Mike Brennan poses the following question on TalentManagement.com: “How do we ensure the organization is able to thrive when the economy recovers?”  This is no easy question, but the ability to answer it may be critical to an organization’s long term survival.

In an ideal world, we would be able to bring together all of the critical talent information for our organization and identify the exact point to which costs can be cut without impacting organizational competitiveness. In reality, this point probably moves around from day to day; making this type of forecasting more of an art than a science. We can, however, improve our ability to predict it by maintaining solid performance management records.

The performance management system should help us answer the following questions:

-if we lose one top performer, how much potential revenue goes out the door?

-if we lose one top performer, what training and development must we offer to potential replacements?

-how quickly can we ramp up production or increase our capacity when the economy recovers?

-what level of performance is necessary to maintain our competitiveness in the marketplace?

-who are the top performers?

-can we easily identify individuals who have critical knowledge and skills for our business?

-who are the potential candidates to fill essential positions, if vacancies occur?

In order to answer these questions, data needs to be based upon the following principles:

-consistent standards that result in comparing “apples" to “apples” across the organization

-main business objectives supported fully by departmental and individual goals

-clearly identified competencies required by employees in order to carry out key job roles

-development activities focused on building these competencies

-an ability on behalf of all employees to demonstrate or describe what the desired competencies look like and sound like

-clarity on behalf of all employees about how individual goals contribute to business objectives

Furthermore, performance records need to be:

-reliable
-complete
-accurate
-objective
-linked to business strategy
-current
-include the career goals and aspirations of individuals
-include a plan for development
-goal directed
-specific
-include performance outcomes

Another essential piece of the puzzle is how future leaders are being developed. Sweeney and Greenberg suggest that organizations “Create a description of the individual who could ideally step into key positions. Then ask: Does your organization make a concerted effort to identify and develop people who have those qualities?”

How prepared is your organization to answer Mike Brennan’s question?

References:

Brennan, Mike. “Talent Intelligence: Cut Through the Chaos.” Talent Management [www.talentmgt.com]. March 2009.

Sweeney, Patrick and Herb Greenberg. “Emerging Leaders: Closer Than You Think.” Talent Management Magazine March 2009, pp. 36-38.