The CEO's role in talent management - DDI

PROFILES
The CEO’s role in talent management
How top executives from ten countries are nurturing the leaders of tomorrow
Executive: Michael Wilkins
Title: Chief Executive Officer and Managing
Director
Company: Promina Group
Location: Australia
CEO since: 1999
Age: 49
Previous position: CEO of Tyndall (Australiabased
financial services company)
Sector: Insurance and financial services
Revenue (2005): US$3.5bn
For Michael Wilkins, talent management offers
the best opportunity for a chief executive to help
build a legacy. He says that the people he
develops can determine the direction of a
company for years. Developing talented
executives and making sound decisions about
succession can ensure that a firm builds
momentum. Poor choices can stunt its growth.
There are shorter-term benefits. Mr Wilkins
ties his firm’s robust growth over the past three
years partly to its sound talent management.
Promina’s profits rose by 10% in 2005 to
US$377m, largely because of its ability to
address growing demand for its general
insurance products in Australia and New
Zealand.
Mr Wilkins is not able statistically to
measure how much of that improvement stems
from its talent management. But he believes
that the organisation is operating with greater
efficiency and insight into its markets. He sees
himself as the primary architect of human
resources, albeit with significant input from his
head of human resources and other senior
executives. Talent management is a standing
item on the agenda at Mr Wilkins’ monthly
meetings with an inner circle of eight senior
leaders, who include his chief operating and
chief financial officers. At these gatherings, they
discuss the performance of individual
executives, personnel development plans and
succession. Talent management is a regular
topic at a wider meeting of about 80 executives
that takes place half-yearly.
Every six months, Mr Wilkins also reviews
the performance of about 20 key executives and
Promina’s succession strategy for his board.
The presentations consider the productivity of
someone’s group, success on recent
assignments, and leadership strengths and
weaknesses. The Promina board’s involvement
in talent management reflects a broader trend in
Australia, where boards are playing a more
active role in ensuring companies identify and
deploy executives more effectively.
Mr Wilkins says Promina wants leaders who
can create new business strategies,
communicate with their employees and execute
their plans. It looks for a strong sense of
commitment to the company and an ability to
treat employees in such a way that they feel
equally positive about Promina. “You’re
demonstrating that you care for the organisation
and the people.”
Promina’s formal evaluations use 360-degree
feedback, in which bosses and employees
review each other’s performances. A score card
measures leadership “aptitudes”, productivity
and more subjective criteria, including their
success in developing talent below them. Based
on these assessments, Promina prescribes a
training plan that covers both the skills and
experiences that they will need in order to move
ahead.
Promina uses executive coaches, mentoring
and retreats that incorporate classroom work.
Mr Wilkins mentors two senior executives. He
spends 15-20% of his time on talent
management. He sees human resources as a
“provoker of ideas”, offering suggestions for
improving talent management. Yet he does not
rely too heavily on HR, believing that
accountability for talent management lies within
the business units.
As to the appropriate background for his job
and the COO position, Mr Wilkins favours broadbased
experience over technical expertise in
one or two areas. He was an accountant and
investment banker before joining Promina:
“Breadth of experience and breadth of view is
quite important as you get into these upper
echelon positions.”
34 © The Economist Intelligence Unit 2006