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Harvard Case - Assessing Managerial Talent at AT&T (A)

"Assessing Managerial Talent at AT&T (A)" Harvard business case study is written by Michael Beer, Ellen Stein. It deals with the challenges in the field of Human Resource Management. The case study is 22 page(s) long and it was first published on : Nov 17, 1981

At Fern Fort University, we recommend AT&T implement a comprehensive talent management strategy that focuses on attracting, developing, and retaining high-performing managers. This strategy should address the company's current challenges, including a lack of leadership skills, a need for greater diversity and inclusion, and a desire to foster a more innovative culture. The recommendations aim to create a robust talent pipeline, enhance leadership capabilities, and promote a culture of continuous learning and growth within AT&T.

2. Background

This case study focuses on AT&T's efforts to assess and develop managerial talent. The company faces a critical need to address leadership gaps, particularly in the wake of significant organizational changes and a changing competitive landscape. The case highlights the challenges of identifying and nurturing high-potential managers, particularly in a large, complex organization like AT&T.

The main protagonists are:

  • C. Michael Armstrong: The CEO of AT&T, who is responsible for driving the company's overall strategy and ensuring the success of its talent management initiatives.
  • Ed Whitacre: The CEO of AT&T Wireless, who is tasked with leading the company's wireless division and developing a strong management team.
  • AT&T's Human Resources Department: Responsible for implementing talent management programs and supporting the development of managerial talent.

3. Analysis of the Case Study

This case study can be analyzed through the lens of several frameworks:

  • Strategic HR Planning: AT&T needs to align its HR strategy with its overall business strategy. This includes identifying the critical skills and competencies required for future success and developing programs to cultivate those skills within its workforce.
  • Leadership Development: The case highlights the need for a robust leadership development program that addresses the specific needs of AT&T's managers. This program should include training on leadership styles, communication, decision-making, and change management.
  • Organizational Culture: AT&T needs to foster a culture that values innovation, collaboration, and diversity. This can be achieved through initiatives such as employee engagement programs, mentorship opportunities, and a focus on diversity and inclusion.
  • Talent Management: The case emphasizes the importance of a comprehensive talent management system that includes talent acquisition, performance management, succession planning, and career development.

4. Recommendations

  1. Develop a comprehensive talent management strategy: This strategy should be aligned with AT&T's overall business objectives and address the specific needs of the company's managers. The strategy should include clear goals, metrics, and a timeline for implementation.
  2. Implement a robust leadership development program: This program should focus on developing essential leadership skills, such as strategic thinking, communication, and change management. It should also include opportunities for mentorship and coaching.
  3. Foster a culture of innovation and collaboration: This can be achieved through initiatives such as employee suggestion programs, cross-functional teams, and a focus on knowledge sharing.
  4. Embrace diversity and inclusion: AT&T should strive to create a more diverse and inclusive workplace by implementing initiatives such as targeted recruitment, diversity training, and mentorship programs.
  5. Invest in technology and analytics: AT&T should leverage technology and analytics to improve its talent management processes. This includes using data to identify high-potential employees, track performance, and measure the effectiveness of talent management programs.
  6. Create a strong employer brand: AT&T needs to attract and retain top talent by developing a strong employer brand that highlights its values, culture, and career opportunities.

5. Basis of Recommendations

These recommendations are based on the following considerations:

  1. Core competencies and consistency with mission: The recommendations align with AT&T's mission to provide innovative and reliable communication services. They focus on developing the skills and competencies required for future success in the telecommunications industry.
  2. External customers and internal clients: The recommendations aim to improve the customer experience by ensuring that AT&T has a strong management team capable of delivering high-quality products and services. They also focus on creating a positive work environment for employees.
  3. Competitors: The recommendations are designed to help AT&T stay ahead of its competitors by developing a competitive advantage in terms of talent.
  4. Attractiveness ' quantitative measures if applicable (e.g., NPV, ROI, break-even, payback): The recommendations are expected to generate a positive return on investment by improving employee performance, reducing turnover, and increasing innovation.
  5. Assumptions: The recommendations assume that AT&T is committed to investing in its employees and creating a culture that values talent. They also assume that the company has the resources and commitment to implement the recommended programs.

6. Conclusion

AT&T's success depends on its ability to attract, develop, and retain top managerial talent. By implementing a comprehensive talent management strategy that addresses the company's specific needs, AT&T can ensure that it has the leadership it needs to navigate the challenges and opportunities of the future. The recommendations presented in this case study provide a roadmap for AT&T to achieve its talent management goals and build a sustainable competitive advantage.

7. Discussion

Other alternatives not selected include:

  • Outsourcing talent management functions: This could be a cost-effective option, but it could also lead to a loss of control over talent development and a disconnect between HR strategy and business strategy.
  • Focusing solely on internal talent: This could limit the company's access to diverse perspectives and skills.

The key risks associated with the recommendations include:

  • Resistance to change: Employees may resist changes to the talent management system, particularly if they are not adequately communicated or supported.
  • Lack of resources: Implementing the recommendations requires significant resources, including time, money, and personnel.
  • Measuring success: It can be challenging to measure the effectiveness of talent management programs, particularly in the long term.

8. Next Steps

To implement the recommendations, AT&T should take the following steps:

  • Form a task force: This task force should be responsible for developing and implementing the talent management strategy.
  • Conduct a needs assessment: This assessment should identify the specific skills and competencies required for future success.
  • Develop a leadership development program: This program should be tailored to the needs of AT&T's managers and include opportunities for mentorship, coaching, and training.
  • Implement diversity and inclusion initiatives: These initiatives should focus on attracting, retaining, and developing a diverse workforce.
  • Invest in technology and analytics: This investment should support the implementation and evaluation of talent management programs.
  • Communicate the strategy: AT&T should communicate the talent management strategy to all employees, ensuring that they understand its importance and their role in its success.

By taking these steps, AT&T can create a talent management system that supports its business objectives and ensures its long-term success.

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Case Description

Provides background on the assessment center used by AT&T to assess managerial potential for upper middle management. Contains assessment reports for two candidates. Raises questions about manpower training and development. Students may be asked which of the candidates has managerial potential and why, and what specific development plans can be suggested.

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