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Scott Vejdani
The Talent Masters: Why Smart Leaders Put People Before Numbers - by Bill Conaty & Ram Charan

The Talent Masters: Why Smart Leaders Put People Before Numbers - by Bill Conaty & Ram Charan

Date read: 2017-02-01
How strongly I recommend it: 6/10
(See my list of 150+ books, for more.)

Go to the Amazon page for details and reviews.

Focuses on the need for any business to constantly focus on developing and nuturing talent. Examples from GE, LG, and Unilever.


Contents:

  1. THE HOW-TO GUIDE TO IMPLEMENT TALENT MASTERS

My Notes

Talent masters can identify a person's talent more precisely than most people because they excel at observing and listening.

An enlightened CEO recognizes that his top priority for the future is building and deploying the talent that will get it there.

We find that such leaders invest at least a quarter of their time in spotting and developing other leaders.

Differentiation breeds meritocracy; sameness (the failure to differentiate people) breeds mediocrity.

One value we see among talent masters is the obligation of leaders to develop other leaders.

Talent masters work strenuously to ensure trust by insisting on candor in all of the company's dialogues, whether one-on-one, in group settings, or in appraisals.

He wanted leaders, not managers. How would this person deal with people and develop them? Did he have the self-confidence to find and develop people better than himself? Could he see what was coming from the outside and deal with it? Finally, he wanted leaders who could put their own near-term interests on hold for the good of the company.

Performance - getting results - is viewed as the ticket of admission; it's expected as a matter of course. But leadership values determine whether a person will rise in the organization.

HUL has refined a singularly powerful tool for assessing candidates. It brings several applicants at a time together with HR people and senior managers to discuss a specific business issue in groups. The discussions bring out whether individuals "have it all" - not only the functional skills but also the judgment, integrity, and temperament required to make good decisions and build and maintain relationships. In particular, they put a spotlight on getting things done in ways others will admire and want to follow.

Developing talent through experiences expands capability and capacity in the four major components of talent: personal traits, skill mix, relationship building, and judgment about people and business.

Becoming aware of and dealing with your inner core is at the center of leadership effectiveness and development.

The greater the scope of a decision and the more variables and uncertainties there are, the more important it is for the leader to be aware of unconscious drives and biases that could affect emotions, reason, and intuition.

He distills his learning into five principles that he wanted Goodyear's leadership talent to reflect: Business is a team sport; it isn't ultimately about individuals. The best decisions don't come from the smartest person in the room; they come from a group of smart people gathered in the room. Leaders need to know what they don't know. Leaders must be courageously innovative. Leaders must be passionate about their business but remain unemotional when making key decisions.

People have to know beyond a doubt that they are expected to search for and develop other leaders' talent, and to do so with the same drive for accuracy that they apply to operations and finance.

If one person says he thinks a certain person would be best for a bigger job, we'll ask him, ‘If that person were outside Goodyear and submitted a resume for that job opening, would he be the one you would hire?' When you do that they start to get it, they understand better what to look for and how to evaluate people."


THE HOW-TO GUIDE TO IMPLEMENT TALENT MASTERS
Selecting Leaders:
  1. Get senior leaders involved in selecting leadership talent.

  2. Hire for leadership, not just functional or academic expertise.

  3. Learn about the person's values and behavior before hiring.

  4. Be humble enough to bring in outsiders when you have to, but take steps to ensure their cultural assimilation.

  5. Be honest about who has the greatest leadership potential - watch carefully to see if those initial judgments were correct, and don't get locked into predetermined stars whose shine may be dimming. Keep an eye out for others you might have missed or whose leadership talent emerges later.
Developing Leaders:
  1. Make talent development your obsession - Spend at least a quarter of your time trying to understand people's talents and helping them grow, and try to improve your judgment about people.

  2. Drill to the specifics of each leader's talent, just as you would drill to the root cause of financial performance. Be rigorous in identifying the one or two things that will accelerate or unblock the person's growth.

  3. Give frequent, honest feedback.

  4. Make talent development an explicit part of every leader's job and hold him or her accountable for it.

  5. Provide intellectual opportunities for additional growth.
Making Leadership Assignments:
  1. Give leaders jobs with lots of room for growth - experiencing a different culture is top of the list for leaders in companies that are expanding globally.

  2. Take a corporate view when giving assignments - leaders at GE sometimes have to wait for the right assignment, but senior leaders keep an open dialogue with the person so he or she knows what the company has in mind.

  3. Think creatively about where a person will excel.

  4. Keep a database of employees' skills and experiences.
Assessing Leaders:
  1. Do formal reviews informally.

  2. Use business reviews as people reviews and vice versa - no business operational or strategic review is complete without examining the people implications involved in executing the strategy.

  3. Don't judge performance by numbers alone.

  4. Consider what the leader leaves behind - you learn even more about a leader by looking at the business after he or she leaves the job. Interview people to find out and use it as a development tool to give the person feedback, not to play "gotcha."

  5. Sort misfits from failures - when a leader falls short in one job, rethink your assessment of the person's talent and search for a better fit.
Recognizing and Retaining Leaders:
  1. Tell people how they fit in - telling someone they're doing a great job doesn't cost a penny. Virtually all the masters of talent give frequent, positive reinforcement, and they make it personal.

  2. Spread financial rewards throughout the year.

  3. Allow for judgment when compensating leaders - how effectively the person performed versus the industry competition.

  4. Differentiate - all people may have been created equal, but they don't perform equally well.