In a world where companies love to throw around terms like “War on Talent,” let’s get real: there’s no war, just a serious need for strategic leadership.Stop just managing talent—optimize it. If you’re not stepping up to invest in your greatest asset—your people—you’re leaving opportunity (and profits) on the table. It’s time to rethink your approach, shift from basic management to intentional optimization, and unlock the full potential of your workforce.
What is Talent Optimization?
The Predictive Index ™ – also referred to as PI – is category king in the arena of Talent Optimization (TO). And with 65 years of scientific research, 37.5 million (and counting) assessments administered, and 383 validity studies conducted, I believe they know a thing or two about TO.
Let’s dive in…
According to Erin Balsa, former PI content marketing director, talent optimization is a discipline, grounded in four essential truths, that provides the framework for aligning your business strategy with your talent strategy in order to achieve your organization’s goals.
She brilliantly identifies the four essential truths, while simultaneously pointing out the prerequisite understanding of them before attempting to implement talent optimization within your organization. Here’s my summary
- Context is everything: talent optimization is the thick and creamy center of your sandwich cookie; the crunchy cookies are your business strategy and the results you seek.
- Great decisions are driven by people data: in order to minimize the many forms of bias that can cloud judgement and increase objectivity in decision-making, predictive workplace behaviors are your new best friend.
- Choose to go all in: talent optimization is for everyone in the organization and once it is embraced and embedded in the culture, magic happens.
- The best defense against opposing forces: you want highly engaged people that will play to win, ensure everyone is aligned with their job, their manager, their team, and the culture…you’re only as strong as your weakest link.
You may be asking, what’s the framework for TO? Which we will absolutely get to in just a moment. First, we need to take a closer look at Talent Management.
What exactly is Talent Management and how does it relate to Talent Optimization?
The most succinct definition of talent management on the web can be found on the U.S. Office of Personnel Management’s site (opm.gov) which states the following:
A system that promotes a high-performing workforce, identifies and closes skills gaps, and implements and maintains programs to attract, acquire, develop, promote, and retain quality and diverse talent.
Talent Management is part of the human capital framework outlined by the OPM. In case you’re interested, here are the four pillars of the framework:
- Strategic Planning and Alignment
- Talent Management
- Performance Culture
- Evaluation
Additionally, there are reference materials, links to various resources, and many more tools at your disposal (and currently free…special thanks to the taxpayers who help keep these resources available).
The OPM delves deeper into talent management to provide the standards for such systems and the outcomes expected by having such systems in place and fully operational.
This is where it gets interesting and you can easily see how talent management objectives and standards are quite challenging to attain without talent optimization. Let’s look at this from a 3.048 kilometer view (approximately 10,000 ft.):
The standards are: plan for and manage current and future workforce needs;
design, develop, and implement proven strategies and techniques and practices to attract, hire, develop, and retain talent; and make progress toward closing any knowledge, skill, and competency gaps throughout the agency.
Simple enough, right?!?
Once the tools are acquired, the infrastructure is in place, and there are people to manage the system, it should run like a well-oiled machine. Theoretically.
Then we, the organizational leaders, just need to review the reports and make decisions accordingly. There will be refinements and iterations along the way, even a few hiccups here or there, a surprise pivot will be required at some point (after all we live in a VUCA world) and we will grow and innovate together. Happily ever after.
Until of course, we fall off the cliff. The one between where we are today accompanied by the current strategy we are pursuing and where our anticipated results reside in the future state of blissfully winning the game.
How exactly do we design the playbook to ensure a ready workforce, capital to invest in developing our people, efficient operations, increased retention, increased customer satisfaction, and a trusted labor-management relationship?
This is the intersection of talent management and talent optimization.
When you truly know your people…how they like to approach problem solving, how they show up when they are in the right environment, managed according to their preferred style, granted the autonomy to choose projects that play to their strengths, working with others who challenge and inspire them, and feeling valued…you can design the system to meet their needs.
Historically, organizations have attempted to fit the person into the system: square peg, round hole. Here’s the shape of your box, learn to fit into it and like it. If you don’t fit nicely into your box…well, then we will need to give you a performance improvement plan to follow.
This type of status quo thinking has negatively impacted the world of work.
Don’t you think we can do better? I do.
What if a company doesn’t have Talent Optimization or a Talent Management System in place, what steps should be taken? (Asking for a friend)
Great question. Here is a big picture overview of the steps involved:
- Conduct a Gap Analysis
- Assess Internal and External Resources
- Organize and Present Options to Stakeholders
- Make Decisions & Elicit Buy-In
- Design Implementation Plan and Designate Leaders to Champion
- Execute Plan in Phases/According to Priority
- Review, Refine, Reiterate Accordingly
There are sub steps involved for each of these, all of which rely on a decision-tree process of analysis involving values, size and structure, capacity and capabilities, capital, prioritization of needs, and collaboration. To name a few.
Not to be forgotten is the need to communicate, communicate, communicate. And just when you think the message has been effectively communicated…start the next round of communications. It’s far better to over-communicate the vision, the plan, the who, the what, the why, the expected outcome, and any complications that arise than to surprise people.
Three Types of Projects: A Consideration as You Embark on This Journey
Options are great – at least to a certain extent.
One of the key considerations to make before exploring the vast supply of talent tools and systems that promise to be life-changing is the ROI on DIY, DWY, and DFY.
- Do-it-yourself | DIY: requires internal workforce to supply time/energy/manpower; limited by capacity to learn and execute quickly while doing other jobs; often judged as being the lowest cost option (I can assure you that is rarely the case as you are merely purchasing with time and frustration rather than money).
