How Boards can lead a Talent Driven Organization

BOARD DUTIES

The old-adage of the role of BoD to protect and enhance shareholder value still rings true of course. But in 2016 McKinsey stated “ Directors are now required to engage more deeply on strategy, digital, M&A, risk, talent, IT, and even marketing.” Today there are even more pulls on the Board -- from ethics, fraud, data breaches, AI and the #metoo movement. Look no further than the judge's Wells Fargo BoD ruling last Fall, executives are not the only ones held accountable. Boards are being held responsible.

Time for Boards to Pivot

WAR FOR TALENT (2O years and counting) 

The year was 1998. The McKinsey “War for Talent” study hatched. “The search for the best and the brightest will become a constant, costly battle, a fight with no final victory.” That was 20 years ago! (For some of us that seems not so long ago!) And now everywhere we turn there is a new article or book penning how the CEO or CHRO can be victorious in the talent game.

In the recent book release of Talent Wins the authors speak to the concept of managing with the “G3” (CEO, CFO and CHRO) and appropriately sings praises of the high impact of several successful CHROs to this concept. I guess the war that started in 1998 is still fighting strong. They also suggest the alignment with the BoD – the “talent-driven CEO wants the board to focus on two forms of “TSR”: not just total shareholder return, but also talent, strategy, and risk.” And also stated, “A board that is focused on Talent is a board that is focused on the future of its company.”

But the real question is who on the BoD is leading this "TSR" discussion?"

• Who is ensuring your organization is optimizing the talent strategy needed to execute on the business plan at the Board level? 
• Let’s move the needle beyond just having the G3 and Board alignment. The CHRO "in the room" is not enough. 
• The handful of companies that have Talent Experts on their Boards are just too few. 
• Studies have shown that NOT many organizations are highly effective in the Talent Game. ghSMART’S Power Score " only 14% of business leaders believe they are achieving a high level of success when it comes to TALENT."

Could it be the lack of a TALENT EXPERT on the BOARD keeping leaders accountable?

A TRUE TALENT DRIVEN ORGANIZATION

In order to have greater performance, there needs to be a clear path into how critical talent is identified, developed and retained. Having an excellent business plan without the talent to execute on it will not serve the shareholders best interest. There needs to be more direction and accountability linked to the Board. How long till a judge feels there is a “breach of duty?” 

Coco Brown recently stated in her Article Why a CHRO will be the Next Must have Role in the Boardroom the need is great for many reasons beyond CEO succession, Board Evaluation and Compensation -- now that Artificial Intelligence, Millennials, Gen Z are changing the way we work.  

Not every CHRO is ready for the BoD battle. The board-ready CHRO would have the business intelligence and organization intelligence to guide this discussion. I have worked with those that can meet this need.

But instead of just having the BoD “alignment talk” about talent there needs to be someone on the Board that is a Talent Expert LEADING this dialogue. Would that help us have a different outcome of this “War for Talent” in the year 20__? 

Let’s Talk

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