Heckelman - Developing an Integrated Human Capital Strategy


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Heckelman - Developing an Integrated Human Capital Strategy

  1. 1. Developing an Integrated Human Capital Strategy Presentation to the: Florida Society of Human Resource Management Wendy Heckelman, Ph.D. WLH Consulting, Inc. 2703 Cypress Manor Suite 100 Fort Lauderdale, FL 33332 954-385-0770 wendy@wlhconsulting.com
  2. 2. Session Overview • Business case for developing an Integrated Human Capital Strategy • Human Capital Strategy Components • Your HCS Strategy Checklist • Overcoming barriers and ensuring success
  3. 3. Defining Human Capital The collective knowledge, skills, and abilities of an organization's employees. SHRM Prepared by WLH Consulting, Inc. 3
  4. 4. The Relationship Between People and Business Strategy Focus on People (competencies) Capable employees HIGH Capable employees are frustrated by the are matched with organizational the business impediments strategies, priorities, to getting the job and challenges done Brilliant business Organization that strategy does not meet but lack of talented strategic business employees to deliver goals and talent on desired that is not talented organization capabilities LOW LOW Focus on Business Strategy HIGH 4 Prepared by WLH Consulting, Inc.
  5. 5. Taking Human Capital Strategy to a New Level Only 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, 2009 Closing this gap requires: ● Using an integrated human capital strategy and its people to create sustained competitive advantage. ● 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. 5
  6. 6. Why Human Capital Strategy Matters ● 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%. – Human capital has become and will remain throughout the next 20 years 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. 6
  7. 7. The Business Case for an Integrated Human Capital Strategy No Integrated HCS Integrated HCS Weakens an Leverages human capital as organization’s a competitive advantage in a competitive strength changing, unpredictable market Neglects to groom and Builds a broad, deep talent leverage its inherent pipeline to meet immediate bench strength and future succession needs Lacks a consistent Develops talent at all levels process to develop to better accomplish talent and maximizes its business objectives value Supports achievement of broader corporate goals and objectives Prepared by WLH Consulting, Inc. 7
  8. 8. Human Capital Strategy Framework Recruit Ready Retain Talent Pipeline Core Competencies System-wide Metrics ● 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 pipeline Drives ownership, accountability, and sustainability for upgrading talent to meet emerging business needs Prepared by WLH Consulting, Inc. 8
  9. 9. Human Capital Strategy Framework Recruit Ready Retain Recruit Ready Retain Talent Pipeline Core Competencies System-wide Metrics Strategic Process Tools Metrics Objectives Prepared by WLH Consulting, Inc. 9
  10. 10. The 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 – Coachable Recruit Ready Retain ● Interview Guides ● Assessment ● Performance ● Career Ladders Instruments Management ● Behavioral Based ● Coaching Forms ● Talent Planning Interview Guides ● Development ● Learning & Development Planning Programs Prepared by WLH Consulting, Inc. ● Leadership Development
  11. 11. Best Practices: Creating a Competency Model ● Determine who would be on your project team ● Leverage existing materials; but remember, a new model needs to be future focused ● Consider establishing core leadership competencies that apply across the organization ● Identify how functional / technical differences should be handled ● Plan key milestones and establish deliverables: – Data gathering – Drafting and validation process ● Establish a data gathering process with stakeholders: – Focus on anticipated changes in the business and marketplace – Bucket responsibilities and tasks – Identify specific Knowledge, Skills, Abilities (KSAs) – Determine functional/technical knowledge required to perform on- the-job – Distinguish Behaviors that differentiate exceptional performance. Prepared by WLH Consulting, Inc. 11
  12. 12. RECRUIT Attracting and Selecting Talent ● Develop a recruitment strategy that attracts high quality Strategic talent to apply to the organization Objectives ● Establish a compensation and benefits philosophy to pay market rate or above/below ● Include diversity goals and strategies ● Recruitment Pipeline & Strategy Process ● Selection Framework & Behavioral Based Interviewing ● On-boarding Process ● Selection Interview Guides that are competency based Tools ● Behavioral Interview Training ● Offer-Accept Ratio Metrics ● # of internal promotions versus outside hires ● Talent Ready (# of R1s) ● Time to fill Prepared by WLH Consulting, Inc. 12
  13. 13. READY Developing Talent Strategic ● Create competitive advantage Objectives ● Accelerate the mastery of behaviors critical to organizational success ● Foster an environment where developing talent is a priority ● Empower managers with the skills to provide ongoing feedback and coaching. ● Create a learning culture ● Focus on both the individual and group ● Develop an integrated learning curriculum 1. Create and leverage a Development Planning and Process Feedback Process (assessments, development planning guides) 2. Utilize Talent Planning to identify ready now leadership and high potentials 3. Leverage an integrated Management / Leadership Development effort Grow and secure a leadership talent pipeline Prepared by WLH Consulting, Inc. 13
  14. 14. READY Developing Talent ● Competency-based ● Coaching/Mentoring Tools Training ● Development Planning ● On-the-job Learning Guides ● Rotational Assignments ● Instant Assessments and Cross-training ● Coaching Forms ● Assessment Instruments (360, self and manager, self only) ● Completion of Individual Development Plans Metrics ● Use of field coaching forms ● Developmental assignment rotations ● Mentoring related metrics ● Performance Assessments ● Capability-based Performance Assessment ● Capability-driven Business Results Prepared by WLH Consulting, Inc. 14
