Pilar Jerico

I have recently been involved in the project “Talent Management in SMEs” which was carried out in different areas of Spain. The project was, inevitably, accompanied by the current climate of uncertainty which is forcing companies to really get the most out of their staff’s talents and is driving employees to give the best of themselves, to think proactively, and to work as a team.

Although the project was a lot of work, it was also extremely rewarding. For the consulting firms involved -InnoPersonas (where I work) and Gestiona- it was really motivating to be able to have an impact on the human resources policies of the small- and medium-sized companies who took part in the project. We met with people who were enthusiastic and great to be around, with a real desire to switch over to new ways of doing things, and implement more flexible and open policies. A group of true professionals!

The project aimed to bring about a greater degree of professionalism in management practices, reinforce leadership, and kickstart innovation. It comprised the following phases:

1. An analysis of the key factors in the SMEs related to talent management (all the staff took part in this). In order to carry out this analysis, we looked at various aspects of innovation and the development of talent, such as: diversity, co-creation, collaboration and horizontal structures, participation, transparency, self-management, freedom, recognition in the workplace, and an orientation to innovation. We also considered policies to attract and develop talent, commitment to the job and personal motivation. We used a questionnaire consisting of 25 questions, with a choice of answers which didn’t allow respondents to sit on the fence. The combined results of the 18 companies which took part in the project were as follows (marks out of 10):
   -Factors which favour talent: leadership (6.81), climate (6.91), company culture (6.93), strategy/innovation (6.88).
   -Structural factors relating to talent: remuneration (5.14) and overall organization/interdepartmental organization (5.74).
2. Talent management workshops, identification of opportunities for innovation with the board of directors, and a follow-up analysis of the feasibility of implementing these opportunities. A summary of the best practices which were identified in the project was communicated to the SMEs. We looked at eminently practical concerns, such as: the “why” of talent management, an analysis of the diversity present in teams, an overall analysis of the role of talent in the business world: I want/I can/action; facilitating factors, obstacles and catalysts for talent; individual and collective feelings, and the nature of the talent currently available in the companies; and an overall diagnosis of each company, etc. We also worked on having a vision of the future, the appropriate behaviour to harness talent, progressing from having talented individuals to having talented teams, etc. All the workshops were very much hands-on and highly practical.
3. We supported the whole process through counselling sessions. The information obtained from the questionnaires and workshops enabled us to shape these sessions. (There were three sessions in all, most of the time broken down into one face-to-face session and two over the phone.) The sessions focused on help which was tailor-made to the needs of each person in order to bolster a change in their habits, consolidate what had been learnt in the workshops, and determine a future plan of action.

As part of the project we developed a 2.0 collaborative platform focused on sharing the best practices. All the users could write their own blog and had their own inbox to receive messages. They also had their own personal profile, and the chance to take part in online forums and discussions, set up their own debates, and upload and manage documents and their own social network. Throughout the project InnoPersonas kept the platform fresh and lively by posting articles and a wide range of information about talent management.
Conclusions
- It is not easy for the SMEs who took part in the project to introduce major changes in their organizational structure or implement significant improvements in their human resources policies: most of the companies we worked with are stretched to the limit and simply do not have the time to implement far-ranging changes. When we examined the viability of introducing talent management policies in SMEs, we realised that this objective was too ambitious; before contemplating the implementation of such policies, SMEs need to have developed a genuine 2.0 human resources environment. In short, as a necessary first step SMEs need to improve their overall human resource policies and adapt them to the needs of the company.
- In view of the current low level of job rotation in the marketplace, it is almost impossible to ascertain whether the companies who took part in the project are retaining staff because of improvements brought about by the project, or merely because of the general (un)employment situation.
- Communication is the standout area for improvement in all the SMEs who took part in the project; also very high on the list of “could be better” is the management of conflicts between departments, and innovation in processes, systems and structures.
- The areas where employees feel most satisfied are the flexibility given to them, the atmosphere at work, and the equality of opportunities which they enjoy.

InnoPersonas

Our working life is increasingly going to resemble a relationship, or a marriage, with the odd separation thrown in for good measure; and this is going to happen, whether we like it or not. The world is changing, and our working lives will change in step with it. A few years ago, the management consulting firm, McKinsey, said that in 1990 a person would work on average for two companies throughout his/her working life, but that by 2010 the figure would rise to ten. This estimate now seems excessive in the light of the current economic crisis which has put a brake on people changing jobs (which makes the life of many human resources departments easier, and has conversely made life more difficult for the many people seeking new pastures). That being said, the pace of change is such that no manager can feel confident that he will hold down the same job all his working life. This has profound consequences both for companies and for employees.

