The War for Talent by Ed Michaels, Helen Handfield-Jones, and Beth Axelrod; Harvard Business School Press; hardcover US$27.50
The High Life - There is no shortage of company reports and mission statements claiming that "our people are our greatest asset". Such statements can seem hackneyed but, say the authors of The War for Talent, the idea is exactly right.
Ed Michaels, Helen Handfield-Jones and Beth Axelrod are senior figures in the respected McKinsey consulting firm. The War for Talent is based on surveys of more than 120 companies, with 27 firms being examined in detail. The book focuses on the US although the authors claim that their findings are applicable across cultural boundaries.
It is, they say, the quality of managers that separates leading companies from the also-rans. Further, leading companies take a different view of their people, seeing their recruitment, remuneration and development as investments rather than costs. (In fact, many of the companies surveyed agreed that this should be the case, but in most firms the traditional view prevailed in practice.)
The involvement of those at the top of the organisation in recruitment decisions is crucial. Not only does it help to ensure the right "fit", it sends the message that finding the best people is a high corporate priority.
Leading companies, such as GE, also displayed a pattern of recruiting good people whenever the opportunity arose rather than when a space needed to be filled. Equally, great efforts were made to keep good performers. This does not mean simply a good pay cheque (although that is important) but providing "stretch" opportunities and the chance to see the large corporate picture through varied projects and assignments.
Bringing in new people at the managerial level can be difficult in a firm that has a tradition of people working their way up from the lower ranks. The answer is to make clear across the organisation that good performers will help the company grow, creating more opportunities for all. To demonstrate, Michaels, Handfield-Jones and Axelrod provide persuasive data that connects talent-based recruitment strategies with corporate performance. They recommend that mid-level managers should be identified as A (strong performers), B (solid with potential), or C (delivering marginal results) players. Some C players only need a bit of help, but in many cases they simply have to be moved out. This can be difficult for the senior manager charged with the task, but the authors argue that doing nothing can undermine the whole organisation.
The War for Talent makes such points with clarity and cogency, although one must wonder whether its lessons are as universal as the authors believe. The inclusion of Enron, the energy giant that recently crashed into bankruptcy, as a positive case study also raises questions.