Talent and Talent Management Insights

Insight 6. Developing a Talent Strategy

NHS Leadership Academy

2015

NHS Leadership Academy Talent and Talent Management Insights

Introduction

In 2014 and 2015 the NHS Leadership Academy published a number of talent management insights
to support talent professionals in their business unit activities. These insights were intended to give
information about best practice in the field of talent and to spread knowledge about talent
management activities within the NHS.

This Insight, number six in the series, builds on previous materials and outlines a framework for talent
within which a talent strategy and associated processes can be developed. The reasons for focussing
on strategy were based on the emphasis on aligning talent to both the NHSs overall objectives and
wider People or HR policies. Amongst the drivers for this were key points highlighted in recent reports
by Lords Rose and Willis.

The insight will outline the context for developing a talent strategy in the NHS; the purpose and
principles of talent strategy; the steps in developing the strategy and templates to support unit
practice.

The talent framework, strategy and processes outlined below recognise that the NHSs diverse units
will be at different stages in their talent evolution and have been designed so that they can be
adapted to unit needs.

Further information can be obtained from www.leadership academy.nhs.uk/talent

Michelle Fitzgerald
NHS Leadership Academy

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Developing a Talent Strategy- Executive Summary

Organisations today seek strategy driven talent management to ensure that their approach to
talent is focused on achieving organisational objectives. This approach is relevant to the NHS as
it strives to achieve its own stretching goals.

The publication of the Smith, Rose and Willis reports in 2015 reinforced the view that the
attraction, retention, development and management of talented people would be critical to the
success of the NHS both within the timeframe of the Five Year Forward View and beyond

The foundations for developing a talent strategy exist in many parts of the NHS. The challenge
therefore is to ensure that there is alignment of this activity towards the achievement of the
organisations goals and deliver the strategy in an exemplary way.

Talent strategy does not take place in a vacuum and therefore the development of a strategic
framework will be a critical starting point. The framework will demonstrate a clear line of sight
between activities under the heading of talent, other people directed policies and practices and
the NHSs objectives.

A talent strategy will set direction; focus the effort of the organisation to clearly articulated goals
and objectives and outline the processes to ensure there is consistency of message and action in
delivery.

Four principles that can be used in developing a talent strategy are the importance of Gaining
Commitment; Providing Information and Insight; Excellence in Implementation and
Engaging the workforce in the talent strategy

It is possible to regard the development of a talent strategy as a ten step process. The steps are
firstly to establish where are we now using the NHS talent management engagement scale;
build board commitment; identify organisational objectives and convert these into talent
related objectives; establish the demand for talent; identify sources for the supply of
talent; conduct a talent review and gap analysis; create plans for the development of talent
and the overall HR proposition that leads to the attraction, retention and reward of talent;
gain executive and management buy in; gain the buy in of the workforce; develop
measures of effectiveness.

Given the different contexts within which NHS organisations operate, it is anticipated that this
process will be adapted to suit specific needs

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Strategy Driven Talent Management in the NHS

In global organisations, talent management takes place against a backdrop of significant

organisational change, increasingly diverse and multi- generational workforces and perceived
leadership gaps in the wake of the worldwide economic recession. As a result, many organisations
have sought to ensure that their approach to talent continues to be focused on leadership
development but emphasises the need to use this to achieve current and future organisational
objectives; that it embraces more people in its reach and has more measurable outcomes. This is
strategy driven talent management and is relevant to the NHS as it strives to achieve its own
stretching goals. A talent strategy will build capability to achieve both short and long term objectives.

The publication of the Smith, Rose and Willis reports in 2015 reinforced the view that the attraction,
retention, development and management of talented people would be critical to the success of the
NHS both within the timeframe of the Five Year Forward View and beyond. Amongst the objectives
arising from these reports and a wider debate within the NHS, were the need to ensure that the NHS
had sufficiently well trained people in defined leadership positions who could deliver sustained change
throughout the organisation; a need to find and nurture the people that are needed to lead the NHS
over the next 10 years (Rose 2015) and finally the delivery of an inclusive approach to talent
management that enabled people at all levels to deliver and achieve their potential. In short this was
an approach to talent that had both a leadership focus, whilst simultaneously recognising the
importance of inclusivity of career development for the whole workforce- thereby maximising the
NHSs deep pool of talent.

This activity will take place against a

The foundations for developing a talent strategy exist period of significant change and the
in many parts of the NHS. The challenge therefore is to likelihood of continuing shifts in
ensure that there is alignment of this activity towards
organisational dynamics such as
the achievement of the organisations goals.
new structures, changes in lines of
accountability and revised
deliverables. To achieve its stretching talent goals in a shifting organisational environment therefore,
will require a robust talent strategy that is aligned to the unique needs of the NHS, but that is
adaptable to specific organisational contexts and that is operable across organisational boundaries.
To support this, a considerable amount of work on talent and talent management has already been
done in the NHS to date and this can be used as a foundation for further strategic development.

There is recognition, for example, that a systematic approach to the management of talent would go
some way to addressing the leadership challenges of recruiting and retaining Chief Executives; a
more diverse or inclusive leadership or an NHS of all the talents; and benefits in terms of
organisational performance, as organisations can achieve competitive advantage through people.
(Powell et al 2012) In addition, there was also evidence of the emergence of an approach to talent
aimed at maximising the potential of all members of the NHS workforce.

Many of these initiatives and an overall view of principles and objectives were included in Talent and
Leadership Guidance Plans which advocated a three- to five-year vision and obligations as laid out in
the NHS Constitution. (Powell et al 2013). A recent study of progress against these objectives
concluded that there was no apparent shortage of vision, investment and activity for talent
management but that it was too early to determine whether this had been converted into positive
results. (Powell et al 2013) Hence there is the opportunity to build on the work on talent done to date
in the NHS as well as the development of a strategy to rediscover neglected talent and focus on
developing the people skills of their existing managers in addition to those of high potential
individuals. (McPherson, 2015) A comprehensive talent strategy would enhance the process.

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The foundations for developing a talent strategy exist in many parts of the NHS. The challenge
therefore is to ensure that there is alignment of this activity towards the achievement of the NHS
objectives and deliver the strategy in an exemplary way. How can this be achieved?

