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Talent management - competency development: Key to global leadership

Article  in  Industrial and Commercial Training · April 2009

DOI: 10.1108/00197850910950907

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Talent management – competency
development: key to global leadership
Rakesh Sharma and Jyotsna Bhatnagar

Rakesh Sharma is based at Abstract

Dabur Phrama Limited, Purpose – The purpose of this paper is to draw lessons on how building a talent management strategy
India. Jyotsna Bhatnagar is based on competency profiling becomes a critical impact area within the field of strategic HRM.
based at the Management Design/methodology/approach – The case study discusses an Indian pharmaceutical organisation,
Development Institute, the environment and the issues arising in context to talent management. The case discusses a well
India. designed talent management strategy.
Findings – The talent mindset has helped the organisation in recruiting the best talent from the best
pharmaceutical organisations. The attrition of the top and valued talent segment has come down. Some
of the key positions have been filled through succession planning.
Research limitations/implications – The case study is in a lesser known but emerging sector of the
Indian economy. The case has concentrated on attracting and developing and retaining key talent, it
does not concentrate on developing average talent into key talent.
Practical implications – The implications lie in whether to grow talent or buy talent. What signal through
a communication strategy should a HR manager give when determining for talent segmentation? How to
develop talent and retain employees when there are not challenging options available in the internal
labour market?
Originality/value – This paper provides insights to HR practitioners on how to attract, acquire and
manage talent in a tight internal and external labour market. It also provides empirical support for, and
theoretical understanding of, the strategic HRM literature on talent management theme.
Keywords Competences, Globalization, Assessment, Employee development
Paper type Case study

Backdrop
India’s pharmaceutical industry is poised for change. Enactment in early 2005 of patent
protections that comply with the World Trade Organization’s Agreement on trade-related
aspects of intellectual property rights (TRIPS) has brought India to the forefront of potential
outsourcing venues for the world’s pharmaceutical multinational corporations. European and
US companies are being drawn to India for both manufacturing and research and
development (R&D) due to rising costs of developing, testing and marketing drugs. Over the
past decade, some of the large Indian Pharmaceutical companies also have branched out,
selling their generic products abroad (particularly to developing nations) and establishing
foreign subsidiaries. The globalization trends have put onus on Indian pharmaceutical
companies to reinvent themselves. As expected, the question oft debated at various forums
is whether India’s pharmaceutical firms rival and grow to compete with Big Pharma Multi
nationals. The analysts maintain that the potential certainly exists, but Indian pharmaceutical
companies will need to think strategically about their resources – human and financial – in
order to take advantage of the opportunities.
Such is the environment Bupharm has to survive in. Bupharm is a young and growing Indian
Pharma Company operating in specialty space with a turnover of close to 80 million USD. It is

PAGE 118 j INDUSTRIAL AND COMMERCIAL TRAINING j VOL. 41 NO. 3 2009, pp. 118-132, Q Emerald Group Publishing Limited, ISSN 0019-7858 DOI 10.1108/00197850910950907
driven by the vision of ‘‘To become world’s leading player in its industry’’. It is essentially a
family owned setup and, like most family-owned businesses regardless of location or
industry, it operates with a high level of owner involvement, though it is trying to acquire a
more professional image.
The organization is realizing that most of its prospective alliance partners and prospective
hires are interested in working with Indian partners who have not only owners, but also
managers with experience to build the necessary global relationships. Being a family owned
organization it is also experiencing that the nature of this work requires a different type of
management style. It is encountering a marketplace where management supply is quickly
becoming a deciding factor. The organization also faces the added talent management
challenge of blending different cultures. The family owners are progressively dealing with
individuals who expect access to technology and a working environment at least as
up-to-date as that of an MNC, as well as policies and procedures more in keeping with what
they experience abroad. Programs that help these new employees integrate into the
organization also are critical.
The decision-making environment is critical for high-level employees. In the USA and
increasingly in Europe, companies generally operate in a de-centralized and
collaborative mode. Department heads have high degrees of autonomy in budgetary,
staffing and other matters. Boards of directors set strategy, but managers generally
have the task of designing and implementing its execution. Thus, traditional top-down
management styles may seem cumbersome or constraining to innovative individuals
accustomed to speedy decision making. A bit of ‘‘bending the rules’’ may be necessary
in certain situations.
Deciding how tightly – or loosely – to hold the corporate reins as an organization grows are
never easy. The owners are being called on to define ‘‘Everything decentralized-but’’
strategy. Managing expectations among all parties, therefore, is crucial. The organization
will need to learn to accommodate and adapt as the situation dictates.
The organization has presence across the globe in over 40 countries and is striving to
capitalize on the product patent regime and strengthen its position in the highly regulated
markets. Its workforce is highly specialized with skills in R&D, Manufacturing, Supply-chain
and logistics and of course specialized relationship based selling and is moving together
towards its mission of ‘‘Making its therapy available to more and more people’’.
Being an organization operating in a niche market, the skills are rare to find and being one of
the pioneers in its area of operations Bupharm is becoming a training ground for many. The
attrition among critical and high performing individuals therefore, has become critical. At the
same time attracting the best talent is becoming increasingly challenging. Retaining the
people is as important as hiring the right people.

