TALENT MANAGEMENT

Prepared by:

Prepared by:
Prepared by:

gml@knowcap.co.id
 1. 
HR Strategic 
in Dynamic 
8. Organization
HR Aspect in  2.
Change  Recruitment 
Management and Hiring the 
& Industrial  Potential
Relation

Strategic  Change 

Course  7.
Training 
Partner

Competency
Agent
3.
Organization 

Outline
Need 
Analysis Development

Admin  Employee 
Expert Champion

6.
Talent  4.
Management Effective 
5. 
Performance 
Innovative  Management 
Reward and  System
Recognition  People
Strategies

2
 FACILITATOR  WORKSHOP

Handoko Said 
Chief of GML HR Consulting

Handoko Said merupakan VP dari HR Business di GML Performance Consulting. Ia bertanggungjawab untuk
menyediakan pedoman strategi pada unit HR Business dan memimpin implementasi proyek terkait transformasi sistem
dan pengembangan SDM. Ia telah memimpin dan mengimplementasikan proyek‐proyek mengenai Strategy
Management, Balanced Scorecard, Talent Management, Job Analysis/Evaluation, Competency‐Based Human Resources
Management dan Human Resources Information System (SAP HCM).

Handoko meneguhkan pengetahuan dan keahliannya di bidang Human Resources Management dan Strategy
Management melalui karirnya sebagai Senior Management di Bina Nusantara Group Divisi HR. Ia juga aktif mengajar
anggota fakultas di Universitas Bina Nusantara. Sebelum bergabung di GML Performance Consulting, Handoko telah
berkontribusi di dalam proyek‐proyek konsultasi di lembaga pemerintahan, perusahaan multinasional dan institusi
pendidikan. Ia mendapatkan gelar sarjana di Computer Science dengan gelar Magna Cum Laude Honors dari Universitas
Bina Nusantara di Jakarta. Dia juga dianugerahi Wibowo Award oleh Universitas Bina Nusantara, yang diberikan pada
para sarjana dengan predikat akademis yang luar biasa dan pencapaian ekstra kurikuler. Ia juga mendapatkan gelar
master di Business Management dengan predikat Magna Cum Laude Honors dari Universitas Bina Nusantara di Jakarta
dengan spesialisasi di Sistem Informasi.

AGENDA 
• Perencanaan karir
• Mendesain & merencanakan jalur karir
• Mendesain program pengembangan karir
• Mempersiapkan kandidat yang potensial
• Mengembangkan organisasi berbasis talent
• Turn Over Analysis

4
What is Talent Management?

#1
focus of CEO’s change agenda:

TALENT
STRATEGY

Survey of HR Directors

Sources: PWC Global CEO Survey

McKinsey Quarterly

6
7

8
 Talent Management Strategy Model

Business  Talent Business

Strategy     Operations Implications Implications
Growth Engine Value
Productivity Quality Innovation
Mission
Goals Workforce Trends Engagement
Attract Brand Ability to Grow

Vision Retention Customer  Corporate Social 

Satisfaction Responsibility
Objectives
Capability  Talent  Leadership
Assessment Gaps
Values Deploy Develop
Succession Revenue Sustainability

Strategic 
Corporate  Readiness

Priorities
Initiatives
Culture Retain Culture
Profit
&
Reward
Accountability | Alignment | Change Management | Measurement | Refinement

If your people don’t have the right skills to meet the expectations
Business of your clients, your organization will fail.
Strategy        Operations Mary Massung, VP of HR, Unysis Corporation

Mission We skate to where the puck is going. We follow the global market
Goals
as it evolves and develops. We try to make sure that we have the
flexibility to change the emphasis of our business to go after those
Vision
markets where the growth is.
Objectives Pertti Kerhonen, President & CEO, Ouotec Oyj

Values Our starting point is to have a human capital strategy that, as

much as possible, pre-empts and mirrors our business strategy
Strategic  Initiatives and business plan. And that’s a challenge in itself.
Priorities Rohana Rozhan, CEO, ASTRO Malaysia Holdings

