Talent management at Steelcase

Manufacturing, Malaysia: managing high

performance
Rozhan Bin Othman and Wardah Azimah Sumardi

Rozhan Bin Othman is a Introduction

Professor based at
Universiti Teknologi Aminuddin Pit, the Operations Director of Steelcase Manufacturing (Malaysia) Sdn. Bhd
Malaysia. (SMM), commenced the meeting by walking to a wall in the meeting room. He took down
Wardah Azimah Sumardi a picture frame and beamed with pride and proudly showed the key performance
is a Lecturer based at indicators (KPIs) of the company that were displayed in the frame to the gathered group.
Universiti Brunei These KPIs were his performance targets as the Operations Director at SMM and were
Darussalam.
presented in a location that made them visible to workers, as well as visitors to the
company. In many companies, such information would be considered confidential and
concealed from outsiders, and sometimes even from subordinates. Aminuddin’s simple
gesture demonstrated the transparent culture that existed in Steelcase. This culture
permeates all facets of the company’s practice, including its performance management
and talent management practice. For Steelcase, the implementation of a transparent
workforce management practice is one of the drivers that help to ensure a seamless
performance across its global operating units. The talent management practice at SMM is
integrated into Steelcase’s global system.
As a global company participating in a competitive environment, Steelcase considers
innovation a critical capability. Indeed, the company has won many awards for its
innovative products including four gold awards for at the NeocCon, 2013 convention held
in Chicago (NeoCon, 2013). Steelcase is also included in Fortune’s “Most Admired
Companies” list in the Home Equipment and Furnishing category (Steelcase Inc., 2012).
Fortune evaluates companies for their innovativeness, people management, quality of
product and services and long-term investment. In addition to product design, the
innovative mindset of Steelcase is also reflected in the way the company manage its
people. The approach taken by Steelcase in talent management is in some respects an
innovation in itself because it departs from the conventional approach taken by other
This case study was funded
by a research grant provided companies. This innovation reflects the general emphasis on innovation in the company.
by University Brunei While this is a departure from the proven approach utilized by other companies is
Darussalam. The authors
would also like to thank interesting, it remains to be seen whether it will create the desired results.
Steelcase Inc for supporting
this study.
History
Disclaimer. This case is written
solely for educational Based in Grand Rapids, Michigan, Steelcase Inc. was founded in 1912 as the Metal Office
purposes and is not intended
to represent successful or Furniture Company. It specialized in producing filing cabinets and safes. The success of its
unsuccessful managerial first patent, a steel wastebasket, came during a time when straw wastebaskets were major
decision making. The author/s
may have disguised names; fire hazards in offices and was the major driver that led to the company’s subsequent
financial and other innovative journey. Every year since 1974, the company has been the global leader, in
recognizable information to
protect confidentiality. terms of sales, in the office furniture industry. This follows an expansion of its product

