MANAGING TALENT RISK

Written by Chris Beer (MMBA 1998-2005), UK Managing Director, Merryck & Co

Following the economic crisis, there has been much talk of financial and business risk management. But how often do we examine the risks we take in our own careers? Or examine the talent risk that may develop in our own organisations? Chris Beer, UK Managing Director of Merryck & Co, examines risk from a career and leadership perspective.

Risk management has once again become a hot topic. Out of every crisis there comes a renewed focus on managing and mitigating enterprise risk, reputational risk, financial risk and enterprise risk to name just a few. As we emerge from the most severe economic crisis in our lifetime there is a collective understanding that risk management is here to stay.

However, how often do we step back as leaders of business to reflect upon the talent risk that is potentially developing in our own organisations? How often do we take time to consider our own careers and reflect upon our strengths and development needs and dare to dream about finding that ideal role where we can really make a difference?

I would suggest that now is the time both personally and organisationally to take a really close look at the talent that resides in our enterprises and to actively manage the talent risk that is sure to be found.

Career risks should be welcomed; they enable us to develop and grow as individuals and to gain real understanding of our inner strengths and talents.

My own career has for the most part been in the world of professional services. I have led consulting practices for two of the Big 4 accounting firms; started two small niche consulting firms; been a member of the Global Leadership team of a $1bn quoted project consulting company and now lead the UK business of Merryck & Co; arguably the world’s leading CEO and Business Leader mentoring company. Along the way I have worked with great leaders, helping them build high performing teams and successful businesses. The greatest satisfaction has come from seeing others achieve their full potential; in many instances far greater than they would have imagined for themselves.

Have I taken risks? Many! Were they always good decisions? Certainly not, although I strongly believe that we learn far more from our mistakes than we do our successes. Career risks should be welcomed; they enable us to develop and grow as individuals and to gain real understanding of our inner strengths and talents. Often they take us in new and exciting directions, they keep us current and useful and stimulate us to carry on exploring just what is our purpose. Next time you face a career risk I would encourage you to see the opportunity and focus on the decision from a positive perspective and not a negative one.

Those organisations whose leadership has fallen short... are sure to see talented people walk out the door when new opportunities become available.

From the leaders perspective it is possible to have become complacent about the talent risk within our organisations, after all who is writing now about the war for talent? The economic crisis has subdued the talent agenda, employee mobility is down, headcount reductions/freezes are still common and new opportunities are fewer than for years. However I caution against complacency. When the cycle changes, as it is sure to do, how confident are you that your leadership has retained in your teams their loyalty, respect and commitment? True leadership prevails through the tough times not just when things are going well.

Those organisations that have been open and honest, have communicated clearly and have made the tough decisions in a transparent manner have at least mitigated some of the talent risk that resides within organisations. Those however whose leadership has fallen short, whose integrity has become questionable, are sure to see talented people walk out the door when new opportunities become available.

Another interesting dynamic is the rise in Generation X and Generation Y, as the Baby Boomers head to retirement. How will organisations and leaders adapt to the very different risks associated with leading these diverse talent pools. It has been said that Baby Boomers lived to work, that Generation X work to live and that Generation Y or the Millennials as they are often now referred to, expect to see work and social life merge. Collaboration, team working and globally dispersed project teams are becoming the norm fuelled by the inexorable advances in technology.

Organisations need to put strategies in place to manage these risks and to become an employer of choice in a disaggregated world.

Chris Beer started his career in retail banking followed by a spell in FMCG sales. He moved into the Recruitment industry and, after 3 years with a major agency, established his own Consulting Practice. He subsequently sold the business to a larger group and joined KPMG Consulting. He worked on varied Recruitment, Assessment and Development engagements for clients from both the private and public sectors. He then led the Executive Search, Selection and Interim Management Practice of Ernst & Young in the UK before joining Resources Global Professionals as a member of the Global Leadership Team; reporting to the Group CEO to set up their UK and subsequently European Operations. As MD of the UK company, he built and led the business from start-up to a team of 120 professionals growing revenues by over 40% year on year for 4 straight years. Chris is also a member of the WBS mentor panel.