The Great 21st Century

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The Great 21st Century War for
Talent!Version 05April2001
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The Case
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We have transitioned from an asset-based
strategy to a talent-based strategy.Jeff
Skilling, COO, Enron
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When land was the productive asset, nations
battled over it. The same is happening now for
talented people.Stan Davis Christopher
Meyer, futureWEALTH
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Sellers Market Tomorrows HeadlineMolecula
r biologists are up 3 points, economists down
1/4, in moderate tradingfutureWEALTH, Stan
Davis and Christopher Meyer
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The markets being divided up right now. Were
in a tough competition with the U.S. and the
U.K. for the best brains.Gerhard Schroeder,
on Germanys new tech immigration
policyFrankfurter Allgemeine/06.02.00
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The Silent BattlefieldFifty percent of middle
mgrs. in big corps. report moderate to high
chance theyll change companies within 3
yearsMore loyalty to geography than
companiesMost companies dont know how many
25-40 year olds theyre losing, have no special
retention programsEd Michaels, War for Talent
(05.17.00)
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THE CHRYSLER THAT DAIMLER BOUGHT IS DEAD. The
recent resignation of Thomas Gale, the great
Chrysler designer, brings that home as nothing
else does. This was the mistake Juergen Schrempp
made when he bought Chrysler He didnt realize
it was the people who counted, not the factories,
which were old, or the sales and profits, which
can come and go. The people and the leadership
are the heart and spirit of the Detroit automaker
and when they go, all that is left are old
factories and problems.Forbes 10.30.00
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There is no talent shortage if you are
a GPTWGreat Place To Work
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The Talent Ten
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Obsession! Greatness! Performance!Pay!Youth!D
iversity!Women!Weird!Opportunity!Leading
Genius!
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1. ObsessionP.O.T. All ConsumingPursuit
of Talent
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The leaders of Great Groups love talent and
know where to find it. They revel in the talent
of others.Warren Bennis Patricia Ward
Biederman, Organizing Genius
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Alan Kay on PARCs Bob Taylor He was a
connoisseur of talent.
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From 1, 2 or youre out JW to Best
talent in each industry segment to build best
proprietary intangibles EMSource Ed
Michaels, War for Talent
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Our ideal acquisition is a small startup that
has a great technology product on the drawing
board that is going to come out in six to twelve
months. We buy the engineers and the next
generation product.
John Chambers, Cisco
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We chose not to do a discounted cash flow
analysis of their future earnings. We wanted
their talent and we wanted their intellectual
property. Art Reidel, CEO, Pharsight
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GE Is a Talent MachineIn most companies the
talent review process is a farce. At GE, Welch
and his two top HR people visit each division for
a day. They review the top 20 to 50 people by
name. They talk about Talent Pool strengthening
issues. The talent review process is a contact
sport. It has the intensity and the importance of
the budget process at most companies.Ed
Michaels, War for Talent (05.17.00)
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2. GreatnessOnly The Best!
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Home Depot 7 new growth initiatives (20B to
100B in 5-7 years)Arthur Blank BEST PERSON IN
THE WORLD TO HEAD EACH INITIATIVEE.g. COO of
IKEA to head international expansionEd
Michaels, War for Talent (05.17.00)
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3. PerformanceUp or out!
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Message Some people are better than other
people. Some people are a helluva lot better than
other people.
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We believe companies can increase their market
cap 50 percent in 3 years. Steve Macadam at
Georgia Pacific changed 20 of his 40 box plant
managers to put more talented, higher paid
managers in charge. He increased profitability
from 25 million to 80 million in 2 years.Ed
Michaels, War for Talent (05.17.00)
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Can you imagine a football-baseball team or
theater company with low turnover? Can you
imagine signing up a chef or quarterback for 40
years? THINK TALENT, DUDES!
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If there is nothing very special about your
work, no matter how hard you apply yourself, you
wont get noticed, and that increasingly means
you wont get paid much either.Michael
Goldhaber, Wired
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New Economy changes how firms treat
layoffsHeadline, USA Today (03.19.2001)
