What is External Talent Mapping and Benchmarking?
External talent mapping and benchmarking are processes designed to evaluate your target company's leadership and compare it to the broader talent market. This helps you determine if the existing leadership team has the right skills to meet future demands, or if external talent is needed. It gives you a data-driven approach to identify gaps, assess risks, and ensure alignment with your growth strategy.
Why Is it Useful for Private Equity?
1. Identifying Leadership Gaps Early:
By comparing your target company's leadership team with the broader talent pool, you can identify any skills gaps early on. Whether it’s a lack of digital expertise, international experience, or leadership to scale operations, external talent benchmarking ensures you're prepared to address those gaps before they become costly.
2. Ensuring Competitive Talent:
Your leadership team must be capable of executing your growth strategy. External talent mapping helps you benchmark your team against what’s available in the market. It ensures your leadership team has the skills and experience needed to drive transformation, whether it’s scaling, entering new markets, or product innovation.
3. Mitigating Talent Risks:
Leadership turnover is a major risk post-acquisition. External talent benchmarking allows you to assess the broader market for leaders who could step into key roles if needed. Knowing who’s available in the market helps you plan ahead, ensuring that you won’t be caught off guard if key executives leave or if gaps in expertise emerge.
4. Aligning Leadership with Growth Strategy:
Growth is at the heart of any private equity acquisition. External talent mapping allows you to assess whether the current leadership team is aligned with your growth strategy. If there are misalignments, you can identify leaders in the market who bring the right experience to execute your plans.
5. Promoting Smooth Integration:
Cultural integration is one of the toughest aspects of any acquisition. External talent benchmarking helps you assess whether the leadership team fits your company's values and culture. If you need to bring in external talent, mapping the talent market ensures a better fit, making the leadership integration process smoother.
How to Leverage External Talent Mapping Benchmarking in Due Diligence
1. Assess Internal Leadership:
Begin by evaluating the strengths and weaknesses of the target company’s leadership team. How well do they align with the company’s future growth needs?
2. Map External Talent:
Next, map the talent available in the broader market. Identify key leaders who could fill gaps in your target company’s leadership and who have experience relevant to your growth strategy.
3. Benchmark Against Competitors:
Benchmark the target company’s leadership team against competitors. How does their experience and skills compare to those at similar companies?
4. Build a Talent Pipeline:
Use the insights from benchmarking and mapping to build a talent pipeline for future leadership needs. Whether it’s for succession planning or filling key roles, understanding the talent landscape helps you stay ahead.
Securing the Right Leadership
In private equity, leadership is crucial for driving value post-acquisition. External talent mapping and benchmarking provide you with the data you need to assess whether your leadership team has the capabilities to deliver on your growth strategy. By identifying gaps early, mitigating risks, and ensuring leadership alignment, you set your acquisitions up for long-term success.
Next time you’re evaluating an acquisition, remember: the right leadership is just as important as the right company.
For more information on external talent mapping and benchmarking, reach out to our Director of Talent Intelligence, Lindsay Steinour: lindsay@emusearch.com.au