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<strong>The</strong> <strong>STraTegic</strong> <strong>TalenT</strong><br />
<strong>ManageMenT</strong> <strong>archiTecT</strong><br />
Key Takeaways:<br />
• Our goal is to present a new<br />
framework for examining<br />
organizational performance<br />
and success.<br />
• Talent is one of the most<br />
critical factors in achieving<br />
organizational effectiveness.<br />
• Our new model provides<br />
a comprehensive framework<br />
for business leaders, as<br />
well as academicians, to<br />
systematically investigate<br />
the internal and external<br />
factors influencing<br />
the performance of<br />
organizations.<br />
A New Framework for Understanding<br />
Organizational Effectiveness<br />
By Kim E. Ruyle, Gabriella D. Kilby, Kenneth P. De Meuse<br />
and Kevin J. Mlodzik<br />
Businesses in many ways are comparable to machines.<br />
Machines are interconnected assemblies of mechanical<br />
elements operating in a carefully designed manner to accomplish<br />
some type of work. Machines move mass through a distance to<br />
satisfy a specific need. To operate, machines require a prime source<br />
of power. <strong>The</strong>y will fail to perform effectively – or fail completely – if<br />
the mechanical elements are not well aligned or there is excessive<br />
friction between the moving elements. Consequently, machines<br />
must be designed, operated, and maintained if they are to deliver the<br />
desired work product. And so it is with a business.<br />
A business is an organization – an assembly of people, raw materials,<br />
and capital – designed to deliver something of value to various<br />
stakeholders. For example, investors in a business are looking for an<br />
adequate financial return on their investment given the perceived risk.<br />
Customers are expecting to receive products or services that meet<br />
their needs and satisfy an acceptable value proposition.
An organization requires a prime<br />
mover, the vision, and the drive<br />
of one or more leaders who set<br />
the goals of the business and the<br />
direction it must move to achieve<br />
those goals.<br />
More than any other asset, talent<br />
provides the potential for longterm<br />
competitive advantage<br />
2<br />
Employees hope to receive gainful employment and a meaningful<br />
and stable livelihood. Organizational effectiveness (OE) can be<br />
conceptualized as the degree to which a business meets the longterm<br />
needs of its various stakeholders (Kim & Mauborgne, 2009).<br />
A business figuratively moves through a competitive landscape<br />
as it positions itself to achieve its strategic intent. An organization<br />
requires a prime mover, the vision, and the drive of one or more<br />
leaders who set the goals of the business and the direction it must<br />
move to achieve those goals. Like a machine, a business will fail to<br />
operate successfully if key elements such as processes, systems,<br />
and structure are misaligned or hindered by friction between those<br />
elements.<br />
And like a machine, a business must be designed, operated, and<br />
maintained. <strong>The</strong>se functions are performed by the talent – the<br />
human capital employed by the enterprise. Indeed, talent (i.e.,<br />
an organization’s employees), typically is the single biggest lever<br />
for driving improvements in business performance. For most<br />
companies, the total cost of human capital is the single biggest<br />
expense line in the income statement (Echols, 2008). <strong>The</strong> collective<br />
skills of the talent employed in an organization largely comprise the<br />
organization’s core capabilities. An organization’s talent injects a<br />
degree of contextual ambiguity that is very difficult for competitors to<br />
benchmark and replicate. More than any other asset, talent provides<br />
the potential for long-term competitive advantage (Lawler, 2008).<br />
We assert that leadership and human capital power the business<br />
machine. As such, talent becomes the primary driver of<br />
organizational effectiveness. In this paper, we begin with a general<br />
overview of the theoretical literature on organizational effectiveness.<br />
Subsequently, we propose a new framework for conceptualizing<br />
factors that affect the effectiveness of organizations. We refer to our<br />
model as the Strategic Talent Management Architect. Finally, we<br />
discuss implications of this model for assessing and changing talent<br />
management strategies and practices.<br />
Brief Overview of the Organizational effectiveness<br />
literature<br />
Talent management is a strategic human resource discipline that<br />
seeks to optimize the performance and contribution of human capital<br />
in the business machine. Talent management is concerned with
sourcing talent, integrating and aligning talent, developing talent,<br />
engaging and rewarding talent, strategically deploying talent, and<br />
assuring there is an adequate talent pipeline to support the business<br />
as it moves toward its strategic goals (Ulrich & Brockbank, 2005). As<br />
essential as talent management is to organizational effectiveness,<br />
