Talent

This Is How The Best Companies Recruit And Develop Talent

Companies that lead the world in growth have something in common: a relentless focus on talent. They are very intentional about this. The executives who lead these companies have created high-performing operating systems.

The most important decision executives make is who they name as manager, at all levels in a company. When an executive makes the wrong decision, nothing fixes it.

The purpose of a talent machine is to name the right person as manager. As such, it is the silver bullet for organic growth. After reviewing some of the best work from companies Gallup has partnered with over the years, I have identified five core components of a high-performing talent machine.

A succession plan

A succession plan that actually works is a prerequisite for a company's survival. Yet many companies have no formal plan in place, have a plan that's dated and hasn't been reviewed recently, or only consider this topic in times of crisis. The result might more appropriately be called "replacement planning," in which someone is asked to fill a void at the last minute.

While replacement planning may seem more practical and achievable in the short run, it sets up your company for long-term failure. This is why succession planning must be dynamic and based on a pool of qualified leadership candidates -- and it must evolve as your company changes.

A succession plan that works must be part of a broad and unified vision that not only the CEO owns but also the entire senior leadership team. This plan -- which should be carried out in a scientific, mathematical, and systematic way and formalized in writing -- must be continually adapted as people move in and out of roles. You need to review your succession plan constantly and aggressively. If you do this right, you'll make far fewer mistakes in your decisions, and you'll upgrade the engagement of every employee.

A succession plan that works uncovers a company's leadership...