As regards companies, the fact that they cannot guarantee a job for life is not a justification for playing on people’s fear of being dismissed. We all need a minimum degree of security to give the best of ourselves, and the constant threat of losing one’s job is harmful both to the company and to its staff. If a company cannot guarantee long-term job stability, it will need to implement strategies which increase its employees’ emotional commitment to the company, such as a good atmosphere at work, and innovation at all levels of leadership. I wonder how many companies are actually doing this…

As far as employees are concerned, they have no alternative but to manage their own careers. Sitting with our arms folded, waiting for the company to decide what is best for us, no longer cuts the ice. We have to take responsibility for our own training, and make ourselves as employable as possible. If you’re currently in a dead-end job, you have to take measures to get out by studying, looking for alternatives, etc., etc. You mustn’t lose sight of your ultimate professional goal: if you happen to be fired (or your job is excess to requirements, as the current euphemism goes), you must be employable elsewhere. Unfortunately, the current crisis has caught many people unawares, and they keep on blaming the system when for years they’ve been doing exactly the same job. Let’s hope that the difficult circumstances which pertain at the moment will help us all to realise that our future in the end lies in our own hands, and that we should only commit ourselves to things which are beneficial for our development, both personal and professional. The rules of the game have changed, and our way of understanding work will need to adapt to this new context.

What lies in store for people management in the coming year? In this post, I’d like to share those ideas which I think will have the greatest impact on human resources management this year. Of course, some of these ideas will be more appropriate for some sectors than for others; and only time will tell if these predictions turn out to be prescient…

1. Leadership 2.0: A new style of people management, more open and less distant, is gradually making headway. The creation of this new culture is being helped by Web 2.0 applications that focus on cooperation, new ways of perceiving value in companies, and the presence of a digitally literate workforce. However, this culture change will not be achieved primarily because of technology, but because of a different conception of managing people; in particular, a more cooperative, transparent and less distant type of leadership. As happened with Internet at the beginning, some companies will be quick to embrace new styles of management facilitated by technological advances, while others will be mere passive observers. When we talk about a 2.0. approach, we do not just mean having a blog (!), but far more profound changes in management style.
2. Change and transformation management: Many companies are embarking on profound changes, and will need to implement a shift in the company culture for a variety of reasons: they are entering the 2.0 world, they will have to keep on downsizing their workforce, or they’re trying to recover after a bad 2009. No one knows what will happen in 2010, but one thing is for sure: we won’t go back to where we were before the crisis. Therefore, the need for change and transformation is inevitable.
3. A NoFear style of management: Many people are feeling dejected because of the crisis, and it will be a real challenge to manage them in such a way that they stay motivated. Unfortunately, fear is on the increase, and many managers who previously nurtured their staff’s talent are now returning to more coercive practices. However, such a management style is incompatible with creativity and with a state of mind which allows people to give the best of themselves.
4. Mentoring: Many less-experienced managers are finding the current exacting circumstances very difficult to negotiate. For this reason, companies such as Banesto are implementing talent development programmes which use more experienced members of staff as guides, or mentors.
5. Informal learning: A few years ago, one of the difficulties of e-learning was the lack of access to Internet, or people’s lack of ability to use it. This problem largely no longer exists, and we now have the opportunity, and the challenge, to provide cooperation-oriented resources which enable people to develop professionally.
6. A client-focused approach: Human resources departments need to fully understand they are at the service of external and internal clients; they should also think about using basic marketing skills in their communications with the rest of the company, as their internal image often leaves much to be desired. All of the foregoing will serve to place the human resource department more in line with the basic aims of the business.
7. 2.0 communication: Social networks are assuming increasing importance in intra-company communication. Indeed, some of the more innovative companies are now replacing intranets with this type of tool. Communication needs to be increasingly horizontal, and in all possible directions, both within the company, and externally.
8. The end of rigid demarcation: Divisions between departments will be gradually diluted thanks to technology and the need to work as a team. As complexity grows, rigidly separated departments make less sense. Detailed lists of functions that are set in stone will gradually become meaningless owing to the rapid pace of change.
9. More performance-related salaries: The percentage of total remuneration which is allocated to meeting objectives may increase, especially in times of crisis like the present. While it is true that companies cannot afford to lose talented people, it is equally true that they are not in a position to pay the salaries offered before.
10. A better work-life balance: An increasingly popular way of improving employee motivation is to implement policies that help staff meet the demands of their professional and personal lives. Such motivation-enhancing policies are all the more important in an environment where salaries may well stagnate.

“The role of the company chairman and CEO in the 21^st century will be to provide a vision and to choose the best people.”