Figure 1
A strategic framework for talent

NHS Organisational Objectives

Talent Strategy aligned to overall HR strategy
objectives and other HR strategies and sets broader people
policies management proposition

Employee
Attraction Retention
Engagement
Inclusive and the Strategic
and the Reward and and the Workforce
Leadership and Management Development Talent Employee Workforce
Employer recognition employee Deployment
Management Value Plan
brand value
Proposition
proposition

Succession
The
Management Career
development Management
and management
of High Development
Leadership for all
Potentials
Programmes

A Strategic Framework for Talent

Talent strategy does not take place in a vacuum and therefore the development of a strategic
framework will be a critical starting point for ensuring alignment between talent strategy and the
achievement of the NHSs organisational objectives. The framework will demonstrate a clear line of
sight between activities under the heading of talent, other people directed policies and practices and
the overall NHS objectives.

For the purposes of this framework it is proposed that:

O Talent is defined as those with high performance and potential who are able to move up
the organization into senior leadership or managerial positions on the one hand, and a
more inclusive term which refers to all employees on the other. (See further discussion
in Insight 1). In todays multi- generational workforce, an effective combination of both is
seen as a necessary part of talent management, though the priority given will be
dependent on the unique context of the various organisations within the NHS
o Talent management describes the actions required for the attraction, identification,
development, engagement, retention and deployment of those individuals who are of
particular value to an organisation, either in view of their high potential for the future or
because they are fulfilling business/operation-critical roles. In addition it will focus on
providing career opportunities to the workforce as a whole to maximise individual and
organisational potential.

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 o Talent strategy is the development of an organisation-wide direction, approach and
resourcing for the attraction, retention, reward, development and deployment of people in
specific strategic positions or projects and the development of a culture of opportunity for
all employees in order that the organisation can achieve its business goals and
objectives. (Turner and Kalman 2014) This sits in a broader organisational context of the
NHSs business objectives and performance and its wider people or HR strategy.

The strategic framework at figure 1

Whilst the development of a talent strategy may be the covers both an exclusive or
responsibility of talent and HR professionals, its selective approach to talent, which
relevance to the organisation, the resources required is normally concerned with the
for its implementation and its sustainability will require identification and development of
the backing of the Board or Executive Team.
successors to leadership roles, key
positions and those seen as having
high potential for senior positions; and an inclusive one to embrace, give opportunity to and
maximise the contribution of all members of the workforce. The strategic framework also shows the
important connections between talent management activities and both organisational and wider HR
objectives. Developing a talent strategy is most effective when set in an organisational and people
management context.

An important assumption at this stage of the developing a talent strategy is that there are tangible
linkages between, for example, the types of people recruited to the NHS in terms of their knowledge,
skills attitudes and behaviour, and the priorities for talent as outlined in the talent strategy. The criteria
for one should inform the policy of the other. Similar conclusions could also be reached for other
people development activities. The reward strategy might include career development as part of the
package; the approach to employee engagement could include the opportunity to acquire new skills;
the onboarding process should recognise that the retention of talent is enhanced by an effective
induction process and so on.

These linkages are added to the alignment of talent to organisational objectives and constitute
strategy driven talent management.

The Purpose and Principles of Talent Strategy

The strategic framework for talent shows a range of activities that could be associated with talent
management. Amongst these are traditional products and services such as leadership and
management development, as well as a focus on inclusivity of career development and opportunity for
a wide range of people; the development of an employer brand for attraction and retention and the
importance of a career and development focused employee value proposition. Whilst responsibility for
some of these activities resides clearly within the talent sphere of influence others will require a
collaborative relationship with HR and business professionals.

But what is the purpose for setting a talent strategy and what are the underlying principles within
which it could operate?

The purpose of talent strategy

Talent strategy is at the heart of Human Resource Management (Lawler 2008) and it is important to
have a joined up approach not only with organisational objectives and strategy but with other HR
activities as shown in figure 1. But a fundamental question is what is the purpose developing a

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NHS Leadership Academy Talent and Talent Management Insights
strategic approach to talent as opposed to one that reacts to day to day need? In answer to this,
talent strategy has similar characteristics to a business strategy in that it:

o sets the direction for talent management in the NHS- it is a statement of the fact that
the NHS recognises the need to attract, retain and develop its talented workforce
over a period of time and has an agreed approach to do so.
o In addition, a talent strategy is one way to focus the effort of the organisation to
clearly articulated goals and objectives in respect of talent in the workforce. On the
one hand this will relate to mission critical roles (Gochman et al 2014)
o but also about a more inclusive approach offering the ability for an individual at any
level to achieve their potential and make their maximum contribution
o It will then identify the resources needed to achieve the objectives laid out in the
talent strategy and make these available
o And finally it outlines the processes to ensure there is consistency of message and
action in delivering the talent strategy.

The talent strategy is therefore about the direction of travel, who is on the journey and a map of how
to get there.

There are other considerations. Amongst these are that whilst the objectives may be strategic there
will also need to be a solid operational plan. Furthermore talent strategy should have an organisation
wide relevance but can be adapted to the needs of local organisations if necessary; and that the
strategy balances the needs of inclusivity and exclusivity i.e. develop the potential of all but at the
same time provide opportunities for the development of high potential individuals. Finally, the strategy
should be flexible since the best talent policies respond to changing conditions on the ground and to
cultural differences across the globe. (Ready et al 2014)

Figure 2
A 10 step process for developing a talent strategy

step 1 where are we now- the NHS talent management engagement scale
step 2 building board commitment
Building Commitment step 3 identifying organisational objectives and convert these into talent
objectives

step 4 establishing the demand for talent

Providing Information step 5 identifying sources for the supply of talent
step 6 talent review and gap analysis
and Insight

step 7 creating plans for the development of talent and the overall HR
Excellence in proposition that leads to the attraction, retention and reward of talent

Implementation

step 8 executive and management buy in

Engaging the workforce step 9 gaining the buy in of the workforce
step 10 developing measures of effectiveness
in talent strategy

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The development of a talent strategy can be seen as a planned and systematic process for engaging
the organisations internal stakeholders- the executive or management team, line managers and the
workforce in the delivery of effective talent management activities in order to achieve the NHS goals
and objectives.

