In episode 3 of 8 of our mini-series about the key strategies to successfully execute a reorganization, today we are talking about the need to assess your talent. Why? Because you are reorganizing your people after all.
You see, in a reorganization, you need to move people around to get the most efficient results. Meaning, you have to put your talent in the right places to get the best, overall production, execution, and revenue generation while also saving money. At the same time, if you are eliminating headcount, you also want to eliminate underperformance. But, how will you know what that looks like or who fits that criteria if you don’t assess your talent?
You won’t. If you do not institute a fair and consistent way to assess talent on a regular basis, you will be left with assumptions, opinions, bias, and potentially even discriminatory behavior when it comes to recommendations on who to keep within the company and who to remove.
The best pathway to follow here is to do a talent assessment. Minimally, if you are a company entering into the mature phase of business, you want to do annual talent assessments with quarterly reviews to ensure nothing has changed. Laying this foundation early will mean you have to tools handy to quickly make sound talent decisions and formulate a plan.
The last thing you want to do is eliminate top talent as that will further harm the financial status of your business. Imagine eliminating the best talent and keeping the worst. I couldn’t think of a more horrible business situation. But many companies do just that, and they essentially take themselves further down the rabbit hole of revenue loss.
Don’t go down that pathway. Build a talent assessment routine in your business.