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The Impact of Human Capital Human Capital Strategy As a Business Differen<ator
3 Cri&cal Success Factors
1. The Plan -‐ A rigorous and constantly examined growth strategy 2. The People -‐ A sophis&cated, smart and strategically relevant human capital strategy 3. The Market -‐ A robust, analy&cal, on &me and on demand-‐inbound marke&ng strategy for today!
Survive or Thrive
• MISSING ANY OF ONE OF THESE THREE AREAS CAN CAUSE YOUR STRATEGY TO GO FROM THRIVE TO SURVIVE: – Part 1 -‐ GROWTH STRATEGY
• LOSING FOCUS OF YOUR ‘NORTH STAR” – Part 2 -‐ HUMAN CAPITAL POTENTIAL AND ORGANIZATIONAL ALIGNMENT
• WAITING TOO LONG AND INVESTING TOO LITTLE – Part 3 -‐ MARKETING & ANALYTICS
• UNDERVALUING THE IMPACT AND DOING TOO LITTLE
Human Capital Planning
Value Proposi&on
The best strategy can fail at implementa7on without a human capital strategy suppor7ng it
Paradigms Blocking People from Achieving Strategic Ini<a<ves
• People are smart and people are busy
• All our people are always working at their highest poten7al
• People are our most important asset
The Current Global Business Trends 2014
• 27% of CEO’s say they lose sleep over human capital
– Fortune • According to PE surveys – 85% of their <me is spent on people issues. There is
a crisis in leadership – crea<ng organiza<onal permafrost
– Phoenix Strategic Performance
• 60% of employees are disengaged
– Towers Watson – Global Employment Study 2014
• 50% of Small Businesses Fail within the first 5 years
– Geri Stengel – Ventureneer • On the Values – Produc<vity Matrix -‐ Too much <me , over 60%, is spent
tolera<ng either low or disengaged performers
– Jana Ma^hews – Kaufman Ins&tute 6
Value Proposi<on
– Assess people on current and trending competency criteria
– Forecast current and future people poten<al and capacity to pace with strategic business objec&ves
– Unlock people’s performance poten<al
– Mi<gate people risk
– Close the performance accountability loop
Managing Human Capital Poten&al
• 3-‐Filter Funnel Assessment Diagnos7c
• Organiza&onal Agility Assessment Repor7ng, Analy7cs & Gap Analysis
• Workforce Planning, Development & Governance
Implementa7on
Filter Funnel Assessment – Diagnos&c
• Filter Funnel Organiza<onal Assessment Model Diagnos<c – Filter 1 – RoleFit © – Filter 2 -‐ Competency Assessment – Filter 3 -‐ PeopleFit©
Filter Funnel Assessment – Diagnos&c
Organiza&onal Assessment
Organiza<onal Assessment Model
Strategy
Organiza<on RoleFit© Competencies Assessments Plans
Organiza&onal Assessment
Organiza<onal Assessment Model – Culture
Strategy Organiza<on RoleFit ©
Competencies Assessments Plans + Culture
RoleFit©
Funnel Filter 1: RoleFit©
©©©©
Strategy Role Clarity Leader Role
Knowledge Role
Competency Assessment
Funnel Filter 2: Competency Assessment Strategy Phoenix Factors Knowledgeable Accountable and Engaged to Deliver Confident
Making Human Capital a Strategic Ini4a4ve
15
The transformation of Technology: Jumping the chasm
• Some can make it easily
• Some will need training
• Some will need a jet pack
• Some will not make the cut
• How do you retain the people that can make the jump?
Former Skills
New Skills
Do You Have the Right Skills?
New Strategy
l 6 – Knowledgeable Accountable & Engaged Secure, Ac&on Required
5 -‐ Knowledgeable Accountable & Engaged Secure
4A -‐ Knowledgeable, Accountable & Engaged , Insecure 4B-‐ Knowledgeable, Not Accountable & Disengaged, Secure 3 -‐ Limited Knowledge Not Fully Accountable but Engaged Increasing Confidence
1 -‐ Limited to No Knowledge Engaged but Not Accountable Not confident
Phoenix Strategic Assessment System Competency Assessment
2A -‐ Limited Knowledge, Not Accountable but Engaged, Overly Confident 2B -‐ Limited Knowledge, Not Accountable & Disengaged, Not Confident
People Style
Funnel Filter 3: PeopleFit©– DISC Profile Strategy DiSC® D – Dominant I – Influencer S – Steadiness C – Conscien<ous
Filter Funnel Diagnos&c Summary
18
Organiza&onal Agility Assessment Results
• Organiza<onal Agility Assessment Results Repor<ng, Analy<cs and Gap Analysis
• Heat Map
• Phoenix Competency Report – Gap Analysis
• Phoenix Competency Report Rou<ne & Non-‐Rou<ne -‐ Gap Analysis
The transformation of Technology: Jumping the chasm
• Some can make it easily
• Some will need training
• Some will need a jet pack
• Some will not make the cut
• How do you retain the people that can make the jump?