The principles of talent strategy

The principles for developing a talent strategy will be based on crafting. This means combining a
reasoned process focused on delivering an end product (the talent strategy) with dialogue and
discussion to ensure both creativity and commitment from a variety of stakeholders. Developing and
delivering an effective talent strategy will be enhanced by consultation between executives and senior
managers, line managers and Talent/ HR professionals. Figure 2 outlines the principles that might be
used to underpin the development of a talent strategy and some of the steps that will be taken within
these. The four principles are:

o The importance of Gaining Commitment during the process and buy in once the
strategy has been agreed. The early stages will require that the Executive team recognise
the value that a talent strategy will deliver to the NHS and act as champions for talent. In
some examples, the CEO acts as Chief Talent Officer and once strategy is agreed
ensures that resources are provided for its delivery. At this stage, talent and HR
professionals will be involved in dialogue to understand the priorities of the organisation
and to make professional inputs into possible solutions through talent management
o Providing Information and Insight is the second principle. In an age of analytics,
gaining commitment to a talent strategy cannot be seen as an act of faith. Instead talent
strategy is part of business strategy. As such talent professionals will require information
on such areas as strategic workforce planning, turnover, retention and succession within
the NHS; and labour market data from outside. On the basis of their analysis, insights
about the implications of, for example, succession challenges in critical posts in the short
term or the level of leadership capability in the medium or long term can be articulated. In
addition, measures of effectiveness will be built in to the strategy as it is developed.
o Excellence in Implementation will also be a key feature of the talent strategy process
and will feature plans for project management in the talent sphere, outstanding delivery of
development programmes and a focus on how to ensure engagement with the talent
strategy going forward.
o Engaging the workforce in the talent strategy will be the fourth area of activity and will
be critical if implementation is to be successful. In this case engages stretches from the
executive team, to line managers to the whole workforce.

Developing a talent strategy is a collaborative process between Executives, line managers, talent and
HR professionals.

The Process for Developing a Talent Strategy

The four principles of talent strategy as described above provide the foundation on which an effective
talent strategy setting process can be built. It is possible to identify activities that may be undertaken
against each of the principles and thereby create a ten step process for developing a talent strategy.
A combination of principles and steps is shown in figure 2 and this section describes the context and
content for each of the steps.

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There are many approaches to developing talent strategy and the choice of which will depend on the
context of the organisation, how far it is down the talent management path and the infrastructure that
is in place to deliver some of the outcomes of talent strategy.

Step 1. Where are we now- the talent management engagement scale

It is likely that units within the NHS will have some form of talent activity already in place. They will
each look to develop a talent strategy from different perspectives. Establishing a starting point on
which to build will therefore be an important first step. A tool for doing so has been developed and is
referred to as the NHS talent management engagement scale. This is shown at Figure 3.

The scale has two axes. The first is concerned with conceptual acceptance and is based on the
extent to which the organisation has:

o Agreed a definition of talent that is understood by all stakeholders

o Agreed the definition and scope of talent management
o Outlined the nature, roles and responsibilities of Senior Executives and the Board in
Talent Management
o Measures in place to monitor the process of talent management (input)
o Measures that are put in place to monitor the outputs or outcomes of talent management

The actual position of the organisation will be contextual and each organisation will have a different
place on the axis.

The second axis- practical implementation- is concerned with coherence in delivery which means
the balancing of natural internal competition to get there first or to show more benefits than others
against the need to make the idea one that is accepted enthusiastically throughout the organisation.
(Turner and Kalman 2014) Amongst the points that will be used to assess the level of implementation
will be:

o The degree to which talent management and its associated activity are aligned to
business goals
o The level of coordination of actions and policies within and without the talent
management function.
o The extent of role clarity between talent and people management specialists and the
organisations managers in respect of talent management
o The level of resources allocated to the delivery of talent management
o The extent of clarity of policy and its acceptance such as successors will be fairly chosen
and succession planning smooth and transparent or there will be opportunities for
development and skills enhancement at all levels (Turner and Kalman 2014)

To determine where an organisation is in respect of this scale will require two things. In the first place
there will be evidence produced by talent professionals including activities already undertaken, any
measures that might be relevant such as returns on investment through training and development
activity or numbers of people going through programmes. Secondly there will be a dialogue between
talent and HR professionals and the executives and managers of the organisation.

As a result of these two sources of intelligence, an agreed position on where the organisation is and
where it wants to be is the foundation on which the talent strategy can be built. The grid includes nine
possible positions which take account of the different experiences and evolution of talent
management in different NHS contexts. For illustration, two hypothetical positions have been
included on the matrix at figure 3.

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After the dialogue between people management professionals and executives it was agreed that
Position 1- talent stall- represents the current position and is therefore the starting point for the
development of a talent strategy.

The reason for identifying this position is that the organisation has only just turned its attention to
talent management and as a result the concept is in its infancy. There is little in the way of agreement
about what talent is, the boundaries of talent management and the issue has not been discussed at
Executive level in any detail. In addition there is little awareness amongst line managers about the
need for a structured approach to talent management. Some leadership development has been
undertaken but there was little follow up once completed.

The situation on talent has been brought into focus because of problems in attracting people to the
organisation and this has raised both awareness and a desire to move towards Position 2-talent
factory (originally used to describe a large global organisation that had achieved significant progress
in the development of its strategy and was regarded as a benchmark for talent excellence- Ready and
Conger 2007). How to move along the road from position 1 to the desired position 2 will be unique to
each organisation but will involve a combination of the activities included in the talent strategy
framework.