Jack Welch, Chairman and CEO of General Electric (1980-2001)

1.     Time and resources! The first commandment: your job will be to devote yourself body and soul to nurturing talent in your organization.

2.     Talent strategist: You will carry out an in-depth analysis of the needs of your company in terms of the talent required, the skills needed, and the level of commitment and performance sought. Furthermore, you will determine the value which the company gives to its employees; in other words, you will determine the reasons why someone decides to start working -and subsequently to keep on working- for the company, and the benefits which this person perceives the company gives him.

3.   The Casanova factor: You will be in regular contact with the main sources of talent available to you (universities, professional bodies, associations, your competitors), and you will be well-known to them. In addition, you will clearly communicate your company’s strong points. In a word, you need to seduce potential employees.

You also need to be flexible about where you look for talent. It stands to reason that if your company is looking to innovate, it won’t want to hire a series of clones; and it is equally the case that you won’t put together a diverse team if you only hire engineers who go to “X” university and come top of their class.

Seduction has to run through everything you do (in the area of talent management…). So you can say goodbye to the old, tried and trusted ways of hiring people, and start to use your imagination. How about putting out some more creative ads when looking for new people? Why not ask applicants to mention on their CVs their hobbies, any voluntary work they’ve done, the sports they play, and the trips they’ve been on? After all, if you want to know who you going to hire and what type of person they are, you will want to go beyond just their academic qualifications,.

4.     Keeping tabs on talent: You will keep up-to-date with movements in the market and will be on the lookout for possible manoeuvres by your competitors. What’s more, these days you need to be more alert than ever: the Internet has made communication and job-seeking much easier and quicker for everyone- your own staff included.

5.     A connoisseur of talent: You will select people based on their abilities, level of commitment and their potential. An employee who is committed to his company will be motivated to contribute ideas and feels part of the organization. Does your selection process take into account candidates’ psychological potential to commit themselves to the company? In addition, you will need to take on a range of different people if you want to innovate, and you’ll also need to be very flexible. Bear in mind that the genuinely talented professional is very demanding and may ask you more questions in the job interview than you ask him! If this happens, it’s actually a good sign: this type of person knows what he wants, and he realises that he is in a position to choose precisely because he is very good at his job.

6.     A trainer of trainers: You will use the plans which the company undertakes as a means towards staff development. You will make sure that your organization does not have glass ceilings, and that people are able to develop professionally in their jobs, without waiting to be promoted. You will also participate in the identification of possible candidates for promotion and in making sure they receive the appropriate training.

7.     A builder of commitment: You will build a protective moat around the company so that people do not want to leave. You will do this by having an appropriate style of leadership, by gradually changing the prevailing company culture if there are problems in that area, by promoting a good working atmosphere, and by making sure that salary levels are fair within the company, and in comparison to your competitors. Of course, we always have the best of intentions in this regard- to lead well, to pay well, a good company culture, etc. But, as the Bible says: “the spirit is willing but the flesh is weak” (Matthew, 26: 41). In view of this, you need to evaluate the current situation objectively, and then to take the appropriate stops to remedy any shortcomings detected: for example, by developing leadership skills through coaching programs, by initiating a change in the company culture, or by reviewing salary scales. And don’t lose sight of the ultimate aim of all these actions: to reinforce the commitment of your staff.

8.     A natural problem-solver: When a member of staff does not perform as well as expected, you will analyze the causes and consider a variety of solutions, which can range from changing the employee’s responsibilities so that he can better develop his abilities to terminating his relationship with the company, if this proves to be necessary.

9.     A catalyst for getting everyone involved: In order to carry out all of these tasks, having the support of senior management will not be enough; you will also need to get all of the company involved; you will need to clearly communicate the initiatives you are putting into practice, ask for suggestions, and ask your staff to recommend people from outside the company when you are looking to take on new personnel.

10. A negotiator up to the last minute: Why not have a friendly chat when someone decides to leave the company? This will enable you to find out first-hand the real reasons why the person wants to leave (provided that he’s not excessively diplomatic) and, in the course of the interview, you may find an opportunity to make him a counter-offer and persuade him not to leave. You’ve got to find this last-ditch effort an exciting challenge, like Michael Jordan who loved the dying seconds of the game so much that people talked about his “love affair with the buzzer.” He made game-winning shots on the buzzer on no less than twenty-five occasions!

So, do you feel ready to be a Manager of Talent? And to manage your own talent?

Few subjects arouse such interest as leadership. There are millions of entries devoted to it in Google, and hundreds of courses and books, some of which provide the ingredients for becoming a good leader in the best style of the traditional cookery book. And yet, leadership continues to be a problem area for many organizations, despite the fact that it is quite possibly the key factor in fostering the development of talent, the achievement of targets and the elimination of fear.