While any organisation today should set a direction for where to

go…in an environment which is as volatile as today’s, you have to
keep calibrating your next steps and your next action plan,
depending on how the environment is moving.
Chandra Kochar, MD & CEO, ICICI Bank

You need to have an idea of what you want to accomplish for your
business and the ways better management of people can help you
achieve that.
Lars Mørch, Head of Business Banking, Danske Bank

10
 Talent
Implications
Talent Strategy Alignment
Workforce Trends
• Become the expert on Workforce Trends – internal and 
Capability  Talent 
external
Assessment Gaps • Ensure alignment to Strategy
– What capabilities do we need to accomplish our mission?
Corporate  – Does our Workforce have these capabilities?
Culture – What Talent Gaps do we have?  
– Where are the Gaps?  What are our Critical Roles?
– What are our Gaps costing us?
– What is our Corporate Culture?
– Does our Corporate Culture support our Mission?
• Develop Talent Strategies based on these answers

11

Talent
Growth Engine
Activate the Talent Growth Engine
• How do we Attract employees with the right capabilities?
Attract – Employer Brand
– Employee Value Proposition
– Talent Sourcing
– Workforce Plans
Deploy Develop • How do we Develop the Capabilities we need?
– Leadership Development
– Coaching & Mentoring
– Technical & Functional Learning
Retain
& – Performance Management
Reward • How do we align Retention & Rewards with Strategy?
– Engagement & Culture
– Total Rewards
– Recognition
• How do we maximise Talent Deployment?
– Talent Mobility
– Succession Planning
– Cycles of Experience
– Restructuring

12
 Talent Implementing Talent Strategy
Growth Engine

Attract
Potential 
Talent

Deploy Develop
People 
Processes & 
Retain
&
High  Systems Pivotal 
Performers • HR Function
Reward Roles
• Organisation Design
• People Management
• HR Systems

Key Skill 
Needs

13

Talent Talent Acquisition
Growth Engine
• Acquiring Talent is the Start of the Talent 
Attract
Management Process
• Recruiting & Hiring covered in detail in 
Deploy Develop
CHRP Module 3
– Very relevant here
Retain
& – Today focus on Internal Hiring & Branding
Reward

14
 From Recruiting to Talent Acquisition

15

Regional Talent Acquisition Priorities

Top 5 Priorities

1. Recruiting/sourcing highly-skilled talent 44% 44%

2. Pipeline talent 39% 25%

3. Improving quality of hire 29% 30%

4. Improving sourcing techniques 24% 18%

5. Employer brand 18% 25%

LinkedIn Research

16
 Emphasis on Internal Hiring

Internal Hiring Volume Advantages of Internal

Hiring
100% Increase
Same
1. Retain top talent
Decrease 2. Develop talent and professional
80% 46%
56% development
60% 3. Improve employee productivity
(less ramp up time for internal vs.
external employees)
40%
46% 4. Achieve cost savings
35% (i.e. lower cost per hire)
20%
5. Higher quality of candidate
9% 8%
0%
“Which of the following choices best describes why your
“Comparing 2012 to 2013, how do you expect the organization is investing in internal hiring?”
volume of internal hiring to change?”

LinkedIn Research

17

18
 Your Brand

19

Communicating Your Brand

20
 Engagement Influences Your Brand

• Aon Hewitt “Best Employers”
– Fill 90% of openings within one year
– Fill 25% of openings internally
– Achieve 25% lower turnover
• These firms are more likely to:
– Have leaders who articulate a clear vision
– Implement career development programs

21

Sample Executive Onboarding Process
7-14 days 1-30 days 30-90 days 90-180 days
Before start date
Phase 4 
Phase 1  Phase 2  Phase 3 
Deliver 
Preboarding Integration Execution
Results
 Communications  Partner Meeting  Regular Manager  Metrics reviewed
 Customized Onboarding  Team Transition Reviews against strategic plan
Plan Meeting  Scorecard  360° Survey
 Preliminary Stakeholder  Stakeholder Mapping  Ongoing coaching &
Analysis by HR & Interviews feedback with Coach
 Peer “Buddy” assigned
 Coach Meeting

From Stomski & Adler 2006 SIOP Workshop.

