The Predictive Index aims to help businesses optimize talent and create high-performing teams through their talent optimization platform.
Strategic HR plays a crucial role in small companies by balancing long-term strategy with day-to-day tasks, improving hiring practices, and handling organizational changes effectively.
Leaders should create a culture of transparency and self-improvement by acknowledging personal weaknesses, seeking feedback, and engaging in self-reflection for continuous growth.
Deep dives
The Predictive Index: From Pencil and Paper to Software
The Predictive Index is a talent optimization platform built around a behavioral assessment tool that has been used for almost 70 years. The tool was initially created by the founder, Arnold Daniels, who was inspired by psychometric testing conducted in the military during World War II. When Mike Zani became CEO, he recognized the potential of the tool and invested in building a software platform around it. They focused on improving the user experience and expanding the product offerings to include pre-hire and post-hire solutions for individuals, teams, and organizations. The company also developed a strong distribution system through certified partners. While the pre-hire aspects of the tool face competition, the post-hire components represent a blue ocean market opportunity. Overall, the Predictive Index aims to help businesses optimize talent and create high-performing teams.
The Importance of Strategic HR for Small Companies
Mike Zani highlights the significance of strategic HR for small companies. He acknowledges the common mistake of neglecting tactical HR while focusing on strategic HR, such as developing a world-class team, improving hiring practices, and cultivating a strong company culture. To address this, Zani emphasizes the value of hiring a strategic HR professional who can balance long-term HR strategy with day-to-day tactical tasks. Having such a resource allows organizations to make better hiring decisions, create an internal marketplace for talent development, address performance issues, and handle organizational changes effectively. Zani shares how he realized the importance of strategic HR through his own experiences and the positive impact it had on the companies he was involved with.
Embracing Vulnerability and Identifying Development Areas
Mike Zani discusses the concept of the "front of the t-shirt" and the "back of the t-shirt," which refers to the positive and negative aspects of an individual's behavior and performance. He encourages leaders to be open about their own weaknesses and vulnerabilities, creating a culture of transparency and self-improvement within the organization. To identify areas for development, Zani suggests seeking feedback from trusted colleagues, using behavioral assessments, and engaging in self-reflection. By acknowledging personal weaknesses, leaders can better understand how their behavior impacts their teams and work towards continuous improvement. Zani shares his own experience of not listening effectively and the different modes of not listening he discovered, highlighting the ongoing journey of self-awareness and growth.
The Importance of the Modern Triumvirate
The speaker emphasizes the significance of a modern triumvirate in today's competitive landscape, consisting of the CEO responsible for strategy, the CFO supporting the financial plan, and the chief people officer managing the people who implement the strategy. As companies heavily rely on people and their costs constitute a significant portion of the expenses, having a dedicated chief people officer is crucial. This triumvirate structure outcompetes traditional models, which often exclude the role of the chief people officer.
The Role of Strategic HR in Talent Management
The discussion focuses on the role of strategic HR in talent management beyond basic compliance tasks. Strategic HR entails recruiting, selection, training, and onboarding processes, with an emphasis on structured interviewing, role-specific onboarding, and setting clear expectations for performance. It also involves investing in mentorship programs, continuous learning, and internal talent marketplace. Effective talent management leads to loyal and competent employees, healthy company culture, and a competitive edge in the market. However, the integration of tools to measure performance, engagement, and fit remains a challenge, with no single comprehensive solution currently available.
My guest today is Mike Zani, CEO of The Predictive Index, a talent optimization platform built around their nearly 70-year-old behavioral assessment tool. Today they help companies optimize their teams by identifying the key strengths of employees and hiring prospects to get the fit right. This is Mike’s third time being a CEO and he brings a wealth of knowledge around early team construction and scaling.
Mike and I talk about the story of The Predictive Index, the evolving role of human resources, the landscape of tools to help optimize talent, and all kinds of lessons on change management.
Learn more about Alex and Think Like an Owner at https://tlaopodcast.com/
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