Figure 3
The NHS Talent Management Engagement Scale

High

Talent Ignition Talent Generator Talent Factory

Position 2
Conceptual acceptance

Talent Strategy aligned;

Board, Executive and
Management buy in

Talent Sparks
Talent Engine Talent Batteries

Talent Stall
Position 1
Talent False Start Talent Embers
Low acceptance of need
for talent management;
little investment in
talent

Low High
Practical Implementation

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Amongst the activities to be considered having completed the exercise will be the identification of
development priorities and how
these will support the organisations
The difference between the demand and supply of
talent will be a critical factor in setting the talent goals; ways in which line managers
strategy. Typically the gaps will be quantitative in the can become engaged in the
form of numbers to fill identified specific future roles necessity of effective talent
and qualitative which will include such considerations management and the creation of
as those with management potential or people who clear career paths to ensure that
have both technical and managerial skills. there is an inclusive approach to
talent demonstrating an openness
of opportunity and leading to a more engaged workforce. The practical steps involved in this move
from Low-Low to High-High on the scale will be:

o Executive level meetings and conversations

o Robust and simple talent tools that enable the move up the engagement scale
o A pilot programme for Executive level to facilitate a process of learning and reflection
o Clear career paths included in an attractive Employee Value Proposition
o The allocation of dedicated resource for the implementation of talent strategy
o Processes and reviews to sustain momentum
o The development of meaningful succession plans
o Measures of effectiveness that can give an assessment of the impact of talent
management initiatives
o An integrated system approach that includes other people management activities and
policies
o A system that supports the achievement of diversity in the organisation.

It will also be necessary to prepare a business case so that resources can be allocated to the delivery
of talent strategy and the measurement of its effectiveness. The business case will be prepared, put
to the Board or Executive team which will then set the general direction and scope.

Step 2. Building Board Commitment

Whilst the development of a talent strategy may be the responsibility of talent and HR professionals,
its relevance to the organisation, the resources required for its implementation and its sustainability
will require the backing of the Board or Executive Team. Hence building senior manager commitment
to the initial stages will be a critical success factor. There will be several facets of this part of the
process which include:

o Ensuring that there is recognition of the necessity of effective talent management to

the long term success of the organisation.
o Creating an understanding of the specifics of talent management contribution to
financial or operational performance, project delivery and employee engagement
issues
o Ensuring that the Chief Executive Officer and executive team become advocates of
talent strategy thereby providing both visibility and additional impetus to talent
management activity
o Members of the Executive team participate fully in its implementation
o Identification and allocation of resources once a business case has been agreed

In order to facilitate the dialogue with the Board and Executive team, the talent or HR professionals
will be able to highlight and explain the objectives of the talent strategy with relevant metrics such as
information about local, regional and national labour markets (showing the status of scarce skills and
resources) the outputs from the Strategic Workforce Plan (showing future skills and role
requirements); and financial data about costs and returns on investment.
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 Step 3. Understanding Organisational Objectives and converting these into talent
objectives

It is an important assumption in developing a talent strategy that it will support the achievement of the
organisations objectives; that it will be aligned to the business strategy. In order for this to succeed
then a clear understanding of those organisational objectives will be necessary. Talent strategy can
then be developed against the overall direction of the organisation as well as against specific projects
or activities since each business objective will have an implication for the types and numbers of talent
needed and will therefore need to be clarified. (Turner and Kalman 2014) The convergence of the two
is often referred to as alignment and as the CIPD (2013) have noted, ensuring that the talent
strategy is closely aligned with the corporate strategy must be a priority.

The objectives identified for the development of an organisation wide talent strategy can be viewed at
three levels:

o Organisational objectives- these concern the talent requirements for either Group or
Board level employees,( such as succession or the development of high potentials) or
a more generic need such as the development of people with both technical and
management skills. It is likely that at this level leadership will be a prime
consideration. They will also raise questions about the corporate culture in which
talent can flourish and achieve its potential. Actions associated with this include an
inclusive approach to development and career progression; fairness in appointments
and a reward strategy that is mindful of the need to attract, retain and develop talent.
This latter point reinforces the concept of joining up talent management with other
people management initiatives to present a coherent employee value proposition.
o The second level at which talent strategy should be considered is that of individual
the NHS organisations, the definition of which will vary and depend on where that
particular area sits in the overall structure. The talent strategy for this level has two
drivers. One should be set within the same context as that for the NHS organisation
as a whole. Hence if it is important that talent moves between various parts of the
NHS, how can one organisation deal with the requirement- how can the loss of key
skills to another part of the organisation be countered by gains. What is the process
for making this happen? For example the attraction and development of specialist
functions or occupations. Individual organisations within the NHS will have specific
aims but not independent of the goals of the organisation as a whole. There should
be an integrated approach.
o The third area is how the talent strategy is operationalised at, for example,
departmental level. This will involve the nuts and bolts of talent management such as
identifying who should undertake which development activity; the creation of career
paths for an inclusive approach and clarity about the roles of the person being
developed; the line manager and the talent or HR professionals.

The focus of this step in the development of a talent strategy is therefore to ensure a business focus
for talent. The outcome of this will be talent management activity that is valued by business leaders
and as importantly is recognised by members of the workforce as critical to their career progress,
engagement and ability to do the job to their full potential.

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Examples of how talent strategy can fit with organisational strategy are:

o Talent management activity geared towards the identification and development of

leaders with skill sets that reflect specific, future NHS objectives
o Talent management activity aimed at enhancing the skills of existing leaders and
managers to manage change processes required in todays NHS operating
environment
o Career management for all employees into areas that have been identified as critical
for the NHSs future operations
o An Employee Value Proposition that supports the attraction and retention of defined
roles in the NHS workforce through career and development opportunities

Figure 4 gives a more detailed example of the process of alignment:

Figure 4
The alignment of organisational goals and talent strategy

Benefits to the
NHS Talent NHS
Organisational Strategy Examples: Improved

Objective Objective patient care and better

cost management through
Example: to ensure the improved processes
Example: to provide high
development of leaders of Improved employee
quality health and care
the NHS who are able to engagement through
services that are
deliver large scale change more effective leadership
constantly improving
and process improvement and management
Better retention rates

In this example, a compelling case for investment in talent strategy would be that it:

o Provides leaders and managers at all levels who are skilled in process improvement;
adept at change and agile in outlook as well as being able to deal with day to day care
activities in a timely and effective manner
o Provides benefits for patients through better care processes
o And benefits for the organisation as a whole in that investment in talent has enhanced
leadership and management skills needed to guide the NHS in the achievement of its
objectives
o Provides opportunities for the whole workforce that will contribute to employee
engagement
o Which will lead to better retention rates and lower costs of recruitment

The business case for talent strategy in this example would include qualitative benefits such as
patient care, employee engagement and employee retention; and quantitative measures in savings
through process improvement, the ability to better deploy finances to new areas and costs of
recruitment.