Former Skills
New Skills
Do You Have the Right Skills?
New Strategy
l
6 – Knowledgeable Accountable & Engaged Secure, Ac&on Required
5 -‐ Knowledgeable Accountable & Engaged Secure
4A -‐ Knowledgeable, Accountable & Engaged , Insecure 4B-‐ Knowledgeable, Not Accountable & Disengaged, Secure 3 -‐ Limited Knowledge Not Fully Accountable but Engaged Increasing Confidence
1 -‐ Limited to No Knowledge Engaged but Not Accountable Not confident
Phoenix Strategic Assessment System Competency Assessment
2A -‐ Limited Knowledge, Not Accountable but Engaged, Overly Confident 2B -‐ Limited Knowledge, Not Accountable & Disengaged, Not Confident
90 – 100% Produc&vity
90 – 100% Produc&vity
75 – 85% Produc&vity
60 – 75% Produc&vity
50 – 60% Produc&vity
30 – 50% Produc&vity
Competency Assessment Cost vs. Produc&vity Impact Analysis Part 1
Data provided by 2014 Research Study: Phoenix Group Interna&onal Phoenix Strategic Performance Making Human Capital a Strategic Ini4a4ve
Copyright 2014© Phoenix Strategic Performance, Inc.SM
90 – 100% Produc&vity
90 – 100% Produc&vity
75 – 85% Produc&vity
60 – 75% Produc&vity
50 -‐60% Produc&vity
30 – 50% Produc&vity
Competency Assessment Cost vs. Produc&vity Impact Analysis
VALUE
CREATION
VALUE STAGNATION
VALUE
EROSION
Example – Ra&ngs Heat Map
3
2b
4b
• Knowledgeable • Accountable & Engaged • Confident
• Knowledgeable • Accountable & Engaged • Not Confident
• Limited Knowledge • Accountable & Engaged • Increasing Confidence
• Limited Knowledge • Unaccountable & Disengaged • Not Confident
5
• ‘Go To’ Person
• U&lity Player
• Overwhelmed
• Developer
4a
6
• Knowledgeable • Unaccountable & Disengaged • Confident
• Knowledgeable • Accountable &
Engaged • Confident • Ac&on Required
1 • Limited to No Knowledge • Engaged but Unaccountable • Not Confident
• New
2a • Limited Knowledge • Unaccountable & Disengaged • Overly Confident
• Over Achiever
• Under Achiever
• Complacent
Inves&ng in People Development
Inves&ng in people is no longer a nice to do. It is a must do, a strategic impera&ve that is:
– Strategically aligned to business goals – Targeted, high quality, relevant, immediately applicable and accountable to change
Why is investment in the upskilling and development of human capital no longer an op<on but a strategic impera<ve?
– When the consequences of not doing it are compromising your ROI, strategic goals, compe&&ve advantage and organiza&onal agility
– When having skilled employees are the table stakes needed for your organiza&on to stay in play
Organiza&onal Agility Assessment – Analy&cs Example 1: Low Performance Levels (Senior Leadership) Competency Summary Report – Implica&ons
Produc<vity & Cost Implica<ons: Overpaying for Underperformance • Low to moderate levels rela&ve to job
benchmarks and compensa&on costs • Leadership team is being overpaid rela&ve
to current performance, strategic results & costs
Implica<ons for Organiza<on Results: Forecast • Value Crea&on – Low probability • Value Stagna&on – High Probability • Value Erosion – High Probability
Total Competency Ra<ngs -‐ Senior Leadership
Organiza&onal Agility Assessment -‐ Analy&cs Example 1: Comparison Reports (Senior Leadership) Senior Leadership & Organiza&onal Implica&ons
Key Strategic Organiza<onal Considera<ons: • What is the probability of strategic success?
Low probability of strategic success, on &me, on budget & high quality.
• What is the impact to organiza&onal agility? Human capital not agile, resilient nor deployable on demand.
• What is the strategic result probability? Value stagna&on to value erosion is highly probable.
Phoenix Strategic Performance System Assessment Recommenda&ons
Delivering Human Capital Value
– Current people analysis
– Gap analysis and workforce planning
– Targeted and aligned employee development plans
– Targeted and aligned learning and development
– A governance process to ensure accountability and sustainability
Regarding Human Capital Planning
“A Goal Without a Plan Is Just a Wish”
Antoine de Saint-‐Exupery Wishing does not make it so……..so • Set Your Inten4ons Clearly • Visualize the Outcome You Desire with UAer Certainty • Be Brave! • Track Your Progress • Plan, Plan & Plan Some More
Good luck!
Ques&ons?
Joanne Flynn Phoenix Strategic Performance
www.phoenixstrategicperformance.com [email protected]
Making Human Capital a Strategic Ini4a4ve
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