  15. 15. Best Practices: Development READY Planning and Feedback Process ● Agree to specific Development Planning strategic objectives and overall process ● Translate competency model into assessment instrument(s) ● Determine data analysis plan and reporting requirements ● Prepare managers to provide coaching and feedback ● Design Development Planning Guides – Specific activities – Suggested learning programs – All organized by competencies Business Impact: Talent Development is closely linked to strategy and creating competitive advantage Prepared by WLH Consulting, Inc. 15
  16. 16. Talent Planning: Best Practices ● Agree to Talent Planning strategic objectives and overall process ● Make the business case for talent reviews ● Match available present talent to the organization’s requirements for future talent needs ● Identify promising candidates ● Dedicate resources for development efforts ● Make accountability for Talent Planning a critical objective ● Integrate Talent Management process with Performance Management process (includes bonuses and compensation) Business Impact: Leadership pipeline identified with specific development initiatives underway Prepared by WLH Consulting, Inc. 16
  17. 17. Performance Management: Best Practices ● Align Performance Management process with business strategy and goal development efforts ● Support managers’ ability to clarify performance expectations and conduct regular performance reviews ● Ensure process in place for periodic coaching and feedback sessions ● Create systems that support easy documentation and recording of performance management results ● Develop a formal coaching and improvement process for employees not meeting expectations Business Impact: Direct linkage between individual goals and performance with organizational strategy and results. Prepared by WLH Consulting, Inc. 17
  18. 18. Leadership Development Best Practices ● Agree to Leadership Development strategic objectives and overall process: – Change thinking and behavior – Leaders take ownership of and accountability – Immediate application – Lead to improved results ● Develop overall blended, learning strategy and leadership development curriculum plan ● Create developmental activities and tools to support achievement of Individual Development Plans ● Incorporate findings from the group assessment into curriculum development plans Prepared by WLH Consulting, Inc. 18
  19. 19. RETAIN Retaining Talent ● Retains valuable employees Strategic ● Reduces costs associated with turnover Objectives ● Recognizes and rewards talent development ● Maintains institutional knowledge base ● Employee Engagement Surveys Process ● Exit Interview Process ● Retention Risk Training Program ● Integrate Recognition and Rewards ● Retention Risk Assessment Tools ● Just-in-time tools to prepare managers for a “making the save conversation” ● Exit interview Reports ● Retention of High Potentials Metrics ● Turnover Ratios ● Redeployment of talent following reductions in workforce Prepared by WLH Consulting, Inc. 19
  20. 20. RETAIN Retaining Talent Manager- Manager-Colleague Relationship Positive Work Coaching & Performance Environment Supervision Management Training & Career Rewards & Advancement Recognition Work-life Meaningful Corporate Balance Work Culture 1-8 Prepared by WLH Consulting, Inc. 20
  21. 21. Barriers to Overcome ● Make the business case: – Link HCS activities to the strategy and business needs – Talent development is a value-added activity – Competency based tools create a common language and framework ● Gain senior management commitment ● Approach HCS as a well-planned change effort ● Develop metrics that evidence how HCS drives the business ● Leverage technology applications ● Provide easy access to information, tools, and learning application: – Leadership – Managers – Employees ● Ensure HCS activities seamlessly executed and coordinated with business cycle demands Prepared by WLH Consulting, Inc. 21
  22. 22. What are you Measuring Today? Measuring to Shift focus to more strategic Measuring to Inform metrics Drive Strategy ● Headcount change ● Leadership team capability ● Hires and termination ● Return on investment of human ● Total compensation capital ● Performance against HR ● Employee competency strategy objectives ● Effectiveness of change efforts ● Training and development ● Employee engagement return ● HR function effectiveness ● Performance against HR ● HR function effectiveness strategy objectives ● Discipline and grievance ● Training and development cases return ● Number of internal career moves Goal is to craft a range of measures that provide senior executive teams with an idea of how efficiently and effectively the organization is managing its human assets in support of its strategy. 22 Prepared by WLH Consulting, Inc. 22
  23. 23. HCS Checklist ● Designed to evaluate your organization’s overall Human Capital Strategy – Helps you determine what you have and what is missing – Provides an opportunity to evaluate overall quality of effort – Allows you to step back and prioritize need ● Can be shared with others on your team or your senior leader Prepared by WLH Consulting, Inc. 23
  24. 24. “Integrated” Human Capital Strategy Systematic integration ensures: Ownership: Leaders, Managers, and employees with HR Partnership Accountability: For developing and retaining talent with the critical skills needed for future business challenges Sustainability: With a comprehensive and linked set of processes and tools Ownership, accountability, and sustainability lead to meeting current and future business needs Prepared by WLH Consulting, Inc. 24
  25. 25. Prepared by WLH Consulting, Inc. 25
  26. 26. WLH Consulting, Inc. 2703 Cypress Manor Suite 100 Fort Lauderdale, FL 33332 954-385-0770 www.wlhconsulting.com Prepared by WLH Consulting, Inc.
