. The key is to focus on areas that most impact the bottom line while being careful not to cut into the muscle of learning and development and talent management, core programs that will be difficult to rebuild quickly when needed.
Certain tactical considerations impact short-term conditions, areas that can be easily recovered when things improve. Strategic considerations, on the other hand, can impact the organization three to five years out. These areas must be wisely evaluated to solidify an organization’s sustainability. |