Talent management amidst change

Bupharm is in an industry that is facing an acute talent shortage. The skills required are
diverse. The ability to detail and diligently do the job is a great requirement. The demand is
not being met with the supply. We now see a lot of turnover in manpower with the limited
supply being chased by everyone. Candidates also have a short ‘‘shelf life’’ in organizations
due to lack of fit. Recruitment and retaining of right kind of person is real challenge for HR.
In this scenario, definitely the talent pool is not catching up with the requirement. The
organization feels the need to keep on educating its employees to meet the ever-increasing
technical demands after recruitment.
Owing to its global spread Bupharm faces an added talent management challenge of
blending different cultures. Bupharm HR (Structure – Figure 1) acknowledges and
incorporates – at all levels – the importance of culture, the assessment of cross-cultural
relations, vigilance towards the dynamics that result from cultural differences, the

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VOL. 41 NO. 3 2009 INDUSTRIAL AND COMMERCIAL TRAINING PAGE 119
Figure 1 Organogram – Bupharm Limited

expansion of cultural knowledge, and the adaptation of services to meet

culturally-unique needs.
In many cases it has hired Westerners or non-resident Indians (NRIs) to fill key positions
domestically or abroad. It has experienced that these individuals expect access to
technology and a working environment at least as up-to-date as that of an MNC, as well as
policies and procedures more in keeping with what they experience abroad. Programs that
help these new employees integrate into the organization are also critical.

Talent management strategy

Bupharm has realized that realizing strategic vision through human resource shall begin at
assessment of talent needs of business. Through the talent assessment it has mapped out
Competencies relevant globally in this new environment which it needs to harness and
develop. It is now investing in competency based talent recruitment and creation, creating
environments, evolving appropriate management styles and developing their leadership
pipeline to compete globally.
After due deliberations and brainstorming, the Bupharm management decided to do talent
segmentation, based on a highly competitive competency framework, both for getting talent
into the organization as well as existing talent. The management team clearly felt that the
depth and quality of the organization’s talent pool will determine whether they will lead its
market and industry, or merely follow other companies that attract better, brighter, more
talented people.

Talent acquisition and management strategy

The talent acquisition and management strategy involved:
1. Defining the competency framework relevant for the organizational growth:
B For the senior management (refer Figure 2).
B For the middle managers (refer Figure 3).
2. In-depth talent assessment based on competency framework for:
B new hires;
B existing employees.

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Figure 2

Figure 3

3. Identifying lynchpin positions as per the current organizational strategy:

B Classification in terms of ‘‘Cannot afford to lose’’, ‘‘Critical now’’ and ‘‘Can go’’
4. Making sure that the ‘‘Cannot afford to lose’’, ‘‘Critical now’’ resources are not leaving –
making position attractive through:
B development focus;
B challenging assignments;
B fast track growth;
B higher education sponsorships, etc.

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 The talent acquisition process
The organization partnered with some of the leading search companies across the globe.
The organization realized the need to tap into the global market and get the best talent to
know the organization, its future plans and the excitement that they would be able to get
through a challenging role. The CEO personally ensured that he was recruiting for most of
the key positions.

The organization adopted the following process to identify the right person for the given
job:

Step 1. The detailed job specifications of the position were documented. The methodology
used was as per Hay. The position specs ensured that the detailed competency
requirements from the role are clearly articulated.

