Downloaded 22 times
Uploaded byThe_IPA
Dr Max Blumberg: Harnessing the power of human capital for the digital age
The document discusses the changing value of organizations, focusing on the importance of human capital and the differing values across generations in the workplace. It highlights the need for businesses to invest in people and suggests a new framework for HR metrics and data integration. Additionally, it points out the challenges of managing a multi-generational workforce and the impact of employer branding and transparency on employee engagement.
More Related Content
Similar to Dr Max Blumberg: Harnessing the power of human capital for the digital age
Dr Max Blumberg: Harnessing the power of human capital for the digital age
- 1. Mastering Complexity MaxBlumberg, PhD All content remains the property of Blumberg Partnership Ltd and may only be used with prior written consent www.maxb.com maxblumberg@blumbergpartnership.com M - +44 (0) 7768 455345 T - +44 (0) 1252 628552
- 2. Personal Introduction 2 Musician Computer scientist Accenture consultant Technology start-up PhD & Research Fellow at Goldsmiths Consult globally: HR Analytics, Organizational & Sales force performance, CIPD people strategy
- 3. The changing valueof organizations 3 95% 5% 1978 Book value Other value 28% 72% 2002 Book value Other value
- 4. The enterprise capitalframework 4
- 5. Asset/capital value 5 Resource Competitive differentiator? Tangible assets e.g. technology; relatively easy to replicate Financial capital Available to most organisations with a good plan Intellectual capital Customer capital Not really: most organisations have access to the same markets Structural capital Yes but replicable in medium term Human capital Yes: very difficult to imitate
- 6. Driving value creationand shareholder return 6 Total Return to shareholders (TRS) Spread Return on Invested Capital (ROIC) Minus Weighted Average Cost of Capital (WACC) Growth Organic Growth Growth through M&A Operating Margin Capital Efficiency Components of Value Creation and competitive advantage: Spread: Competitive advantage derived from operational and capital efficiency and pricing strategy Growth: Value from new products/services through innovation, M&A, market share, etc. Ratio between them is a matter of competitive strategy Quality Innovation Productivity Customers Human Capital
- 7. How much dowe invest in people? 7 TMT 37% Heavy manufacturing 25% Light manufacturing 32% Pharmaceuticals /Prof services 45% Financial services 43% CFO Research Services
- 8. Should we investin people? 8
- 9. Generational conflict: Thegenerations 9 Born Age Silent generation <1945 70+ Baby boomers 1946 - 1960 54 – 68 Gen X 1961 - 1977 37 – 53 Gen Y 1978 - 1995 19 - 36
- 10. How do weinvest in human capital (versus HR)? 10 £X programme Competencies (Knowledge) Employee performance (Behaviour) Contribution to organisational objectives Programme? Recruitment Development Retention/engagement Diversity Compensation Etc.
- 11. Valuing your Talent Valuing your Talent Objectives 1. Develop a broad framework of HR Metrics for measuring human capital. 2. Showcase current practice. 3. Develop a tool / methodology. Members of the steering group: Findings 1. People and investment in them should be at the heart of the business model. 2. A new language for business is needed. 3. HR should lead greater data integration across the business. 4. Value = People cipd.co.uk/valuingyourtalent
- 12. Valuing your Talent- VyT 12
- 13. Human capital 2014 13 From capital to people (judging by company valuations) Generational conflict because attitudes to work are changing faster than the organisational structures and processes used to manage them Skills shortage which means employer branding is crucial Transparency (data, technology) complicates everything Recognising difference – career paths for e.g. “techies” and “leaders”
- 14. Intergenerational conflict: Thegenerations Generation Born Age Values at work Silent/traditional <1945 70+ Delayed gratification, loyalty, discipline, 14 authority & hierarchy Baby boomers 1946 - 1960 54 – 68 Teamwork, live to work, hierarchies, annual feedback Gen X (latch-key kids) 1961 - 1977 37 – 53 Grew-up alone, esteem issues, independence (hate reviews), dislike hierarchy, value personal lives, pioneered flexibility Gen Y 1978 - 1995 19 - 36 Highly nurtured, high self-esteem (believe they’re important), used to frequent recognition regardless of performance, always on peer-communication
- 15. Intergenerational conflict Baby boomers are not retiring Retirement age is rising (Gallup = rising to 62 years old) 15 Baby boomers and Gen X must manage Gen Y with very different values Gen Y wants to be where the action is rather than loyalty = Leaders must plan to manage 3 or 4 generations, each with their own values (but difference can be an advantage)
- 16. 16 Oldie’s jokesabout Gen Y...