  27. 27. WLH Practice Focus Strategy Development & Execution Strategy Formation Senior Team Alignment Execution Planning & Implementation Mergers & Acquisitions Business Performance Improvement Business Diagnostics Organizational Design & Effectiveness Process Excellence Cultural Transformation & Change Management Human Capital Strategy Competency Models & Tools Talent Planning Development Planning Engagement and Retention Learning Strategy & Curriculum Design Blended Learning Solutions Prepared by WLH Consulting, Inc. 27
  28. 28. WLH Consulting, Inc. Team Our team combines the diverse expertise of: ● Ph.D. industrial/organizational psychologists ● Experienced consultants with 20+ years experience partnering with clients to develop strategies, engage in process reengineering, and mutually execute business solutions ● Experts in developing comprehensive human capital strategies and tools ● Designers and developers of integrated, blended learning systems ● Skilled facilitators to help participants successfully manage change, identify issues, and resolve problems ● Trained project managers for large scale client initiatives Unique talents + Collaborative expertise = Breakthrough Results Prepared by WLH Consulting, Inc. 28
  29. 29. WLH Commitments We partner to implement streamlined, Collaborative customized, and efficient solutions that deliver results Our flexibility allows us to adjust to changing Highly needs throughout each engagement or project Adaptive life cycle We rely on proven methods for data collection, Scientifically statistical analysis, and sophisticated Rigorous organizational development models We take pride in "going the extra mile" to Client- ensure that change initiated becomes change Centered sustained Prepared by WLH Consulting, Inc. 29
  30. 30. Partial Client List Prepared by WLH Consulting, Inc. 30
  31. 31. Human Capital Strategy The International Division of a global pharmaceutical company asked WLH to help it create and deploy a human capital strategy aimed at attracting, developing, and retaining the best managers and employees in its various country markets. ● Defined and validated the key leadership capabilities to support its new mission and strategic objectives. ● Turned capabilities into a 360°Feedback Instrument and administered it for the client. ● Trained coaches to support the feedback process. ● Created innovative, intense discovery-based workshops to train managers to accelerate development of these capabilities. ● Created learning modules (print and CD-ROM) to strengthen leadership capabilities at the team level and linked them to improved business performance. ● Implemented retention strategies to keep high-potential managers. ● Launched a talent planning process to: – Identify national and regional leadership development needs – Target specific candidates for development – Implement and monitor appropriate development initiatives ● Created metrics to gauge success of the talent planning initiative. Prepared by WLH Consulting, Inc. 31
  32. 32. Sample Human Capital Strategy Projects WLH Consulting has worked on many Human Capital Strategy projects and developed tools to attract, develop, and retain talent. Key Elements: ● Build capability models and ensure learning objectives address developing capability needs ● Use just-in-time tools to provide managers with sustainability tools for topics, e.g., how to conduct a developmental conversation ● Create Development Planning Guides to support manager’s and colleague’s ability to identify developmental needs and match meaningful learning approaches ● Designed customized 360°web-based feedback process, instrument, and feedback reports Customized Learning Programs: ● Rx for Retention: designed a training program for managers to identify “at risk colleague departure” and strategies to retain talent ● High Performers Workshop: designed and delivered a one-day program to support a manager’s ability in providing developmental feedback and to support the development of Individual Development Plans Prepared by WLH Consulting, Inc. 32
  33. 33. Leadership Development Sample Project The new executive team of a global healthcare company needed new leadership skills and attitudes at all levels of the company – in all its global markets. Asking managers and employees to develop and commit to these new capabilities would change the organization’s culture and generate both resistance and risk. WLH helped this client: ● Define, and then validate the leadership capabilities most important to supporting its new mission and strategic objectives. ● Turn these capabilities into a 360° Feedback Instrument that WLH now administers for the client. ● Train coaches to support the feedback process. ● Develop individual learning experiences (print and CD-ROM) that managers and employees can use to foster their own development based on the 360°feedback they received. ● Create innovative, intense discovery-based workshops for business units to train managers to accelerate development of these capabilities. ● Create learning modules (print and CD-ROM) to help line managers strengthen these leadership capabilities at the team level and link them to improved business performance. Prepared by WLH Consulting, Inc. 33
  34. 34. Leader Led Learning Projects WLH partnered with a major pharmaceutical company to transform leadership capabilities development into an easy, practical process that line leaders could use to produce immediate, visible improvement in business unit effectiveness. Customized Learning Programs: ● Provided a flexible, easily accessible range of activities designed to “push” the practice of leadership competencies down into business units so that they become a “way of life” and are the preferred approach for meeting business objectives. ● Created a Manager’s Toolkit to accelerate practice of the leadership capabilities: – Learning activities in each of the modules that clearly tie back to the specific leadership behaviors. – Re-configuration of modules to specifically reinforce corporate strategy. – Assessment checklists for line managers to quickly and accurately identify which of the leadership behaviors they wanted to concentrate on developing with their work teams in order to improve performance. Prepared by WLH Consulting, Inc. 34