Talent management - finding the people with the right skills and nurturing them to bring out their best - is now an integral part of commercial success, argues Ciara Fallon

A critical success factor in any business is the calibre of its people and the intellectual rigour and relationship skills they bring to bear. This is increasingly the case as we move to a more knowledge-based economy, where it is people, and not just processes, that add the most value.

On this basis, the concept and discipline of talent management is an area which has garnered significant currency and practice. A quick enquiry into any of the standard search engines will yield approximately 1.3 million results. It is no surprise, therefore, that, with this much white noise, the subject is sometimes met with cynical commentary and even dismissal by both the beneficiaries (business-owners) and subjects (staff and management).

It is understandable, really, that this might be the reaction - how many times have you heard an organisation espouse the principle that "our people are our greatest asset"? With reasonable regularity, most likely. What is probably less of a certainty is that there is a robust and effective talent and human capital infrastructure in place to underpin this declaration. And this despite the fact that it is becoming clear that no single issue has a greater or more direct bearing on the bottom line than 'talent'.

Who owns talent management?

One of the most common mistakes in talent management is that accountability often resides within the HR function and is not owned by the leaders of the business. Identifying and developing talent (i.e. those who have leadership potential), and in whose hands the future of the business is entrusted, represents a strategic responsibility and is a demanding process.

Frequently this approach happens because it's not always a role that comes naturally to business leaders. The inevitable consequence of this forced separation is that there are often insufficient linkages between an organisation's business strategy and its approach to talent management, if indeed it ever existed.

If business leaders own talent management, what needs to happen?

A strategy of any kind is only as effective as its implementation, and talent management is no exception. Strategy is simply not enough. The focus needs to be on the engine room that will drive these strategies and make it happen.

Consider what management is typically known for being good at - operating excellence, technical capabilities, achieving business results? Management is not so often noted for being good at spotting talent, giving talent opportunities to stretch and take risks, helping and guiding them to take those risks, and having the difficult conversations when needed.

It is important to recognise this when it is happening and take appropriate measures whether it is through additional development, coaching or whatever works for the individual. A capable manager is one of the most important levers for identifying and developing talent and it is an area that should not be overlooked.

As with any other corporate behaviour, the importance of effective talent management must be clearly demonstrated at the top before line managers will come to believe and accept that it is a genuine priority.

What about HR in all of this?

This viewpoint begs the question, "If the HR function doesn't own talent management, then what is their role in this?"

Best practice suggests that, in addition to providing the supporting infrastructure and services, the HR function, operating as a strategic business partner, can add huge value to the process by challenging management, bringing the latest thinking, frameworks and methodologies to bear and keeping talent management everpresent on management's radar.

Locating talent - where to begin

Getting the right talent into an organisation is not purely a numbers game, but rather a contest for quality. Similarly, the definition of talent, and the recipe for a future leader, is no longer so clear. What is crystallising, though, is that for any business, assembling a workforce that looks and thinks alike just won't work.

And finding the right people isn't just about knowing how, where, and when to look. Even more important than finding the people you want is ensuring that people want you.

Some argue that there is far too much focus on talent acquisition and not enough emphasis on resource management, i.e. making the most of the talent you have. Unfortunately, there are no easy answers on this one, and it is the one unifying challenge facing all organisations.

What makes for a good development environment?

Effective talent management involves strategic and long-term talent mapping: i.e. integrating the skill sets, competencies and behaviours needed to fill current and future leadership roles into high-potential employee development efforts.

Organisations should aim to support those who take initiative, promote a learning culture that encourages development, and talk frequently, openly and candidly about performance. Recognising, and capitalising, on differences in leadership style and management behaviours provides a more enriching environment for talent.

For those who are strong performers, acknowledge and reward their performance, work on a plan to sustain and strengthen it, and talk to these individuals about their next role or assignment. Help them develop and hone the skills they need by giving them tasks that stretch them or that require new skills or new abilities.

Inherent in this process is understanding their abilities and needs and enhancing their value through tailored development. Having said this, talent management is in essence about the few, not the many, and there is a clear requirement to understand the 'A' positions in an organisation. This means asking difficult questions like "Who would hurt us most if they left?" and "Where is our biggest dependency/ bottleneck?"

Having identified the most valuable talent/roles, consider 're-recruiting' these people every year or so, reviewing what they are currently working on, asking what is it they want to be involved in and making certain their compensation levels are competitive. Focusing on the positions that are adding and driving value to the organisation makes talent management more controllable and surmountable.

Ciara Fallon is an associate director of advisory strategy at PriceWaterhouseCoopers.