Book Review – Talent: Making People Your Competitive Advantage

I was fortunate enough to recently receive a copy of Ed Lawler’s new book Talent: Making People Your Competitive Advantage. Having read a variety of other business management books I was skeptical about the ideas and promises this book would provide. I found myself continually surprised by what the book had to offer.

After reading the first page of the book, I let out a sigh of relief. Business books are often dry, but right away I knew this book would be an easy read. If Lawler teaches at the University of Southern California anything like he writes I’m sure students are lining up to get into his classes. There’s no falling asleep reading this book.

The book intertwines an extensive definition of an HC-centric organization with essential how-to information. The key note being that a HC-centric organization can take on many forms but the basic components remain the same. Lawler makes an HC-centric organization sound very appealing, however he notes right away that it is not for every organization.

For those of us whom an HC-centric organization does not apply, Lawler presents visionary information and examples that any organization can take pieces from. One of my favorite examples comes when Lawler discusses GE’s performance management initiatives. He notes that GE works with managers who exhibit the “right managerial behaviors but get poor results” but fires the managers who “exhibit poor behaviors but get good results.” I would venture to guess that in the majority of organizations there are several managers who are kept because of their results or seniority regardless of their inability to behave as a manager. This is a frequent complaint from Human Resource Professionals and to know that GE does the right thing is an inspiration.

Yes, it was all going so well with Lawler’s book until I came to the chapter on Human Resources. Lawler points out that HR still does not have a seat at the table and for that I cannot begrudge him. However some of his other thoughts on HR were misguided. First, he states several times that HR “tends to end up being staffed with individuals who are not top-tier talent” (167). I’m not sure where Lawler got his research from regarding that comment. Second, he makes the common mistake of thinking that most HR professionals want to be CEOs. This claim ignores the fact that HR is a discipline and while it may not be what everyone wants to do, some of HR professionals enjoy their work. His lack of respect for the field is also apparent when he claims that all future CEOs should spend some time in HR. An assumption is made that everyone can perform HR and that it is a place where no one should stay. There are also some comments about how HR should do less administrative work but should have more metrics. Unfortunately, the reason we don’t spend time on metrics is because it is administrative work! Obviously, I was disappointed in the chapter about HR. However I will forgive Lawler for his misunderstandings as it appears he has no direct experience in HR.

The other intriguing chapter is the chapter on Boards. While Boards play a large role in organizations they are often ignored. Lawler argues that a cohesive organization needs Board buy-in and in order to achieve buy-in Boards need to be given more information about the human capital side of the organization. Also, management of the Boards should be held to the same standards as management of regular staff. There is little to find fault with in Lawler’s analysis of Board involvement. If anything the chapter makes the reader feel starved for more analysis and advice on Boards.

As a whole, Talent is a thought-provoking read. More importantly it is a practical book. Anytime the reader starts to say to him or herself “yeah right, that would never work” Lawler responds with an acknowledgment of the practicalities and support for optimism.  If Lawler’s prediction that more companies will turn towards HC-centric organizations then it would be wise to read this book now. Even if organizations do not go in this direction, they will have to increase their HC-centric initiatives in order to survive as we are now in a time when the individual supersedes organizations. Talent is a book for individuals who still hold on to some hope for the future of organizations.

One Response to “Book Review – Talent: Making People Your Competitive Advantage”

  1. Q&A with Ed Lawler « The Employment File Says:

    [...] with Ed Lawler Posted on June 19, 2008 by Rachel Robbins Last week I wrote a book review of Ed Lawler’s new book Talent: Making People Your Competitive Advantage. This week Lawler was [...]

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