22
 Talent Acquisition Case Studies

• At your tables:
– Review the case study together and answer the questions
– Prepare to summarize the case study and key learnings for the 
rest of the group
• Assignments:
– Table 1:  P&G
– Table 2:  Google
– Table 3:  American Express

23

Talent
Growth Engine
Talent Development
Attract
• Performance Management covered in CHRP 
Module 4
Deploy Develop
• Training covered in CHRP Module 5
Retain
– Needs Analysis and Gap analysis particularly 
&
Reward
relevant to over Talent Management Strategy
• Focus Today:
– Talent Development Framework
– Leadership Development

24
 25

Talent Management & Leader Readiness
How various talent management practices affect the percent of “ready now” leaders?

26
 Talent Development Pyramid
• Classroom Training
10% • Online Learning
• Degree / Certification Programs
Classroom • Self‐Study
Based
• Mentoring
20% • Coaching
• Day to Day Feedback
Relationship
Based
• Job Enrichment
70% • Job Rotation
• On‐the‐Job Learning
Experience • Cross Training
Based • Action Learning

27

Talent Development Framework
Identify
Talent
Key Position Talent
Assessment
Potential

Aspiration & Employee 
Organization Needs
Competency GAP?

Employee Development Program
Job Workshops/
On the Job Special
Enlargement/ Mentoring In-class
Development Assignment
Enrichment Training

Action based Coaching /

Job Rotation Self Study Cross Training
Learning Counseling

See Appendix for detailed descriptions of these.

28
 Hi‐Potential Talent Development

• Differential investment in Hi – Potentials
– Compensation
– Development
– Organizational Opportunities
• Accelerated Talent Development
– Participants eager for development
– Meet the organizational demand for leaders
– Improved retention

29

Sample Hi Potential Development Program

Phase 1  Phase 2  Phase 3  Phase 4 

Identify Plan Develop Measure
 Identify talent through:  Assessment  Coaching & Mentoring  Assess Progress
o Talent Review  Feedback  IDP Follow Up o IDP Completion
o Nominations  Individual  Cohort Development: o Action Learning
o Performance Development Plan o Organizational Progress
Appraisal  Cohort Development Needs o Pre- & Post-
o Volunteer Plan o Action Learning Assessment
 Confirm Projects Comparisons*
 Communicate o Networking  Reporting
o Career Pathing
o Succession
Planning

* Typically pre- and post – 360 assessment even though there are
many challenges in pre- and post- score comparison.

30
 Building a Coaching Culture

Individuals / 
Team Coaching
Coaching 
Programs in 
Organisational  Leadership 
Artefacts Programs
Departmental 
Implementation
Organisational 
Strategy
Values & Vision
Action Plans, Evaluation, & 
Feedback

Bring Out Their Best 2014. Natalie Ashdown & Mel Leow

31

Leadership & Talent Management

• Performance management is ongoing –not a “once a year” event
• All phases of the process are interrelated – you cannot perform 
one effectively without performing all others well

32
 Learning Evaluation
•Attitude
Kirkpatrick’s 4 Levels Reaction
•Motivation
1. Reaction
2. Learning
3. Behaviour Simple 
Learning
•Knowledge/Facts
•Behaviours
4. Results
A good start but insufficient.
Kraiger, Ford, & Salas include: Training
Effectiveness •Behaviour Change
• Cognitive  On the Job •Motivation to 
Outcomes/Knowledge Improve
• Skill Based 
Outcomes/Behaviour •Objective 
Effectiveness
• Affective Outcomes/Attitudes  Results
•Desired Business 
& Motivation Outcomes

33

Talent Development Case Studies

• At your tables:
– Review the case study together and answer the questions
– Prepare to summarize the case study and key learnings for the 
rest of the group
• Assignments:
– Table 1:  Bank of America
– Table 2: Coastal Community Credit Union
– Table 3: Southwest Airlines

34
 Talent Deployment
Talent
Growth Engine • Workforce Planning
Attract
• Career Planning / Career Paths
Deploy Develop • Succession Planning
Retain
&
Reward

35

Talent Supply & Demand Model
Strive to place critical talent in all critical positions...