talent management practices often are viewed by corporate leaders<br />
as “necessary but tangential” to the primary business operations that<br />
impact the bottom-line. Talent management and human resource<br />
(HR) professionals are more likely to refute those views when they<br />
achieve the role of credible activist in their organizations and adopt an<br />
OE mindset (Boudreau & Ramstad, 2005; Eichinger, Ruyle, & Ulrich,<br />
2007).<br />
Organizational Effectiveness has a long and storied history. Its<br />
historical roots appear to stretch as far back as the origins of<br />
management itself. Numerous disciplines have investigated OE,<br />
resulting in a multitude of perspectives, definitions, models, and<br />
assessments. Academicians and practitioners independently<br />
have studied the concept and have little agreement on how to<br />
conceptualize it or measure it. Further, there is a wide variety of uses<br />
for OE data, ranging from high-end analyses of overall corporate<br />
performance to less sophisticated reviews of general business unit<br />
functioning utilizing qualitative data (see Connolly, Conlon, & Deutsch,<br />
1980). Thus, the state of the literature is complex, dispersed, and<br />
frequently confusing. <strong>The</strong>re seems to be little integration of thought in<br />
many respects.<br />
<strong>The</strong>re are several definitions of OE in the literature. For example,<br />
Dressler (2004) has defined OE as “the result of effective interplay<br />
of a company’s vision and strategic goals with the chosen structural<br />
design, processes, assigned responsibilities, available skills,<br />
knowledge, and capabilities, and reliable performance management”<br />
(p. 43). <strong>The</strong>se goals can be primary (e.g., shareholder returns), or<br />
secondary (e.g., the cost reduction and employee satisfaction). Other<br />
researchers have examined OE from an open systems perspective,<br />
calculating it as the balance of outputs and inputs (Nadler, 1998).<br />
Yet, other scholars have focused on the satisfaction of stakeholder<br />
interests, such as employees, investors, and customers (Collins,<br />
2001; Connolly, Conlon, & Deutsch, 1980). In an attempt to integrate<br />
Talent management and human<br />
resource (HR) professionals<br />
are more likely to refute those<br />
views when they achieve the<br />
role of credible activist in their<br />
organizations and adopt an OE<br />
mindset<br />
3
Organizational Effectiveness<br />
is a measure of how well<br />
an organization is meeting<br />
the long-term goals of its<br />
stakeholders.<br />
4<br />
and simplify these definitions, we define OE as follows:<br />
Organizational Effectiveness is a measure of how well an organization<br />
is meeting the long-term goals of its stakeholders.<br />
Similarly, researchers have proposed several models of OE. Some<br />
of these models take on a more academic slant while others are<br />
more practitioner-related. Perhaps, the two most widely cited<br />
models are McKinsey’s 7-S model (Peters & Waterman, 1982) and<br />
Kaplan’s Balanced Scorecard approach (Kaplan, 2005; Kaplan &<br />
Norton, 2007). Each of these frameworks has its advantages and<br />
disadvantages. However, the two models are very different in how<br />
they conceptualize OE. It appears that each model neglects to<br />
incorporate large bodies of research relevant to the understanding<br />
of how organizations operate. Our goal in this paper is to present<br />
a new framework for examining organizational performance and<br />
success. Our model attempts to integrate both theoretical and<br />
applied perspectives. We include factors that interplay both business<br />
strategies and talent management strategies. Our hope is that<br />
seemingly disjointed viewpoints in the literature can be assimilated to<br />
derive a scientifically supported, organizationally relevant OE model.<br />
<strong>The</strong> Strategic Talent Management architect<br />
Based on a comprehensive review of the scholarly and practitioner<br />
literatures, we have developed the Strategic Talent Management<br />
Architect. This framework consists of the following two major<br />
sources that influence an organization’s performance effectiveness:<br />
(a) leadership drivers and (b) organizational enablers. Leadership<br />
Drivers are those factors that derive, clarify, motivate, and<br />
communicate (i.e., “drive”) the fundamental business of the<br />
corporation. <strong>The</strong>re are two different leadership drivers – vision<br />
and vigor. Organizational Enablers are those factors that provide<br />
structure, talent competencies, and execution in an organization.<br />
Organizational enablers include three key dimensions – capability,<br />
architecture, and action. Finally, we identify two additional factors in<br />
our model. We call them company-wide Enterprise Accelerators, and<br />
they consist of Enterprise Alignment and Enterprise Agility. <strong>The</strong>se<br />
latter two factors ensure that leadership drivers and organizational<br />
enablers mesh with the external and internal environments relevant<br />