The development of a business case is an important part of the talent strategy process and it is best
facilitated by an outside-in approach, starting with the organisations objectives- which can be broad
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and apply to the whole of the NHS; or narrow and apply to a specific business unit- and working to
align talent strategy in the achievement of these objectives.

Step 4. Assessing the demand for talent to align talent delivery with business
objectives

The demand for talent will be determined by the organisations objectives in both the short and long
term and how these have been translated into business objectives.

A key source of intelligence for informing the demand for talent will be the strategic workforce plan
which has been defined by the Chartered Institute of Personnel and Development as:

A core process of human resource management that is shaped by the organisational

strategy and ensures the right number of people with the right skills, in the right place at
the right time to deliver short- and long-term organisation objectives. (CIPD 2010)

It is a vital tool for the purposes of assessing the demand for talent since it indicates the direction in
which the organisation is going (because the strategic workforce plan is derived from business or
organisational forecasts) and from this the likely workforce requirements from both a quantitative and
qualitative perspective.

o From a quantitative perspective the workforce plan will show how the numbers of
particular types of employee, at the places where they will be working, at a particular
time in the duration of the plan, and the level of skills.
o From a qualitative perspective, the type of leader will be identified in terms of level of
experience or particular attitudes and behaviours; and the type of employee in terms
of skill sets or behavioural attributes.

In a talent strategy that is focused on both leadership and executive roles on the one hand and yet
still wants to provide opportunity for a majority of the workforce, demand analysis will have different
emphases and the sources will be:

o Demand for leadership and executive roles

the strategic workforce plan- showing future leadership roles and

requirements

the succession plan showing successors to specific roles or increasingly for

a more generic executive level

the 9 box performance / potential model or the maximising potential

conversation tool showing possible gaps

the creation of strategic projects which show a demand for people who have
the capabilities to add value beyond their current roles

o Demand for more inclusive roles

the strategic workforce plan will show not only specific areas where demand
may be increasing (such as the opening of new NHS organisations or the
creation of specialist functions) but also more generic skill types such as
those who are multi skilled or able to operate in one or more functions

the learning needs analysis will show demand for development in either
specific skill areas such as the applications of new technologies or more
generic people management or project management.

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 the 9 box performance / potential model or MPTC tool will once again
highlight organisation wide areas which might include technical specialists
who are high performers and are inclined to develop within a function rather
than across the organisation

-New operations; service centres or product/service developments

The demand for talent will be analysed in terms of both specific roles and generic skills.

Step 5. Assessing the current talent supply and potential

A key question in the development of talent strategy is from where will we get our talent in future? In
response to this sources of supply will come from both internal sources through deployment and
development or externally through the ability to attract the right people.

Supply also takes place at multiple levels. The first is the most generic and will include leadership
positions, managers or categories of health professionals. The second is for specific roles in the
organisation which will either be concerned with vacant posts in the short term or the development of
individuals to fill such posts in the medium to long term. Figure 5 shows some of the possible sources
of supply.

Figure 5
Sources of talent supply

assessment centres showing people with the potential to move to a new challenge
performance review findings which identify individuals who have the ability to take
on different responsiblities
self nomination as a result of the perfomance review
Internal sources of supply
nine box model exercises or maximising potential conversations
the unit talent review
the unit succession processes
national, regional or local talent pools

other units within the NHS, region or area

cross organisational succession plans
External sources of supply cross organisational talent reviews
talent partners such as universities and colleges
agencies with specialist skills

Intelligence about the supply of talent will come from:

Internal reviews or assessment centres that will identify individuals who are ready for
a move within the specific business unit or in the wider organisation.
The annual talent review which uses a variety of sources to address the questions:

o Do we have successors for key roles

o Does our leadership investment meet needs; is it targeted at the right places
and the right people
o Do our development processes meet the needs of the new findings
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NHS Leadership Academy Talent and Talent Management Insights
 o Do we have retention plans in place for key people
o Do we have processes for career development that will allow the wider
workforce to develop and provide a future supply source

Exercises such as the 9 box model/Maximising Potential Conversation Tool for

assessing performance and potential (e.g. who is ready now for a move or different
career challenge)
External analysis of labour markets which will include local intelligence or for some
roles, an understanding of global supply (for example in key medical or technical
posts)

It is important to note that the supply of talent is not just a quantitative exercise. The attitudes and
behaviours of people will be important; especially during times of transition or change.

Step 6. Talent Review and Gap Analysis

The difference between the demand and supply of talent will be a critical factor in setting the talent
strategy. Typically the gaps will be quantitative in the form of numbers to fill identified specific future
roles whether they be short or long term; such as Head of ; Identified generic future roles such as
leaders who can deliver change or managers who can deliver cross departmental projects or gaps
identified through the workforce plan- retirements, forecast labour turnover etc. The qualitative gaps
will include such considerations as those with management potential or people who have both
technical and managerial skills.

At NHS wide level the review will focus on leadership or managerial roles whilst at organisational level
the review will consider these important groups but will also focus on developing a culture in which
talent can flourish at every level. Having analysed the demand for and supply of talent against the
requirements of the strategic workforce plan (or business objectives) a talent review can take place.
Where this is a formal process involving the executive team then the questions to be raised will
include:

o Which are the key roles to which specific attention should be given in the
development of a talent strategy?
o Do we have sufficient numbers of people with the right leadership behaviours and
capabilities to fill future roles?
o Do we have processes in place to develop future leaders from within the
organisation?
o Do our processes ensure diversity and the recognition of the value of difference?
o Is our employee value proposition attractive enough to bring in people from other
business units or from outside of the organisation if necessary?
o Do we have processes in place to retain people in key positions?
o Do we have career structures in place to attract and retain people in most of our
positions?

The output of the talent review will be agreement about where priorities for the organisation lay in
proceeding with the talent strategy that has the buy in of the Executive team, HR and talent
professionals. The identification of these priorities will then form the basis of what tools or processes
need to be in place and most importantly the level of resource that will be allocated to delivering the
talent strategy.

