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Talent Strategy is the complete integration into the enterprise of Talent Attraction, Recruitment, Initialization, Optimization, Development, and on-going Engagement for that enterprise to achieve Sustainability.

Talent Strategy is cost effective, reduces “time to market”, reduces opportunity costs of recruiting, while increasing retention and economies of scale.

Talent Strategy is the proactive and dynamic evolution of the historic “human resources” function that focuses on Talent as the key element and driver in developing complete Product, Market, and Valuation Strategic Long-Term Planning.

Talent Strategy is embraced by the enterprise to the extent that it becomes embedded in the corporate DNA.

Talent Strategy is a global strategy.

“A recent A.T. Kearney analysis reveals that during the current economic slowdown, companies that show a true commitment to sustainability appear to outperform their industry peers in the financial markets.”

A.T. Kearney, “Green Winners”, 2009

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“In troubled times a business needs enduring values, the best talent and an ability to ‘zoom out’

and see past the chaos in front of it.”

Jim Collins, “How Great Companies Turn Crisis Into Opportunity”, 2009

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“The World Is Flat.”

Thomas Friedman, 2005

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“Integrated Talent Strategy is a critical component of Corporate Sustainability.”

Nadine North, 2009

Thinking about Geithner / Daschle and the Search Vetting Process

Although my team is up to bat – and I’m rooting for them and for us – I must admit that watching the Cabinet selection process has me wondering.

Since my TW team and I identify and evaluate leadership executives – every day – I’m experienced with this process.  It’s important to find talent, ability, qualified experience sets, the right cultural fit – and good solid judgment.  In my humble opinion, judgment is the key.  Right up there with the Golden Rule.  If the people who are going to be your colleagues – and/or leaders – cannot make sound decisions – why have them around?

The recent series of events around the Geithner and Daschle nominations are well documented.  It’s sad, because these are obviously 2 good people, dedicated to public service, who made questionable personal decisions.  That the Selectors were willing to turn their heads to G & D tax mistakes is one set of judgment calls to consider.  That G & D both overlooked paying taxes is not the real issue.  That happens.  It’s that they decided to pay the entire tax amounts only when they were nominated for visible public office.  Those are serious judgment issues.  Decisions were made that their years of service out-weighed these personal tax decisions.  I think they tell us something about the person and their decisions to do the right thing may be somewhat selective.  On both sides of the equation.  What do you think?

(Note:  I’m not going to get into Daschle’s lobbying activities – not considered by Obama’s no-lobby White House.  You can read plenty about that in the NYT editorial last Monday.  http://www.nytimes.com/2009/02/03/opinion/03tue1.html?bl&ex=1233896400&en=abcd08ed904c54b0&ei=5087%0A )

What type of example does this set?  What kind of leadership is this?

As I write this, I’m watching the 60 Minutes show, interviewing the crew of US Airways flight 1549.  An amazing contrast of events…

Where has the great pool of management talent gone?  They are out there, but few and far between.  There aren’t as many choices anymore, and I’m not the only one who notices.

As I mentioned when we last met, this question comes up at least once a week.  The typical questioners?  Executives who were in the talent pool during the 1980s.  The economy certainly was experiencing its challenges then, especially at the beginning of the decade.  But the structure and culture of training business leaders of the future was firmly in place.

First, I pin the dimished pool on the lack of numerous in-house training programs that we so prevalent in the past – which I discussed last time.

Second, both the landscape and “pecking order” of career maturation events were changed by the tech bubble at the end of the 1990s.

Many experienced managers and leaders had big wins in IPOs and M&A activity that gave them considerable and unusual don’t-have-to-work-anymore money.  Many retired in their 40s and 50s, way before they naturally would have left the workforce.  We miss their direct participation, leadership as proponents of the best practices they learned and utilize; and we miss their mentorship, training the next generation of leaders to use these same practices — and most important — to develop their basis of judgement.  So the training ground is missing, both in the office and in the field.

Also, as you recall, things speeded up pretty quickly – which is an understatement.  There were numerous “battlefield” promotions.  Sometimes great for a person’s career, and sometimes way before they were ready.  I’ve seen plenty of resumes of executives who were CEOs in 2000, until their companies cratered, and then never again.  Their promotions were anomalies.  And they still think they’re qualified to be CEOs (or VPs).

