The Mature Corporation: a Model of Responsible Capitalism
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The document discusses the need for organizations to take a whole systems approach to management by understanding how they are interconnected and create value for all stakeholders including people and the environment. It recommends that organizations start by defining their purpose and measuring how well they realize value for all stakeholders using metrics of organizational health. Organizations should then implement continuous improvement programs to maximize total stakeholder value in a sustainable way.
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The document discusses HR's value and the level of organizational maturity needed to properly measure and analyze HR's impact. It argues that immature HR focuses too much on easily measurable activities and outputs, while more sophisticated analysis requires viewing HR through the lens of business objectives. True value is determined by factors like quality of hires, integration, and long-term human capital development. The document advocates adopting standards and principles from fields like medicine to bring more scientific rigor to HR measurement and establish causal links between people practices and business outcomes.Organization Maturity Rating - human capital, value & risk
How can organizations understand how they can leverage more value from human capital and manage people risk.
HR Maturity: Mature Management THINKING, PEOPLE, PRACTICE
IHRM is based on two very simple notions. One is that corporate behaviour only has legitimacy when it is driven by maximizing societal value, rather than just rewarding shareholders and executives. Another is that no organization can maximize its value without maximizing the value contribution of all the people who work for it (including suppliers). Mature executives are those that understand these to be self-evident truths and run their organizations accordingly. Such organizations are currently extremely rare. IHRM’s goal is to make this the prevailing paradigm.
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The Mature Corporation: a Model of Responsible Capitalism
- 1. ….is there
- 2. Where we all understand… how we are all part of a whole system?
- 3. Whole System Management SOLAR SYSTEM . Corporations Organizations GLOBAL WHOLE SYSTEM
- 4. Where we all understand… the kind of value we should create?
- 5. …as an interconnected, cycle of continuously adding value without external harm i.e. the environment and humankind
- 6. Where we all understand… that a common purpose that serves society can generate the best outcomes for…
- 8. …Value!
- 9. We currently address fundamental problems in an incoherent and fragmented way…
- 11. So, where should we start?
- 12. The Step1: consider your purpose
- 13. THE TEN ‘PILLARS’ Value Motive Whole system Learning Organization Improvement philosophy People risk Human capital ethos Trust, engagement, cooperation Performance & reward system Communication Business/ people strategy Step 2: consider how all people that touch our organization create value (and risk!)
- 14. 14 Step 3: measure the extent of value realisation using a whole management system, organisational health diagnostic…
- 15. …to provide a baseline for improvement
- 16. …and a metric of how much total value is being generated
- 17. Step 4: decide on your value improvement program
- 18. Step 5: measure, monitor, learn and keep improving value - embedding “NEI”
- 19. To kick start your own virtuous system for Total Stakeholder Value
- 20. The Mature Corporation – a Model of Responsible Capitalism https://www.cambridgescholars.com/the-mature-corporation
Editor's Notes
- Our solar system does not have a clear purpose and yet we are all entirely dependent on it This makes humankind’s survival our common goal So what is the best way to ensure we are all most likely to survive – by having a common purpose ‘Purpose’ is why we do what we do but humankind can determine its own purpose on Earth – if we want to live the best lives we can then we need to create the best value and wealth that we can without damaging the environment This requires a universal, common definition of value that all of humankind can subscribe to – MI calls this ‘Total Stakeholder value’ and provides the means for measuring progress on a much broader set of criteria than profit
- Key points