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4. PayIts a Sellers Market Fork Over!
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Sellers Market!Technically savvy and
innovative people have become unbelievably
expensive.Peter Drucker, Business 2.0/08.2000
Drucker adds that theres no reason for them to
be on anyones payroll.
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New World of Worklt 1 in 10 F5001 Manpower
Inc.Freelancers/I.C. 16M-25MTemps 3M (incl.
CEOs lawyers)Microbusinesses 12M-27MTotal
31M-55MSource Daniel Pink, Free Agent Nation
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We value engineers like professional athletes.
We value great people at 10 times an average
person in their function.Jerry Yang, Yahoo
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Top performing companies are two to four times
more likely than the rest to pay what it takes to
prevent losing top performers.Ed Michaels,
War for Talent (05.17.00)
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So-so plant manager, 1M per year. Pay 110,000
plus 60,000. Top plant manager, 3-4M per year.
Pay 135,000 plus 90,000. Net 2-3M for
50K.Source Ed Michaels et al., The War for
Talent, re Georgia-Pacific
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Enron (per Gary Hamel/Fortune/06.00)Design an
open market for ideasOffer an open market for
capitalOpen up the market for talentMake like a
cell Divide and divide (We havent been able
to start new businesses within existing
businesses)Pay your innovators well really
well
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What gets measured gets done. What gets paid
for gets done more. What gets paid a lot for
gets done a lot more.
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5. Youth Grovel Before the Young!
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Why focus on these late teens and
twenty-somethings? Because they are the first
young who are both in a position to change the
world, and are actually doing so. For the first
time in history, children are more comfortable,
knowledgeable and literate than their parents
about an innovation central to society. The
Internet has triggered the first industrial
revolution in history to be led by the
young.The Economist 12/2000
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This is the Age of Ageism The real innovators
dilemma isnt disruptive technologies its the
relentless rise of the quasi-adolescents who
wield them.Michael Schrage
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The Triumph of the Brainiac In todays biotech,
dot-com world, nerds rule, and it all starts in
high schoolCover story, The New York Times
Magazine (06.04.00)
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A good plant engineer in a paper mill may create
100K to 300K in value per year. An outstanding
software product developer may create a product
worth 1M to 300M. Talented people are less
likely to wait their turn. We used to view young
people as trainees now they are authorities.
Arguably this is the first time the older
generation can and must leverage the younger
generation very early in their careersEd
Michaels, War for Talent (05.17.00)
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Gen-X DemandsLove a new challenge. Want
responsibility early. Crave freedom,
independence and control. Are obsessed with
building their Human Capital. Value more than
work. See a very compressed career
timeline.Source Ed Michaels et al., The War
for Talent
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6. DiversityMess Rules!
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Where do good new ideas come from?Thats
simple! From differences. Creativity comes from
unlikely juxtapositions. The best way to maximize
differences is to mix ages, cultures and
disciplines.Nicholas Negroponte
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Diversity defines the health and wealth of
nations in a new century. Mighty is the mongrel.
The hybrid is hip. The impure, the mélange, the
adulterated, the blemished, the rough, the
black-and-blue, the mix-and-match these people
are inheriting the earth. Mixing is the new
norm. Mixing trumps isolation. It spawns
creativity, nourishes the human spirit, spurs
economic growth and empowers nations.G.
Pascal Zachary, The Global Me New Cosmopolitans
and the Competitive Edge
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Capitalism and the conditions for creating
wealth have changed in ways that play to the
strengths of hybrid individuals, organizations
and nations. And those that wish to profit from
changing economic conditions must view hybridity
as their first and best option. This bold claim
warrants an explanation. The ability to apply
knowledge to new situations is the most valued
currency in todays economy. Highly creative
people are misfits on some level. They tend to
question accepted views and consider
contradictory ones. This appreciation defines the
mongrel mentality. Strangers instinctively
question things that natives take for granted.
Many things strike them as odd or stupid.G.
Pascal Zachary, The Global Me
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Diversity ReduxM.I. (logical-mathematical,
linguistic, spatial, musical, kinesthetic,
interpersonal, intrapersonal) Arts (A poet in
every accounting department)
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Expose yourself to the best things humans have