Furthermore, replacing experienced leaders were “twenty-something” / “thirty-something” entrepreneurs who became CEOs during the Bubble, who brought in their buddies as EVPs, VPs, and Directors – usually straight out of school, without the benefit of any management experience.  Investors were funding these companies, and taking them public without profits, or even paying customers.  I recall meeting with the SV leaders at Idealabs in early 2000, and they told me their goals were to take companies public — 6 weeks from inception!  From idea, to hiring a CEO to IPO in 6 weeks!  And they were very impatient with me when I questioned this.

So these “executives”, who came of age in the late 1990s and early 2000s, in these companies-that-should-not-have-been are in the market now – without the benefit any training or mentorship in the development of their foundations of knowledge.  How do they make decisions, develop their judgement, train others? 

Well, believe it or not, there’s some good news from the recent financial meltdown!  The well-trained executives who have been “on the beach” for a few years are coming back into the market – and many who stayed because they enjoy the challenges of the marketplace and  just HAVE to work — are sticking around!  We owe them a big THANK YOU!

Where has the great pool of talent gone?

This question comes up at least once a week.  The typical questioners?  Executives who were in the talent pool during the 1980s.  The economy certainly was experiencing its challenges then, especially at the beginning of the decade.  But the structure and culture of training business leaders of the future was firmly in place.

First:

The following were commonplace:

• Entry level training programs
• Management training programs
• Mentorship programs – formal and informal
• Charted career paths
• Meaningful performance evaluations
• Subsidized and encouraged continuing education – reimbursed MBA programs
• Corporate cultures supporting overall business training and professional growth
• Succession planning as a required component of the management plan – not the exception…

Very few of these programs and practices are in play these days.  In fact, there’s an entire generation who have never even heard of these things!

What do you think?

Second:  “The Bubble” – It offered few favors to enhancing the talent pool.  (next time)

“…Let it be said by our children’s children that when we were tested we refused to let this journey end, that we did not turn back nor did we falter; and with eyes fixed on the horizon and God’s grace upon us, we carried forth that great gift of freedom and delivered it safely to future generations.”

 — President Barack Obama, First Inaugural Address, 20 January 2009

Read the entire transcript here http://www.whitehouse.gov/blog/inaugural-address/

Tom Lewis, former CEO of AmeriTrade and of APX, founder of Seer Technologies, a Clean Tech visionary, a client and my good friend — took 2008 as a sabbatical year off.  A man of many talents, and already a top chef and connoisseur of the cuisine, art and beauty of Italy – Tom embarked upon the serious study of art. 

His specialty is the interpretation of light.

The Art of Tom Lewis is displayed here:    http://www.tomlewis.com/art/Home_Page.html

After a year of compelling politics, questionable governing and profound economic turmoil, it’s interesting to step back and take a breath.  Let’s try to understand what has happened and what could or can happen next.

In December, my firm engaged an executive coach to join us for a day to discuss awareness and accountability.  Within a 6-hour session, the inimitable Henry Evans* (Dynamic Results) made dozens of interesting points.  One profound statistic he mentioned is that the amount of information presented to us to process on a daily basis has increased 500x in the last 20 years; however, has the human body evolved 500x in the last 20 years to be able to process it?  No wonder I’ve given up on multi-processing!  I don’t know if I’m convinced it’s THAT admirable of a skill anymore – especially considering the exhaustion level.  Seriously.  And when do we have time to think?

Trying to keep up with current events in the hot spots of the world – Pakistan, India, Iran, Israel-Palestine, Syria, Afghanistan, China, Indonesia, various places in Asia/Pacific, Korea, Russia, the “istans”,  the new Europe… and where have I forgotten (Mexico just today!)… is much more than a full time endeavor – for the most brilliant of minds.  Then add the irrational American political drama; our economy – and how our economy impacts Tom Friedman’s flat world – and how it comes back to us in multiples.  Watch Squawk Box any morning to see how the Asian and European markets react to our previous day’s closings – and our reaction to their openings… interesting way to start the day as actions and reactions cycle around the world…  Rather then gently waking up in the morning, I feel like I’m just stepping back onto the speedway!

The world situation – our governmental decisions – our market management decisions – all obviously now affect our business decisions.  We must now be students of the macro situation to better understand our micro situations.  We have to try to process 500x more information in order to develop a successful strategy for our business lives. 