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NHS Leadership Academy Talent and Talent Management Insights
 Step 7. Developing talent management tools, products and services and aligning talent
strategy with the overall HR proposition for deployment, engagement, retention and
reward (through the strategic workforce plan)

Developing a talent strategy will require the delivery of programmes, opportunities and the tools for
achieving them. However these will not lead to sustainable success unless it can be shown that there
are advantages for the organisation that are credible, discernible and measurable; that Executives in
the organisation buy into and commit resources to the approach; that managers within the
organisation see advantages for themselves and their areas of responsibility by prioritising people
over other factors and that employees believe in the approach and that it will enhance their sense of
meaning and fulfilment (Turner and Kalman 2014)

Step 7 in developing a talent strategy therefore is concerned with designing the tools of talent but also
ensuring that they are expertly delivered with the right level of resource and support. Some of the
principles at this stage of the strategy setting process are:

o Expenditure on development should try to show measurable benefits which can be

tangible commercial benefits (such as process or delivery improvement or cost
savings through efficiency) or the intangibility of an engaged workforce (and indirect
business improvement since the engagement of employees in a continuous learning
journey will often lead to them feeling more committed and more likely to stay with the
organisation.) (Turner and Kalman 2014)
o That the development activity proposed is aligned towards key organisational
priorities and objectives.
o That it is linked to individual career aspirations and satisfies a wide range of the
workforce.

The delivery of talent management will require a comprehensive set of tools and services that are
consistent with the strategic focus needed to achieve the organisations objectives. For example if
there is a need for long term leadership development to ensure a supply of internal candidates for
key positions and this is identified as a board level priority, then the focus of this part of talent strategy
will be directed towards that aim. If however the priority requires organisation wide buy in to new ways
of working, new technologies or innovative processes, then the tools of talent management will have a
different emphasis. In reality, most organisations will have a range of talent management tools on
which they can draw to align the talent and the business strategy.

The NHS has a rich source of talent management tools and services. These are available at National
level through the various supply or partner organisations and at regional or local levels through unit
initiatives. There is great benefit in knowledge sharing of talent management experiences and
methods in the NHS and this should be part of the crafting of talent strategy (which is, as was noted
earlier, a collaborative venture). Figure 6 shows the type of tools, products and services that will need
to be developed as part of a talent strategy and the relationship between each of them.

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NHS Leadership Academy Talent and Talent Management Insights
 Figure 6- The tools, products and services of talent strategy

HR Strategy, policies and practices

provide the context of talent strategy

Succession
Leadership and Management Development Career Management
Management

Executive
Projects and Coaching, Online Performance
Executive Career
Formal programmes development Performance learning and Coaching and
Development Counselling
assignments Coaching and development Management
mentoring

Structured
leadership Assessment or Career Maps
External or development and
internal programmes
for the talent centres Competency
leadership Fameworks
programmes pool and high 360 degree
potential assessments MPTC tool
development

The tools of talent management will satisfy the needs of those in leadership and executive positions
and those having been identified as high potential but will also address the needs of the wider
workforce through such things as well- crafted approaches to career management.

In the former category would be included formal Leadership and development programmes; executive
coaching and heading up or membership of strategic projects. For the workforce as a whole the talent
strategy would include the creation of career paths and the provision of career counselling;
performance coaching that goes beyond the remedial and skills development through training and
development opportunities.

One of the challenges at this stage in the process is to ensure that the tools of talent are integrated
with the tools of management of the organisation as a whole. Delivery of a talent strategy will depend
not only on having an outstanding strategy but excellence in delivery of the strategy when it comes to
local application. To achieve this goal will require the involvement of leaders and managers at all
levels of the organisation. This should be at both design and delivery stage.

The critical success factors at this stage will be the right level of resource allocation; agreement of
consistent policies across the organisation in respect of the objectives of talent strategy and in parallel
a consistency in approach.

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NHS Leadership Academy Talent and Talent Management Insights
 Step 8. Gaining buy in of the Senior Executive and Management Team

The support of the Executive or Senior Management team will be critical to the success of the talent
strategy and it is a critical part of the crafting and implementation process. The objective at this stage
is to ensure that talent becomes a high priority; to promote recognition that talent impacts on every
decision that is made and that
At the highest level the senior executive and mobilising and developing talent is
management team arent just in the business of signing a strategic priority.
off a talent strategy, some processes and allocating
resource. Instead, they are in the business of creating a At the highest level the senior
culture that favours both the highest levels of executive and management team
performance but also the highest level of opportunity. arent just in the business of
signing off a talent strategy, some
processes and allocating resource. Instead, they are in the business of creating a culture that favours
both the highest levels of performance but also the highest level of opportunity. (Turner and Kalman
2014) This requires insight about the importance of championing and facilitating the development of
talent at all levels. How this is achieved is once again contextual and will depend on the specific
circumstances of the NHS Unit.

There are a number of ways in which this can be achieved by:

o Creating an understanding of the essential nature of talent to the delivery of the

organisations success. This will be achieved by creating an effective business case
for talent, as discussed earlier but also by developing a boardroom presence. Such
a presence will come about when those discussing talent strategy are fluent in the
organisations strategy and understand how the two interrelate; by building a
compelling case for talent and by demonstrating confidence that those responsible for
the talent strategy will be able to deliver once it is agreed. (Conger and Lawler 2010)
o The Chief Executive Officer becomes Chief Talent Officer and acts as the prime
advocate of talent strategy
o Regular dialogue at Executive level about the progress of the talent strategy as a
whole; about the development of people for key roles; about potential successors- not
just at board level but also further down or across the organisation and about the
provision of career management and engaging roles for the majority of the workforce.
o This might be achieved by having an agenda item on Executive Committee or Board
meetings specifically related to talent
o The provision of business metrics to show the contribution made by talent strategy to
organisational performance

One of the key success factors for the delivery of an effective talent strategy will be the buy in of the
executive and managerial teams. It is therefore important that those developing the strategy
recognise this point; build in time to engage the team and provide insight into why the executive
should champion talent.

