Talent Management in Practice: Lessons from an HR Leader
Talent management has been one of the long-standing topics on their agenda for organizational leaders and human resources (HR) professionals. Many companies still struggle to attract, manage, and retain talented people, even more s0 during the past three years as a result of the COVID-19 pandemic.
On March 30, 2023 for MSCI, I had the privilege to host an hour-long webinar with one of the most accomplished HR executives I have ever known: Julian Dalzell.
During his 43-plus year tenure at one of the largest companies in the world, Shell Oil Company, Mr. Dalzell accumulated tremendous HR experiences in various capacities such as Global Vice President HR (VPHR) Shell Trading (Houston), Shell Oil Products East (Singapore), VPHR Supply and Distribution (London), and VPHR Operations for Shell Oil Company. With career assignments crossing borders (UK, the United States, Brunei, Sarawak, and Kuala Lumpur, Malaysia), Dalzell brings a wealth of knowledge on both the theory and practice of HR in diverse cultural settings.
Here are a few lessons about talent management I took away from my conversation with Dalzell.
Select talent scientifically.
Being scientific means being intentional and planful. To achieve this goal, you have to develop or identify specific tools to inform talent selection.
Dalzell shared two sets of tools he used at Shell: HAIR and CAR. HAIR standards for Helicopter (taking the birds-eye view), Analysis, Imagination, and Reality. In order to select winners from the outset, HR staff and functional managers must perform rigorous analysis of the candidate’s qualifications, imagine all possibilities and finally put their perspectives through a reality check.
The other tool, CAR, refers to Capacity, Achievement, and Relationship. Talented people have the brain power or capacity to problem solve, strong work ethics to achieve goals, and ability to build relationships.
Cultivate a talent-oriented culture.
According to Dalzell, there are three dimensions of culture: company culture, country culture, and age culture. Shell was a very analytical, network-based company that embraced the long-term approach to the development of knowledge, skills, and abilities (KSA). Equally important to Shell were individual personalities, values, and fit with the company.
As an international company, Shell learned, early on, how to work with people from different cultures from a distance and appreciate the importance of assimilating into the local or host country culture. Shell also rewarded people who were willing to take risks and demonstrated capacity to learn. These values and beliefs defined the unique talent culture for Shell.
Manage capable people who are not the right fit.
The reality is: we hire competent people who sometimes turn out not to be the right fit. As a result, they may not make the level of contribution to your company as expected.
To deal with this challenge, Dalzell suggests three things. First, conduct a strength analysis. Find out what these individuals are ‘really good at’ and then figure out ways to leverage their strengths to create win-win. Second, use the analytical results to determine if there are KSA gaps that can be addressed through additional training.
Finally, have an authentic conversation with the individuals. Be candid about the problems identified and be kind to work out an exit strategy if necessary. Remember to treat even your ‘problematic’ employees with respect and dignity because that’s how they are going to remember your company after their departure.
Manage talents of different generations.
For the first time in U.S. history, we have five generations in the workplace. So managing generational differences has become a part of daily routine.
Dalzell recommended companies focus on judging employees by their output rather than by work hours. For example, ample research shows that the younger generations, such as Gen Z, value flexible scheduling more than previous generations. This requires that managers hold them accountable in ways other than their office presence from 9 to 5. This also means that managers must recognize the contributions Gen Z may bring that others may not, such as entrepreneurial spirt, creativity, innovation, and technology mastery.
Finally, managing a multi-generational workforce means a willingness to explore new or creative approaches which balance individual needs and collective needs. In order to gain the trust from employees regardless of their generation, you must be willing to trust them first.
Cultivate the Learning Capacity.
Through various career assignments in different parts of the world, Dalzell learned many meaningful lessons, sometimes in a difficult way. Whether it was assigned to a job that was out of his comfort zone, or leading people from multiple cultures he knew little about, Dalzell learned that every job experience would add value even if he failed to recognize it at the time. In his own words, “You learn the most when you know the least.”
He also learned the power of asking good questions as a way of learning the unknown. For business leaders, managers, and HR professionals, this means providing employees with many opportunities to assume different roles and responsibilities in different business areas. As a result, your employees will become more well-rounded and competitive. In return, they will become more committed and engaged contributors to your organization.
There is no one-size-fits-all approach to talent management. Effective talent management practices must be contextualized. You can start doing so by rebranding your company based on your vision, values, and strengths. And, with that clear understanding, you will be ready to identify talents who will enhance that brand.
Jia Wang is a professor in the Department of Educational Administration and Human Resource Development at Texas A&M University. Her research focuses on international and national human resource development, organization crisis management, and learning within organizations.