Investing in "growing your own talent" makes sense.

Did you ever wonder why GE has a deep bench that is the envy and target of many companies?

Most American companies have adopted what I call "Just In Time" recruiting and manpower planning system. They are unwilling to invest in people and creating a loyal and deep bench and so they are forced to pirate talent from others, if and when they are needed. Their bench is shallow. When a key job opens up they call their favorite "headhunter / executive search" firm, who has a list of key people...at a price. Thus they are forced to take whomever is available and make the selection on "hyped-resumes" and biased recommendations.

The results are predictable and headlined in the media daily. The new crown prince or princess sign highly attractive contracts, for a few years, and commit to stay for a specified period of time. If they succeed, they become "free agents", like organized sports, and resell their talents to the highest bidder. If they fail, they receive handsome rewards for failure.

In my most recent book: "The Secret to GE's Success" I provide an in-depth description and assessment of the GE Way...

Since GE's inception in 1893, its leaders have made it a unchallenged and unchangeable policy to grow their own talent.. at all levels and in all functions of the business. This has included making people development and succession planning a continuing investment of money and executive time. GE has always had a deep bench in all areas, including the CEO level. If one of its executive or professionals leaves or unfortunately is incapacitated or dies, there are several ready, willing and able replacements.

At one time, GE executives and professionals were not willing to leave the company, but in recent years, many have left and moved to other companies. Headhunters track and monitor these key people and when there is an opening they are first on the list.

There is a continuing argument as to whether the GE system and commitment is the most economical and effective or whether they are merely training peoples to be picked off by others. As a GE alumni, I am still convinced that investing in people and GROWING YOUR OWN is the best and most important investment that an organization can make.