done and then try to bring those things into what
you are doing.Steve Jobs, on the eclectic
nature of the teams he concocts people of
extraordinary tastes with intriguing
backgrounds
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7. WomenBorn to Lead!
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Tomorrow belongs to women.Helen Fisher, The
First Sex The Natural Talents of Women and How
They Are Changing the World
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AS LEADERS, WOMEN RULE New Studies find that
female managers outshine their male counterparts
in almost every measureTitle, Special Report,
Business Week, 11.20.00
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Its time for U.S. organizations to act. No
other country in the world has a comparable
supply of professional women waiting to be called
into action. This is Americas competitive
secret.Judy B. Rosener, Americas Competitive
Secret
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American women possess leadership abilities that
are particularly effective in todays
organizations, yet their abilities remain
undervalued and underutilized. In the future,
what will distinguish one organization and one
country from another will be its use of human
resources. Today human resource utilization is
not only a matter of social justice but a
bottom-line issue.Judy Rosener, Americas
Competitive Secret
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Women and new-economy management
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The New Economy Shout goodbye to command and
control!Shout goodbye to hierarchy!Shout
goodbye to knowing ones place!
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Womens Stuff New Economy MatchImprov
skillsRelationship-centricLess rank
consciousnessSelf determinedTrust sensitive
IntuitiveNatural empowerment freaks less
threatened by strong peopleIntrinsic
motivation gt Extrinsic
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Women have many exceptional faculties bred in
deep history a talent with words a capacity to
read non-verbal cues emotional sensitivity
empathy patience an ability to do and think
several things simultaneously a gift for
networking and negotiating an ability to take
the long view and a gift for cooperating,
reaching consensus and leading via egalitarian
teams.Helen Fisher, The First Sex
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Womens Strengths link rather than rank
workers favor interactive-collaborative
leadership style empowerment gt top-down decision
making sustain fruitful collaborations
comfortable with sharing information see
redistribution of power as victory, not
surrender favor multi-dimensional feedback
value interpersonal technical skills, group
individual contributions equally readily accept
ambiguity honor intuition as well as pure
rationality inherently flexible appreciate
cultural diversitySource Judy B. Rosener,
Americas Competitive Secret
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Women speak and hear a language of connection
and intimacy, and men speak and hear a language
of status and independence. Men communicate to
obtain information, establish their status, and
show independence. Women communicate to create
relationships, encourage interaction, and
exchange feelings.Judy Rosener, Americas
Competitive Secret
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TAKE THIS QUICK QUIZ Who manages more things
at once? Who puts more effort into their
appearance? Who usually takes care of the
details? Who finds it easier to meet new
people? Who asks more questions in a
conversation? Who is a better listener? Who
has more interest in communication skills? Who
is more inclined to get involved? Who
encourages harmony and agreement? Who has
better intuition? Who works with a longer to
do list? Who enjoys a recap to the days
events? Who is better at keeping in touch
with others?Source Selling Is a Womans Game
15 Powerful Reasons Why Women Can Outsell Men,
Nicki Joy Susan Kane-Benson
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Investors are looking more and more for a
relationship with their financial advisers. They
want someone they can trust, someone who listens.
In my experience, in general, women may be better
at these relationship-building skills than are
men.Hardwick Simmons, CEO, Prudential
Securities
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Boys are trained in a way that will make them
irrelevant.Phil Slater
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Its Girls, Stupid!1996 8.4M women, 6.7M men
in college (est 9.2 to 6.9 in 2007) more women
than men in high-level math and science
coursesMore girls in student govt., honor
societies girls read more books, outperform boys
in artistic and musical ability, study abroad in
higher numbersBoys do rule crime, alcohol,
drugs, failure to do homework (41)Source The
Atlantic Monthly (May2000)
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M-F GPAs All 2.92M vs. 3.07F Arts 3.08M,
3.13F Bus 2.79M, 2.96F Science/Math 2.98M,
3.18FEng/CompSci 2.96M, 3.17F. Professional
Degrees F 77 19 F 94 41 (45 Ph.D.s)
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Okay, you think Ive gone tooooo far. How about
this DO ANY OF YOU SUFFER FROM TOO MUCH TALENT?
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Opportunity!

