Talent Management

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Collective, organizational talent ultimately determines enterprise health and value.   Among knowledge workers, the upper half of "average" individuals outperform the lower half by fully 60%.   The 80/20 rule implies a 16:1 sales performance differential!   Imagine the disparity in enterprise value between an "A" team and a "B" team.

Peter Drucker observed: "Executives spend more time on managing people and people decisions than on anything else, and they should.  No other decisions are so long-lasting in their consequences or so difficult to unmake and yet, by and large, executives make poor promotion and staffing decisions.  By all accounts, their batting average is no better than .333: at most one-third of such decisions turn out right; one-third are minimally effective and one-third are outright failures."

He added: "In no other area of management would we put up with such miserable performance.  Indeed, we need not and should not. Managers making people decisions will never be perfect, of course.  But they should come pretty close to batting 1.000, especially because in no other area of management do we know so much."

So what do we know?  We know that we can screen out "clunkers" with assessments that measure integrity, reliablilty, work ethic and attitudes toward substance abuse.  We know that best-in-class job-matching assessments predict job performance better than education, experience or interviews.  We know that employee engagement represents the biggest productivity and talent retention lever available to business today; and we can measure and manage employee engagement, superbly.   Peter Drucker was right – "we know so much".  There's work to do.