to the company, as well as facilitate the adaptability of internal
conditions to outside changes. See Figure 1.<br />
In the following section of the article, we define each of these factors<br />
Enterprise<br />
Alignment<br />
Vision<br />
Leadership<br />
Drivers<br />
Vigor<br />
Enterprise Agility<br />
Architecture<br />
Organizational<br />
Enablers<br />
Capability<br />
Enterprise<br />
Alignment<br />
and examine its impact on the operations of an organization. We also<br />
contrast our framework of OE with other notable OE models. Talent<br />
management implications are discussed in the final section.<br />
leadership – <strong>The</strong> Key Driver of Organizational effectiveness<br />
Leadership is a central variable in nearly every model of OE presented<br />
in the literature. Senior leaders usually establish the organization’s<br />
mission, identify target customers, determine the products and<br />
services delivered, hire the managers who execute plans, and create<br />
a shared vision that rallies stakeholders to drive toward shared<br />
objectives. In many ways, leaders are analogous to the prime<br />
mover of a machine. Our model contains two dimensions within the<br />
Leadership Drivers factor: (a) Vision and (b) Vigor.<br />
Vision. Vision represents the ability to effectively define the business<br />
and set its direction. Leaders clearly articulate the organization’s<br />
unique value proposition and craft compelling messages to<br />
communicate the strategy. Vision requires a high level of general<br />
business acumen, an ability to establish strong, effective governance<br />
for the organization, and the willingness and ability to shift course as<br />
required by the changing business conditions.<br />
Much has been written about the leaders’ responsibility to develop<br />
and modify the organization’s mission and goals and guide the<br />
organization’s vision. Porter (2008) contended that understanding the<br />
Action<br />
Figure 1. <strong>The</strong> Strategic Talent<br />
Management Architect<br />
Overall, the ability to craft and<br />
communicate an effective<br />
vision has been articulated<br />
consistently in the literature as<br />
a critical element to achieving<br />
organizational effectiveness.<br />
5
<strong>The</strong> literature suggests<br />
that an organization’s<br />
effectiveness is significantly<br />
hindered when leaders fail at<br />
strategy implementation.<br />
6<br />
forces that shape industry competition is the first key to developing<br />
strategy. Lichtenstein and Dade (2007) asserted that delivering<br />
the highest shareholder value comes through aligning the leaders’<br />
vision to the goals and strategy, and that this process can be aided<br />
or hindered by the extent to which leaders understand each other’s<br />
needs and values. Crossan, Vera, and Nanjad (2008) proposed that<br />
leaders need to demonstrate a proactive stance in aligning strategy,<br />
the environment, and the organization under one vision. Montgomery<br />
(2008) emphasized the need for leaders to see strategy and vision<br />
as a dynamic process requiring ongoing monitoring and tweaking.<br />
Overall, the ability to craft and communicate an effective vision has<br />
been articulated consistently in the literature as a critical element to<br />
achieving organizational effectiveness.<br />
Vigor. Vigor represents the ability to drive the enterprise forward. It<br />
requires that leaders and employees possess an infectious passion<br />
for the business and strategy, unflagging energy and drive, and a<br />
relentless, aggressive, and competitive spirit. Vigor also consists of<br />
a contextually-appropriate leadership style that inspires confidence<br />
with all stakeholders through an unwavering focus on results,<br />
measurement, and accountability.<br />
<strong>The</strong> literature suggests that an organization’s effectiveness is<br />
significantly hindered when leaders fail at strategy implementation.<br />
For illustration, Kanji (2008) posited that the ability of leaders to drive<br />
the organization toward quality and excellence is the prime aspect of<br />
organizational effectiveness. Burke, Sims, Lazzara, and Salas (2007)<br />
also argued that a leader’s ability to foster organizational effectiveness<br />
is the degree to which subordinates and co-workers trust the leader<br />
to get the job done. Paradoxically, effective leaders work to both<br />
engender predictability and order as well as to produce organizational<br />
change (Yukl & Lepsinger, 2005). <strong>The</strong> use of language in the literature<br />
to describe the competitive characteristics of leaders reinforces the<br />
notion of vigor. Smith, Ferrier, and Grimm (2001) described the need<br />
for leaders to specify competitive behaviors their firm must perform,<br />
using the analogies of prize fighters, chess masters, and American<br />
football coaches. Even the term “stretch goals” when used in the<br />
context of performance management implies this notion of vigor, in<br />
that a manager should motivate his or her employees to perform at<br />
an extremely high level (Kerr & Landauer, 2004).