• U.S.
  G.B. E.U. Ja.
• M.Mgt. 41 29 18
  6
• T.Mgt. 4 3
  2 lt1
• Peak Partic. Age 45 22 27
  19
• Coll. Stud. 52 50 48
  26
• Source Judy Rosener, Americas Competitive
  Secret

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Read This!Winning the Talent War for Women
Sometimes It Takes a Revolution Douglas
McCracken, HBR 11-12/2000
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Deloitte was doing a great job of hiring
high-performing women in fact, women often
earned higher performance ratings than men in
their first years with the firm. Yet the
percentage of women decreased with step up the
career ladder. Most women werent leaving to
raise families they had weighed their options in
Deloittes male-dominated culture and found them
wanting. Many, dissatisfied with a culture they
perceived as endemic to professional service
firms, switched professions.Douglas McCracken,
Winning the Talent War for Women HBR
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The process of assigning plum accounts was
largely unexamined. Male partners made
assumptions I wouldnt put her on that kind of
company because its a tough manufacturing
environment. That client is difficult to deal
with. Travel puts too much pressure on women.
Douglas McCracken, Winning the Talent War for
Women HBR
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Message S. Estrich Re-invent the Culture!
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Ask for everything.Harriet Rubin, The
Princessa Machiavelli for Women
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8. WeirdThe Cracked Ones Let in the Light!
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Characteristics of the Also ransMinimize
riskRespect the chain of commandSupport the
bossMake budgetFortune, article on Most
Admired Global Corporations
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Attributes of Those Who Made the 10th Grade
History Book

• Committed!
• Determined to make a difference!
• Focused!
• Passionate!
• Irrational about their lifes project!
• Ahead of their time / Paradigm busters!
• Impatient! / Action Obsessed

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Attributes of Those Who Made the 10th Grade
History Book

• Made lots of people mad!
• Flouted the chain of command!
• Creative / Quirky / Peculiar! / Rebels! /
  Irreverent!
• Masters of improv / Thrive on chaos / Exploit
  chaos!

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Attributes of Those Who Made the 10th Grade
History Book

• Forgiveness gt Permission
• Bone honest!
• Flawed as the dickens!
• In touch with their followers aspirations
• Damn good at what they do!

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We are in a brawl with no rules.Paul Allaire
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Our business needs a massive
transfusion of talent. And talent, I believe, is
most likely to be found among non-conformists,
dissenters and rebels.
David Ogilvy
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Our most beloved products were developed by
hunch, guesswork and fanaticism, by creators who
were eccentric - or even stark raving mad.Jack
Mingo, How the Cadillac Got Its Fins
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Axiom Never hire anyone without an aberration
in their background. (Find the One Ton Cookie
Man!)
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The Main crisis in school today is
irrelevance.Daniel Pink, Free Agent Nation
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9. OpportunityMake It an Adventure!
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Create a Cause, not a business. Gary Hamel,
Fortune (06.00), on re-inventing a company
(Exemplar 1 Charles Schwab)
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Talent War, Marketplace WarThe successful
company has to create an environment that imbues
its employees with a sense of passion.Joe
Nocera, eCompany, on David Pottruck
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The challenge for IBM, ATT and other mainstream
companies is to re-instill a sense of adventure
in recruits.Burke Stinson, ATT
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• Firms will not manage the careers of their
  employees. They will provide opportunities to
  enable the employee to develop identity and
  adaptability and
• thus be in charge of his or her own career.
• Tim Hall et al., The New Protean Career
  Contract

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Age of Talent/Intellectual CapitalPersonal
Projects Enterprise Strategy. Persons are only
passing through corporations on the way to their
respective ends. Corporations are fictions that
stand for the interests of their members.Ed
Freeman Dan Gilbert, Corporate Strategy and
the Search for Ethics
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H.R. to H.E.D. ???Human
Enablement Department
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10. Leading GeniusWe are all unique!
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The Creative Arts Acquisition Development of
Talent AllBalletSymphonyTheaterSportsComba
t
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One size NEVER fits all. One size fits one.
Period.
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44 Players 44 Projects 44 different success
measures 44 different styles (of you) Short
term-Long termOne if lucky 1 in 10
yearsScout Great career 1 sleeper find
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But dont we need some grout between the tiles?
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Housekeeping Dept. (Finance Dept., etc.)
Theater Company
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Goal of the Year No. 1 Find-Develop-Mentor ONE
Extraordinary Person.CEO, large financial
advisory firm, April 2001
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So
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Talent Brand
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Emotional values are replacing physical
attributes as the fundamental market
influence.This book is concerned with
self-worth and belief. In the international
market, it is no longer products that compete,
its concepts. Only with a strong spirit at
its foundation can a company achieve strong
market position.Jesper Kunde, Corporate
Religion
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Whats your companys EVP?Employee Value
Proposition, per Ed Michaels et al., The War for
Talent
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EVP Challenge, professional growth, respect,
satisfaction, opportunity, reward EVP The
companys fingerprintSource Ed Michaels et
al., The War for Talent
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Talent Brand