Step 9. Gaining workforce buy in

Clearly defining talent and communicating this to all employees is a desirable objective for the
successful outcome of talent strategy. This approach should ideally replace the position of keeping
employees unaware of the fact that they are regarded as talent or of the development options open to
them. Such an approach can have a negative effect on the employee and on overall performance.
(Sonneberg et al 2014)

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NHS Leadership Academy Talent and Talent Management Insights
 The engagement of the workforce in the aims and objectives of talent strategy therefore will be as
critical as any other part of the process. On the one hand members of the workforce who believe that
opportunities for career and skills development are in place and accessible are likely to be engaged in
what the organisation is trying to achieve. Buy in of the workforce will therefore have a knock on effect
that is beneficial both to the individual and the organisation. The opportunities created by the
development of a talent strategy will therefore constitute part of an overall employee value proposition
or the entire employee experience from their rewards and benefits, to the opportunity for career
development and also the more intrinsic elements of management style, work environment and
culture.

There are a variety of ways in which the workforce as a whole can be engaged and buy in to the
talent strategy:

o The provision of tools whereby employees can plan and monitor their own
development (such as personal development plans)
o Training line managers in the benefits and processes of talent management and
ensuring that talent management becomes part of management
o Integrating talent management opportunities into the performance management
process
o Or having career conversations on a regular basis so that the employee has a voice
and the organisation has recognition of development needs
o The provision of clear and transparent career paths for all roles
o An assessment process that includes a commitment to self- development

Recognition of the need to include the workforce as a whole in talent management and the provision
of processes to ensure that they are aware of and have access to the tools of talent management will
be critical to its success.

Step 10. Ensuring measures of effectiveness and means of reporting them

The measures that could be used in order to track, manage and demonstrate the effectiveness of
talent strategy cover a variety of areas (see Insight 1). The importance of measures of effectiveness
comes about because of the growth of evidence based HR and the necessity to show value added in
HR activities. The CIPDs RAM approach (CIPD 2013) Relevance, Alignment and Measurement is a
useful guide to developing the process. The type of information that could be included as part of
talent intelligence covers:

o Process advantages- difference in the cost of talent management against cost of

recruitment or the better alignment of individual resource allocation against
organisational objectives and KPIs
o Tangible internal benefits such as availability of talent to deliver business strategy or
to increase success in achieving project outcomes
o Intangible internal benefits such as the better strategic focus or better succession
management and:
o External benefits such as an improved corporate reputation and better external
stakeholder relations

As well as the need to have a coherent process for the development of a talent strategy, it will also be
important to have some clarity about the roles and responsibilities for its delivery.

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NHS Leadership Academy Talent and Talent Management Insights
Conclusion

The above narrative has emphasised the need for a structured approach in developing a talent
strategy in the NHS and has outlined the principles and steps that might be used to achieve this. At
each step, there will be roles, responsibilities and outcomes for each of the groups of stakeholders.

The development of a talent strategy will be a major contributor to building capability in the NHS in
both the short and long term. Much work has already been done and this will provide a solid
foundation on which a talent strategy can be built.

The challenge will be to ensure that this is aligned to the achievement of the NHS goals, whether they
be nationwide or related to operating units. To support this, a talent strategy that has the full
involvement of the Executive team and senior managers, has support in its implementation from line
managers and is joined up with other people management policy and practice is the goal.

The structured approach outlined in this insight provides some of the methodology to facilitate
strategy development. However it is important to note that different units will be at different stages in
their approach to strategy and any process must therefore be adaptable. The guiding principles and
ten step process has been designed with this thought in mind.

Having developed a strategy, its also important to ensure that progress is tracked and measures of
effectiveness are put in place and monitored.

Appendices 1, 2 and 3 include a series of templates that can be used to identify some of the actions
necessary to achieve a talent strategy against each of the four principles. The templates are intended
as guides and it is expected that each of the units developing a talent strategy will modify or add to
the actions depending on where they are in their evolution.

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NHS Leadership Academy Talent and Talent Management Insights
References
Baron,A. Clake,R. Pass,S. and Turner,P. (2010), Workforce Planning, CIPD Publications, London

Bradley, P (2015) Lord Willis review: valuing those that deliver care. British Journal of Healthcare
Assistants, May, Vol. 9

Conger,J.A. and Lawler E.E. III (2015) Addressing the Human Resources Knowledge Gap in
Corporate Boardrooms, People & Strategy, Spring, Vol. 38

Chartered Institute for Personnel and Development (2013) Evaluating learning and talent
development, Revised February, CIPD London

Gochman, I. and Storfer, P. (2014) Talent for Tomorrow: Four Secrets for HR Agility in an Uncertain
World . People & Strategy, Summer, Vol. 37

McPherson, B. (2015) 'Staff strategies must focus on reinvigorating existing talent,' Nursing Times.
June, Vol. 111 Issue 26,

Nadler, M. and Nadler, D. (2015) The HR Opportunity in the Boardroom: How to Become a Trusted
Advisor to the Board. People & Strategy, Spring, Vol. 38

Powell, M., Durose, J., Duberley, J., Exworthy, M., Fewtrell, C. and MacFarlane, F. (2012) Talent
Management in the NHS Managerial Workforce. Final report. NIHR Service Delivery and Organisation
programme; www.nets.nihr.ac.uk/projects/hsdr/081808247

Powell, M., Duberley, J., Exworthy, M., Macfarlane, F. and Moss, P. (2013) Has the British National
Health Service (NHS) got talent? A process evaluation of the NHS talent management strategy?
Policy Studies, May, Vol. 34

Ready, D. A., Hill, L A. and Thomas, R. J. (2014) Building a Game-Changing Talent Strategy. Harvard
Business Review

Ready, D.A. And Conger, JA. (2007) Make your Company a Talent Factory , Harvard Business
Review

Lord Rose (2015) Better leadership for tomorrow: NHS Leadership Review, Department of Health,16
July

Smith,E. (2015) Review into Leadership Development and Improvement, CQI and NHS

Sonnenberg, M., van Zijderveld, V. and Brinks, M. (2014) The role of talent-perception incongruence
in effective talent management, Journal of World Business, April

Turner.P.A. and Kalman, D (2014) Make Your People Before You Make Your Products. Wiley,
London