DOI 10.1108/EEMCS-05-2013-0051 VOL. 4 NO. 6 2014, pp. 1-14, © Emerald Group Publishing Limited, ISSN 2045-0621 EMERALD EMERGING MARKETS CASE STUDIES PAGE 1
 portfolio which involves the integration of the three core elements of an office environment:
interior architecture, furniture and office technology.
Steelcase has changed significantly since Jim Hackett became chief executive officer
(CEO) in 1994. In the past, technology and manufacturing capabilities drove most of its new
product development. Today, the company puts more emphasis on innovation, and the
innovation process at Steelcase begins with human-centered thinking in design. The shift
to this new approach is evident from the “Workspace Futures” team, the company’s
research and development program that includes anthropologists, industrial designers and
business strategists. Researchers from this unit conduct observations in the field to seek
insights into the problems faced by Steelcase’s actual and potential clients and develop
workplace designs that address their requirements (http://design-notes-deepankar.
blogspot.com/Book).
Today, Steelcase Inc. has built a worldwide network of subsidiaries that uses 13,000
people and sells products and services through a network of 650 dealers. It has developed
a strong reputation for innovation and for creating inspirational work environments. In the
Asia Pacific region, Steelcase Inc. has a growing presence with offices in 13 cities, dealers
in 15 countries and manufacturing plants in several countries including China, Japan and
Malaysia. Steelcase’s revenue for 2012 was US$2.75 billion.
Steelcase pays particular attention to developing the potential of individuals to support their
personal growth and advancement in the future, as well as the company’s expansion plan.
The company recognizes that it depends heavily on the intellectual assets of its workforce
for innovation in workplace design and exploration of new ways to work. This is reflected in
Hackett’s emphasis on recruiting, developing and retaining those invaluable “thinkers” in
his organization.
The recent slowdown in the office furniture industry has affected many players, including
Steelcase Inc. Despite the slowdown in sales and growth, Hackett continues to invest in
developing his employees and to give strong support to the company’s corporate learning
center, Steelcase University. The centre, also located in Grand Rapids, opened in 2000. His
decision seems counter to the behavior of most CEOs, as Hackett strongly believes the
work that goes on at this learning center, and in other learning locations across the globe,
is the key to realizing the company’s strategy (www.astd.org/NR/rdonlyres/. . ./AtCLevelJ
amesPHackettSteelcase.pdf).
Steelcase first entered the Southeast Asian market in 2001 by forming a joint venture with
Artwright Holdings Berhad, a leading Malaysian office furniture company. This alliance is
part of Steelcase’s strategic effort to create a greater local manufacturing presence in key
international markets. Initially, Steelcase held a 75 per cent interest in the joint venture.
However, in 2005, the joint venture was dissolved with Steelcase acquiring the remaining
stake in the joint venture from Artwright Holdings and this led to the establishment of SMM
(www.alacrastore.com).
SMM, located in the central Malaysian state of Selangor, is one of the company’s main
manufacturing facilities and uses around 240 people. Malaysia was selected as one of the
company’s regional manufacturing bases because of its central location within Asia and for
its good information technology (IT) and telecommunication infrastructure. This
manufacturing facility implements the lean production system which enables it to cut down
lead time and increase speed to market. Products are made on demand and Steelcase Inc.
tailors its products to meet cultural and business related demands (www.steelcase.
com/na/steelcase_inc_to_expand_manufa_News.aspx?f⫽18844). The interdependence
between the company’s operating units requires that all of them, including SMM, deliver
uniformly high levels of performance. Jean Talaga, the Director of Global Workforce
Strategy at Steelcase’s head office in Grand Rapids, explains that Steelcase’s talent
management practices serve as one of the drivers in creating this high performance.

PAGE 2 EMERALD EMERGING MARKETS CASE STUDIES VOL. 4 NO. 6 2014

Human resource management context
As a global company, Steelcase recognizes the need to integrate policies, practices,
aspirations and standards in managing its employees across its global operations. This
includes the talent management practices of the company. Talaga explains that this
integration and standardization serves a number of purposes. First, it enables the creation
of a global internal labour market. The company is implementing a global information
system that will enable all of its operating units to share information about its workforce. In
the future, Steelcase managers in any location will be able to search in this system for
expertise they need that may be present in other parts of the company. The existence of
this global internal labour market also provides a bigger opportunity for advancement for
talented employees as the opportunities for future career advancement are not limited to
only current operating unit. Second, Steelcase believes that such an integration and
standardization ensures a higher degree of consistency in the performance of its
employees and its various operating units.
However, Talaga also explains that Steelcase recognizes the need to build in a certain
degree of flexibility in its talent management system and that the company’s approach to
talent management is one that emphasizes on differentiating talent. This differentiated
approach essentially means the company recognizes that talent management should not
be just about managing talented people for succession into higher leadership positions. In
most organizations, talent management focuses on the development and advancement of
individuals who are high performers with leadership potential. Talaga explains there are
individuals who are high performers but may not have leadership potential or the desire to
advance into leadership positions but these individuals should also be recognized as
talented employees and managed accordingly.
Steelcase’s current talent management practice is built on two key processes, namely, its
performance management system and its succession management system. These two
processes are interconnected and effective talent management in Steelcase depends on
the successful execution of both processes. As one of the company’s main manufacturing
facilities, SMM abides by the policies and practices introduced by headquarters (http://
design-notes-deepankar.blogspot.com/Book) and is included in its talent management
practice.

