Too many line executives regard talent management as the responsibility of the firm's human resources department. While HR can provide the framework and advice on methods to ensure effective management of talent occurs, true responsibility for staffing and development lies with the unit heads.

We know from extensive research on exit interviews that people often explain their leaving the company by saying: ‘My boss is not competent or capable of effective management.’

Weak management of talent – in the direct boss-subordinate relationship – leads to loss of high-calibre people before they reach the positions for which they are being groomed. Their high potential and skills are often lost by the company that has trained them. They can leave physically by switching companies, or check out emotionally and lose their drive and enthusiasm until finally they make a change.

This chapter considers the risks and responsibilities confronting CXOs as they nurture talent. The task of talent management is divided into manageable pieces by distinguishing different talent categories, between current and potential performance, and between talent for the company and talent for the unit.

We start by defining what we mean by talent, pointing out the dangers of viewing it too narrowly. We then show how CXOs are in the talent business.