Talent Development: The Key to Exponential Business Growth

#ShoryuWill Newsletter By William Zhang

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What This Edition Will Cover:

• The dilemma of new talent vs. coaching up existing talent.
• How to bring out the best in people.
• How to nurture a culture of growth and continuous learning.
• Tools and technologies that can help.
• 3 Book recommendations to power your team's potential.
• 1-2-3 Punch to get you to the next level of success.

Did you know that by improving only 5% of the productivity of your consulting team, you can add 12.5% to 20% to the net profit of your organisation? The potential hidden in your existing workforce is not just about cutting costs—it's about uncovering new sources of growth and innovation without external recruitment.

The Common Problem and Why It’s Important:

As SMB owners, we constantly face the pressure to innovate, grow, and stay competitive. But the reality is, we often overlook the resources right in front of us—our own teams. With the rising costs of recruitment and the challenge of attracting the right talent, many businesses are stuck between hiring new people and developing the potential of existing team members.

McKinsey reports that 87% of companies either have or expect to face a skills gap. But what if the solution isn’t external? What if you could unlock new value within your current team? That’s where the magic happens.

Proof of Concept:

Take a look at IBM in the late 2000s. When the tech giant faced rapid changes in the IT industry and was struggling with outdated skills, rather than hiring outside experts, they launched a global initiative to reskill 100,000 employees. They provided training, mentorship, and structured programs that unlocked hidden talents, transforming their workforce. In two years, IBM had a dynamic, AI-driven, digitally savvy team ready to tackle new market demands—all from within.

Closer to home, KPMG Australia used a similar strategy. In 2022, instead of hiring for data analysis roles, they trained their existing consultants in data visualization and analytics. They saved millions in recruitment costs and delivered higher quality projects because they leveraged the strengths and institutional knowledge of their existing workforce.

Let’s break down how a small improvement in productivity can have a significant impact on your bottom line. For SMBs, where profit margins can be tight, even a 5% boost in productivity can multiply your net profit by 12.5% to 20%.

Here’s how it works:

• Assume your business generates 1 million dollars in revenue with a 25% net profit margin (which equals 250,000 dollars in profit).
• If your team increases productivity by 5%, you’ll add an extra 50,000 dollars in revenue.
• Since your fixed costs stay the same, this additional 50,000 dollars flows straight to your net profit, pushing it up from 250,000 dollars to 300,000 dollars.
• This results in a 20% increase in profit.

This is why focusing on unlocking the hidden potential within your team is far more powerful (and cost-effective) than looking outside for new hires.

Where We Went Wrong:

For a long time, we believed that external talent was the only way to grow. We underestimated the potential within the 80% of our workforce that could be coached up (or coached out!). While we spent money and time on recruitment, we missed out on developing people who were already aligned with our culture. What made it even harder was not having a strong brand to attract top talent before, but with the online presence we’ve built through LinkedIn, events, AI tools, and online courses, we’re now in a much better position to foster growth from within.

Why the Problem Was Challenging to Resolve:

In the past, developing talent was challenging for several reasons—time, cost, and strategy. For SMB owners, juggling day-to-day operations with long-term team development wasn’t always feasible. The human factor also plays a role: employees may resist change, and coaching requires a sustained effort. Time and resource constraints meant we couldn’t prioritize talent development like we should have.

Why It’s Easier to Resolve Now:

Today, we have a wealth of tools at our disposal to make this process easier. AI-driven platforms help with assessments, development tracking, and role-specific training, while tools like Loom, Google Forms, and Calendly streamline communication and skill mapping. DISC and MBTI tests help us understand employee strengths, which is key to creating personalized development plans.

Moreover, access to affordable online training platforms, like LinkedIn Learning and Coursera, makes it easier for employees to upskill without the need for costly external programs.

The New Thing That Makes It Solvable at Low Cost but High Returns:

Today, we can unlock talent at a fraction of the cost of recruitment. The rise of AI and digital tools like Loom for communication, Trello for skill mapping, and strengths-based assessments like DISC and MBTI allow us to uncover hidden talents and close skill gaps. This low-cost investment yields high returns, in terms of both productivity and profitability.

What Knowledge, Experience, and Network You’re Missing (and How to Fulfill It):

What to do next?

• Conduct a Skill Audit: Start by assessing your team’s current strengths using tools like Google Forms or Typeform to gather data.
• Create a Skills Development Map: Organize these findings using visual tools like Trello, Canva or Miro. This will help you clearly see skill gaps and strengths.
• Invest in Personality Assessments: Tools like DISC and MBTI will give you deeper insights into how your team members operate, allowing you to create more targeted development plans.
• Leverage Online Training: Use platforms like AI Chatbot (for internal training) and LinkedIn Learning to offer continuous education without major time commitments.

• Always Be Hiring for Talent Growth: Even if you're not actively recruiting, maintain an open mindset. Always be looking for talent growth opportunities within your existing team and establish an ongoing recruitment pipeline.

And How to Fulfill It Step-by-Step:

1. Skill Audit: Use Google Forms or Typeform to create simple surveys that assess your team’s strengths and weaknesses.
2. Skill Mapping: Organize the data using tools like Miro or Trello to visualize the areas where your team excels and where there are gaps.
3. Create Development Plans: For each team member, create a customized development plan based on their skills and interests. Use Lattice or other AI-driven tools to track progress and milestones.
4. Use Online Tools for Training: Encourage employees to upskill using tools like Loom for pre-interview filtering, training presentations, Calendly for scheduling development check-ins, and Zoom for remote learning sessions.
5. Improve Hiring Processes: Use AI-driven recruitment tools to craft clearer job descriptions and role expectations, ensuring you attract the right talent when necessary.

Final Words:

Unlocking hidden talent doesn’t require massive budgets or endless time. It starts with a mindset shift—realizing that your most powerful assets are already within your organisation. By focusing on developing and coaching your existing team, you can unlock substantial growth and profitability without the stress and cost of constant recruitment.

3 New Book Recommendations:

1. “Multipliers” by Liz Wiseman – A game-changing book that shows how leaders can amplify the intelligence and potential of their teams.
2. “The Coaching Habit” by Michael Bungay Stanier – Learn how to build a coaching culture within your business with practical and actionable techniques.
3. “The Talent Code” by Daniel Coyle – An insightful look at how talent can be nurtured through focused practice and the right environment.

1-2-3 Punch:

1 Quote: "Great things in business are never done by one person. They're done by a team of people." – Steve Jobs

2 Questions:

• What untapped potential exists within your team that you haven’t yet uncovered?
• How can you adjust your operations to make room for continuous team development?

3 Actions:

• Conduct a skill audit within your team this week.
• Set up a personalised development plan for at least one employee.
• Implement one new tool to streamline your team’s learning and growth process.

Reminder to Subscribe:

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Your friend,

William Zhang