Step 2. Appropriate psychometric tools were identified and considering the global reach,
were administered online or onsite. The tool used was Thomas profiling which was coupled
with a leadership style indicator in case of specific positions.

These tools map (Figures 4 and 5) responses of an individual in terms of:

B strengths of an individual;
B weaknesses of an individual;

Figure 4

Figure 5

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 B behavior under pressure;
B value to organization.

The leadership style indicator (Figure 6) maps the:

B working style;
B leadership style;
B thinking style;
B personal style;
B career beliefs;
B career motivation.
The reports from these tools are validated by reference check feedback and competency
based interviews to see if a defined pattern emerges to base recruitment decision. The
report was then being used to decide the further course of action for the possible
recruitment.
Step 3. A comprehensive docket that outlines the leader’s profile on criterion established
earlier was generated. It underlined areas of strengths and opportunities. The docket
included a confidential page outlining a metric ‘‘Recommendation’’ on employability to the
organization.
Bupharm is now working on adopting a more robust selection process especially when
recruiting for lynchpin positions. The process is expected to be used for both external and
internal recruitments. The proposed process steps are depicted in Figure 7
The psychometric tools to be used for testing are shown in Table I

Talent management process

The talent management process (Figure 8) was divided into the following steps:
1. Identification of talent – the people were assessed on the organization’s competency
framework. The methodology used was through the Assessment & Development Centers.
This method was adopted for all middle managers.
2. Based on the assessment results, the participants were plotted on a talent matrix
(Figure 9) which is a Performance versus Potential 3 £ 3 matrix (middle managers only).
The matrix was shared only with the CEO and the HODs. The employees are not aware of
either the matrix or their talent type.

Figure 6

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 Figure 7

Table I Psychometric tools used for testing

S.No Test Purpose

1 16PF Psychometric instrument which profiles candidates

traits and thereafter their linkage with competencies
desired for the job
2 MBTI Tells an individual about his/her personality ‘‘type’’. It
portrays behavior as stemming from basic differences
in preferences
3 Leadership style The tool discriminate elements of ‘‘directiveness’’ and
descriptor ‘‘command’’ as also ‘‘supportiveness’’ indicating the
preferred style in problem solving
4 Situation decision tree An incident based questionnaire which details in a
(SDT) normative manner the appropriateness and timeliness
of the decision he makes (see Appendix 1, Figure A1)
5 EDGE A tool that benchmarks the ‘‘wisdom’’ band spread
and ability to make critically reasonable deductions
6 Situation reaction test Participants are assessed for their basic attitude
(SRT) towards work life through the way they react to various
situations
7 Critical incident review A time-series analysis of an individual’s journey to
(followed by BEI) growth. Extrapolation readings help indicate likelihood
of reaction in different situational windows

3. Documentation of the individual development plan (IDP) (see Appendix 2, Figure A2) by
the individual. It captured the following:
B Aspirations – short and long term.
B Areas of strength.
B Areas of improvement.

The format has been annexed.

4. Individual then discussed the IDP with the reporting manager/functional head. There
were various learning strategies that could be adopted for leadership development.

A brief summary is as per Table II. Based on the individual’s learning curve, criticality of
role being performed, potential to do better, etc., one or more learning strategies was
adopted.

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PAGE 124 INDUSTRIAL AND COMMERCIAL TRAINING VOL. 41 NO. 3 2009
Figure 8

Figure 9

5. Signoff between the reporting manager/function head was taken to have complete
commitment on the plan.
6. Individual then took charge of his/her learning and the manager enabled the same.
7. Reporting manager/function head conducted periodic reviews to ascertain the progress
on each of the areas. These reviews were done one on one and the same was shared with
human resources to facilitate the development.

The ground reality on the talent matrix

In total approximately 150 middle managers went through this process. The assesses talent
was segmented into (Figure 10):
B top talent;
B valued talent;
B talent under watch;
B incompatible talent.

