A Talent Strategy should address key leverage points in order to increase the quality and consistency of the talent base, for example:
- Improve the caliber & performance of existing talent.
- Prepare high potential employees for their next promotion.
- Retain the best people, skills and knowledge.
- Focus development efforts where it will reap rewards.
- Supports development activity in the business and avoids a ‘one size fits all’ approach.
- A consistent approach to rewarding and developing talent.
- Develop ‘home grown’ as well as externally recruited people; lower cost and better motivation.
- Ensure you have the skills and talent you need for the future.
Performance and Potential
Talent is usually assessed using two dimensions:
Performance
Assessment of performance rating is usually taken from the most current performance review. Performance rating usually reflects the performance against objectives and skills required for a team member’s role and overall contribution
Potential
Potential is more subjective and based on qualitative assessment. It is about looking forward and predicating what a team member could be capable of in the future. Whether a team member is ready to move up within the organization or stay where they are.
Do not typecast people into a category as their performance and potential changes, and can be developed.
Potential and performance shift over time – e.g. a promotion or change in job can result in performance levels dropping for a short term whilst the person adjusts to the challenges of the new job.
If you discuss the talent plan with your team member take care to position your feedback carefully. Discuss what you see as the team member’s key strengths and talents and where you see opportunity for them to develop.
Performance vs. Potential Grid
When discussing Talent in your organization looking at both Potential vs. Performance is useful to see critical resources and evaluating your organizations talent pool. This is often plotted in a 3×3 grid – sometimes called the “Talent Management Nine-Box Grid” (similar grids can be constructed with different scales). Each box has appropriate strategies and actions for managing people with that mix of potential and performance.