Beyond leadership Drivers – <strong>The</strong> Organizational enablers<br />
Organizational effectiveness begins with leadership, but leadership<br />
must be executed. After defining the business and setting the<br />
strategic direction, leaders must drive the organization forward.<br />
Organizational enablers represent the talent, processes, and<br />
structures put in place by the leaders to achieve the business goals.<br />
This factor represents the key elements in the business machine<br />
that are driven by the prime mover – leadership – to deliver the<br />
organization’s work output. <strong>The</strong> organizational enablers’ factor is<br />
comprised of three dimensions: (a) capability, (b) architecture, and (e)<br />
action.<br />
Capability. Capability denotes the organization’s capacity to<br />
empower it to achieve its strategic objectives. It represents the<br />
deep expertise in mission-critical competencies required by the<br />
organization’s mission and unique value proposition. Capability<br />
includes business systems, such as a well-developed talent<br />
management system, the sensible application of technology, and<br />
support systems (e.g., supply chain management and customer<br />
relationship management).<br />
In the literature, capabilities are recognized as a major source of<br />
competitive advantage (Clardy, 2007). Capabilities in this sense<br />
are inherent to the organization, not simply the collective aggregate<br />
of individuals. According to scholars, capabilities influencing<br />
organizational effectiveness can include talent management systems<br />
(Bassi & McMurrer, 2008), information technology (Batra, 2006),<br />
supply chain management (Carter & Rogers, 2008), and research<br />
and development (Tirpak, Miller, Schwartz, & Kashdan, 2007). Ulrich<br />
and Smallwood (2004) contended that organizational capabilities<br />
are derived (in part) from the manifested abilities of the company’s<br />
employees. Becker, Huselid, and Beatty (2009) recommended<br />
that companies should focus more energy on developing talent<br />
capabilities that promise greater returns on investment (such as highpotential<br />
employees).<br />
Architecture. Architecture refers to the organization’s hierarchical<br />
structure and organizing principles. It includes the structure and<br />
design that serves the organization’s business model and unique<br />
value proposition. In addition, architecture represents the aspects<br />
of a work environment which enable employees to work effectively,<br />
such as established relationship norms, meaningful company policies,<br />
...companies should focus<br />
more energy on developing<br />
talent capabilities that promise<br />
greater returns on investment<br />
7
...leaders are prone to allowing<br />
their organization’s structure to<br />
be dictated by its environment<br />
rather than by strategy.<br />
...Bossidy and Charan (2002)<br />
argued that the biggest obstacle<br />
to organizational effectiveness is<br />
the absence of execution.<br />
8<br />
efficient communication methods, and pleasant and safe work<br />
facilities.<br />
<strong>The</strong> literature clearly conveys the important role of architecture in<br />
actualizing an organization’s effectiveness (Flamholtz & Kurland, 2005;<br />
Neilson, Martin, & Powers, 2008). In their seminal work, Katz and<br />
Kahn (1978) challenged leaders to achieve effectiveness by moving<br />
beyond traditional, bureaucratic structures. Kim and Mauborgne<br />
(2009) emphasized the role strategy should play in shaping<br />
structure. Oftentimes, they noted, leaders are prone to allowing their<br />
organization’s structure to be dictated by its environment rather than<br />
by strategy. Raisch (2008) also suggested that companies striving<br />
for profitable growth need an organizational design that balances<br />
mechanistic and organic structures. Many authors assert that<br />
organizational culture can be a source of competitive advantage if it is<br />
aligned with strategy (e.g., Sadri & Lees, 2001).<br />
Action. Action represents the organization’s ability to develop,<br />
implement, and execute tactics that directly serve the strategic<br />
goals. It necessitates that the workforce is highly engaged and<br />
willingly expends discretionary effort to reach strategic objectives.<br />
Action requires the ability to make decisions and implement difficult<br />
strategies rapidly and effectively, as well as managerial ranks that<br />
exemplify excellence in operating skills such as planning, organizing,<br />
and time management.<br />
Action is noted repeatedly in the research literature as critical to OE.<br />
For example, Bossidy and Charan (2002) argued that the biggest<br />
obstacle to organizational effectiveness is the absence of execution.<br />
Mankins and Steele (2005) found that most of the executives they<br />
surveyed failed to deliver the financial performance forecasted in<br />
their long-range plans. <strong>The</strong>se authors concluded that the gaps<br />
between strategy and performance often are not analyzed by typical<br />
organizational metrics. Finally, Higgins (2005) viewed execution as so<br />
critical that he added “Strategic Performance” to the McKinsey 7-S<br />
model to emphasize the effort needed to drive outcomes.<br />
enterprise accelerators<br />
<strong>The</strong>re needs to be some minimal level of development of the<br />
Leadership Drivers and Organizational Enablers for an organization<br />
to function at a nominal level. Although these elements may be well
Proper alignment infers<br />
the interrelatedness and<br />
interdependency of all<br />
the internal and external<br />
components salient to the<br />
business.<br />
