intro to human capital management
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Human Capital Human Capital Management Management
Vital and Tactical Vital and Tactical PlanningPlanning
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Human Capital Human Capital Management Management
and Developmentand DevelopmentThis document contains copyrighted and proprietary trade secret information developed by HireSmart. In viewing this training document, you agree that the information contained will not be disclosed to any third parties. The human capital strategies, methods and tools described and explained in this training document represent potential competitive advantages to be enjoyed by HireSmart clients. Releasing this training content to any other parties without written permission from HireSmart is expressly prohibited, as it could easily diminish the competitive advantages to be enjoyed by HireSmart clients.
2008 © HireSmart
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Agenda – Day 1Agenda – Day 1
• Introduction to Human Capital Introduction to Human Capital ManagementManagement• Human Capital Measurement Human Capital Measurement • Human Capital Strategic PlansHuman Capital Strategic Plans• Recruitment StrategyRecruitment Strategy• Best Practices in HiringBest Practices in Hiring• Performance ManagementPerformance Management
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Agenda – Day 2Agenda – Day 2
• Introduction to Human Capital Introduction to Human Capital DevelopmentDevelopment• Human Asset Profiles Human Asset Profiles • Career Development PlansCareer Development Plans• Coaching, Training and Mentoring Coaching, Training and Mentoring ProgramsPrograms• Emerging Management RolesEmerging Management Roles• Closing Comments, Discussion, Next Closing Comments, Discussion, Next StepsSteps
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Introduction to Introduction to Human Capital ManagementHuman Capital Management
• The only vital value any enterprise has is the experience, skills, innovativeness and insights of its people.
• The success of any company will depend on its ability to understand how human capital links to its performance and its wealth.
• The most competitive companies will have the best strategies and methods for attracting, hiring, managing, developing and retaining top performing talent.
• Managers need training on how to apply human capital management (HCM) principles and methods to business strategy and performance.
• Today, we are going to learn about several new management tools and how others are using them to reach their business goals.
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Major Contributions toMajor Contributions toHuman Capital ManagementHuman Capital Management
• 1986 – The Know-How Company – Karl Erik Sveiby
• 1997 – The New Wealth of Organizations – Thomas Stewart
• 2000 – The ROI of Human Capital – JacFitz-Enz
• 2001 – The Human Value of the Enterprise – Andrew Mayo
• 2002 – Corporate Longitude – Leif Edvinsson
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The History ofThe History ofHuman Capital ManagementHuman Capital Management
1986- Sveiby publishes "The Know-How Company" on managing intangible assets 1987- Amidon publishes “Managing the Knowledge Asset into the Twenty-First Century” 1988- Sveiby publishes "The New Annual Report" introducing "knowledge capital" 1989- Sveiby publishes "The Invisible Balance Sheet" 1989- Handy publishes “The Age of Paradox”1990- Sveiby publishes "Knowledge Management" 1991- Stewart publishes first "Brainpower" article in Fortune 1991- Skandia appoints Leif Edvinsson as the world’s first Director of Intellectual Capital 1992- Stewart publishes second "Brainpower" article in Fortune 1993- St. Onge establishes concept of Customer Capital 1994- Stewart authors "Intellectual Capital" cover article in Fortune 1994- Mill Valley Group decides to host a gathering of IC managers 1996- SEC symposium on measuring intellectual / intangible assets 1996- Sullivan and Parr book, "Licensing Strategies", published 1996- Lev founds Intangibles Research at New York University 1997- Sveiby publishes "The New Organizational Wealth" 1997- Edvinsson and Malone publish a book, "Intellectual Capital” 1997- Stewart book, "Intellectual Capital“ is published 1997- Hoover Institution conference on measuring intellectual capital 1998- Sullivan book, "Profiting from Intellectual Capital", published
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Principles of Human Principles of Human Capital ManagementCapital Management
• Building a powerful human capital strategy requires solid facts, measures, and processes for discerning where the firm will get the most leverage from its people.
• Recent technological advances have been the catalysts for the emergence of new approaches to human capital management.
• Business models and human capital strategies must match.
• Taking advantage of the observations and records of actual events maintained in your company’s HR information systems helps you discern how your business model and human capital strategies have been working for or against each other.
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Principles of Human Principles of Human Capital ManagementCapital Management
• There’s a floor to cost reduction but no ceiling to value creation.
• Find the key points of leverage for increased profits.• View your human capital as a value-producing asset
instead of a cost to be minimized, reduced, or reined in.
• New management tools now exists to help you analyze how key outcomes such as productivity are affected over time by human capital attributes and practices. These tools help you predict the return on your human capital investments.
• Identifying and focusing on what’s important will drive value.
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2008 © HireSmartAll Rights Reserved.
