Succession planning gains momentum
Cushing Anderson explains in this article that 60% of participants feel that talent management strategies are more important than ever since 2008. This article discusses current succession planning and talent management strategies.
There are three basic perspectives to business: 1) sustainable growth, 2) complacent existence and 3) descending obsolesce. Firms that choose the first view recognize that succession planning and talent management are important goals to be considered for sustainable growth. This article illustrates or expands on ideas from this course, Human Resources Administration. It demonstrates the importance of strategic alignment between operations and human resources management.
Figure 14.1 Vertical alignment and horizontal alignment
(Stewart, Brown, 2008, p 527)
Figure 14.1 was taken from Chapter 14 of the course text Aligning Strategy and Practice. The illustration shows the two main forms of alignment in strategic management. Vertically, the human resource strategy is related to other organizational strategies. Strategy is often passed vertically from one level to another within an organization, usually at the level of a project or program. Human resources are critical to the alignment of operational strategy with program’s tactical implementation. It is important to determine if the organization’s human resource strategy aligns with its competitive strategy. The competitive strategy will make the human resource strategy most effective. An example of this is a strategy to increase shareholder value and revenues. A centralization of human resources can help improve vertical alignment.
To support the organization’s strategies, a bottom-up consistent approach to human resources practices is essential. Horizontal alignment refers the relationship between the specific human resource practices. This form of alignment is best when there are consistent practices. Consistent practices are key to effective human resource management, and thus an organization. Program/project managers rely on human resource management to manage and recruit talent. As part of human resource practices, talent management and succession planning are done (Stewart, Brown 2008, pp 527-528).
The article’s current and relevant information is sufficient to establish the legitimacy of the author’s point of view. The content is clearly represented by the illustrations. The Chief Learning Officer magazine has a bias towards global enterprise education. A quick look at the home page, http://www.clomedia.com/ , one could deduce that the article promotes the perspective of the magazine. Advertising of software applications, learning engagements, associations, and other service organizations helps to subsidize the magazine. It is also possible that the author is a hired writer, as several articles written by him are displayed on the website.
This article makes three important points regarding the understanding of strategic human resource strategies. The first is about the ongoing war for talent. The second is about talent strategies for difficult times. The third concern talent management processes.
2.1?Continuing War for Talent
Most firms recognize the importance of talent management in achieving organizational success. Figure 1 shows a steady decline of unemployment numbers, with a sharp increase in 2008 (Figure 2). This could indicate that it is difficult to fill positions, further implying that it is hard to find the skills. Figure 2 shows large gaps in the knowledge gaps at the highest levels. The middle mana is the largest gap.