Some believe, quite simply, that if the company stock price goes up, TM is working. Others look at the value of specific initiatives and at ways those initiatives bring in cost savings for the organizations
Lynne Morton, author of the report

Finding, developing, and hiring top talent is a priority for a growing number of leading companies and their chief executives, according to a report released today by The Conference Board. The report shows what major companies are doing to develop talented employees, what processes are working and not working, and what impact talent management (TM) programs are having on company performance. "While the talent mindset must be present throughout an organization, it must also cascade from the top with the CEO as the driver," says Lynne Morton, author of The Conference Board report.

WALKING THE TALK
The Conference Board report reveals a large number of CEOs in major companies are personally involved in the quest to develop talent. It provides case studies of initiatives underway at American Express Company, Pitney Bowes, and Cisco Systems, Inc., firms that have implemented company-wide processes to pinpoint and nurture talented employees. It cites American Express' CEO Kenneth Chenault, Pitney Bowes' CEO Michael Critelli, and Cisco Systems' CEO John Chambers as being actively involved in driving talent management programs in their companies.

The report is based on in-depth interviews with 22 companies working in the talent management area and input from 19 member companies from The Conference Board's Talent Management Working Group.

In most firms, talent management processes are still evolving, with no single measure being universally used to measure this activity. "Some TM practitioners are still viewing its value as intangible or obvious," Morton observes. "Some believe, quite simply, that if the company stock price goes up, TM is working. Others look at the value of specific initiatives and at ways those initiatives bring in cost savings for the organizations."

KEYS TO EFFECTIVENESS
Talent management leaders agree on the importance of the following:

-- Knowing your company's critical jobs and having processes in place to target potential gaps.
-- Identifying potential successors.
-- Sharing talent management measures with boards of directors.
-- Tracking percentages of individuals in key positions who are promoted from within versus those who are hired from outside.
-- Developing and communicating the specific behaviors expected of leaders

in the company to all levels of employees.
-- Evaluating employees annually on both performance and potential.
-- Informing employees of possible career paths that will benefit them and the organization.
-- Using talent management to embed workforce diversity in the company.
-- Having at least 15% of employee satisfaction ratings tied to year-end goals and financial rewards.
-- Identifying quantifiable opportunities for improvement.
-- Establishing a central unit or person-with a cross-functional and divisional perspective-to measure talent management effectiveness.

Adds Morton: "Talent management is a business approach that embodies the emotional intelligence of organizations. This is one of the principal reasons why it's not a fad and that it will continue to evolve into an intrinsic, critical part of business."