This week I am attending KnmowledgeAdvisors’ 7th Annual Analytics Symposium. KnowledgeAdvisors is a great company focused both on its own and its clients’ business success and the advancment of human capital management as a business discipline. Wednesday’s opening Keynote was delivered by Cedric Coco from Lowe’s Companies. He posed and answered the question: How do we measure the value of, then optimize our company’s most strategic asset…our employees? Cedric described the Human Capital Business Model he and his team have built, and are continuing to develop. He begins with the view that people are the largest unmanaged asset in a company. “Unmanaged” doesn’t mean there are no managers: it does mean that companies do not have enough specific knowledge of the role people play in the company’s value proposition to effectively manage the recruitment, hiring, onboarding, engagement, development, and assessment of their people. The idea - which will be further developed today and tomorrow by Heather Maitre, Chris Hardy, Tom Davenport, Laurie Bassi, Dave Vance, Jac Fitz-enz, and Nick Bontis - is that people create value and those who invest in people create greater market value than those who don’t. The key, of course, is defining what precisely to invest in. So, Cedric’s team has done a lot of work and have determined: (a) that the factor that correlates very highly with specific business results like revenue, customer satisfaction, and lower costs is “employee engagement”; and (b) that there are very specific factors that constitute “engagement” in their company. They now know that if they invest in A, B, and C they can optimize engagement, and that engagement optimized to a specific measured level will produce a predictable level of revenue, customer satisfaction, and cost. This basic Human Capital Business Model is now the foundation of a very specific HR strategy, a focused creation of a specific employee experience, and an analytics strategy that will keep the company on top of changes in the factors that drive engagement and business results. Interestingly, Cedric and his team have also drilled down into the “employee experience” element in their strategy and, through lifecycle research, have defined what that experience should be like at each phase of the emploment lifecycle and how to measure it: acquisition, onboarding, engagement, and transition (to another role, to another company, or to retirement).It’s terrific to see such a disciplined approach to defining, developing, and rewarding the specific roles people play that drive specific business outcomes. As a bonus, Josh Bersin (Bersin & Associates) concluded the day with a view of trends and issues in the L&D and Talent Management worlds. The sad aspect of Josh’s research is how few companies have set goals for themselves to manage the acquisition, engagement, development, and retention of their most strategic asset…their employees. By the way, Josh published a book last year titled The Training Management Book. Josh has developed a framework for planning, managing, and measuring any intervention designed to improve the performance of people in a business. While it focuses specifically on training, you can immediately see how you can use the framework for other change initiatives. I highly recommend Josh’s book to all HR professionals.
Posts Tagged ‘asset’
In a big-picture view, human capital management is the process of making sure you have the right people, with the right competencies, in the right roles now and in the future. To be effective at human capital management, leaders at every level of the organization need to treat talent as an asset that produces value for the organization today and which can produce more or different value in the future. Unlike other organizational assets, talent belongs to the people in the business and not to the owners of the business. So, leaders have to embrace the challenge of engaging people in ways that cause them to invest their best abilities in the business, to improve the productivity of their talents over time, and to acquire new competencies that they enjoy and that the business needs. When recruiting and hiring, leaders need to assess candidates not only for the job that is open but for the broader role they could play and the more valuable contributions they could make over time.Much of our future leadership training and leader development will have to revolve around a full appreciation of the fact that talent is an asset that belongs to someone else yet accounts for a substantial portion of the current and future market value of the business. What percentage of your business’s market value is attributable to physical assets? What are your talent assets worth? What do you need to do about that?
A big part of human capital management will be:
- providing the networks, job assignments, project assignments, and coaching that develop the conceptual thinking skills, problem solving skills, and interpersonal skills leaders need to engage people
- implementing practices and processes that cascade through the organization to make a “talent as an asset” mindset part of the organization’s DNA
- expecting leaders at every level to provide a regular accounting of the increased productivity of the talent assets for which they have leadership responsibility
Although it has always been true, it is even moreso today: the future is invading the present at an accelerating rate. There is no such thing as a sustainable competitive advantage. So, we need to shake up and speed up the present to be able to sustain our ability to find new advantages with which to compete in the future.
Manage Learning Strategically
We will show you how to move away from a demand-driven service and how to become a value-driven strategic partner. We will guide you as you build your:
- Annual Learning Plan and budget in a way that is aligned to business strategies and managed as a portfolio of prioritized investments.
- Measurement Plan aligned to the human capital performance objectives required by your business strategies and operating plans.
- L&D Strategy Assessment and Roadmap: your organization structure and staff roles; decisions about selective insourcing and outsourcing of roles; learning technologies and vendor selection; learning design methods for different delivery media; and your use of performance support.
Managing Performance Strategically
For decades, the major emphases in performance management have been performance objectives and performance assessment. Important as these are, they only become strategically important when they are integrated into a coaching culture, development opportunities, recognition, and rewards that increase workforce competencies, engagement, and retention. We will help you build your:
- Annual Talent Engagement and retention Plan focused on developing a “talent as an asset” mindset in your leaders at all levels and managing their adoption of practices which evidence that mindset.
- Measurement plan focused on increased competency in the workforce, on selected measures of engagement, commitment, and retention, and on the adoption of “talent as a mindset” practices.
- Assessment of and Roadmap for your “people leadership” capabilities.
Managing Talent Strategically
Strategic talent management is about taking a systemic view of your business strategies, identifying the key roles in those strategies, and ensuring that you will have enough of the right people with the right competencies to make the business successful year after year. We will help you build your:
- Annual Integrated Workforce Plan in which you take a holistic view of the entire talent management process for each line of business and identify near term and longer term initiatives. Within the context of business strategies, your planning process will address workforce planning, talent acquisition, on-boarding, learning and development, performance management, and rewards and recognition. The result will be a coordinated, comprehensive plan.
- Succession Planning Process to address leadership roles, pivotal positions, and key positions challenged by competitive and demographic forces.
- Assessment of and Roadmap for your talent management capabilities including core issues such as data integration, process coordination, and technology support.