Chartered Institute of Management Accountants Chartered Institute of Management Accountants Chartered Institute of Management Accountants talent management THE BUILDING BLOCKS FOR SUCCESS. 1 COntents nOTE On terminOlOgy 02 INTRODUCTION In framing our research, we asked Active terminology seems to be participants to describe what the preferred because of its greater 03 aBOUT THE RESEARCH concept of a ‘career framework’ meant resonance with managers and employees 05 SYMPTOMS OF POOR taLENT MANAGEMENT to them and their organisation. All compared with the more passive participants strongly stated that a range ‘framework’ concept. Reflecting this, we 08 BENEFITS OF BETTER taLENT MANAGEMENT of factors were needed to maximise the have used a combination of these terms 09 BUILDING BLOCKS FOR SUCCESS contribution of people within in their to encompass our original discussion organisations. about ‘career frameworks’. 18 ACTIONS FOR LEADERS Not all organisations used the term Our definition of ‘talent’ follows that of 19 taLENT MANAGEMENT AND CIMA ‘career framework’ in managing this area the joint CIMA, CIPD, CMI and Investors 22 CONCLUSION or communicating with staff; the most in People ‘Valuing your Talent’ project, common term used being ‘talent which states: ‘We believe that the term management’. Where reference was ‘talent’ should not be reserved for ‘high made to the idea of a career, it was often flyers’ but instead that all people have a termed ‘career progression’ or ‘career role to play in contributing to the development’. success of their organisations, whatever their size or sector.’1 Interviews and roundtables conducted during the research were carried out under Chatham House rules, where information was contributed on the basis that it would not be attributed to individual organisations. TALENT MANAGEMENT: THE BUILDING BLOCKS FOR SUCCESS FOR MORE INFORMATION VISIT WWW.CIMAGLOBAL.COM 2/3 intrOductiOn aBOUt the researCh The role of finance is changing in seeking to This report is based on a 2016 study undertaken by CIMA with add more value to the business, and more than Power of Numbers Ltd. The research was commissioned by the ever finance people in all sectors are seen as Great Place to Work action area of Future-Focused Finance2 in critical in solving major organisational order to enable NHS finance teams to learn from good practice challenges. This report investigates how large in talent management and career progression amongst large commercial and public sector organisations commercial and public sector organisations. As exemplars of best manage their talent, identifying four practice, the findings have wider relevance for any organisation fundamental building blocks for success. wishing to improve their talent management. We then consider the value of the CIMA professional qualification in talent A total of 18 large public sector and commercial We asked participating organisations to rate themselves in management, both to the individual and the organisations directly contributed to the study through terms of how they help people develop their careers (Figure roundtable workshops, one-to-one interviews and an online 1). Over half considered that they were very strong in this organisation they work for. survey, alongside wider desk research. Drawing on the area, while recognising that there was still some room for experience of these organisations, this report collates improvement. examples of good practice across all aspects of talent management and career progression and suggests actions Those organisations that rated themselves lower were all which organisations can take to implement these practices. part way through a programme of change in this area and could point to specific actions in progress which they believe will have significant impact in the future. TALENT MANAGEMENT: THE BUILDING BLOCKS FOR SUCCESS FOR MORE INFORMATION VISIT WWW.CIMAGLOBAL.COM 4/5 figUre 1: hOw well dOes yOUr OrganisatiOn help peOple develOp their Careers? symptOms Of poor talent management 40% Inadequacies in talent management are impeding organisational competitiveness and S financial performance T N E 30% In increasingly volatile times, organisations need to Our previous research in this area4 has shown that, OND P be constantly alert and ready to address new risks while most companies understand the importance of and opportunities. Uncertainty means that businesses human capital, they do not appear to have the right 20% need to build their adaptability and resilience, and in systems, processes and information in place to manage the public sector there is pressure to do more for less talent effectively. Furthermore, inadequacies in talent while simultaneously addressing growing demands for management are impeding organisational competitiveness ION OF RES greater transparency and accountability. Effective talent and financial performance. T 10% management will be a critical success factor, and with half OR P of all CIMA members looking to change roles within the next two years3 employers must pay close attention to PRO their talent management strategy or risk losing key staff. 1 2 3 4 5 6 7 8 9 10 RATING EXCELLENT All the organisations emphasised that people are a critical careers, there were other, more subtle factors enabling resource with a variety of skills, motivations, expectations successful investment in staff. and preferences, and that good talent management and career progression needs to take account of that diversity. In recent years, we have seen the role of finance evolving, They agreed that the concept of a ‘career framework’ seeking to add more value to the business. More than ever, extends well beyond describing the range of available finance people in all sectors are being seen as critical in roles and possible career paths that people can follow. All solving major organisational challenges. Consequently, participants strongly stated that a range of factors were all the organisations interviewed prioritised finding and needed to maximise the contribution of people within in developing the right finance staff who are able to: their organisations. While this includes providing managers • Lead the continual drive for savings and efficiency and employees with a picture of the finance and other • Generate new thinking that enables an organisation roles that might be relevant for them and the different to adapt to the growing complexity of its operating routes or paths that they could follow in developing their environment • Play a role in sustaining organisational memory ‘As the finance function becomes more efficient, the priority in finance transformation is shifting from how to take cost out of an overhead function to how to get more value from finance disciplines. And as management accounting becomes more influential, it is increasingly valued for its contribution towards ensuring business success.’ Finance Business Partnering the conversations that count, CGMA 2015 TALENT MANAGEMENT: THE BUILDING BLOCKS FOR SUCCESS FOR MORE INFORMATION VISIT WWW.CIMAGLOBAL.COM 6/7 INSUFFICIENT ROLES AVAILABLE OVER-PROMOTION figUre 2: the symptOms and impaCt Of poor talent management Depending on the scale of the organisation and its business Sometimes people are given a promotion just to keep them unit structures, there may be an insufficient number of in the team or organisation. The roles offered are frequently roles opening up to allow people to progress. Individuals whatever is currently available and sufficiently attractive INABILITY TO Few applicants, particularly for Not enough fresh blood often reach a stage in their career where promotion is not to the individual. However, this can lead to big problems to generate innovation appropriate, but a lateral move to gain experience in a where the role is not matched to that individual’s strengths RECRUIT more senior roles and new thinking different role or business unit would be highly beneficial (an example being a technical specialist moving into a both to themselves and to the organisation. leadership role) or where the level of stretch is too great. This can be compounded by not providing them with This may be appropriate when, for example, an individual enough support, either in preparation for the move or has been unsuccessful in applying for a promotion. LIMITING People are not stretched and are Too many specialists to address any capability gaps. The same problems with POTENTIAL unable to deliver their full potential reinforces silos ABSENCE OF GOALS over promotion can occur when managers believe that ‘no-one else can be found’ either internally or externally We found that a high proportion of people have few or no to fill the role. goals in relation to their development or career progression. Stagnation means that Where goals exist, they may only be nominal. We identified Failing to address these causes can lead to a cycle of talent STAFF Too low people do not develop the following issues: mismanagement (Figure 3). The negative impacts include TURNOVER poor staff morale and motivation, succession risks and the ISSUES The most productive and / • Goals are insufficiently specific, realistic or actionable inability to generate fresh ideas and insights to overcome Too high or high potential staff leave • Individuals have not set out (or do not understand) the challenges. Pressure on senior leaders increases as the actions required to reach those goals organisation under-performs. • Individuals are not putting those actions into practice systematically. EMPLOYMENT Increased