The Impact of Human Capital on Startups. A presentation by Phoenix Strategic Performance for Phoenix Startup Week: March 2015. www.phoenixstrategicperformance.com

1. The
Impact
of
Human
Capital
Human
Capital
Strategy
As
a
Business
Differen<ator

2. 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!

3. 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

4. Human
Capital
Planning

5. 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

6. 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

7.
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

8. Managing
Human
Capital
Poten&al
• 3-­‐Filter
Funnel
Assessment
Diagnos7c
• Organiza&onal
Agility
Assessment
Repor7ng,
Analy7cs
&
Gap
Analysis
• Workforce
Planning,
Development
&
Governance
Implementa7on

9.
Filter
Funnel
Assessment
–
Diagnos&c
• Filter
Funnel
Organiza<onal
Assessment
Model
Diagnos<c
– Filter
1
–
RoleFit
©
– Filter
2
-­‐
Competency
Assessment
– Filter
3
-­‐
PeopleFit©

10.
Filter
Funnel
Assessment
–
Diagnos&c

11.
Organiza&onal
Assessment
Organiza<onal
Assessment
Model
Strategy
Organiza<on
RoleFit©
Competencies
Assessments
Plans

12. Organiza&onal
Assessment
Organiza<onal
Assessment
Model
–
Culture
Strategy
Organiza<on
RoleFit
©
Competencies
Assessments
Plans
+
Culture

13. RoleFit©
Funnel
Filter
1:
RoleFit©
©©©©
Strategy
Role
Clarity
Leader
Role
Knowledge
Role

14.
Competency
Assessment
Funnel
Filter
2:
Competency
Assessment
Strategy
Phoenix
Factors
Knowledgeable
Accountable
and
Engaged
to
Deliver
Confident

15. Making
Human
Capital
a
Strategic
Ini4a4ve
15

16. 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
Phoenix
Strategic
Assessment
System
Competency
Assessment
2A
-­‐
Limited
Knowledge,
Not
Accountable
but
Engaged,
Overly
Confident
2B
-­‐
Limited
Knowledge,
Not
Accountable
&
Disengaged,
Not
Confident

17. People
Style
Funnel
Filter
3:
PeopleFit©–
DISC
Profile
Strategy
DiSC®
D
–
Dominant
I
–
Influencer
S
–
Steadiness
C
–
Conscien<ous

18. Filter
Funnel
Diagnos&c
Summary
18

19.
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

20. 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

21. 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

22.
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

23.
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

24. 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.

25.
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

26. 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!

27. Ques&ons?
Joanne
Flynn
Phoenix
Strategic
Performance
www.phoenixstrategicperformance.com
jflynn@phoenixstrategicperformance.com
Making
Human
Capital
a
Strategic
Ini4a4ve
27

28. Follow
us:
@PHXStrategy