Dr. Keith D. Dorsey is the author of The Boardroom Journey, dedicated to empowering leaders to secure their first or next board seat.
When it comes to courageous leadership, talent management presents a unique set of challenges for boards. It’s not just about hiring and retention but ensuring that the right structures, people and values are in place to support resilience, growth and adaptability in an ever-evolving workforce landscape.
While navigating these challenges has historically fallen under the jurisdiction of human resources, boards have increasingly found themselves needing to broaden their focus from CEO appointments and succession planning to tackling issues like employee activism, labor shortages and social issues. This ushers in a new reality: Boards are now held accountable by employees and society, making courage in talent management not just advisable but essential.
The Four Types Of Courage In Talent Management
In my previous article, I outlined four types of courage that every board member needs to cultivate. Here’s how they apply directly to talent management:
1. Moral Courage: Making ethical decisions that prioritize long-term organizational health over immediate gains.
2. Disciplined Courage: Sustaining reflection, strategic thinking and focus, leading to leadership continuity and talent development.
3. Intellectual Courage: Challenging existing assumptions about talent needs and adapting to workforce trends based on new insights gained from experience and research.
4. Empathetic Courage: Seeking employees’ concerns and being willing to engage with them, even when it means changing one’s own perspective.
Recognizing The Courage Gap In Talent Management
Courageous boards tackle uncomfortable truths head-on, particularly when it comes to leadership transitions and talent development. For example, in one organization I researched, the CEO resisted engaging in succession planning processes and identifying and cultivating a leadership pipeline qualified to take the helm. In this case, the board neglected to challenge the CEO, allowing short-term performance to eclipse long-term sustainability.
While this led to no apparent implications at first, months later, the CEO was unexpectedly forced to step down and an underprepared internal candidate had to take the reins. The board’s failure to act courageously sent shockwaves through the organization, resulting in an unstable interim period that unnerved both shareholders and employees. In this case, the board demonstrated a lack of moral and disciplined courage, leaving everyone to deal with the aftermath.
Shortages of intellectual or empathetic courage impose equally ominous impacts. Barbara Kahn and Angie Basiouny explained how Toys “R” Us’ decline in the face of e-commerce growth revealed its failure to reassess talent needs and adapt to workforce trends. In 2000, the company outsourced its online operations to Amazon, forfeiting control over its digital strategy.
This decision delayed the development of in-house e-commerce expertise, leaving the company ill-equipped as online retail surged. By the time Toys “R” Us attempted to reclaim its digital presence, competitors had already established strong footholds. The company’s reluctance to invest in digital talent and integrate e-commerce into its core operations exemplifies a broader failure to challenge existing assumptions about retail and workforce needs.
In today’s highly polarized environment, boards also need empathetic courage. Boards often lack awareness of what employees truly care about, whether that concerns climate, social justice or other issues. Board members must educate themselves about these issues and care enough to advocate for what matters to talent. McKinsey faced this kind of pivotal moment in 2021 when over 1,100 of its employees signed a letter urging the firm to disclose carbon emissions from its clients, particularly those in high-emission industries.
This collective action highlighted a pressing internal demand: Employees wanted McKinsey to align its values with sustainability and demonstrate transparency in its environmental impact. McKinsey responded by committing to net-zero emissions by 2030, increasing transparency through ESG reporting and launching McKinsey Sustainability to help clients reduce carbon emissions. These actions reflect the firm’s acknowledgment of the importance of aligning with sustainability goals amid internal and external pressures.
Boards must confront the tough realities of leadership transitions and organizational needs, even when it requires challenging high-performing executives or addressing contentious workforce issues.
Building A Courageous Board Culture For Talent Management
Developing courage within a board isn’t an overnight transformation; it requires a deliberate approach and clear strategies. Try the following three steps to foster a culture of courage on issues related to talent:
1. Enhance board composition. Diversify the board by bringing in members passionate about workforce issues, such as former chief people officers or younger professionals who can provide fresh perspectives.
2. Encourage direct workforce engagement. Facilitate board learning through engagement with employee resource groups or by inviting unions to share their perspectives. Boards should listen directly to interest groups or frontline employees, just as they would bring in compensation experts.
3. Embrace transparent discussions. Allow room for open, candid conversations. It’s vital that management presents not only final recommendations but also insights on challenges within the organization so that boards can discuss what might not be working well. Moreover, these discussions must be supported by actual data.
A New Era Of Courage In The Boardroom
As expectations evolve, the courage to make tough decisions around talent management is becoming a strategic necessity. Boards must learn to act not just as stewards of performance metrics but as champions of organizational health and continuity.
In today’s complex landscape, courage in talent management isn’t optional—it’s a strategic imperative. Boards that embrace this challenge will not only navigate the immediate demands of the workforce but will lay the foundation for resilience and sustainable growth, driving lasting impact from the boardroom to every level of the organization.
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