Companies that lead the world in growth have something in common: a relentless focus on talent. They are very intentional about this. The executives who lead these companies have created high-performing operating systems.

From decades of work with companies to implement these systems, Gallup has learned that the most important decision executives make is who they name as manager, at all levels in a company. When an executive makes the wrong decision, nothing fixes it.

The purpose of a talent machine is to name the right person as manager. As such, it is the magic wand for organic growth. After reviewing some of the best work from companies Gallup has partnered with over the years, I have identified five core components of a high-performing talent machine.

1. A succession plan that works

A succession plan that actually works is a prerequisite for a company’s survival. Yet many companies have no formal plan in place, have a plan that’s dated and hasn’t been reviewed recently, or only consider this topic in times of crisis. The result might more appropriately be called “replacement planning,” in which someone is asked to fill a void at the last minute.

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