Heckelman - Developing an Integrated Human Capital Strategy

Developing an Integrated Human Capital StrategyPresentation to the:FlF ol ridi a S oS ciei tyt o f f H umam n R esource M aM nagemem ntWendy Heckelman, Ph.D.WLH Consulting, Inc.2703 Cypress Manor Suite 100Fort Lauderdale, FL 33332954-385-0770wendy@wlhconsulting.comSession Overview• Business case for developing an Integrated Human Capital Strategy• Human Capital Strategy Components• Your HCS Strategy Checklist • Overcoming barriers and ensuring successDefining Human CapitalThe collective knowledge, skills, and abilities of an organization's employees.SHRMPrepared by WLH Consulting, Inc.3ThT eh e R eR le ata iono shih p B ete wew ee nePeP oe po le e a na d d B usinese s S tS rar ta ege ygs)iecHCapable employees cnCapable employees nIGare frustrated by the teare matched with Horganizational teethe businessepimpedimentspstrategies, priorities, mto getting the job andn c hc ah lllel ne gn esmeodono eon (clepBrilliant business oeOrganization that strategy Pdoes not meet but lack of talented nstrategic business employees to deliver goals and talent on desired s outhat is not talentedorganizationccapabilitiesoWFOLLOWFoF cuc s o n B uB siness S tS rt ar tet gyHIGH4Prepared by WLH Consulting, Inc.TaT ka ing H uH mam na C apa itat la S tS rt ar ta et gy y tot a a N ew LevelOnly 9% of HR leaders report their company is effective or very effective in connecting Human Capital practices to organizational performance.University of Southern California Center for Effective Organization, 2009Closing this gap requires:● Using an integrated human capital strategy and its pep oe po lp el e to o cr eae ta e e sustsu aia ni en de d comco pep te iti ivei ve ada vadnva tn aga eg .e● Measuring and managing human capital with the same discipline as financial capital.● Providing leaders with key metrics to make better human capital decisions.● Determining where and how human capital systems need to be better or different than the competition. Prepared by WLH Consulting, Inc.5Whyh y H umam na C aC pa itala S tS rar ta ege yg y Mata tere sr● Managers have the most control and influence over an organization’s human capital assets● Research by leading human resource and consulting firms report that:– Effectively managing human capital assets (coaching and developing others) can improve shareholder value by as much as 30%.– HuH mu ana n capca ip ti ala l hah s a beb coemco e e ana dn d wiw lill l reme aia ni n thrh ouo gu hg oh uo tu theh e nen xe tx 202 0years more important to business success than financial capital, strategy, or R&D.– The demand for smart, sophisticated business professionals who are technologically literate, globally astute, and operationally agile will significantly outpace supply over the next 10-15 years. – The average initial cost of replacing a managerial-level employee is more than 240% of that employee’s compensation. This cost does not include the 1-2 years of lost revenues and profits while the new employee learns how to perform effectively in the job.Prepared by WLH Consulting, Inc.6ThT eh e B usinese s C aC sa e e foro r a naInI tege rg ar ta ede d H umam na C aC pa itala S tS rar ta ege ygNo Integrated HCS Integrated HCS Weakens an Leverages human capital as organization’s a competitive advantage in a competitive strengthchanging, unpredictable marketNeglel ctst t ot g room m a nd BuB ilidl s a b road, , d eep t at lel nt tleverage its inherent pipeline to meet immediate bench strengthand future succession needsLacks a consistent Develops talent at all levels process to develop to better accomplish talent and maximizes its business objectivesvalueSupports achievement of broader corporate goals and objectivesPrepared by WLH Consulting, Inc.7Humam na C aC pa itala S tS rar ta ege yg y Frar ma em we ow ro krRecruitReadyRetainTalent PipelineCore CompetenciesSyS sy ts eme -m wided e M ete ricsc●Create an overall framework for attracting, developing, and retaining talent●Anchor the framework with a validated competency model ‒Core leadership categories and definitions‒Functional / Technical vary●Create system-wide metrics to monitor HCS efforts●Develop practical tools to facilitate talent management and ensure a talent pipelineDrives ownership, accountability, and sustainability for upgrading talent to meet emerging business needsPrepared by WLH Consulting, Inc.8Humam na C aC pa itala S tS rar ta ege yg y Frar ma em we ow ro krRecruitReadyRetainRecruitReadyRetainTalent PipelineCore CompetenciesSystem-wide MetricsStrategic ProcessToolsMetricsObjectivesPrepared by WLH Consulting, Inc.9The Foundation: Competencies● Work or role-related behaviors representing knowledge, skills, abilities, and motivations directed toward successful completion of a task or goal:–Future-focused to meet evolving business needs–Support achievement of the broader business strategy–Actionable–Observable–CoC ao chaach ba lb elRecruitReadyRetain● Interview Guides● Assessment ● Performance ● Career LaddersInstrumentsManagement● Behavioral Based ● Coaching Forms● Talent PlanningInterview Guides● Development ● Learning & Development PlanningPrograms● Leadership DevelopmentPrepared by WLH Consulting, Inc.