Many businesses are emerging from the protracted downturn with significantly leaner running engines. Graham Scrivener, Managing Director of Forum EMEA,looks at the fuel, namely the talent pipeline, which will determine success or failure in the race to get rubber on the road.
Future planning is all about building an effective pipeline of leadership talent, to attract and develop the best people to drive and execute the business strategy. The number one consideration is, when the going gets good, talent starts looking around and businesses go on the hunt. So retaining talent, and guarding against predators is key – as is maximising the return-on-investment from training and development spend. According to studies by organisations such as the Chartered Management Institute (CMI)1top performing organisations have a number of things in common, but one thing in particular is, they get the best from the workforce, by investing in leadership development and providing programmes that can build and sustain a strong pipeline of talent. That should be of no surprise to anyone, but to optimise this, the pipeline strategy must be part of the leadership development programme and aligned with the company objectives, to ensure critical skills flow through the pipeline.
The pipeline needs to be considered a long-term investment, along with the leadership development programme, and have support from the top from point one, if it is to continue to feed the organisation with great talent for years to come. So what is key when implementing a long-term, strategic pipeline of leadership talent? A report by the CMI2 found that 62 percent of 4,500 companies interviewed invest in leadership development to achieve business objectives. So link the two together, and leaders develop the skills to deliver the business goals, and imperatively, build an understanding of the organisation's objectives and priorities. The development plan must have clear line-of-sight, from the work of the leaders to the corporate goals, and outline how skills will emerge from the talent pipeline that are critical to achieving company objectives.
Successful leadership development programmes that produce a strong and diverse pipeline of talent that are more likely to remain in the business, are ones that are targeted specifically at the leader's specific development needs. They differentiate the requirements for leaders at different levels – both their immediate needs and to help over the course of their career. And they do this by tiering their talent pipeline – such as by first-line, mid-level and senior leaders – to offer a more tailored development programme. Tailored programmes link learning with talent management processes such as performance reviews to ensure the pipeline of talent continues to move in the right direction and to ensure all learning is applied to the real world. It develops learning communities and networks for managers between levels, departments and functions to collaborate and help move up the pipeline, and it involves senior management in the system design including objectives against which to measure the success of the development programme.
Managers at all levels should have a clear understanding of what is expected of them so the behaviour of all talent coming through the pipeline links back to the business objectives. Managers should receive regular feedback to understand how the organisation defines leadership, its expectations for leaders and what behaviours support the company's values and goals. This is important when creating and maintaining a strong pipeline of talent. Executives are the ones that make it happen: They provide the resources and financial support to set up leadership development systems. They help in the adoption of these systems by championing them and making managers accountable for developing talent within their teams. And they help in shaping the strategy effectively by defining the skills leaders need now and in the future to help drive the business forward. Senior executives can also act as great mentors for leaders at lower levels and help build a culture of sustainable learning and development that will keep talent flowing through the pipeline.
Investing in leadership development to build a pipeline of talent may help businesses succeed against the challenges of today's marketplace but it requires strategic planning and long-term financial investment. Reportsby the 3CIPD show that less than three-fifths of organisations with talent management activities believe they are effective. Leadership development is something that must be sustained and linked to the business strategy if it is to produce a continuous flow of talent through the pipeline that is equipped with the right skills. If not, the pipeline will simply dry up with great leaders that can drive the company forward.
1 and 2 Chartered Management Institute – the Business Benefits of Management and Leadership Development, February 2012
3 CIPD – Learning and Talent Development, Annual survey report 2012
Graham Scrivener, Managing Director
Forum EMEA
www.forumemea.co.uk
