I recently received a comment on a past post questioning if Talent Management is Too Important to be Left to HR. Reader "Arshia" asked the following:
"I was wondering if you could help me figure out why in this decade most organisations are differentiated by talent and not technology. Why is talent given so much importance?"
While I addressed Arshia's question in the comments section of that post, I felt a dedicated post on this issue would be of interest to the rest of the Maximize Possibility Blog readership.
It is undeniable the technology has greatly helped to advance the productivity and effectiveness of countless organizations – particularly in well developed nations such as the US. The 1990s and early 2000s were host to a business revolution not seen since the industrial revolution. In a period of just a few years many organizations dramatically changed the way in which they do business. As a result many were able to significantly improve employee productivity and attain a short term competitive advantage.
However, technology quickly became ubiquitous to the point of essentially becoming a commodity. Most organizations use technology and its applications in the same way that other organizations do. As a result little to no competitive advantage is achieved - only competitive disadvantage for those who fail to adopt new technologies.
Think of your organization's customer relationship management (CRM) software… Chances are that a number of your competitors are using the exact same software services that you are and as a result this technology, in and of itself, is not providing any particular competitive advantage.
That brings me to my next point – talent. The only instance in which I can see an organization gaining an advantage from this technology is when the right talent is in a position to effectively leverage this technology better than one's competitors.
Looking again at CRM technology… Simply installing the software on everyone's computer provides absolutely no benefit to the organization until the technology is put in the hands of the right people with the right skills. This might require the acquisition of an in house training coordinator with a background in CRM technology, the allocation of training dollars to help employee become proficient in using the technology, or the sourcing of individuals who are familiar with this technology.
Somewhere, somehow, an organization's talent must be leveraged to benefit from this technology.
This is what business really boils down to ... people, talent, and how to leverage it.
Talent is unique to each organization with respect to how it is sourced, groomed, and leveraged. These organizational processes are as unique as each organization is different and can be very difficult to replicate. Some companies excel at managing and developing human capital and gain a competitive advantage; others do not and subsequently suffer.
Organizations have become differentiated by talent and not technology for one primary reason - talent is difficult to replicate. Even if a technology is developed within and exclusive to an organization, any advantage gained from this technology would not be possible without the right talent to create it.
If your organization is looking to get a leg up on its competition, look not towards technological parity, but rather look to your people and how they can be developed to provide the most value to your organization they are capable of.
Now go maximize possibility!
Other posts you may be interested in:
- Is Talent Management too Important to be Left to HR?
- Do Your Employees Know Your Mission Statement?
- McKinsey's Four Biases as Found in Talent Management
- How Google Handles Over 1,000,000 Applications Annually
Chris Young helps organizations Maximize Possibility through talent management, cultural transformation, and strategic intervention. Bring Chris in today!