In Silicon Valley, and the tech-clusters around the US, we’ve always had amazing staying power – and the ability to light the lamp by innovating and persevering our way to prosperity.  Personally, I’ve lived through 4 cycles of this.  But are we in a new cycle?  I heard someone say that this is a “Reset”, not a “Recovery”.  It’s so easy to apply the remedies in 1994, 1998, 2004 to 2009.  However, this is likely to be something completely different.

Reset Button

 * Visit Henry Evans’ site, Dynamic Results, LLC, www.dynamicresults.net , Performance Coaching for C-level Executives — and much more.  Check them out.

Origin: 1275–1325; < L < Gk charakt r graving tool, its mark, equiv. to charak- (base of charáttein to engrave) + -tēr agent suffix

• moral or ethical quality: a man of fine, honorable character qualities of honesty, courage, or the like;
• integrity: It takes character to face up to a bully.
• reputation: a stain on one’s character
• good repute

There are 27 definitions listed, however I choose to discuss these four.

In a society of people who spend a lot of time figuring out how to own more stuff, all we really own is our time (if we’re lucky) and our reputations.  Our Character.  Building good Character is why we have friends, people who are there during tough times along with the good times; family members who actually like us; the ability to motivate and influence others, thereby giving us professioal allies, professional respect, and some measure of professional success.  Yes, I know there are people with professional success who we may rank low on the Character scale – but it often does seem to come back to bite them – don’t you think? (and don’t you hope!)

I’ve seen it happen in the political world and in the business world.  We’re all watching it happen in the financial services sector right now.

There’s a common adage that people are hired for what they are (skills/experience), and fired for who they are – Character.  In my business, we’re constantly assessing skill sets and character.  So I live this all day, everyday.  But so do you.

Applying this to the search for exceptional talent:

As an Executive – Just be who you say you are.  Don’t oversell yourself.  Set expectations and meet or exceed them.  Make this your routine — Wash. Rinse. Repeat.  – and you’ll have a career of steady growth with the critical element of strong loyalty.   (A key Character assessment tool.  See Professional References — The Coin of The Realm) Recently, I asked a very senior executive to describe the team he’d bring into a client company (a candidate for a COO search).  He told me that there wasn’t really anyone he would bring along.  I was stunned.  Red flag.  Well, not really – as there were earlier indicators of his personal weaknesses.  Although he had the perfect experience resume, his reasons for making transitions were always dubious.  I called a few references to back up my instincts.  (A Malcolm Gladwell anecdote – documenting my instincts!)  All there was left to do was to convince my client not to be in love with the resume!

As a Client / Investor / Hiring Executive – Ditto with the above… and tell the e-n-t-i-r-e story about your Company.  A good executive will figure it out.  Eventually, when they get in – but there’s a high propensity they’ll find out as they interview the team.  If you just put all the cards on the table, you’ll be evaluated by the executive as potential partner with high character – and you’ll more easily get the quality and caliber of talent you seek.

Yes, it’s so very hard to live a perfect life…We’re only mortal and we make mistakes – and I certainly make at least my share!  However, it’s great to take a stab at just stating things how they are.  Most people want to make decisions based upon real data – and the right ones will always appreciate your honesty

 – and good Kar-ik-ter.

Trying to develop your 2009 plans, based on what we know from 2007 and 2008?  Good luck.  I don’t know if it’s because I’m plowing through The Black Swan (by Nassim Nicholas Taleb), which has me acutely aware of my habit of depending on past events to forecast the future or because so many unique occurrences have indeed happened in the last few years.  Taleb’s subtitle is “The Impact of the Highly Improbable” – and one of his discussions is that highly improbably, or unanticipated, events have the most enduring effects.  Google, 9/11, the PC…etc.

Just because something happened in a certain way in the past, doesn’t mean it’s going to happen again that way in the present or future.  Right now, while we’re trying to develop our business plans for 2009, economists and other experts are writing multitudes of essays comparing our current financial situation to the The Crash of ’29 and the Great Depression.  I’m certainly not an expert, but it seems to me that the world is so very different, news travels at a tremendously different velocity, and world’s economies are so much more complex, that this is very very different. 

Same thing in Silicon Valley.  People are looking for patterns – mostly trying to compare this time to the Dotcom Bust.  But that was a tech meltdown, not an economy-wide meltdown (although the after-effects of 9/11 brought lots of timidity to most markets… except Security).  This too will be different.