The need for superior talent is increasing, but many big US companies are fighting—and losing—the war to attract and retain it. A 2 percent economic growth rate for 15 years would increase the demand for executives by about a third. Meanwhile, supply is moving in the opposite direction: the number of US 35- to 44-year-olds will decline by 15 percent from 2000 to 2015. Companies must therefore make talent management a top priority, create and perpetually refine their employee value proposition, and source and, above all, develop talent systematically while removing underperformers.

The take-away

The war for senior executive talent will remain a defining characteristic of the competitive landscape for decades to come. It may seem to be a crisis. But like any crisis, it is also an opportunity to seize—or to squander.