Companies working with talent management leverages the power of its collective expertise in a smart way. This gives an average of 22% higher return* to the shareholders. But how do you show the value to get financing for the investment? Often a Business case is required to release resources to the project.
Why do you need a solid and detailed Business case? There are two reasons and the first is to acquire the necessary resources. The second is to inform executives about the new initiative and get their full support before implementation. Remember that the Talent management process is not just owned by HR, but also by other managers. Therefore, you need to also develop a business argument to assure you that the Talent management solution will be used optimally and contribute with the intended benefits to the organization.
When it comes to talent management, it is difficult to derive the benefits of the strategic HR processes and demonstrate the link between more motivated / skilled employees and customer satisfaction leading to higher profitability. The process by which it is easiest to see a more direct value is Performance management. Mainly three factors create value in the performance process: goal focus and adjustment of goals for the individual and the organization, more efficient and fair distribution of pay and benefits, and an increase in employee productivity and commitment.
In a Business case you compare different future scenarios with doing nothing, (continue as before). Then you estimate what each option would generate in terms of revenue and expenses.The organizations that successfully implement a new Talent management solution builds a story, a Case. This story must be both engaging and selling. Therefore it should contain:
- Identified problems
- Suggested solutions
- Preliminary implementation plan
- Preliminary cost and resource needs
- Roadmap for future high-level
Your Business case should clearly explain the importance of Talent management for your organization. It should describe the benefits and opportunities the solution hold for your employees, managers, decision makers and HR. In addition to the solutions fit regarding way of working, it is important that HR and middle managers understand the business benefits and can work with Talent management in the best way. Therefore it is important that they are involved in the development of a Business case.Your Case will also focus on the company’s existing business strategies concerning growth, mergers, acquisitions, product launches and the like to explain how theses initiative will be promoted and supported by a new Talent management solution.
When your Case is ready, it is important to make management continue to support the implementation of the new solution, both in attitude and financially. This means that your Case will be presented to your CEO, CFO and other decision makers in the company. The presentation should include the history and benefits that the proposed Talent Management solution will provide to your organization.
*McKinsey & Company in their research that preceded the book “The War for Talent” investigated high-performance organizations. The single biggest factor to separate the best organizations was how leadership prioritized Talent management (degree of talent mindset). Through their research, they found that companies with a strong talent management culture gave 22% higher shareholder returns than their competitors.
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