developed, an enterprise cannot achieve sustained effectiveness<br />
without the power of the Enterprise Accelerators. It serves as a<br />
“performance enhancer” for the business machine by enabling the<br />
other elements to operate efficiently and responsively. Enterprise<br />
accelerators consist of two dimensions: (a) enterprise alignment and<br />
(b) enterprise agility.<br />
Enterprise Alignment. Enterprise Alignment denotes the interaction<br />
and fit of all the elements that drive and enable an organization’s<br />
effectiveness. Alignment is achieved to the degree in which the OE<br />
Drivers and Enablers are designed with an integrated, comprehensive<br />
systems view. Proper alignment infers the interrelatedness and<br />
interdependency of all the internal and external components salient<br />
to the business. In other words, in addition to the alignment of<br />
components within the internal business system, alignment reflects<br />
the need for OE components to be synchronized with their external<br />
environment. <strong>The</strong>se environmental forces include population<br />
demographics, politics, economic conditions, market changes,<br />
competitive forces, technology, governmental laws and regulations,<br />
as well as consumer preferences.<br />
<strong>The</strong> literature describes alignment as the relationship between a firm’s<br />
internal strategies, capabilities, and systems to its organizational<br />
opportunities and possibilities. <strong>The</strong> effort to align these components<br />
always should come from top management (Eichinger et al., 2007).<br />
Scholey (2007) defined alignment as the coordination of an<br />
organization’s business units to reach its overriding objective. <strong>The</strong><br />
strategic fit between strategy and implementation has been found<br />
to be strengthened by the positive relationship between HRM<br />
effectiveness and labor productivity (Crotts & Ford, 2008). According<br />
to Kaliprasad (2006), there are three major inhibitors of sustained<br />
organizational performance: (a) inaccurate understanding of the<br />
marketplace, (b) misaligned customer strategy, and (c) misaligned<br />
systems and processes.<br />
Enterprise Agility. Enterprise Agility represents the organization’s<br />
ability to learn and adapt to changes in the competitive landscape.<br />
Every organization needs to be ready to adjust its strategies,<br />
structures, and processes to accommodate changing demands<br />
in the environment. No organization can survive indefinitely by<br />
remaining the same. Enterprise agility implies that an organization<br />
9
No organization can survive<br />
indefinitely by remaining the<br />
same.<br />
10<br />
fosters awareness and learning by actively and continuously<br />
monitoring both internal and external cues, then carefully choosing<br />
appropriate responses. Obviously, this dimension is related to<br />
Enterprise Alignment, in that the alignment of OE components must<br />
be continually reassessed as components adjust in response to<br />
contextual cues.<br />
<strong>The</strong> literature describes agility as the degree of willingness and<br />
readiness to change at the enterprise level (Lawler & Worley,<br />
2006; McCann, 2004). Alternative names for the concept include<br />
adaptability, flexibility, learning, resiliency, and responsiveness.<br />
Enterprise Agility demands much more effort than simply having a few<br />
nimble departments or divisions that operate in isolation or having<br />
pockets of innovative change agents (Breu, Hemingway, Strathern,<br />
& Bridger, 2001; Seo & La Paz, 2008). Research indicates that it<br />
is a critical source of competitive advantage (Grantham, Ware, &<br />
Williamson, 2007). Agility is a required characteristic of organizations<br />
that desire to respond quickly to market changes and threats from<br />
the business environment (Huang, 1999). Frequent change is<br />
required for organizations to effectively manage global competition,<br />
technological innovation, e-business, turbulent environments,<br />
and new business opportunities (Breu, Hemingway, & Strathern,<br />
2001; Lawler & Worley, 2006). Research supports the notion that<br />
possessing a strategic human resources function is essential for<br />
achieving agility (Shafer, Dyer, Kilty, Amos, & Ericksen, 2001). Overall,<br />
it appears that Enterprise Agility is absolutely critical for transforming<br />
companies from average to exceptional effectiveness.<br />
<strong>The</strong> Strategic Talent Management architect:<br />
how it compares with Other Prominent Oe Models<br />
Figure 2 presents the Strategic Talent Management Architect<br />
relative to other prominent models of OE presented in the literature.<br />
In general, most models have dimensions specifying the role of<br />
strategy, vision, or mission. Further, most models include structure,<br />
design, and capabilities. <strong>The</strong> inclusion of these dimensions is not<br />
surprising, since strategy, structure, and design represent the “hard”<br />
components common throughout the OE literature (Chandler, 1969).<br />
<strong>The</strong>re appears to be several key differentiators of our new framework.<br />
First, most other models assume a non-directional, relative interaction<br />
of the variables. <strong>The</strong> Strategic Talent Management Architect is linear
Figure 2. A Comparison of Prominent OE Models Found in the Literature<br />
OE Model OE is Achieved When… Major Dimensions Assessed Implications for Talent<br />
Management<br />
McKinsey<br />
7-S (Peters &<br />
Waterman, 2004)<br />
Kaplan’s Balanced<br />
Scorecard (Kaplan<br />
& Norton, 2007)<br />
Bassi & McMurrer’s<br />
Human Capital<br />
Capability<br />
Scorecard (2008)<br />
