Continuing from this post, I was thinking about more details about this parallel between Talent Management and Supply Chain Management. The first principle, from which I am trying to derive things here is that in both cases, there is a demand (in one case for talent, and in the other case for products), which needs to be met, and frameworks or processes put into place to match supply with demand. With products, the source of demand is simple to visualize. Not so with talent. So lets begin by taking a look at that.
The need of strategies, processes, and practices in the organization is to meet the business vision of the organization. To meet this vision, some work needs to be done by some people, and therefore, there is a need for people, equipped with the talent to do this work. So, the demand for talent arises from the work to be done to meet the strategic goals of the organization. Add to this the fact that there is specific talent available within the organization, and from there, its a question of trying to match available talent to the demand for talent, and based on this, determine what talent is required (in which area) to meet this demand. The supply of demand comes from employees, contractors, applicants, and L&D. I say L&D because learning is one way for creating talent supply to meet the talent needs of the organization.
Having said this, the basic concept which is the core for SCM is the concept of the part number. This is the unique identifier which tells anyone across the supply chain which specific material or product is being talked about. There needs to be a concept similar to this, something which uniquely identifies the attributes of the talent required (somewhat like part number which uniquely identifies the specifications of the material being spoken about). Different organizations meet this requirement in different ways. As you will read here, IBM solved this with the concept of JRSS, the Job Role Skill-Set, which is a composite of the job role, the role that an individual performs, and the skill sets that the individual has. This is the common identifier which can uniquely define what talent is being spoken of in the talent planning process.
Over the last few days, two pieces have appeared in HBR, about the change agenda for HR. One is written by Ram Charan, which talks about splitting HR, while the other, written by Cathy Benko and Erica Volini, about what it will take to fix HR. At the most fundamental level, both these pieces acknowledge the fact that there is a problem with the HR function in the organization. And since they agree on that, they also agree that something needs to be done about it. And thats where, more or less, they move in different directions, as you would see from the blogs.
Lets step back, and take a look at some of the reasons why these problems are there, coming from the perspective of HR practitioners. The first aspect we need to understand is that in today’s world of business, with a steady level of complexity, and increasing levels of disruptive changes, HR managers need to understand details of the business, both internal and external to the organization. Only then can HR managers play a meaningful role in defining organization strategy. In other words, HR managers need to be at the confluence of business management, and people management. However, most of the HR practitioners I talk to are nowhere close to this point. Most HR practitioners are generalists, and not SMEs when it comes to business operations. This means that they need to take guidance from business managers, and formulate practices based on this guidance.
Because that might sound a bit abstract, let me take an example. Lets say a business manager decides that there are some skills lacking in his team. The manager would reach out to the L&D team, tell them what type of training is required, and the L&D team would search through a catalogue, identify the training, and execute the logistics to deliver the training. The L&D team, in this example, has no understanding of the reason for the training requirement, the objective that is to be met, or the outcomes that should come out of the training for participants. In this scenario, the team is essentially fulfilling requirements, rather than giving strategic inputs into the forecasting of medium- to long-term training needs, how these would help address business objectives, and address employee development.
To summarize, it is at the intersection of business and people management that there is a gap, and filling this gap is the need which needs to be addressed. To address this, we need people who have a sound understanding of the complexity and challenges of business, and how people practices can help to address those challenges and meeting that complexity. Whether this is to be achieved by splitting the HR function, I dont know, though the debate throws up more questions than just that. It raises the point that I am talking about here … that in stead of HR practitioners only taking guidance and fulfilling requirement, HR practitioners need to be in a place where they can add strategic value, and that this requires a change in the way HR managers look at the intersection of business management and people management.