Joining the Links

The "War for Talent" is variously, depending upon whom you read or listen to, over; never started; in a ceasefire or still underway.  Whether you view it as a Cold War, Phony War or War still underway, the fact remains that recruiting (and retaining) the right talent into the Company will always be a critical requirement for HR.  Even more so when you consider that the working population in all major developed countries is actually going into decline over the next 10 - 20 years with the retirement of all the Baby Boomers. 

As any military person will tell you, wars are won and lost through the capability of the supply chain to keep the troops at the front supplied with munitions, rations, etc. Supply Chain Management (SCM) is the combination of art and science that goes into improving the way a company finds the raw components it needs to make a product or service and deliver it to customers. Here are the five basic components of SCM.

1.  Plan – This is the strategic portion of SCM. You need a strategy for managing all the resources that go toward meeting customer demand for your product or service. A big piece of planning is developing the indicators that drive the demand signals for your product line so that it is efficient, costs less and delivers high quality and value to the end customers.
2. Source – Choose the suppliers that will deliver the goods and services you need to create your product. Develop a set of pricing, delivery and payment processes with suppliers and create metrics for monitoring and improving the relationships. And put together processes for managing the inventory of goods and services you receive from suppliers, including receiving shipments, verifying them, transferring them to your manufacturing facilities and authorizing supplier payments.
3. Make – This is the manufacturing step. Schedule the activities necessary for production, testing, packaging and preparation for delivery. As the most metric-intensive portion of the supply chain, measure quality levels, production output and worker productivity.
4. Deliver – This is the part that many insiders refer to as logistics. Coordinate the receipt of orders from customers, develop a network of warehouses, pick carriers to get products to customers and set up an invoicing system to receive payments.
5. Return – The problem part of the supply chain. Create a network for receiving defective and excess products back from customers and supporting customers who have problems with delivered products.

So why am I delivering a lesson on the SCM basics? Simple really, the fundamental problem facing all service companies at this moment is people, and it is only going to get harder in the long run. Just as a supermarket needs to keep the right number of products on their shelves, it is just as critical for a company to get the right person in the right place at the right time with the right skills. We need to be thinking about Talent in the context of SCM. We need to be creating and enabling a Talent Supply Chain (TSC) that can meet the needs of the Business that we partner. We have to achieve R5 - the Right person with the Right skills in the Right place at the Right time for the Right cost.  So let’s take a look at the five basic components of TSC:

1. Plan – This is the strategic portion of TSC. Understanding the business strategy, pipeline of sales and the attendant people demand signals that need to be met to achieve the business goals. The criticality lies with identifying the people capabilities (skills/experience/knowledge) that meet the pipeline demand signals.
2. Source – Implement a sourcing function that will identify, attract and qualify a pool of candidates that are targeted to meet the forecasted (rather than immediate) needs that are identified through the pipeline demand signals. Choose a set of recruitment providers through a defined Preferred Suppliers List (PSL) that will complement the sourcing function. Refine the recruitment and on-boarding processes that will ensure a smooth transition from candidate to employee.
3. Recruit – This is the “production” step. Schedule the activities necessary for interviewing, testing, confirmation and preparation for on-boarding. As the most metric-intensive portion of the TSC, measure quality levels, production output and PSL productivity.
4. Deliver – This is the on-boarding step where many companies and HR functions fall over. Coordinate the basics; computer, access cards /IDs and all the paraphernalia without which the new joiner will feel less than happy at the move they have just made.  Get it right first time on Day 1.
5. Develop – The problem part of the Talent Supply Chain. Without a strong development plan, the will to implement it and objectives to drive towards, the new joiner will rapidly feel that they have no future within their new company.
   

The Talent Supply Chain is not the “be all and end all” for HR operating as a business but it is going to be a critical service in enabling the success of the Company. As we move forward and evolve HR as a business function, we need to constantly bear in mind the key principles for managing the Talent Supply Chain.

And Finally...

As we consider the success  that an efficient and effective Talent Supply Chain can bring now, and in the future, I leave you with a quote from Henri Poincare:

"It is far better to foresee even without certainty than not to foresee at all."

All the best,

Jim