Demand Planning Workforce Planning
(overlay positions and people)
• Emerging business needs
• New positions
Positions • Career Planning
• New skills
• Validate existing critical positions • Succession Planning
• Promotions
• Inform other Talent Mgt Actions:
– Talent Acquisition
Supply Planning – Talent Development
• Calibration of performance data
• Benchstrength of critical talent pool People

36
 Workforce Planning Process

37

Workforce Planning Considerations
DEMAND SUPPLY
ROW – Rest of World Labor Market
 Economic Conditions  Global, national and local data for
 Political Actions specific competencies and roles
 
EXTERNAL

Legal Policies & Compliance Industry-specific trends and

 Technology Interventions patterns
 Competitive Threats  Competitive employment activity
 Market Conditions for specific competencies and roles
 Social Patterns  Ability to attract and hire top talent
 Global Markets
 External Security
Organizational Employees
 Strategy  Tenure
 Business Goals  Gender
 Business Constraints  Diversity
 
INTERNAL

Strategic Initiatives Job Level

 Technology Introductions  Employment Status
o Process Improvements  Competencies
o Expansions  Cyclical Hiring & Turnover Patterns
o Mergers & Acquisitions  Internal Moves & Promotions
o Reductions in Scope &  Turnover by Talent Level
Force  Engagement by
 Critical & Core Values Location/Department

38
 CAREER PLANNING

• A process to identify and plan career path that can be taken by an employee 
during his employment life time. 

• Career planning should be aligned to the business needs, employee’s aspiration 
and current employee’s qualification (competency) and his/her learning 
potential.
• Career planning should also be integrated with assessment and development 
process.

39

BENEFIT
CAREER PLANNING 

• Accommodate employee’s aspiration into

business needs

• Align strategy with manpower planning

• Put focus on employee’s development and

internal promotion

• Reduce employee turnover

• Encourage employee’s ownership in development

40
 WHAT IS
CAREER PATH
A sequence of work positions or roles
that an employee could hold over the 
span of employment lifetime.  

This will be used as a reference for Career Planning and 
represents long term commitment that the organization offers 
to the employees.

41

Employment Life Time

Entry Level
Join Company  22 years old

First Line  Supervisor/Ass. Manager  26 ‐ 29 years old

Middle  Managers   29 ‐ 35 years old

Management

Senior  
GM/Senior Managers   35 ‐ 45 years old
Management

Top 
Management CEO/BOD  45 ‐ 55 years old

42
 Career Movement

43

Career Path Patterns

44
 Movement Probability

30% 30% 30% 10%

Movement probability is determined by comparing the required qualification

of destination position to the original position. The more similar the
qualification, the higher the probability.
As a rule of thumb, probability lower than 30% should not be considered.

45

SAMPLE OF VARIOUS JOB FAMILIES

46
 Career Path Template

47

Career Path Exercise

• Within your groups:
– Review the description of Xeroy Sales Organization
– Follow the instructions to determine possible career 
paths
• We will review possible solutions together

48
 Defining Succession Planning

A succession planning program  
is a deliberate effort by an organization to ensure the 
leadership continuity in key positions, retain and develop
intellectual and knowledge capital for the future, and 
encourage individual advancement.

