Great talent can be a source of true competitive
advantage—provided it’s deployed against key sources of value. In this
interview with McKinsey’s Rik Kirkland, the founder of executive-advisory firm
CEO.works and former chief human-resources officer of Unilever, Sandy Ogg,
talks about managing talent to build speed in organizations, understanding how
jobs link to the value they create, and responding to shifting tides in HR. An
edited version of his remarks follows.
Interview transcript
We used to think about what, people are our most important
asset. And people said that, but they didn’t mean that. Now all of a sudden,
the world shifts from a people focus to a talent focus.
And just the word “talent” means something different. This
means someone who is incredibly capable and is going to be able to build an
advantage for me. You know, I often talk or think about Jim Collins’ book Good
to Great, and when I think about talent, it’s not good to great—we need to go
from great to insanely great, ludicrously great people. But you need them where
the value is.
Being able to rapidly redeploy that talent, and whether it’s
one at a time, ten at a time, a hundred at a time, or a thousand or even
thousands at a time, that’s how you build agility into a large enterprise that
can operate at scale.
HR reimagined
We’re at a really interesting point in the function that
everybody calls HR. And I’m not crazy about, “Let’s rename it and call it
something different.” It’s HR.
But it’s HR reimagined. HR redesigned, if you will.
Stepping into the world of private equity, the thing that I
discovered was the sharpness of the way that private equity sees and gets
focused on value was pretty stunning. You know, no nonsense, let’s get right to
it. They realized that there were two things you had get right in every
investment. Number one, you had to buy the right asset at the right price. And
number two, you have to have the right people, and you have to have enough
talent working on it, in order to be able to create value in a compressed time
frame.
Then what they wanted to make sure was that we were able to
connect talent to value in order to create speed. So where does all of that
sit? Where does all that speed come from? It comes from managing people,
managing talent, and therefore the role of HR in a private-equity company goes
way up because you look at the value that is at risk in that drag. If you can
master that value at risk better than the other people, you win.
One of the things that I’ve been doing is just looking at
the language that HR people use. And even the people that are writing about the
latest model of the competencies of the modern, future-proof CHRO—it’s all in
the language of the “business partner.”
We need the CHRO to move from being a partner to the
business to being a leader of the business. Therefore, we’re going to be using
language that is leaders’ language. “We’re going to mobilize change. I’m going
to be a mobilizer. I’m going to be a shaper of the organization.” It’s no
longer change management and talent management and this kind of stuff.
The work of HR is going to change so it’s much more speed
focused. And I think HR can become an operation that actually creates speed
relative to competition by being able to reduce drag.
About the Authors: Sandy Ogg is the founder of CEO.works, an
executive-advisory firm, and the author of /move: The CEO's Playbook for
Capturing Value. Rik Kirkland is the senior managing editor of McKinsey
Publishing and is based in McKinsey’s New York office.
To read more please click on the below Article Source:
https://www.mckinsey.com/global-themes/leadership/using-talent-management-to-create-value