EXCERPT OF BONUS COVERAGE FROM 'RISING STARS': THE TROUBLE WITH HIRING 'STARS'

Credit Union Management,  Oct 2005  by Kachelski, Barb

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Nurture wins out over nature when CUs look for star employees, according to Boris Groysberg, assistant professor at the Harvard Business School. Presenting at the Advanced Leadership Institute in July, Groysberg said it is "better to develop stars from within than to hire them."

The competitive advantage is clear, according to a study prepared by Groysberg and colleagues Ashish Nanda, HBS associate professor, and Nitin Nohria, the Richard P. Chapman professor of business administration. "The most productive employees are about twice as good as the least productive."

In The Risky Business of Hiring Stars, printed in the May 2004 Harvard Business Review, the three experts equate hiring stars from competitors to engaging in "star wars." They warn that "companies shouldn't fight the star wars, because winning could be the worst thing that happens to them." Read the rest at cumanagement.org; select "October 2005" from the "Past Issues" pull-down menu.

BY BARB KACHELSKI, CAE

Copyright Credit Union Executives Society Oct 2005
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