49

Why Do Succession Planning? 
The McDonald’s Story

Jim Cantalupo Charlie Bell Jim Skinner Don Thompson

2003-2004 2004 2004-2012 2012-Present
Started in Finance Started at age 15 Started as Started as Engineer
Manager Trainee

50
 Why Succession Planning 
Succession Planning is important for several reasons

1. Secure organization’s future by ensuring stability
2. Provide increased opportunity for high potential  “HiPos”
3. Identify replacement needs
4. Decide which worker can be terminated without damage to the 
organization

51

Problems

52
 Succession Planning Transformation

53

Succession Planning Transformation
First generation : is a simple replacement plan for the CEO. So the 
target is the CEO only.
Second generation: is a simple replacement plan for the CEO and his 
or her immediate reports.
Third generation : is a SP program from middle managers, who are 
usually the direct reports of the senior executive team. 
Fourth generation: moves beyond simple replacement plans to focus 
on the development of internal talent pools.
Fifth generation: focuses on the development of external as well as 
internal pools.

54
 Succession Planning Overview
Assessment of
Key Positions

Identification of
Key Talent

Key
Development Steps
Monitoring & Review

Assessment of
Key Talent

Generation of
Development Plans

55

Succession Planning: Key Elements
1. Assessment of Key Positions:
• What are the competencies and experiences needed to qualify for each key 
position?
2. Identification of Key Talent:
• Typically people at the top two levels of the organization and high potential 
employees one level below.
• Identified by their management’s assessment of their performance and 
potential for advancement.
3. Assessment of Key Talent:
• For each person on the radar screen, primary development needs are 
identified focusing on what they need in order to be ready for the next 
level.

56
 Succession Planning: Key Elements

4. Generation of Development Plans:
– A development plan is prepared for how we will help 
the person develop over the next year.
5. Development Monitoring & Review
– An annual or semi‐annual succession planning review 
is held to review progress of key talent and to refresh 
or revise their development plan.

57

What to Assess
Common Approach Better Approach

58
 Succession Planning Cycle
Snapshot of  Open Positions & 
Talent Situation Career  Follow‐up Actions
OTR
Convo

Perf Talent 
Review Talk
Calibration of  Open Positions & 
Potential Follow‐up Actions

Organization & Talent Review Talent Talks Employee Dialogues

(OTR)
 Snapshot of talent situation
 Review management team
performance
 Review bench strength for
management team and critical
positions
 Define actions to fill talent gaps
 Calibration & update employee  Mid-Year conversation with
potential assessment employees to discuss career
aspirations and developmental
 Filling vacant positions
plans
 Review of organization and people
 End of Year annual performance
actions defined in OTR
review for feedback

59

A SAMPLE REPLACEMENT CHART FORMAT: TYPICAL SUCCESSION

PLANNING AND MANAGEMENT INVENTORY FOR THE ORGANIZATION

Source: Norman H. Carter, “Guaranteeing Management’s Future through Succession Planning,” Journal of Information
Systems Management (Summer 1986), 19. Used by permission of the Journal of Information Systems Management

60
 SuccessionDesigning
Profile Career Planning Program

Name : Bambang Bujono

Position : Sales and Marketing Director
Age : 53
Duration in current position : 7 years
Possible Vacancy : 2 years
Reason : Retirement

List of Candidates

Nama Alex Maher Andreas Hartono Arini Kusumadewi

Current Position Marketing Communication Sales Manager New Product Development

Manager Manager

Age 45 years 42 years 42

Duration in current 6 years 4 years 5 years

position

Readiness to be Full Category Promotable Develop Within Catory Contribute in Place

promoted

61

Talent Pool
A talent pool is
a group of
people being
prepared for
more
challenging
responsibilities.

62
Performance‐Potential Matrix (Example)

Manager: Helen Ahmad

/ Outstanding
Expectations Ahmad Shafiq
Above

Target Positions:
Editor
Senior Editor
Performance

Expectations

Pete Lee
Meets

Target positions:
Production Asst.
Expectations
Inadequate /
Below

Key Contributor Promotable High Potential

63

Standardized Potential Ratings
Assessment Leadership Competencies Performance/Experiences Aspiration/Motivation

• Demonstrated ability to adapt to  • Prior experiences and  • Candidate’s career aspirations 

the demands of higher levels of  performance track record and motivation
leadership

