Chief executives should act now to prevent defections of key employees next year, says veteran management adviser Ram Charan.
Ram Charan, an expert and author on developing corporate talent, shown earlier this month during an interview with The Wall Street Journal.
CEOs of major U.S. companies "do not really put even 15% of their time into the people-development equation, and that's far less than needed,'' Mr. Charan says.
Mr. Charan has written or co-written 17 management books—mostly about strategy and leadership. Four became best sellers. His newest, "The Talent Masters," urges corporate chiefs to "make talent development your obsession."
Why aren't more CEOs worried about retention now?
Among Fortune 500 CEOs, the intent to put people as a key item is high. But in actual practice, the percentage really doing a thorough job is less than 25%.
You also should be looking five years ahead. The biggest risk is top management not knowing explicitly whom they depend on lower in the organization for success.
Ram Charan's list of biggest corporate talent management mistakes:
- Leaders not held accountable for developing talent.
- Performance assessments without candor or focus on developmental needs.
- Failure to drill deep enough to know best staffers well and put them in stretch jobs.
- Top management's serious lack of time commitment and energy.
- Placement of loners in leadership jobs.
Source: The Wall Street Journal, December 27, 2010
Bill Conaty: The Talent Masters: Why Smart Leaders Put People Before Numbers