Booz and Co OE<br />
Simulator (Neilson,<br />
Martin, and Powers,<br />
2008)<br />
Quinn &<br />
Rohrbaugh’s<br />
Competing Values<br />
Framework (1983)<br />
Malcolm Baldrige<br />
National Quality<br />
Award (2009)<br />
Strategic Talent<br />
Management<br />
Architect<br />
<strong>The</strong> organization develops<br />
a high level of alignment<br />
between the seven Ss.<br />
<strong>The</strong> organization aligns its<br />
management processes<br />
and implements long-term<br />
strategies.<br />
<strong>The</strong> human capital items are<br />
linked to business results<br />
As organizations quickly<br />
translate important strategic<br />
and operational decisions<br />
into action.<br />
When leaders create a<br />
balance in key values or<br />
come to consensus on<br />
how these values are<br />
represented in the org.<br />
<strong>The</strong> organization is rated as<br />
having made accumulated<br />
progress in each of the<br />
criteria categories.<br />
When each model<br />
component is optimized.<br />
(1) Strategy; (2) Structure; (3)<br />
Systems; (4) Staff; (5) Style; (6)<br />
Skills; and (7) Shared Values.<br />
(1) Financial; (2) Customer; (3)<br />
Learning and Growth; and (4)<br />
Internal Business Processes.<br />
(1) Leadership practices; (2)<br />
Employee engagement; (3)<br />
Knowledge accessibility; (4)<br />
Workforce optimization; and (5)<br />
Learning capacity.<br />
(1) Decision rights; (2)<br />
Information; (3) Motivators; and<br />
(4) Structure.<br />
(1) Internal/external focus; and<br />
(2) Organizational preference for<br />
structure.<br />
(1) Leadership; (2)Strategic<br />
planning; (3) Customer & market<br />
focus; (4) Measurement, analysis,<br />
& knowledge management; (5)<br />
Workforce focus; (6) Process<br />
management; and (7) Results.<br />
(1) Vision; (2) Vigor; (3)<br />
Capability; (4) Architecture; (5)<br />
Action; (6) Enterprise Alignment;<br />
and (7) Enterprise Agility.<br />
and leader-centric. It directly shows that leaders drive the other<br />
components of the organization to achieve effectiveness. Our model<br />
also includes Enterprise Alignment and Enterprise Agility as core<br />
dimensions to be assessed. <strong>The</strong> other models either measure these<br />
variables indirectly as an output of the data analysis (as in enterprise<br />
alignment) or fail to assess them all together (as in enterprise agility).<br />
Another difference is the inclusion of the Vigor and Action dimensions.<br />
Includes “soft variables”<br />
Includes talent<br />
development dimension<br />
Focus on measurement<br />
Significant emphasis on<br />
talent management<br />
Talent management<br />
practices impact a number<br />
of the model traits.<br />
Less direct impact on<br />
talent management<br />
Includes dimension on<br />
workforce<br />
Takes into account talent<br />
management implications<br />
and solutions for every<br />
dimension<br />
11
...our model embeds researchgrounded<br />
dimensions within<br />
a business-relevant machine<br />
analogy.<br />
Without adequate talent to<br />
design, operate, and execute<br />
the core business processes,<br />
the business machine is<br />
crippled<br />
12<br />
<strong>The</strong>oretically, leaders can select the perfect business strategy and<br />
build an organizational structure and capabilities to support this<br />
strategy. However, the business will fail with poor execution and<br />
implementation. Our OE framework also links each dimension<br />
of the model with talent management practices, assessments,<br />
and solutions. Such a linkage depicts a clear linkage between<br />
talent management and organizational effectiveness. Finally, we<br />
believe that our model is simple, straight-forward, and shows the<br />
kinetic relationship among all the elements influencing OE. Many<br />
models depict complex variables, multiple feedback loops, and<br />
interrelationships that do not resonate with business leaders. Most<br />
importantly, our model embeds research-grounded dimensions within<br />
a business-relevant machine analogy.<br />
implications for the Practice of Talent Management<br />
Thus far, we have investigated the business variables vital for<br />
achieving organizational effectiveness. We presented our OE<br />
model and defined its components. We also reviewed how our<br />
OE framework relates to other popular models in the scholarly and<br />
practitioner literature. Nevertheless, questions remain. For example,<br />
how do talent management strategies and practices impact the<br />
proposed OE Drivers and Enablers? How can talent be employed to<br />
contribute to the Enterprise Alignment and Enterprise Agility? How<br />
can organizational leaders use our framework to assess, diagnose,<br />
and correct inefficiencies and problems in their companies? In this<br />
section, we will provide specific implications of our OE framework on<br />
talent management strategies and practices.<br />
1. Talent Management is Central to the Success of the Entire<br />
Business Machine<br />
Based upon the research reviewed in this paper, it becomes clear<br />
that talent impacts organizational effectiveness. In fact, much of the<br />
literature conveys some aspect of talent as central to achieving OE.<br />
Leadership is a factor present in nearly every model of OE, and it is<br />
almost impossible to overstate its importance as a prime mover of<br />
the business machine. However, leadership is not enough. Without<br />
adequate talent to design, operate, and execute the core business<br />
processes, the business machine is crippled. Organizations that<br />
understand this point are likely to invest in and develop talent (Bassi &<br />
McMurrer, 2008; Becker, Huselid, & Beatty, 2009).