Managing talent in SMM

Performance management
Aminuddin Pit explains that Steelcase is a very performance-driven company. The
company’s performance management system, Measurable Annual Performance Plan
(MAPP), is at the center of the company’s talent management practice. It is an online
system that enables an efficient and effective performance management process and
involves the use of an online instrument to be completed by both managers and
employees.
Performance management in Steelcase begins with performance planning which involves
a number of steps. First, managers and their subordinates set their annual objectives.
These objectives serve as the KPIs for each employee. Second, the employee identifies
measures for each objective. This is to ensure that there is a fair and well-understood basis
for measuring the attainment of the objectives. Third, the manager then discusses with the
subordinate and assigns weightage to the objectives. This enables the subordinates to
understand the relative importance of each objective and his or her priorities. The
objectives set and the assignment of weightage to these objectives differ among
individuals to reflect their different roles and responsibilities. The objectives, measures and
weightage are all entered directly into the MAPP. The MAPP system also requires the
manager and employee to determine how the objectives are related and contributes to the
overall corporate objectives.

VOL. 4 NO. 6 2014 EMERALD EMERGING MARKETS CASE STUDIES PAGE 3

 The company implements an annual performance appraisal for all its employees.
Managers are also encouraged to have a mid-year review of performance, as well as
provide more frequent periodic performance feedback to their subordinates. The MAPP
system is open all year round and managers can enter their feedback into the system at any
time. The information entered can be viewed by the manager and the subordinate. The
information entered during the periodic performance feedback discussions can include
critical incidents indicating good or poor performance on the part of the subordinates.
Aminuddin explains that, at SMM, employees are encouraged to perform a self-assessment
of their performance in between the mid-year and end-of-year appraisals.
Performance appraisal at Steelcase is about more than just business results. Steelcase
assesses performance by appraising both KPI attainment and employee behavior. All
employees are appraised for their performance outcome and the extent they adhere to the
company’s core values and whether their behavior is consistent with what the company
terms “key behavior”. Aminuddin explains that Steelcase consider these core values as
important in shaping its identity, reputation and success. These values include:
 telling the truth;
 acting with integrity;
 keeping commitments;
 treating people with dignity and respect;
 promoting positive relationships;
 protecting the environment; and
 excelling in every venture they commit.
Key behaviors are behaviors that Steelcase has identified as important for its success and
is a part of its culture. These key behaviors are:
 being connected;
 being curious; and
 being committed.
Being connected is about developing a global teamwork mindset, cultivating a sense of
belonging and personal value. Steelcase employees are expected to think of themselves
as a part of the company’s global community. Being curious is about displaying interest
and openness, and Steelcase employees are expected to be inquisitive and curious. This
behavior is seen as critical for supporting creativity and innovation in Steelcase. Being
committed is about displaying pride and giving the best to customers and the company.
The appraisal of an employee’s attainment of his KPI and the extent he behaves in
accordance with the company’s core values and key behaviors is entered into the MAPP.
The MAPP then calculates the employee’s performance score and generates a
performance score based on a five-point scale. A score of 5 is given to those who perform
far above expectations, 4 for those who perform above expectations, 3 for those who meet
expectations, 2 for those who perform below expectations and 1 for those whose
performance are far below expectations.
To achieve a high score, a Steelcase employee must achieve both his KPI and uphold its
corporate values, as well as exhibit the key behaviors. A person who achieves their
performance targets could be given a low performance score if their behavior is seen as not
adhering to the company’s core values and key behaviors. Aminuddin explained that a
leader who achieves results by cheating or relying on intimidation and bullying
subordinates will end up having unsatisfactory performance. The output of the performance
management process is the input for the company’s succession management process.