Recruitment
Coaching & Mentoring
Human Asset Profiles
Career Development Plans
Core Values
Core Competencies
PerformanceImprovement
SelectionHuman Capital Strategy
Performance Management
Revenue Per Employee Cost Per
Employee
Profit Per Employee
Activities of Human Activities of Human Capital ManagementCapital Management
The quality and performance of our people is what sets us apart in an intensely competitive
market!
• Recruiting and hiring the best available talent• Developing and motivating people to reach their fullest
potential• Retaining talent (and the investments made in them) • Minimizing risk and cost on the human side of the
business• Designing talent management information systems• Implementing performance based compensation
systems• Developing your Employer of Choice Brand• Designing coaching and mentoring programs • Applying performance management technologies
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Finance Driven Finance Driven Business ModelBusiness Model
Money Drives Value - Budget Driven!
• Focus on tangible assets• Valuation of physical and financial assets• Use decision criteria for physical capital investments • Manage costs • Focus on the past (cost measurement)• People are treated as expenses and salary costs• Focus on present cash flow• Focus on fixed budgets and periods • Focus on short-term profitability
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Human Capital Driven Human Capital Driven Business ModelBusiness Model
People Drive Value - Event Driven! • Focus on tangible and intangible assets• Valuation of physical, financial, human and
structural assets• Use decision criteria for knowledge and human
capital investments • Process and customer cost focus • Focus on the future (value creation measurement)• People are treated as expenses and investments• Focus on present cash flow and future revenue
streams• Focus on dynamic budgets and revenue streams• Focus on short-term and long-term profitability,
added-value and sustainability
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HCM Glossary HCM Glossary
Human Capital Strategy
A business strategy that links the competencies, motivations and satisfactions of its employees directly with drivers of value for customers, which in turn drives profitability for the enterprise. Human Capital decisions are guided by data-driven, results-oriented planning and accountability systems. The keys to a successful HCM strategy are process efficiencies, effective use of information technology and business metrics.
Talent Management
Identifying mission-critical values, competencies and talents needed in the current and future workforce. Clarifying the methods that will be used to recruit, hire, develop, manage and retain a high performing workforce.
Performance Culture
A diverse, results-oriented, high performance workforce, with a performance monitoring system that effectively differentiates between high and low performance and links individual / team / departmental performance to organizational goals and strategic objectives. Compensation is directly linked to performance.
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HCM GlossaryHCM Glossary
Human Capital
The sum of a company's employees including their skills, competencies, talents, creativity and know-how. Within each employee is the knowledge the company seeks to utilize.
Intellectual Capital
The sum of a company's ideas, inventions, technologies, knowledge, computer programs, patents, trademarks, designs, methods, systems, processes and publications. When codified, defined, written or committed to media form, the company's intellectual assets can be moved, leased, or sold. When these intellectual assets (IA) are legally protected we call them intellectual property (IP).
Structural Capital
The sum of a company's tangible assets including financial assets, buildings, machinery and equipment, manufacturing facilities, distribution channels and sales outlets.
Customer Capital
The sum of a company's customers including their names, contracts, contact databases, loyalty, satisfaction, references, testimonials and future revenues.
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About HireSmartAbout HireSmart
HireSmart is a human capital management firm that provides consultation and outsourcing for strategic recruiting, talent assessment, selection, development and performance management. We help businesses increase productivity per hire, reduce turnover and improve performance. Our mission is to help our clients maximize their Return on Investment in human capital. We help managers lower the costs and risks associated with unproductive hiring decisions: turnover, low performance, litigation, absenteeism, sabotage, and theft.
HireSmart provides customized solutions that measure the organization’s outcomes for each human capital strategy implemented. We help you make your staffing process more attractive, convenient, efficient and cost-effective. We help you design continuous improvements in your human capital systems leading to increased profit per employee.
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About Neil ClarkAbout Neil Clark
Dr. Neil Clark is an Arizona Licensed Psychologist with over twenty years of professional experience in personnel and organizational psychology. His mission and purpose is to help managers improve their talent management effectiveness. Neil is currently the Executive Director of HireSmart, a human capital management firm that uses online sourcing, screening and selection tools to help companies reduce the high cost of hiring mistakes. His doctoral research was in organizational development. Dr. Clark is a Strategic Business Partner of Profiles International Inc., a leading international human capital assessment company. He is also a Professional Associate of Human Resource Development Press. He currently works with many small firms and with several Fortune 500 companies to develop and monitor high performance work systems. Neil is a current member of the Arizona Psychological Association, the Personnel Testing Council of Arizona, the Knowledge Management Forum and the Arizona Better Business Bureau.
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Contact InfoContact Info
HireSmart, LLCHireSmart, LLCHuman Capital SolutionsHuman Capital Solutions
4140 E. Baseline Road, Ste. 101-3174140 E. Baseline Road, Ste. 101-317Mesa, Arizona 85206Mesa, Arizona 85206
480.503.2945 (phone)480.503.2945 (phone)866.296.4277 (fax)866.296.4277 (fax)
[email protected] (eMail) (eMail)
2008 © HireSmartAll Rights Reserved.