Talent is critical to maintaining all of the components of effectiveness.<br />
<strong>The</strong> facets of talent management impact the OE Drivers and Enablers<br />
in different ways. Each Driver and Enabler has direct links with specific<br />
talent management practices. See Figure 3.<br />
Organizational<br />
Effectiveness<br />
Dimension<br />
How It is Powered by<br />
Talent<br />
Vision Leaders set the vision to<br />
define the company and its<br />
direction.<br />
Vigor Leaders foster the drive,<br />
energy, and accountability<br />
for moving the company<br />
forward.<br />
Capability Refers to competencies at<br />
the company level: these<br />
are the collective abilities,<br />
which includes its talent mgt<br />
system.<br />
Architecture Organization design and<br />
structure directly impact<br />
and are affected by the<br />
talent management system.<br />
Includes org culture.<br />
Action <strong>The</strong> workforce must be<br />
engaged and productive,<br />
and manager skills must be<br />
honed in order for proper<br />
execution of strategy.<br />
Talent Management Systems<br />
to Change for Optimal<br />
Effectiveness<br />
• Selection<br />
• Training & development<br />
• Succession planning<br />
• Strategic alignment<br />
• Sr. team effectiveness<br />
• Coaching<br />
• Performance management<br />
• Rewards & compensation<br />
• Org culture<br />
• Onboarding<br />
• Employee engagement<br />
• Coaching<br />
• Strategic alignment<br />
• Capability assessment<br />
• Competency modeling<br />
• Recruitment & selection<br />
• Training & development<br />
• Rewards & compensation<br />
• Strategic alignment<br />
• Org culture<br />
• Teams<br />
• Employee engagement<br />
• Competency modeling & job<br />
profiling<br />
• Communication<br />
• Decision making<br />
• Management training<br />
& development<br />
• Succession planning<br />
• Employee engagement<br />
• Rewards & compensation<br />
Figure 3. Talent Implications<br />
Gleaned from the Strategic<br />
Talent Management Architect<br />
Leadership Characteristics<br />
Required<br />
• Understanding the Business<br />
• Making Complex Decisions<br />
• Creating the New and<br />
Different<br />
• Focusing on the Bottom Line<br />
• Communicating Effectively<br />
• Creating the New and<br />
Different<br />
• Getting Work Done Through<br />
Others<br />
• Focusing on the Bottom Line<br />
• Inspiring Others<br />
• Making Tough People Calls<br />
• Being Organizationally Savvy<br />
• Managing Work Processes<br />
• Understanding the Business<br />
• Being Organizationally Savvy<br />
• Communicating Effectively<br />
• Managing Diverse<br />
Relationships<br />
• Keeping on Point<br />
• Getting Organized<br />
• Getting Work Done Through<br />
Others<br />
• Managing Work Processes<br />
• Dealing with Trouble<br />
13
Figure 3. Talent Implications Gleaned from the Strategic Talent Management Architect<br />
Organizational<br />
Effectiveness<br />
Dimension<br />
14<br />
How It is Powered by<br />
Talent<br />
Alignment All of the OE model<br />
dimensions must be<br />
aligned with each other<br />
and the organization’s<br />
environment. In turn,<br />
the talent management<br />
system must be aligned<br />
with these dimensions and<br />
environment.<br />
Agility <strong>The</strong> organization must be<br />
flexible within the system<br />
to changes internally and<br />
externally. Likewise, the<br />
talent management system<br />
must be agile to anticipate<br />
and respond to these<br />
changes.<br />
Alignment between OE Drivers<br />
and Enablers and talent<br />
management strategy and<br />
practice is imperative.<br />
Talent Management Systems<br />
to Change for Optimal<br />
Effectiveness<br />
• Strategic alignment<br />
• Org culture<br />
Leadership Characteristics<br />
Required<br />
• Understanding the Business<br />
• Making Complex Decisions<br />
•Dealing with Trouble<br />
• Learning agility • Making Complex Decisions<br />
• Creating the New and<br />
Different<br />
• Being Organizationally Savvy<br />
• Demonstrating Personal<br />
Flexibility<br />
2. Talent Management Strategies and Practices Must be Aligned<br />
Just as the parts of a machine need to be aligned in order to prevent<br />
mechanical interference, stress, and (ultimately) failure, key business<br />
components likewise must be aligned. <strong>The</strong> business strategy<br />
must be aligned to the needs of the marketplace and competitive<br />
realities. Organizational capabilities and business processes must be<br />
integrated and aligned to support the strategy. Alignment between<br />
OE Drivers and Enablers and talent management strategy and<br />
practice is imperative. Without alignment, business processes are<br />
likely to work at cross-purposes and create friction, heat, and noise<br />
that result in organizational dysfunctions. <strong>The</strong> competent talent<br />
management professional will understand all the key elements in the<br />
business machine and how they operate together in order to craft<br />
a talent management strategy that aligns with and supports the<br />
elements.<br />
3. Talent Management Strategies and Practices Also Must<br />
Become Agile<br />
Business conditions constantly change. <strong>The</strong> competitive landscape,<br />
for instance, continually shifts with new entries and recent departures.
