Talent and the Board of Directors – pressing issues in an ever changing world.

Business executives understand the importance of having a strong board of directors. After all, these are the individuals responsible for guiding the organization’s strategic direction, overseeing financial performance, and ensuring that the company is on track to meet its goals. However, one area that is often overlooked when it comes to the board’s role is talent management.

I recently attended a webinar put on by Delloitte. Deloitte is a highly respected Big Four Accounting Firm specializing in audit, consulting and advisory for a broad range of companies. The webinar panel included: 

Jean-Christophe Deslarzes, Chair, Adecco Group and Constellium

Michael Fraccaro, Chief People Officer, Mastercard Inc

Bernard Ramanantsoa, Board member, Orange Belgium SA, Dean Emeritus HEC Paris

Lynn Utter, Board member, Vista Outdoor Inc., Lincoln National Corp, Operating Partner, Atlas Holdings

These professionals spoke about how company boards can work with management teams and all stakeholders to help guide issues revolving around talent.

A little background first before I summarize the Deloitte webinar. Talent management is critical to the success of any organization, and it’s something that the board of directors should be involved in. After all, the board is responsible for ensuring that the company has the right leadership in place to drive growth and innovation. So, what can a board do to support talent management efforts? Here are a few ideas:

1. Set clear expectations for talent management

One of the most important things a board can do is to set clear expectations for talent management. This includes outlining the skills and experience that are needed for key leadership positions, as well as establishing performance metrics and goals for the executive team. By doing so, a board can ensure that everyone is working towards the same objectives and that talent management is a top priority for the organization.

2. Be involved in succession planning

Succession planning is an essential component of talent management, particularly for key leadership positions. A board should be involved in this process, working closely with the executive team to identify potential successors and establish a plan for their development. By doing so, all stakeholders can ensure that there is a pipeline of talent ready to step into critical roles when needed.

3. Provide support for leadership development

Leadership development is another critical aspect of talent management. The board can play a role in this by providing support for leadership development programs, such as executive coaching or leadership training. By doing so, the board can help a the company’s executive team to develop the skills and experience they need to drive growth and innovation within the organization.

4. Monitor organizational culture

Organizational culture is a critical factor in talent management. The board should be monitoring the culture within the organization, looking for signs of toxicity or dysfunction that could impact the ability to attract and retain top talent. If issues are identified, the board should work with the executive team to develop a plan to address them.

5. Foster diversity and inclusion

Finally, the board can support talent management by fostering diversity and inclusion within the organization. This includes ensuring that the executive team and board are diverse, as well as implementing policies and practices that promote diversity and inclusion throughout the company. By doing so, you can attract a wider range of talent and create a culture that is welcoming and inclusive to all.

To the best of my recollection, I’ll summarize below the input on the topic of talent and the board from the professionals as they discussed during the Deloitte webinar.

Touching on the topic within the wide context of geopolitics and economic uncertainty, Jean-Christophe Deslarzes pointed out that talent and staff are still in great need of attention and it should be consistently on the mind of board members. He noted that the scarcity of talent, due to the changing demographics and changes in people’s preferences, has also been observed. He talked about not only the fact that there has been growing reluctance to change jobs among employees, but also a reassessment of their career goals. Mr. Deslarzes took stock of the skills shortage that arises as a result of advances in technology. He has emphasized the need to refresh and develop skills so as to keep up with these technological changes and other changes that affect the workforce.  Talking about succession planning, the necessity of speed, empathy and efficiency were highlighted. Lastly, he recommended structured discussions on talent at several levels of leadership, emphasizing that culture, values and behavior’s are crucial to dealing with challenges relating to talent. He mentioned that there must be rigorous selection procedures based on competences, experience and personality characteristics for board members.

Michael Fraccaro talked about the the importance of developing a deep bench of executives that can be in line for replacing talent if they leave. For the purpose of carrying out its strategic priorities, he underlined the importance of ensuring an appropriate pool of talent within the organization. The importance of the organization’s culture in attracting and fostering the right talent we touch on. Mr. Fraccaro, also stressed the importance and relevance of factors such as employee agitation or geopolitical considerations and the fact that boards and management team sometimes walk a fine line on issues of this matter. Then he reflected on the importance of dealing with continued workforce changes, which included how work is conducted, leadership development and challenges related to managing a mixed workforce. He also talking about the importance of developing strategies to interact with the broader work force, enhance the board’s knowledge of talent and broaden discussions on human capital.

Bernard Ramanantsoa went ahead and provided insight into a board’s focus on key strategic issues, the increasing importance of artificial intelligence, the diminishing emphasis on globalization, and the growing importance of environmental, social and governance considerations. A close consideration of a company’s identity and overall culture is a discussion that he thinks is important for a board to have. In his opinion, there is also a need to focus on workers’ salaries and benefits as an ordinary issue which must be taken into account for strategic reasons. In terms of remote work he highlighted the importance of informal relationships and called into question their future. He shared his opinions on Artificial Intelligence’s (AI) impacts on jobs, as well as brought up ongoing discussions about the role of boards and their responsibility to maximize shareholders’ value instead of taking into account all stakeholders’ interests.

Lynn Utter outlined that board rooms and company executives have seen and will continue to see different operating environments then in the past.  Given the diversity of opinions across geographical areas and roles within an organization, she stressed the need for a more diverse approach as well as necessity to raise the important discussions around talent. Ms. Utter discussed that for boards, it is essential that they adapt and focus on the ability to ask good questions as business models and markets evolve, influenced by the impact of artificial intelligence and changes in legislation. The need to talk about talent in boardrooms is acknowledged by Utter, and she suggested allocating a specific period of time for detailed discussions and boards make it a priority. She stressed the growing importance of the Chief Human Resources Officer’s role and the need to integrate talent expectations into routine board work.

In conclusion, talent management is critical to the success of an organization, and the board of directors should be involved in supporting these efforts. By setting clear expectations, being involved in succession planning, providing support for leadership development, monitoring organizational culture, and fostering diversity and inclusion, the board can help to ensure that the organization has the talent it needs to succeed.