Thursday, February 12, 2009

Bill Gates on Talent Management


Bill Gates directly addressed the issue of Talent Management in education during his address at last week’s TED conference. After an initial discussion of the battle against Malaria in the poorest parts of the world (complete with an actual release of mosquitoes into the crowd) Gates gives a great example of a true Performance Management process at work. It’s useful to look at because it mirrors exactly what HR professionals would like to accomplish inside of their own organizations.

You can watch the video of the talk here (the Malaria discussion is about ten minutes at the start): http://www.ted.com/talks/bill_gates_unplugged.html

As you watch the discussion, note each piece or step of an integrated talent management process that comes into play:

1. Defining Organizational Goals – In the U.S. the top 20% of individuals get a superior education, but the balance of people are continually getting a less and less competitive education versus some other countries. The goal then is to increase the performance of the bottom 80%.

2. Identifying key Jobs that affect the desired outcome – Gates presents evidence from studies that show the difference in performance between top quartile teachers and bottom quartile. It turns out that teachers in the top quartile are able to increase the performance of their classes on test scores by 10% in a single year.

Gates puts an exclamation point on this with the example, “If the entire U.S. for two years had top quartile math teachers, the entire difference in test scores between us and Asia would go away.” This of course begs the question, how do we find, recruit, and or grow more top performing teachers?

3. Characterizing what predicts success in that role (Competencies, Skills, and Experience) – Once you’ve decided which key jobs drive the economic value of your company, or in this case your organizational goal to improve education, you need to describe what traits are predictive of success (in say, your Job Profile!) Gates simply asks, “How do you make a great teacher?”

Mr. Gates then takes us through a quick set of attributes that might be predictive of what makes a top quartile teacher: Seniority, whether the person participated in Teach for America, whether they have a math degree (he’s talking about math teachers), or whether the person has a Master’s degree. In real life of course, there might be 10, 20 or 100 different measures.

4. Measuring variability of performance in that job – Gates illustrates the problem of feedback in the teaching role. He actually hits on what is more of an Education specific issue – that is, that teacher’s contract might only allow a principal to observe in his or her classroom a single time a year, and only with notice. The problem is the total lack of coaching or feedback on the behaviors and competencies that make someone a great teacher. Union issues aside, there are certainly comparisons to the once a year appraisal process common in most corporate settings. Does anyone believe that type of appraisal process is core to changing the behaviors that drive top quartile performance? Of course not!

5. Turnover & Retention in that role – Guess what? According to Gates, “On average, the slightly better teachers leave teaching. There’s a lot of turnover.” That may have a lot to do with the next step…

6. Pay-for-Performance – Spoiler alert. If you haven’t watched the video, this ruins the payoff. As it turns out, the characteristics that are predictive of top quartile performance map out like this:

- Possession of a Master’s Degree: Almost no effect
- Teach for America: A little bit more effect
- Math major in college: A bit more effect
- Actual past top performance: GINORMOUS effect

Gates kicker in this section, of course, is around the pay portion. What do teachers get bumps in pay for? Seniority, and earning a Master’s degree.


7. Coaching & Learning and Development – Finally, the most optimistic part of Gate’s presentation comes at the end. If you can move around some of the incentive systems the real opportunity is around developing individual teachers. Using various tools to coach and develop individuals, the hope is that they can encourage the behaviors that drive top quartile performance.

The one major piece of a talent management process Gates doesn’t mention in all this is Recruiting. However, from here it’s an easy leap to see the value in integrated talent management. If we fully understand our Organizational goals, the jobs that drive the goals, and the job behaviors that predict top performance, we can focus hiring efforts on measuring those behaviors and skills.


Did you notice there is no discussion here about managing “A” players? While you want to identify key players, it’s not to manage them, it’s to learn what behavioral competencies they use to produce top performance. The “managing” part is about managing “A” jobs. How do I reduce the variability of performance in the key roles that drive my Organizational goals? By focusing on a foundational piece of the system, in this case jobs, they’re looking to increase the performance of the whole. THAT takes an integrated approach to talent management. Of course, there’s no discussion here of technology, just the process. However, in practice, you must have technology in place to support a systematic approach to this many individuals.

“By thinking of this as a Personnel system, we can do it better.” - Bill Gates

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