decisions to be reflected in the bottom line. And, equally, managers are often slow to correct mistakes. Let’s not underestimate the loss of potential business brought about by having the wrong person in an important position for too long.
So, what might be an alternative to the traditional job interview? Well, for one thing, it is certainly not following the popular trend of outsourcing the whole process to external consultants, even if being able to blame them when things don’t work out is an attractive proposition. There is no doubt that the standard array of techniques such as personality type and interaction style tests, assessment centers, and structured interviews have their place. But these can only work well if all those involved, both internal staff and external consultants, have agreed on a detailed brief for the position to be filled and have the full support of senior managers within the business. When it comes to recruitment and development from within the company, especially for key positions and the selection of next-generation leaders, it is advisable to refer to internal assessments, 360-degree feedback tools, and experiences gained from personal interactions over many years, in favor of management audits run by external consultants. And it’s downright negligent when top management steers clear of important personnel decisions, thinking these are better left to the HR department and the relevant line managers. An experienced CEO we’ve worked with for many years once said, “The most important decision we make as a company is who we hire and then systematically develop.” We thoroughly agree!
Are You a Consumer or a Producer of Talent?
A large American corporation introduced a special remuneration system for its board members. Twenty percent of variable income was linked to the “talent” balance of each director. Was their division able to supply talent for the top two hundred senior management positions, or did they have to recruit externally for crucial vacancies or even draw on talent from other divisions? The key question was “Are you a net producer or a net consumer of talent?”
This process proved to be very effective, not only in terms of remuneration, but also because it helped to establish consistent talent development as a core element in the corporation’s business philosophy. As is so often the case, “What you measure is what you get!”
One of our interviewees elegantly describes how a top manager can nurture talent and benefit from the process along the way. His following statement is reminiscent of the recruitment method the Inca lords used. They’d deploy to the various regions graduates of their elite Yachaywasi Academy who’d been selected as students from either their own or the region’s upper class.
From Dr. Alexander von Preen, CEO of Intersport eG:
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