Lord Willis (2015) Raising the Bar; Shape of Caring: A Review of the Future Education and Training of
Registered Nurses and Care Assistants, Health Education England

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NHS Leadership Academy Talent and Talent Management Insights
 Appendix 1

Talent Strategy on a Page

NHS overall and business Where are we now- the

Strategic Workforce Plan
unit objectives talent engagement grid

Board or Executive
Committee engagement
and discussion about
talent priorities

Objectives for talent

strategy

Talent review and gap

Demand for talent Supply of talent
analysis

Develop the talent strategy

Develop executive,
leadership or high Develop talent initiatives Focus on culture, engage
potential products and for the whole workforce talent at all levels
services

Measure effectiveness
and report outcomes

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NHS Leadership Academy Talent and Talent Management Insights
 Appendix 2

Templates to support the development of a Talent Strategy in the

NHS

o A template for Executives and Senior Managers

Gaining Providing Excellence in Engaging the

Commitment X Information and X Implementation X workforce in X
Insight talent strategy

Executive Team Step 2. Including Step 8. Chief Step 7. Identifying Step 8. Talent
and Senior Talent as a high Executive resources to be objectives included
Managers level agenda item emphasises allocated to in Management
at Executive Team importance of delivery of talent Meetings and
meetings talent initiatives to strategy reviews
achieving
Step 3. Agreeing objectives and Step 7. The Step 9. Executive
organisational acts as Chief identification of Team act as
Objectives and Talent Officer strategic projects Champions of
communicating to for talent talent strategy
HR/ Talent development
Professionals

Step 3 and Step 7.

Undertaking a
succession
management
process and
identifying
successors to
mission critical
roles

Step 3 and Step 7.

Succession
Management for
key or
developmental
roles

Additional
Business Unit
actions

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NHS Leadership Academy Talent and Talent Management Insights
 o A template for Line Managers

Gaining Providing Excellence in Engaging the

Commitment X Information and X Implementation X workforce in X
Insight talent strategy

Line Managers Step 4 and Step 5. Step 9. Supporting Step 5. Identifying Step 9.
Providing input to purpose of talent high potentials Communicating
talent strategy and strategy and talent strategy and
decision making explaining it in the Step 7. indicating
process by context of the Undertaking career implications for
identifying future management unit reviews and career team members
talent needs conversations with
all members of the Step 9. Providing
Step 5. Identifying team monthly updates on
high potential progress of talent
members of the Step 9 Undertaking strategy
team performance
appraisal and Step 9. Giving
reviews with a employees a voice
recognition of the in their own
importance of development
developing the
workforce to its full
potential

Step 9. Providing
coaching and
guidance to team
members on career
and development
opportunities

Additional
Business Unit
actions

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NHS Leadership Academy Talent and Talent Management Insights
 o A template for HR Professionals

Gaining Providing Excellence in Engaging the

Commitment X Information and X Implementation X workforce in X
Insight talent strategy

HR Step 1. Facilitation Steps 2 and 3. Step 7. Supporting Step 7 and Step 9.

Professionals of the TM Interpreting talent objectives in Developing an
engagement matrix business recruitment, Employee Value
objectives into onboarding, Proposition that
Step 4 and Step 5. people reward, recognition, includes talent
Completing the management and employee management
Strategic TM objectives- engagement and activities
Workforce Plan including diversity Employee Value
objectives Proposition policies
Step 2 and Step 3.
Ensuring that Step 10. Tracking Step 7 and Step 9.
talent and reporting of Facilitating
considerations are talent secondments within
taken into account management and between units
in organisational activity for developing
design and talent
development

Additional
Business Unit
actions

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NHS Leadership Academy Talent and Talent Management Insights
 o A template for Talent Professionals

Gaining Providing Excellence in Engaging the

Commitment X Information and X Implementation X workforce in X
Insight talent strategy

Talent Step 1. Completion Steps 4 and 5 Step 7. Ensuring a Step 9. Developing

Management of the TM Developing coherent approach talent and career
Professionals engagement information on in all aspects of development tools
matrix talent supply and attracting, that are accessible
demand from developing and
Step 2. Engaging internal and managing talent
the Executive and external sources through regular
Senior dialogue with HR
Management team Step 6. Facilitating professionals
in the process of the talent review
talent strategy process and gap Step 7.
through a case for analysis Competency
talent profiles in line with
Step 10. talent strategy
Developing and
agreeing Step 7. Leadership
measures of and Management
effectiveness for development
talent strategy programmes
support talent
Step 10. strategy
Developing
processes for the Step 7. Coaching
tracking and and mentoring
reporting of talent processes in place
management
activity Step 7. Developing
career
management
pathways and tools

Additional
Business Unit
actions

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NHS Leadership Academy Talent and Talent Management Insights
 Appendix 3
The Structure of the Talent Strategy Report

1. Context and Purpose

What is the context of the talent strategy; why are we doing it; what is happening in the
unit that has made this a priority?

2. Talent Objectives

What are the implications of the business objectives on our leadership roles; what are the
implications for the development of talent at all levels; what are the priorities?

3. Talent Review

Where are we now; what are the key findings from the analysis of demand and supply;
what are the findings from the strategic workforce plan; where are the strengths in our
talent; where are the gaps; where are the hot spots?

4. Talent Strategy

How can we deliver the requirements of the succession plan; what development options
do we have; what are we going to do to deliver leader development and a leadership
culture; how do we identify our future leaders; what are our plans for developing
managers; how can we ensure that we enable the maximum potential from the whole of the
workforce through talent management. Do we have a range of leadership, management
and whole workforce programmes or opportunities?

5. Stakeholder plan for implementation

Who are the main stakeholders in delivering a talent strategy; what

information/intelligence do they need; how are we going to communicate the strategy to
them; what do they need to do to make it successful?

6. Budgets, Resources, Measures and Benefits

Is the talent strategy costed and resourced; is it clear from where the budget will come;
who has responsibility for identifying this; has a business case been put together?

7. Project Planning and Reporting

Has a project plan been prepared showing key deliverables and timescales; how will
progress of the strategy be monitored; how will, progress be measured; how will this be
reported, when and by whom?

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