- Done-with-you | DWY: the happy middle ground; build internal team that is trained by external specialists; all the heavy lifting is a joint operation and the external team is on standby to support when needed (requires a contract with consultants who specialize in the areas you most need which leads to the possibility of multiple contracts and multiple firms); due diligence is a must.
- Done-for-you | DFY: can be expensive when licensing software and training programs, especially if you pay for their travel and accommodations in addition to the use of their IP; relatively hands-off unless you prefer an internal team to oversee it and eventually take the lead; or you can keep them on retainer to handle the process; fractional CTOs and savvy PMs can oversee this (compare costs of external vs. internal team).
Although this consideration seems black-and-white, there are many terms and conditions hiding in the shadows. When I coach my clients through key decisions we prioritize the non-negotiables, the absolute must-haves in order to move to the next step in the process.
- What are your non-negotiables?
- What does a successful outcome look like?
- What would you consider to be an absolute disaster?
Once these scenarios are explored, we consider the lens through which decisions will be made throughout the project and the litmus test that will preserve objectivity. Ultimately, navigating these project types isn’t a one-and-done decision. It requires a thoughtful process rooted in clarity, strategy, and adaptability. Coaching plays a pivotal role in this journey, offering guidance to unpack complexities, define priorities, and ensure every decision aligns with your long-term goals. With the right partner, you’ll not only streamline decision-making but also build the foundation for sustained success.
A common discussion topic during strategy sessions is that of cost. Let’s look at the actual question behind that question.
What will this cost to implement?
Designing a budget and staying within it is mission critical. Cashflow is the lifeblood of a company, you have to have money to keep the lights on, cover payroll, and maintain all the moving parts of daily operations.
The bigger question behind the cost is this: Will it be worth it?
When measuring worth and value, the dollar amount isn’t the most important factor to consider. Money is made, spent, lost, and made again all day long. It’s renewable.
The “worth it” question is really about being the hero.
And the conversation in your head sounds like this…’I want this company to be the best in the industry. I want people to love us and appreciate what we do here. I want my people to be happy and work well together. After all the time I have spent in meetings, reviewing the stats, evaluating the time it will take, getting ahead of possible issues, sleepless nights, and missed family dinners…will this decision be part of my legacy or step towards my demise?’
As a leader, you carry the weight of your organization on your shoulders. And you pour your heart and soul into creating something worthwhile to share with the world. When things begin to unravel, it’s hard to not take it personally.
When things are great, everyone shares in the celebration.
When things go south, it falls to you. Or so it seems.
This is where I point you back to leveraging your stakeholders throughout the entire process. Inviting everyone to play a role in the implementation and become a champion.
Heroes and Dream Teams
Strategically designing high-performing teams and creating a culture of excellence requires intentional choices and consistent efforts.
Talent Optimization and PI support this endeavor.
The TO framework involves four pillars and a bonus support tool. Let’s take a peek:
- Hire: Create jobs and define behavioral and cognitive job targets for each role. Assess each candidate to determine job-person fit and leverage interview questions to ascertain a cultural fit.
- Inspire: Equip your leaders with tools to build relationships on individual and team levels. Reinforce your commitment to developing people’s strengths and setting them up for success.
- Design: Select your organizational structure and strategic objectives, add your team members, and explore how your team type can navigate the road to success. [This is my personal favorite, I smile just thinking about it.]
- Diagnose: Avoid falling prey to the four forces of disengagement and get ahead of issues caused by misalignment. Customize your engagement surveys to keep a pulse on what matters most so you can take action.
- Perform: Leverage behavioral data to build relationships, manage projects, keep quarterly goals top of mind, and celebrate wins. Support your managers and their teams in their career goals and development.
While I could go on and on about the tools and insights both individually and collectively, I will refrain. Instead, I invite you to reach out and set up a time to nerd out over a video call with me. I will happily show you how I leverage PI in my own company and for clients.
It truly is a game changer.
Imagine knowing how to navigate a difficult conversation and being able to avoid unnecessary conflict; that’s the beauty of the Relationship Guide and Perform.
Picture walking into your team meeting fully prepared to present the latest project in a way that garners excitement, knowing who is great at which tasks, and empowering them to do their best work; that’s the power of Design.
Imagine a company that has aligned its talent strategy and business strategy in such a way that success flows effortlessly; that’s the power of Hire and Inspire.
Picture yourself at home, engaged with the people you love most, not worried about being blind-sided tomorrow morning because feedback is embedded in the company culture and the engagement surveys inspire action throughout every department; that’s the power of Diagnose.
tl;dr
The talent optimization topic is near and dear to my heart. One of Meraki’s core principles is People First. We believe the greatest asset any organization has is its people, they are the true heart and soul of an operation.
That being said, here’s the highlight reel version:
- Talent Optimization is a discipline, grounded in four essential truths, that provides the framework for aligning your business strategy with your talent strategy in order to achieve your organization’s goals.
- Talent Management is a system that promotes a high-performing workforce, identifies and closes skills gaps, and implements and maintains programs to attract, acquire, develop, promote, and retain quality and diverse talent.
- In order to be truly effective as an organization, you need both.
- There are many options available on the market today, decide on your non-negotiables and do your due-diligence to determine which are the best for you and your people.
- Build Dream Teams and be a Hero (PI can help and I can show you how I use it, reach out to set up a time…no commitment, just a geek out on behavioral data session).