PAGE 4 EMERALD EMERGING MARKETS CASE STUDIES VOL. 4 NO. 6 2014

Succession management
Succession management in Steelcase is done at a global level. This process creates a
pipeline of leaders to fill various leadership positions. Specifically, the succession
management process at Steelcase involves five key steps:
Examine key strategic issues. Steelcase recognizes the differences in the strategic
priorities among the company’s global operating units. The different operating units have
different strategic emphasis and thus different leadership requirements. This, in turn,
affects their competency requirements. Thus, to avoid a “one-size-fits-all” approach to
succession planning, the succession management process begins with an examination of
the strategic issues facing the operating units.
Identify pivotal roles. The next step in succession management at Steelcase is the identification
of pivotal roles in each operating unit. Pivotal roles are positions that have a high impact on
customers and the company’s value creation activities. This assessment is done based on the
understanding of the strategic issues identified in Step (1). Research by Huselid et al. (2005) found
that very few positions within an organization have a high strategic impact and are therefore pivotal
position. These positions can include leadership roles, as well as professional roles. The latter are
technical roles that do not require a high level of leadership capability.
Conduct talent review. The talent review process in Steelcase assesses candidates on two
dimensions: leadership potential and performance. The assessment of leadership potential
involves assessing the likelihood that an individual can and will grow into a successful
leader at one or more levels above his/her current position, or into a role with significantly
expanded leadership responsibilities. In assessing each candidate’s leadership potential,
the company uses a set of criteria which includes:
 leadership promise;
 personal development orientation;
 mastery of complexity; and
 balance of value and result.
These four dimensions are further broken down into sub-dimensions (Figure 1). Leadership
promise is related to a candidate’s motivation to lead and their ability to bring out the best

Figure 1 LPI dimensions and leadership potential attributes

Leadership promise

 Propensity to lead
 Brings out the best in people
 Authenticity

Personal development orientation

 Receptivity to feedback
 Learning agility

Balance of values and result

 Cultural fit
 Passion for result

Master of complexity

 Adaptability
 Conceptual thinking
 Ability to navigate ambiguity.

Source: www.ddiworld.com/pdf
/ddi_identifyingpotentials_fs.pdf

VOL. 4 NO. 6 2014 EMERALD EMERGING MARKETS CASE STUDIES PAGE 5

 in people and authenticity. Personal development orientation is concerned with the
candidate’s receptivity to feedback and learning agility. Mastery of complexity assesses
the candidate’s adaptability to different work situations, their conceptual thinking ability and
ability to navigate ambiguity. Balance of values and results is related to the candidate’s
ability to balance adherence to the company’s core values and their passion for delivering
results. In addition, the talent review process also identifies the individual’s towering
strength, career interest, career limiters and developmental actions.
These two dimensions, performance and leadership potential, are presented using a 3 ⫻
3 matrix, indicating low, medium and high levels of attainment on these two dimensions. In
the talent review process, managers are asked to classify their subordinates based on the
two dimensions making up this matrix. Most companies focus on identifying individuals in
the upper right quadrant of the matrix for succession into more senior leadership position.
As mentioned earlier, Steelcase recognizes that not all high performers have the
potential to become leaders and that some high performers do not want to become
leaders. In Steelcase, high performers like these are categorized as “high
professionals”. The approach taken by Steelcase entails managing the talents of these
high professional differently. Even though they are not included in the succession
pipeline for leadership positions, these individuals are designated as subject matter
experts and thought leaders in their areas of technical responsibilities. They are
assigned the responsibility of coaching and transferring knowledge in their areas of
responsibilities to junior employees. Steelcase wants these high performers to
understand that they are also valued.
Identify candidates for leadership pipeline. The next step is to use the information
generated from the talent review to identify candidates for the company’s talent pool.
Individuals included in the talent pool are put in line for succession to more senior positions.
Steelcase categorizes the leadership levels in the company into three levels: people leader,
process/operational leader and strategic/business leader. People leaders are those
providing leadership at the supervisory and first-level managerial positions.
Process/operational leaders are those providing leadership at the departmental or
functional level. Strategic/business leaders are those providing leadership at top
management positions such as General Managers, Vice Presidents and President. The
general practice at Steelcase does not include directly informing talent pool members that
they are included in the pool or succession pipeline, and Talaga explained that the
rationale for this is that the company does not want to create an “entitlement mindset”.
However, these talented employees will be called for a one-on-one discussion with their
manager, and during this discussion they will be given the feedback that the company
values them and their good performance. The manager will also have a discussion to better
understand the employee’s interest and career aspirations and will also be given
information on developmental opportunities available in the company that can help them
achieve their career goals.
Talent development. Talent development involves determining the actions that need to
be taken to better leverage the capabilities of the high performers. This typically
involves a range of activities that includes: formal training, special assignments and
coaching. The training program for talent employees at SMM includes a set of topics
encapsulated in two main programs. These are Strength in Leadership Program and the
Leadership in Action Program which are specially designed by the company’s Learning
and Development team in Asia–Pacific and utilizes training modules designed by the
consultancy firm Development Dimensions International. The program caters to two
different sets of employees and takes a modular approach. The former targets those
who are in the process/operational leader category and the latter is designed for those
who are in the people leader category. The six modules included in the “Strength in
Leadership’ are:

PAGE 6 EMERALD EMERGING MARKETS CASE STUDIES VOL. 4 NO. 6 2014

1. performance management;
2. coaching technique;
3. performance review;
4. leading change;
5. leading high performance team; and
6. essentials of leadership.
While the “Leadership in Action” program includes:
 essentials of leadership;
 setting performance expectation;
 coaching;
 performance review; and
 making meetings work.
In addition, there is a regional support network where SMM participants are put into “action
learning groups” comprising people from multiple functions. These groups allow for peer
coaching and support to help reinforce the learning and application well after the training.
Participants are also encouraged to pursue recommended reading and associated
web-based courses. Upon completion of a training program, evaluation discussions with
participants and their managers are carried out to ensure the talents are properly
developed, and the feedback from this discussion will also be fed into a global database
as a means of tracking an individual’s training history. Consistent with Steelcase’s
performance-oriented culture, trainees are tested at the end of the program and must pass
the test. In the Asia–Pacific region, these training programs are held at the Learning Centre
for Southeast Asia in Kuala Lumpur, Malaysia.

Transparency and fairness in Steelcase

Steelcase believes that a credible talent management system must be transparent. An
article written by a team from Steelcase on the issue of transparency in talent management
highlights the trade-off companies have to make in deciding the degree of transparency
companies should develop (Wolfe et al., 2009). Some companies provide full disclosure,
namely, to reveal all the information regarding the process and outcomes of talent
management, and this includes announcing the names of those selected into the talent
pool. However, the Steelcase team argue this approach sometimes lead to disengagement
and lower motivation. Some of the individuals excluded from the pool become disillusioned
and a liability to the company.
The approach adopted by Steelcase is one that emphasizes transparency in the processes
used for performance management and succession planning. The reason for this decision
is that employees should understand the business and strategic rationale for talent
management decisions. However, the decision about who are designated successors and
which positions are considered pivotal is not revealed to employees. The reason for not
revealing the designated successors is that the company does not want to raise
expectations among those designated. As for the decision to not reveal information about
pivotal positions, it is primarily because positions considered pivotal may change with shifts
in strategy. This level of transparency adopted by Steelcase means every employee is able
to understand how decisions on their performance appraisal and career advancement are
made. Hackett explains:
We believe this approach allows employees to feel secure in knowing there are thoughtful plans
in place, and may inspire many to think, “hey – there are great opportunities here”. The jury is
still out, but we believe our more clearly defined transparency parameters support our value of

VOL. 4 NO. 6 2014 EMERALD EMERGING MARKETS CASE STUDIES PAGE 7

 authenticity and will be a strong driver of greater motivation for our employees – positive for the
company and for careers (Wolfe et al., 2009).

