The Truth about Talent

Talent: What It Is, What It Isn’t

Business leaders tend to believe that only an elite group of their most intelligent employees is worth cultivating and advancing. But undeveloped talent exists at all levels of every company. Workers require a nurturing environment – a “talent ecology” – to connect to their abilities and bring value to the company. You can’t manage talent; you can only encourage it. Human resources departments must stop focusing on a favored few employees and help the many.

Leaders who recognize “the truth about talent” know that if they improve their company’s ability to channel and expand the undiscovered talents of a diverse employee population, they can outpace their competitors and achieve greater success. This is important because the labor market is changing: Previously undeveloped economies are becoming powerhouses; worldwide communication is easier and instantaneous; younger people lack the skills they need because educational systems are not keeping up; and older people are staying in the workforce. Some firms might erroneously try to cope with these changes by instituting “succession planning,” which attempts to chart which current employees...