Growing Talent Management Firms: Is Content Really King?

The Holy Grail in any highly competitive marketplace is the ability to outfox the competition by being supremely different in one way or another. While it sounds simple, this is easier said than done, particularly for industries in which the offer is commoditized and the value proposition is difficult to articulate and calculate—such as the so-called “soft” business of talent management. And although recent years have begun to offer some finite ROI calculations for developing and retaining talent, these formulas are often portrayed as voodoo economics. In the talent management industry, there are only a few ways to differentiate the business: content, delivery, or expertise.

While it has been said that content is king, in this information age, content is relatively easy to access and imitate. How many interpersonal styles models assess exactly the same dimensions, but are just labeled differently? How many assessment tools purport to measure the same capabilities, but do so with different questions? And how many leadership theories, approaches, and competency models can there be? Some intellectual property is protected if original, particularly with ample research to support it. But it doesn’t take long for the next person or firm to create a somewhat similar, yet slightly different version of this work.

There is a way to differentiate content, however, and that is through its application—or delivery. Delivery refers to the experience created for the receiver of the goods and services offered by the firm. In the talent management industry, the end-user learner is typically the receiver, although the buyer has a large say in evaluating the overall experience, too. Just as companies work hard to deliver a consumer experience worthy of retaining customers for as long as possible, talent management firms must deliver their offer in a manner that not only resonates with the buyer and end-user, but fulfills expected results as well. It is the entire learner experience—whether pre-work, classroom, online, post-work applications, or a combination—that must meet the needs of both the client organization and its targeted learners.

However, world-class content and delivery alone are not enough to fully differentiate the offer. The expertise serving as the foundational engine driving content and delivery is equally paramount. Firms that have been in business longer—and thus have had more experience helping clients utilize their content—are more likely to demonstrate how their content and delivery is uniquely capable of addressing the real business issues.

In short, there is very little substitute for deep expertise. This is how many of the top consultancies differentiate themselves—by bringing years of direct consultant experience to address tough business challenges successfully. Although many people can fit this bill of goods, the truly top ones tend to stand out over and over again because they are paid to conduct research and remain current.

On the other hand, guru-led shops that are the result of bestselling books often lose their prominence quickly because the gurus can’t be in all places at the same time. As a result, they off-load their intellectual prowess to “lesser” types, who, while good at what they do, simply can’t replicate the authors’ deep knowledge and expertise. There are legions of examples where one-trick ponies die quickly, or the shelf lives of initially bestselling programs are relatively short. However, it is becoming more and more difficult to differentiate a talent management firm on the basis of content alone, without a strong focus on creating a truly compelling learning experience forged by deep expertise, regardless of the format. In other words, content alone will continue to be challenged for its place as the real king in the talent management world.

What differentiation strategies have you seen operate successfully in the talent management industry? How have these strategies sustained themselves through the years by effectively combating the competition? And which have you found to be the real differentiator in the learning and development field—content, delivery, or expertise? Please share your thoughts and experiences in the comment section below.