Talent management: two pathways to glory? Lessons from the sports arena

Abstract

PurposeThe purpose of this paper is to analyze the relationship between financial and operational performance and the application of two different talent management (TM) models: internal talent development model and external talent capture model. Comparative case studies of the Football Club Barcelona and the Real Madrid Football Club allow drawing a definitive conclusion for TM in companies related to the competitive strategy.Design/methodology/approachThe two TM models are examined via a longitudinal comparative case study analysis: FC Barcelona and Real Madrid CF. Present paper builds on secondary sources: first, the TM properties of the clubs were extracted from academic sources and newspapers; second, data used to analyze the financial performance were derived from SABI database and operational performance was measured as the effectiveness in winning trophies in football championships (data gathered from Union of European Football Associations and International Federation of Football Associations databases).FindingsThe case analysis reveals that the two TM models offer equally effective financial and operational performance outcomes. The internal talent development model would be more useful for companies whose competitive advantage is achieved through differentiation through teamwork. However, companies that do not achieve a clear differentiation through teamwork should opt for the external talent capture model.Originality/valueTalent is one of a company’s most important intangible assets. Although there exists a growing interest among companies as to the best way to TM, practical models on how to manage talent are virtually nonexistent. Comparative case studies from the sports arena allow for the extraction of lessons for companies related to TM and competitive strategy.