 Clear target position is used to anchor prediction of potential
Target Position
 All potential assessments based on a 5‐year time horizon

Ready Now (RN) Ready Later (RL) Ready Future (RF)

Readiness for 
Target Position < 12 months 1 – 3 Years 3 – 5 Years

High Potential Promotable Key Contributor

Potential Rating
• Potential to rapidly progress  • Potential to assume a leadership  • Potential to make significant 
through at least two higher  role at a higher level than  contribution in his/her current 
levels of leadership current position within the  leadership position, a role of 
organization larger scope/accountability, or a 
OR lateral move within existing 
• Potential to move into a senior  leadership level in current 
leadership position function or in a different 
function

Concern Cannot Rate / Less than 6 months of data
• Employees who have difficulty in current  • Employees who have worked for the firm 6 months or 
organizational role or are not performing to their  less.  
potential in the current role
64
 65

Succession Planning Activity

• As a team, review the Talent Profiles provided
– Team 1:  Okky, Lala, Agung, Inge, Bowo
– Team 2:  Okky, Lala, Agung, Dessy, Lina
– Team 3:  Okky, Lala, Dessy, Siti, Citra
• For each Profile, determine:
– Target Position(s)
– Readiness Rating:  RN, RL, RF (for each target position)
– Potential Rating: Hi‐Po, Promotable, Key Contributor, 
Concern

66
 Succession Planning Activity

• Who is the best successor for James?

67

Talent
Implications
Productivity Measuring the Impact
Engagement

Retention
• What doesn’t get measured doesn’t get done!
Leadership

Succession
• Invest in Talent Analytics to drive accountability and 
Readiness continuous improvement
Culture
• Tie Business Value back to Talent Strategy
Business
Value – Individual Financial & Qualitative Metrics
Quality Innovation
– Group Financial & Qualitative Metrics
Brand Ability to Grow

Customer 
Satisfaction
Corporate Social 
Responsibility
• Demonstrate Talent contribution to Business Value
Revenue Sustainability

Profit

68
 Economic Influence of HR Initiatives
Source: 2012 BCG/WFPMa web survey and analysis.

The economic impact gap between the most capable

HR Initiatives
companies and the least capable companies in…

revenue growth profit margin

1 Delivering on Recruiting 3.5x 2.0x

2 On‐boarding of New Hires 2.5x 1.9x

3 Managing Talent 2.2x 2.1x

4 Improving Employer Branding 2.4x 1.8x

5 Performance Management 2.1x 2.0x

6 Developing Leadership 2.1x 1.8x

69

Success Stories

• Starbuck’s

• General Electric (GE)

• McDonald's

70
 Starbucks Case Study
Snapshot
• Founded 1971 • Howard Shultz returned as CEO
Jan, 2008
• Headquarters: Seattle, WA
• After rapid expansion during the
• 117,000 employees early 2000’s, 2008 “a year of
• Revenue—9.4B (2007) refocus and renewal.”
• 16,000 stores/44 countries • Huge changes—Starbucks
• Had become the “third place” had become “ordinary”
• Numerous awards for: • Advertising for the first time...
– Most admired company • “We are not in the coffee business
– 100 Best Companies To Work For serving people; we are in the people
– Best Global Brand business serving coffee.”

*Case study based on Conference Board Report, HCI Summit presentation by Lacey All and Infohrm Workforce Planning Workshop

71

Workforce Planning Approach
• Initial focus was operational—developed many forecasting tools
– The Retail Forecasting Tool, Enterprise Forecasting Tool, Workforce Analytics
• Completed a pilot project to initiate a strategic approach to WFP
– Chose the manufacturing division of Supply Chain Operations (SCO)
• Making many strategic changes; opening new roasting plant; introducing
new processes—lean manufacturing
– Developed, delivered and facilitated a 3-day workshop for 15 participants
• Focused on 3 job groups: engineers, continuous
improvement teams, and leadership
• Further segmented them into recent graduates, lifers,
and transitioners
– Outcomes
• Tested SWP framework
• Embedding SWP in business planning