- 17.
- 18. Intergenerational conflict: Actions 18 Culture: Promote flexible work/life balance, challenging work, openness, informal, entrepreneurial Younger generations need the “why” before the “what” Younger generations, frequent feedback – peer-based Post recognition instantly & widely – use social media if possible
- 19. Employer brand: ThePicture 19 Glass door: “The advances made seem a bit superficial. They offered flex time, but it was always subject to approval. They assured reviews and raises, but they were tepid at best.”
- 20. Employer brand andtransparency: The issues 20 Social media has made your brand transparent Engagement is the new employer brand Gallup (2014): 13% of employees are engaged Glassdoor: – 51% of employees experience buyer’s remorse – 54% of employees would recommend their employer – 83% leave their employer in the first year
- 21.
- 22. Developing skills andcareer paths 22 Technical skills are not enough New organisational structures make it attractive to go solo Career paths for everyone
Editor's Notes
- #19 Performance-based culture: Communicating performance based culture policies at different stages of the employee life cycle can enhance the chances of attraction because Gen Y employees have high aspirations and expect faster growth opportunities in an organization. This could include strong compensation plans, pay for performance, non-monetary rewards and recognition, special leaves and customized leadership development or fast-track programs. Feedback: Based on numerous field studies, one of the most responsive methods to invoke Millennials’ internal drive (i.e. intrinsic motivation) is to provide them the why before the what when coaching them. In other words, before organizational leaders describe what a project entails, they should take the time to explain the purpose of it (i.e. the why) in order to help Millennials see the “big picture” and hopefully get their commitment to want to contribute. Respect: In addition to knowing where to connect with Millennials, it is important to know “how” to motivate them at work. As members of “The Trophy Generation,” who earned prizes for merely participating in events, it should be of no surprise that they are thirsty for positive feedback, particularly from their manager. In fact, according to Barbara Keats, a management professor at the W.P. Carey School of Business, “the Millennial generation craves compliments and constantly needs reassurance that they are performing well.” In addition , accolades that can be noticed by their colleagues will pack twice the punch for them. Furthermore, Millennials report to appreciate it when they are praised “publicly.” Technology: Technology has also proven to be an effective motivator for Millennial associates. Technology presents organizations with the opportunity to reward associates with devices that make them feel special and recognize their talent by investing more in their hardware than the average associate. For Millennials, this type of recognition and reward can spark enthusiasm in the job environment and generate indebted motivation within the associate. For instance , organizations should reward their highly regarded Millennial associates that have been assigned the top projects with the newest, fastest and lightest laptops available. Additionally, if it does not instigate a disruption to other IT associates, Millennial associates that are working on “special” projects (that require greater portability) could be issued more portable, mobile devices as a reward (for their role) and a recognition of the innovation required. For the cream-of-the-crop Millennials, it may behoove organizations to grant them with “full-fledged” computing devices, such as smart phones or tablets, as a way to express their importance to the company. Regardless of position, it is essential for organizations to pay close attention to the hardware they issue to Millennial associates. In return, Millennials need to demonstrate that they can restrict the tools to professional use. According to Cisco’s 2012 Connected World Technology Report, which surveyed Millennial associates across 14 countries, the ability to use superior hardware (i.e . laptop, mobile device or phone) in the workplace will influence their job choice, sometimes even more than salary. As a matter of fact, 40 percent of Millennials surveyed said they would be willing to take a lower-paying job in exchange for better technology in the workplace.