Before approaching such a broad subject, we need to state a basic premise: we would do better to speak of leaders rather than leadership in the abstract. Now, the necessary but not sufficient condition of being a leader is to have followers. Let us be clear, being recognized as a leader does not mean that we have to become a combination of John Wayne and Albert Einstein, in the words of Jonas Ridderstrale and Kjell Nordström, the authors of Karaoke Capitalism. The essence of being a leader is much simpler than that, although no easier. Whereas managers are in charge of teams who follow their orders, leaders have people who want to follow them. This fundamental difference has two implications. First, we all have been, or may in the future be, leaders in a particular situation. Secondly, leadership is above all a question of the emotions. In point of fact, the best leaders I have known all have one thing in common, judging from what people who work with them have told me: the utmost understanding of each person they work with, the utmost awareness of their colleagues’ strong and weak points, and the ability to inspire the utmost trust. Their colleagues want to follow them not only for rational considerations but also for emotional ones. One last point on the subject of leaders. There are as many types of leaders as teams to lead. There are leaders whose strong point is their expert knowledge (like Gil Grissom in CSI Las Vegas, to take an example from TV), leaders who base their success on their ability to influence people while yet others who are very charismatic (such as Jack Welch, ex-Chairman and CEO of General Electric). Leaders of all types share common characteristics, one of the most important being the ability to communicate.

All organizations need to have efficient channels of communication if they want to avoid becoming a parody of the game of Chinese whispers, where a message is passed along a chain of people only to emerge completely distorted when it reaches the last person. To avoid a company falling into this trap, leaders have to communicate clearly, to communicate frequently and to check that their staff really understand what they’re trying to get across. If they don’t do this, they can suffer the same fate as Captain James Cook, the Englishman who discovered Australia in 1770. On disembarking to explore the newly-discovered continent, he saw a strange animal jumping around. He asked the Aborigines what it was called. “Kan-ga-roo” they replied. And so he called it a kangaroo. Years later, philologists began to study the Aborigines’ language. They discovered that “kan-ga-roo” actually means “I don’t understand”.  I wonder how many kangaroos are jumping round your office…

On-going communication can be extremely tiring but it is very productive. It helps to transmit emotions, values and the company culture and it also stops people wasting time trying to find out what’s going on in the corridors. Let us not forget that humans, according to psychologists, are informavores (consumers of information). If leaders do not provide all the necessary information, their staff will go and look for it in rumours, the number of which is always in direct proportion to the opaqueness of the organization.

To sum up, if we want to become good team leaders we need to develop excellent communication skills, regardless of what type of leader we strive to be. We need to communicate what we want, what we think and, of course, check that our message has been received loud and clear.

What have we got in common with a snake or a donkey (without thinking of anyone in particular)? Paul MacLean gave us the answer to this riddle with his theory of the “triune brain”, popularly known as “three in one”. According to this theory, the brain comprises three interconnected neural systems which are the product of different evolutionary processes. These systems are the reptilian, the limbic and the neocortex.

It appears that we’ve all got some connection to reptiles, whether we like it or not. Our affinity is located in the oldest area of the brain, which is found in the upper part of the spinal cord at the base of the neck. The reptilian system is focused on action. It doesn’t think or analyze, but leads to action when prompted by the body. It thus forms the basis for instinctive modes of behaviour, such as certain types of aggression, the sexual instinct or the defence of our own territory. Looked at in this light, perhaps warmongers are closer to snakes than philosophers.

The second cerebral system is the limbic or the paleomammalian system. In evolutionary terms, it is younger than the reptilian system. It is located behind the face and envelops the reptilian system. According to MacLean, we share this system with all other mammals, hence its name. From the point of view of fear, the most interesting aspect of the limbic area is that it controls our emotions. So happiness, anger, love and fear, amongst other emotions, are processed in the part of our brain which most closely resembles the brains of dogs, elephants or donkeys. The limbic system can therefore justly be considered the affective part of our brain. It follows, then, that love is not the exclusive prerogative of humans, although we are the only ones who write poetry about it. Any imbalance in the limbic system leads to negative emotional conditions such as depression, loss of memory and morbid states of fear, among others.

Finally we come to the neocortex system, which is the exclusive prerogative of homo sapiens. This system enables higher-level thinking processes, such as the solution of problems or critical and artistic faculties. This neocortex contains a series of nerve cells which facilitate the production of symbolic language, which gives rise to abilities such as reading, writing and arithmetic. This explains why poetry can only be written by humans, even though many of its underlying emotions are shared by all other mammals.