72
 Lessons Learned & Next Steps
Key Learnings Next Steps
• Patience • Year 1—Program and Process
– You don’t have all the answers – Develop Framework
– Determine Initial Pivotal Roles
• Persistence
– First time out may be painful – Track performance in roles
– Validate process
• Business partners
– Determine pivotal roles and key talent segments
– Good questioners
(+/- 15 roles)
– Project team composed of business people
– Engage HR up front in the process
• Year 2—Evaluation and Integration
– Review & adjust strategic Initiatives & pivotal role
• Manage the change process carefully process
– Action planning
• Likely pivotal roles...
– Baristas
– Coffee-roasters
– Real estate roles
– Interior design roles

73

McDonald’s Corporation

HR Design 
Center

HR  HR 
Service  Business 
Center Partners

74
 McDonald’s HR Design Center
Measurement & Organizational Effectiveness
• Annual Employee Commitment Survey
• Human Resources Scorecard and HR data
• Identify & communicate best practices that positively affect turnover, productivity, customer satisfaction, sales and 
profitability

Leadership Assessment & Development
• Executive Succession
• 360‐Degree Feedback & Coaching
• Assess Senior Leaders & Create Individual Development Plans

Competency‐Based People Systems & Culture
• Selection
• Performance Appraisal & Development
• Workforce Planning
• Competency Modelling
• Training Design

Recruitment & Retention
• Recruitment strategy
• Selection System Design

75

General Electric

• The company used mainly annual performance reviews for identifying potential 
candidates, until the early 1980s. 
• However, after Welch took over as the CEO, the succession planning process at GE 
became a more systematic process, with the use of various analytical tools and the 
involvement of the top management in leadership development and succession 
planning.
• Since early 1980s, the annual Human Resource Reviews (popularly called Session C) 
had been at the heart of succession planning at GE. 
• The succession planning by Welch for his post had started way back in 1994, when 
Welch, with help of Bill Conaty and Chuck Okosky, both vice‐presidents, HR and 
Executive Development, created a list of essential qualities, skill and characteristics 
an "ideal CEO" should possess. 

76
 General Electric

• The list mainly included elements such as integrity and values, vision, 
leadership, experience, edge, stature, fairness, energy, balance, insatiable 
appetite for enhancing knowledge, courageous advocacy, and most 
importantly, stomach to play for high stakes and being comfortable 
operating under a microscope.
• The three candidates for the top spot at GE were Immelt, W. James 
McNerney, CEO of GE Aircraft Engines, and Robert L.Nardelli, President 
and CEO of GE Power Systems.
• Welch wrote in his autobiography, that choosing between the final trio 
"was the most difficult and agonizing [decision] I ever had to make….All 
the three exceeded every expectation we set for them.
• According to Welch, it was his nose and his gut, which prompted him to 
select Immelt.

77

78
Notes:
_____________________________________
_____________________________________
_____________________________________
_____________________________________
_____________________________________
_____________________________________
_____________________________________
_____________________________________
_____________________________________
_____________________________________
_____________________________________
_____________________________________
_____________________________________
_____________________________________
_____________________________________
_____________________________________
_____________________________________
_____________________________________
_____________________________________
_____________________________________
Notes:
_____________________________________
_____________________________________
_____________________________________
_____________________________________
_____________________________________
_____________________________________
_____________________________________
_____________________________________
_____________________________________
_____________________________________
_____________________________________
_____________________________________
_____________________________________
_____________________________________
_____________________________________
_____________________________________
_____________________________________
_____________________________________
_____________________________________
_____________________________________
Notes:
_____________________________________
_____________________________________
_____________________________________
_____________________________________
_____________________________________
_____________________________________
_____________________________________
_____________________________________
_____________________________________
_____________________________________
_____________________________________
_____________________________________
_____________________________________
_____________________________________
_____________________________________
_____________________________________
_____________________________________
_____________________________________
_____________________________________
_____________________________________