The concern for fairness and accuracy is also reflected in how Steelcase’s Asia–Pacific
operations manage promotion. Aminuddin explained that a candidate for promotion will
often be asked to undergo a 360-degree appraisal. The purpose is to ensure that the high
regard the candidate’s superior has of them is shared by his peers and subordinates and
a consultant is appointed to conduct this appraisal. A candidate can sometimes be denied
promotion if the 360-degree appraisal finds their peers and subordinates do not share the
superior’s high regard of their capabilities as a leader.
Holding a leadership position at Steelcase is very challenging. As an Operation Director,
Aminuddin Pit expressed his caution, saying it is not an easy task. The sense of
accountability that Steelcase instills among its leaders is very genuine and leaders are
expected to deliver results, exemplify the company’s core values and lead in a fair manner.
Leaders in Steelcase cannot get away with being abusive, arrogant and behaving in a
tyrannical manner. This is evident in the range of assessments that leaders have to
undergo.
Among other things, Steelcase conducts a Global Employee Survey every two years. The
purpose of this survey is to monitor employees’ commitment and examine the variables that
affect their commitment. The variables included in this survey include: the supervisor/
manager satisfaction, job satisfaction, learning development, collaboration, connectivity,
company direction and executive leadership and corporate citizenship. Aminuddin
explained that the heads of operating units are always nervous about the outcome of this
survey as many perceive it as an assessment of their leadership effectiveness.
The information gathered from this survey is then presented as a report that identifies
issues needing the attention of the head of each subsidiary. This information is organized
into a 2 ⫻ 2 matrix that identifies the issues that should be: preserved, promoted, improved
and monitored. Figure 2 shows this matrix and depicts the survey findings along two
dimensions: the importance of an item to employees’ commitment and the level of
satisfaction amongst employees in the operating unit on these items. Items that should be
protected are issues that have a low influence on employee commitment and the
employees in the operating unit are satisfied on these issues and these are strengths that
should be maintained. Items that should be promoted are issues found to have strong
influence on employees’ commitment and employees in the operating unit are satisfied with
these items.

Figure 2 Global employee survey matrix

Protect these items Promote these items

Higher employee These are items have low These are items that a
satisfaction influence on employee strong influence on
commitment and employees employees’ commitment
are satisfied with them. and employees are satisfied
with them

Monitor these items Improve these items

Lower employee
satisfaction These are items that are not These are issues that have
strong drivers of employee strong influence on
commitment and are items employee commitment and
where employees’ items where employees’
satisfaction is low satisfaction is low.

L e s s i n fl u e nc e o n More influence on
employees’ commitment employee commitment

PAGE 8 EMERALD EMERGING MARKETS CASE STUDIES VOL. 4 NO. 6 2014

Items under the improved category are the ones needing serious attention. These are
issues found to be important in affecting employees’ commitment, but the level of
satisfaction of the employees in the operating unit on these issues is low and the operating
unit has to make a serious effort to improve on these issues. Items that should be monitored
are issues that do not have a strong influence on employees’ commitment and are items
employees in the operating unit have a low level of satisfaction. These are weaknesses not
considered critical but have to be monitored so they do not develop into major problems.