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j
Table II
Reflection In-depth thinking about personal Understanding lessons of Enhanced learning Time and guidance to do
experience experience Personal effectively
Self-understanding Poor job transfer
Action learning Project-based learning directed at Socialization Tied to business imperatives Time intensive

j
important business problems Teamwork Action-oriented Leadership lessons not always
Implement strategy clearl
Over-emphasis on results
Outdoor challenge Team-building experiences in Teamwork Emotionally charged Poor job transfer
outdoor/wilderness settings Self-understanding Action-oriented Potentially dangerous

PAGE 126 INDUSTRIAL AND COMMERCIAL TRAINING VOL. 41 NO. 3 2009

Practice Description Development target Strengths Weaknesses
Formal program Classroom-based learning Skill development Flexible Poor tansfer of learning
Shell for including a variety of Self-knowledge Efficient Lack of support on job
practices Leadership principles
360 feedback Multi-source ratings of Self-knowledge Comprehensive picture Overwhelming amount of data: no
performance organized and Behavioral change Buy-in gidance on how to change; time
presented to a manager and effort
Coaching Practical, goal-focuses form of Self-knowledge Personalized Perceived stigma (remedial)
one-on-one learning Behavioral change Intensive Expensive
Career development
Job assignments Providing ‘‘stretch’’ assignments in Skills development Job relevant Conflict between performance and
terms of role, function of Broader understanding of the Accelerates learning development
geography business No structure for learning
Mentoring Advising/developmental Broader understanding Strong personal bond Peer jealousy
relationship usually with a more Advancement catalyst Over dependence
senior manager Lessons learned/avoid mistakes
Networks Connecting to others in different Better problem solving Builds organization Ad hoc
functions and areas Learning who to consult for project Unstructured
help
Socialization
Figure 10

The organization adopted the following learning strategies based on the talent type:

1. Executive coaching for approximately 12 key middle management positions.

2. Formal training:
B for building management and leadership skills;
B for enhancing the problem solving and analytical skills;
B others, based on the development need analysis.
3. Provided job enrichment opportunities for high potential individuals.
4. On the job projects and stretch assignment opportunities to valued and top talent.

To make the learning happen, the projects and the special stretch assignments were linked
to the business strategies and were integrated into the individual’s goals. Therefore,
evaluation and rewards got built into the process (see Figure 11).

The above talent acquisition and talent management initiative has been operating for the
past 15 months. The organization has witnessed the following phenomena:
B The organization has hired rare and highly talented people across the world from some of
the best pharmaceutical companies.
B The attrition rate for the top and valued talent segment in the organization has come down
from 19 percent to 12.89 percent.
B Some of the key critical positions have been filled from within the organization.

Figure 11

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VOL. 41 NO. 3 2009 INDUSTRIAL AND COMMERCIAL TRAINING PAGE 127
 B Bupharm will now be initiating a 360-degree feedback which will be based on the
competency framework.

Talent assessment
Bupharm is also contemplating initiating a formal comprehensive talent assessment review.
The steps for the talent assessment review.
1. Individual creates a self assessment document ‘‘know yourself’’, which includes the
following: an updated resume, assessment of strengths and development needs, career
goals and opportunities, details of annual achievements.
2. Face-to-face meeting between the individual and the reporting manager and/HOD to
compare the self evaluation with the manager’s assessment-to review career interests
and opportunities and agree on the development action plan.
3. After all such meetings, the HOD prepares:
B A career forecast docket for each individual. The docket consists of: career
background/experience; promotability/performance; detailed annual achievements;
360 degree feedback summary; and progress made by individual through IDP.
B Preparation of functional staffing plan considering the available talent and what skills
and competencies are needed in the team basis the organizational and functional
objectives.
B Succession plans with three replacements for his/her own position and those of his/her
critical resource.
4. Discussion with the CEO by the HOD.

The challenge
Bupharm’s HR has zeroed in the following propositions which they felt would work best in the
given industrial scenario (see Figure 12).
P1. Every organization has a culture and only those candidates must be selected who
align with the values defining this culture.

Figure 12

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The organization’s culture is expressed through its actions and decisions. Via these it places
its distinguishing mark on the establishment of the market position and the organization’s
brand.
It is therefore important that the organization knows and understands its value proposition.
To achieve such an understanding the characteristics must be understood.
An organization’s value proposition can be ascertained through an understanding of:
B the organization’s self-perception;
B how others perceive the organization;
B the way in which the organization wishes to be perceived.

