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Using Portfolio Diversification to Retool Talent Scenarios
From the Right Talent for the Future to Talent Hedging Against a Risky Future
CEOs often refer to their leadership or talent as a “portfolio,” borrowing an idea from financial analysis. They often mean simply that their capabilities fit together. For other resources, however, portfolio optimization goes further, providing a tool to optimize risk and return in the face of an uncertain future. Financial investment systems make this very clear. They require decision makers to explicitly deal with uncertainty, they provide tools to help, and they hold decision makers accountable for the consequences.
This chapter deals with managing risk in strategic workforce planning and human resource ...
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