Being influenced by external factors which includes the economy, global expansion and mergers and acquisitions, the critical success factors for an effective talent management includes alignment with strategic goals, having active CEO participation and HR management (Sunday, 2012). .
By reviewing the EMI case, the strategic importance of talent management is illustrated in several mentioned incidents. The need to enhance the effectiveness of the business organization lies in the heart of the management of the firm. Talent Management is the additional management processes and opportunities that are made available to people in the organization who are considered to be 'talent' (Sunday, 2012). Shortly after taking over EMI in 2007, drastic changes to the company were announced by Guy Hands which includes, cutting a third of its workforce, to cut back on losses. Such new management practices angered many artists leading them to leave and employees' morale was lowered. The impact of talent management on EMI's organizational performance became a problem when leading artists were treated as "assets" and not as "talents". This feeling of unhappiness continued as a result of not being involved in business discussions about the future of EMI. The lack of active support and engagement from the chief executive causes a significant barrier as such support is necessary for effective implementation of the strategy in motivating employees to participate. .
The process of identifying, securing, developing, and managing relevant talent is important in meeting the long-term strategic needs of an organization and for short-term productivity (Nilsson & Ellstrom, 2012). Guy Hands appointed private equity executives with no experience of the music industry to senior positions (covering finance, business transformation, and strategic relationships).