The future
As a player in the office furniture industry, SMM recognizes the volatility of the market and
the effect it has on the volume of sales. The year 2009 was not a good year for Steelcase
with global sales shrinking by 24 per cent from the previous year. The company imposed
a company-wide pay freeze, and Hackett and members of his top management took a pay
cut that year (the pay freeze was lifted in March 2010). In spite of this, the company did not
reduce its commitment to developing its talented people. As a company that relies on
creativity and innovation for its success, Steelcase believes its approach of differentiating
its talents is more effective in making use of the broad range of human capabilities present
in the company. Talaga explains the company believes this is a smarter way to invest in its
human resources and is more capable of maximizing the benefit to the company and its
employees. It is more effective than just treating talent management as being concerned
with succession planning for those only with high leadership potential.
The approach taken by Steelcase in managing its talent is quite different from the typical
approach taken by many other companies. Malaysian companies such as Telekom
Malaysia and Tenaga Nasional use talent pools to provide a more focused talent
development program for their high potential– high performance managers. Those included
into the talent pools are informed of their selection into the pool and talent pool members
undergo special development programs as a group. Multinational companies, including
HSBC and GE, use a similar approach. The advantage of this approach is that talent pool
members are more motivated to undergo the talent development activities their employer
has prepared for them. Participation in talent development activities imposes considerable
demand in terms of time and effort. The disadvantage is that this approach has is talent
pool members may develop an elitist attitude and an entitlement mindset. On the other
hand, non-talent pool perceive themselves as less valuable to the organization and prefer
to avoid taking extra responsibilities, sometimes arguing that these responsibilities should
be given to talent pool members. Another distinction in the way Steelcase manages its
talented people is that it is not focused mainly on developing people for advancement into
senior leadership positions. Most other companies develop their talent management
programs specifically for the purpose of developing leaders for the future, as these
companies link their talent management programs to succession planning. In these
companies, talent pool members are designated as possible successors for a number of
senior positions. The rationale for Steelcase’s approach is its desire to retain and enhance
the performance of its most capable people. Whereas other companies measure their
success in their ability to develop a leadership pipeline through their talent management
program, the pertinent metric to assess the effectiveness of the Steelcase’s talent
management program is whether it is able to sustain and enhance performance across the
board over the long term. Steelcase is confident its approach is the better approach to
achieve this purpose. Steelcase can take pride in the fact that the American Society for
Training and Development gave the company its BEST award for its employee
development practice (Steelcase Inc., 2012), and this is a testament to the company’s
success in developing its people.
While Steelcase’s talent management approach is appealing because it tries to cater to a
broader range of people, it does raise the question of whether the company’s talent
management program is simply the traditional human resource development program,
albeit a more complex one. Is the attempt to develop so many people for different purposes

VOL. 4 NO. 6 2014 EMERALD EMERGING MARKETS CASE STUDIES PAGE 9

 more similar to conventional human resource development than the selective approach
taken in most talent management programs? It can be argued the approach taken by
Steelcase reflects an appreciation of the diverse capabilities, performance levels and
aspirations of members of the company’s managerial force. For instance, the reliance on
talent pools in other companies has the tendency to neglect the potential of those who may
not fit with a narrower definition of talent. While members of the talent pool will be given
considerable attention in leadership development programs, those excluded may find
themselves marginalized. There obviously are pros and cons for each choice and
companies will have to weigh them carefully. The amount of resources needed for these
two approaches also differ considerably. Companies wishing to develop their talent
management practice from scratch need to also understand the capabilities required for
these approaches. Do they have the capabilities necessitated to emulate the Steelcase
Keywords: approach? Do they have the resources to implement an elaborate set of assessment and
Performance management, development activities such as Steelcase to support their talent management program? Is
Talent management, the openness practiced by Steelcase compatible with the local culture in the countries that
Succession planning, other global companies are operating in? These are some of the issues managers need to
Talent pool consider when deciding which approach to take.

References
Huselid, M.A., Beatty, R.W. and Becker, B.E. (2005), “‘A players’ or ‘a position’? The strategic logic of
workforce management,” Harvard Business Review, December.

NeoCon (2013), “NeoCon 2013: West Michigan companies rock awards, bringing home lots of gold,
“best of show’,” Mlive, available at: www.mlive.com/business/west-michigan/index.ssf/2013/06/
neocon_2013_west_michigan_comp_1.html (accessed 25 July 2013).
Steelcase Inc. (2012), “Steelcase Inc. name one of fortunes’s “most admired companies” in the home
equipment, furnishing category,” available at: www.steelcase.com.au/en/company/press/pages/
steelcase%20inc-one%20of%20most%20admired%20companies.aspx (accessed 25 July 2013).

Wolfe, G.A., Talaga, J.A. and Bernard, L. (2009), “A matter of transparency,” Training and
Development, June, p. 1.

Further reading
Cappeli, P. (2008), “Talent management for the twenty-first century,” Harvard Business Review, March,
pp. 1-8.

Sanchez, R. (2004), “Understanding competence-based management: identifying and managing five

modes of competence,” Journal of Business Research, Vol. 57 No. 5, pp. 518-532.

Tierney, T. (2006), “Leadership deficit,” Stanford Social Innovation Review, pp. 25-35.

Corresponding author
Rozhan Bin Othman can be contacted at: [email protected]

PAGE 10 EMERALD EMERGING MARKETS CASE STUDIES VOL. 4 NO. 6 2014