Laws and governmental regulations frequently change, requiring<br />
organizations to modify their policies and procedures to remain in<br />
compliance. Labor pools and wage rates vary due to economic<br />
fluctuations. Resource availability moves with changes in global<br />
demographics and trade laws. As a result, the business machine<br />
must be adaptive and agile. Enterprise Agility, as represented<br />
in our OE model, acts as a lubricant in the business machine<br />
to enable it to turn faster, operate more smoothly, and function<br />
more efficiently. Talent management practitioners should<br />
consider ways to build agility and adaptability directly into their<br />
talent processes. Special attention should be paid to recruiting,<br />
onboarding, competency development, incentive systems, and<br />
talent deployment systems. When these key talent management<br />
practices are unencumbered by bureaucracy, rigid budgets, archaic<br />
organizational structures, onerous policies, arcane communication<br />
methods, and an inflexible staff, they can contribute significantly to<br />
an organization’s effectiveness.<br />
conclusion<br />
Talent management leaders and the HR community have a<br />
responsibility to do more than hire, train, and pay employees.<br />
Employees can significantly impact organizational effectiveness,<br />
and it is incumbent on these professionals to become familiar<br />
with all the elements that drive it. For maximum impact, talent<br />
management and HR leaders must cultivate a broad perspective<br />
of the competitive landscape, develop a deep knowledge of the<br />
business, and become credible activists in the organization. <strong>The</strong>y<br />
should become intimately familiar with the elements that impact<br />
OE. <strong>The</strong> Strategic Talent Management Architect can help them do<br />
that.<br />
At one time, individuals who had difficulty supervising employees<br />
often were funneled into HR roles. At that time, the HR function<br />
was called the Personnel Department and most of the duties<br />
revolved around simply ensuring vacations were accrued,<br />
safety measures were in place, and managers had plenty of job<br />
candidates to interview. <strong>The</strong> understanding and appreciation for<br />
the importance of an organization’s human capital was extremely<br />
limited. We must remember that at one time employees were<br />
referred to as “hired hands!” <strong>The</strong> cliché was when employees<br />
punched in their brains checked out.<br />
Talent management<br />
practitioners should consider<br />
ways to build agility and<br />
adaptability directly into their<br />
talent processes<br />
15
We believe the most effective<br />
leaders of talent management<br />
today are those individuals<br />
that can combine the art with<br />
the science of talent to drive<br />
organizational effectiveness.<br />
16<br />
Nowadays, there is a rapidly evolving science of talent management<br />
which is supported by a wealth of theoretical and empirical research.<br />
Tactical tools are giving way to strategic processes. Disciplines<br />
such as industrial/organizational psychology, human resource<br />
management, and organizational sociology are contributing greatly<br />
to our understanding of business and its management. <strong>The</strong>oretical<br />
frameworks describing environmental contingencies, individual<br />
characteristics, and business conditions have been developed<br />
to assist our comprehension of how to maximize outcomes and<br />
satisfy the numerous organizational stakeholders. Leadership<br />
competency models have been carefully formulated to enhance talent<br />
management processes that drive financial performance (e.g., Bassi<br />
& McMurrer, 2008, Lombardo & Eichinger, 2001). Talent management<br />
is augmented by art as well as by science. <strong>The</strong> contextual<br />
ambiguity present in organizations should permit talent management<br />
practitioners to exhibit entrepreneurial creativity and innovation,<br />
developing systems which are agile, adaptable, and aligned with the<br />
strategic needs of the organization. We believe the most effective<br />
leaders of talent management today are those individuals who can<br />
combine the art with the science of talent to drive organizational<br />
effectiveness.<br />
<strong>The</strong> model we proposed in this paper is based on research. Each<br />
component is directly linked to the finding(s) of a scientific study or<br />
series of studies. <strong>The</strong> interactive and dynamic nature of the model<br />
should enable business leaders to more effectively understand their<br />
organizations and improve their functioning. A key facet of our OE<br />
model is the importance of talent. We posit that talent is one of<br />
the most critical factors in achieving organizational effectiveness.<br />
<strong>The</strong> business machine is complex and constantly changing. We<br />
believe that the Strategic Talent Management Architect provides<br />
a comprehensive framework for business leaders, as well as<br />
academicians, to systematically investigate the internal and external<br />
factors influencing the performance of organizations.
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19
20<br />
Kim E. Ruyle, Ph.D. is the Vice President Product<br />
Development with <strong>Korn</strong>/<strong>Ferry</strong> Leadership and Talent<br />
Consulting, based in Minneapolis.<br />
Gabriella D. Kilby, MBA., is a Principal with<br />
<strong>Korn</strong>/<strong>Ferry</strong> Leadership and Talent Consulting, based<br />
in Toronto.<br />
Ken De Meuse, Ph.D. is the Associate Vice President<br />
of Research with <strong>Korn</strong>/<strong>Ferry</strong> Leadership and Talent<br />
Consulting, based in Minneapolis.<br />
Kevin J. Mlodzik, M.S., is an Intellectual Property<br />
Research Assistant with <strong>Korn</strong>/<strong>Ferry</strong> Leadership and<br />
Talent Consulting, based in Minneapolis.<br />
about <strong>The</strong> <strong>Korn</strong>/<strong>Ferry</strong> institute<br />
<strong>The</strong> <strong>Korn</strong>/<strong>Ferry</strong> Institute was founded to serve<br />
as a premier global voice on a range of talent<br />
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