heckelman - developing an integrated human capital strategy

Developing an Integrated Human Capital Strategy

Presentation to the:Florida Society of Human Resource ManagementFlorida Society of Human Resource Management

Wendy Heckelman, Ph.D.WLH Consulting, Inc.2703 Cypress Manor

Suite 100Fort Lauderdale, FL 33332

[email protected]

• Business case for developing an Integrated Human Capital Strategy

• Human Capital Strategy Components

Session Overview

• Your HCS Strategy Checklist

• Overcoming barriers and ensuring success

The collective knowledge, skills, and

abilities of an organization's employees.

Defining Human Capital

SHRM

3Prepared by WLH Consulting, Inc.

The Relationship BetweenThe Relationship Between

People and Business StrategyPeople and Business Strategy

Focus on People (competencies)


Capable employees are frustrated by the

organizational impediments

to getting the job done

Capable employees are matched with the business

strategies, priorities, and challenges

HIG

H

Focus on Business StrategyFocus on Business Strategy



Organization that does not meet

strategic business goals and talent that is not talented

Brilliant business strategy

but lack of talented employees to deliver

on desired organizationcapabilities

doneand challenges

4HIGHLOW

LOW

Prepared by WLH Consulting, Inc.

Only 9% of HR leaders report their company is effec tive or very effective in connecting Human Capital practice s 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.

Taking Human Capital Strategy to a New LevelTaking Human Capital Strategy to a New Level

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.


● 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

Why Human Capital Strategy MattersWhy Human Capital Strategy Matters

– 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.


Neglects to groom and

Weakens an organization’s competitive strength

Builds a broad, deep talent

Leverages human capital as a competitive advantage in a changing, unpredictable market

Integrated HCS

The Business Case for anThe Business Case for anIntegrated Human Capital StrategyIntegrated Human Capital Strategy

No Integrated HCS

Develops talent at all levels to better accomplish business objectives

Supports achievement of broader corporate goals and objectives

Lacks a consistent process to develop talent and maximizes its value

Neglects to groom and leverage its inherent bench strength

Builds a broad, deep talent pipeline to meet immediate and future succession needs


Core Competencies

System-wide Metrics

Recruit Ready Retain

Talent Pipeline

Human Capital Strategy FrameworkHuman Capital Strategy Framework

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



Human Capital Strategy FrameworkHuman Capital Strategy Framework


Talent Pipeline

Core Competencies

System-wide Metrics

Strategic Objectives

Process Tools Metrics


● 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

The Foundation: Competencies

– Coachable


● Interview Guides● Career Ladders● Behavioral Based

Interview Guides

● Assessment Instruments

● Coaching Forms● Development

Planning

●Performance Management

●Talent Planning●Learning & Development Programs

●Leadership DevelopmentPrepared by WLH Consulting, Inc.

● 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

Best Practices: Creating a Competency Model

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.



Process

Attracting and Selecting TalentAttracting and Selecting Talent

● Recruitment Pipeline & Strategy● Selection Framework & Behavioral Based Interviewing

● Develop a recruitment strategy that attracts high quality talent to apply to the organization

● Establish a compensation and benefits philosophy to pay market rate or above/below

● Include diversity goals and strategies

RECRUIT

● On-boarding Process

12

Tools

Metrics

● Selection Interview Guides that are competency based● Behavioral Interview Training

● Offer-Accept Ratio● # of internal promotions versus outside hires ● Talent Ready (# of R1s)● Time to fill



Developing TalentDeveloping TalentREADY

● Create competitive advantage● 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● Focus on both the individual and group● Develop an integrated learning curriculum

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Process1. Create and leverage a Development Planning and

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


Tools

Developing TalentDeveloping TalentREADY

● Competency-based Training

● On-the-job Learning

● Rotational Assignments and Cross-training

● Assessment Instruments (360, self and manager, self only)