The organization’s value proposition is also a methodology for identifying and describing the
values that are tied to the brand internally in the organization and externally with customers
and business partners.
It will be a value-add for any organization to attract candidates who can espouse the values
of the organization so that as employees they can feel committed to the organization. The
values can easily be translated into competencies which can become parameters for
attraction, management, development and engagement of workforce.
The dilemma. Can an organization in the given scenario of talent crunch act so fussily about
its talent recruitment?
P2. An organization must make the position attractive to bring high level professionals
on board and retain them.

High level professionals across the world want investment in their development and a robust
career path. The organization should let them know their potential and what opportunities
can be provided. They also want to work on cutting edge projects and know that they will
have the authority to manage those projects.
If an organization’s goal is a superior, high performance workforce that is focused on
continuous improvement, it needs to manage people within a performance management
and development framework. All high-performing employees want to visualize a career path
in their organizations or they will not hesitate to exit the system. They feel motivated when
their performance is periodically assessed, recognized and they are given feedback.
Keeping high-performing employees has become a top priority for today’s organizations. A
two-year study by Beverly Kaye and Sharon Jordan-Evans reveals that managers,
supervisors, and team leaders play the greatest role in employee satisfaction or
dissatisfaction. Thus managers and supervisors can do a lot to create challenging and
meaningful work, opportunities to learn and grow the sense of being part of a group.
Competency based performance management and development framework gives this
effort objectivity.
The dilemma. Is it worth the investment of time and money on career development, in a
market with high talent mobility and employability?
Can an organization differentiate its transparency levels depending on the social culture
surrounding the office location? (West versus Orient).
Can an organization ‘‘afford’’ transparency in segmentation of talent and risk losing
commitment of non-priority talent?
P3. An organization should keep a full pipeline for lynchpin jobs by regularly identifying
high potential candidates.

A rigorous bottom-up analysis of the entire organization, cut functionally, should be done to
identify the jobs that are critical to achieving the organization’s objectives. These positions

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 should be effectively manned and the organization should invest in coaching employees
who can act as substitutes for these roles.
More investment should be done to determine which middle to senior management positions
are essential to the organization’s long term health. Keep a full pipeline for those lynchpin
jobs by regularly identifying high potential candidates. This has to be followed by increasing
their leadership skills by giving the high potential candidates lynchpin assignments coupled
with training and/or mentoring.
P4. Developmental progress made by an employee should be measured regularly.

Development is a long-term process. It is thus important to know whether the right people
are moving at the right pace into the right jobs at the right time. Measurement will help
ascertain whether the pool of candidates is shallow and when the number of attractive jobs is
limited to retain high potential managers.
The following are effective metrics:
B important positions filled with internal candidates;
B succession plans having two or more ‘‘ready now’’ candidates;
B same employees as ‘‘ready now’’ candidates on more than two succession plans.
The dilemma. How to ensure a solid slate of candidates for key jobs? How to retain
employees if there are not enough challenging options available with an organization?
The final question remains – On whom should the responsibility of an individual’s growth and
development be pinned – organization, manager or individual?

Further reading
Bassett, P., Buxton, C., Pathania, R. and Sharan, M. (2007), Talent Management is the Key to India’s
Pharma Future - Executive Insight, Korn/Ferry International, Los Angeles, CA, pp. 3-5.
Chugh, S. and Bhatnagar, J. (2006), ‘‘Talent management as high performance work practice: emerging
HRM dimension’’, Management and Labour Studies, Vol. 31 No. 3, pp. 228-56.
Cogner, J.A. and Fulmer, R.M. (2005), ‘‘Developing your leadership pipeline’’, Harvard Business Review,
pp. 2-5.
Garrett, S. (n.d.), ‘‘Competency mapping: what is it and how it can be done by individuals’’, Career
Planning & Adult Development Network, available at: www.careertrainer.com/Request.
jsp?lView ¼ ViewArticle&Article ¼ OID%3 A112409&Page ¼ OID%3A112410
Reindl, R. (2007), ‘‘Growing talent at Edward Lifesciences’’, T þ D Magazine, February, ASTD.

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Appendix 1

Figure A1

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 Appendix 2

Figure A2

Corresponding author
Jyotsna Bhatnagar can be contacted at: jyotsnab@mdi.ac.in

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