● Coaching/Mentoring

● Development Planning Guides

● Instant Assessments

● Coaching Forms

Metrics● Completion of Individual Development Plans

● Use of field coaching forms

● Developmental assignment rotations

● Mentoring related metrics

● Performance Assessments

● Capability-based Performance Assessment

● Capability-driven Business Results

self only)


● 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

Best Practices: Development Best Practices: Development Planning and Feedback Process Planning and Feedback Process

READY

● Prepare managers to provide coaching and feedback

● Design Development Planning Guides

– Specific activities

– Suggested learning programs

– All organized by competencies

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Business Impact: Talent Development is closely linked to strategy and creating competitive advantage


●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

Talent Planning: Best PracticesTalent Planning: Best Practices

●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)

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Business Impact: Leadership pipeline identified with specificdevelopment initiatives underway


● 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

Performance Management: Performance Management: Best PracticesBest Practices

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

17

Business Impact: Direct linkage between individual goals and performance with organizational strategy and results.


● 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

Leadership Development Best Practices

● 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



Retaining TalentRetaining TalentRETAIN

● Retains valuable employees● Reduces costs associated with turnover● Recognizes and rewards talent development● Maintains institutional knowledge base

Process

● Employee Engagement Surveys● Exit Interview Process● Retention Risk Training Program● Integrate Recognition and Rewards● Integrate Recognition and Rewards

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Tools

Metrics

● Retention of High Potentials● Turnover Ratios● Redeployment of talent following reductions in workforce

● Retention Risk Assessment ● Just-in-time tools to prepare managers for a “making the

save conversation”● Exit interview Reports


ManagerManager--Colleague RelationshipColleague Relationship

Performance Management

Coaching & Supervision

Positive Work Environment

Retaining TalentRetaining TalentRETAIN

Meaningful Work

Corporate Culture

Work-life Balance

Rewards & Recognition

Training & Career Advancement

1-8


● 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

Barriers to OvercomeBarriers to Overcome

● 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


● Headcount change● Hires and termination● Total compensation● Performance against HR

strategy objectives

● Leadership team capability● Return on investment of human

capital● Employee competency● Effectiveness of change efforts

Measuring to Inform

Measuring to Drive Strategy

Shift focus to more strategic

metrics

What are you Measuring Today?What are you Measuring Today?

strategy objectives● Training and development

return● HR function effectiveness● Discipline and grievance

cases

● Effectiveness of change efforts● Employee engagement● HR function effectiveness● Performance against HR

strategy objectives● Training and development

return● Number of internal career

moves

22

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.


● 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 effortAllows you to step back and

HCS ChecklistHCS Checklist

– Allows you to step back and prioritize need

● Can be shared with others on your team or your senior leader


Systematic integration ensures:

Ownership: Leaders, Managers, andemployees with HR Partnership

Accountability: For developing and retaining talent

“Integrated” Human Capital Strategy“Integrated” Human Capital Strategy

Accountability: For developing and retaining talent with the critical skills needed forfuturefuture business challenges

Sustainability: With a comprehensive and linkedset of processes and tools


Ownership, accountability, and sustainability lead to meeting current and future business needs

WLH Consulting, Inc.WLH Consulting, Inc.

2703 Cypress Manor2703 Cypress ManorSuite 100

Fort Lauderdale, FL 33332954-385-0770

www.wlhconsulting.com


Strategy Development & Execution

Strategy Formation

Senior Team Alignment

Execution Planning & Implementation

Mergers & Acquisitions

Business Performance Improvement

Business Diagnostics

WLH Practice FocusWLH Practice Focus

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


Our team combines the diverse expertise of: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

WLH Consulting, Inc. Team WLH Consulting, Inc. Team

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 ResultsUnique talents + Collaborative expertise = Breakthrough Results


CollaborativeWe partner to implement streamlined, customized, and efficient solutions that deliver results

Highly Adaptive

Our flexibility allows us to adjust to changing needs throughout each engagement or project life cycle

WLH CommitmentsWLH Commitments

We rely on proven methods for data collection, statistical analysis, and sophisticated organizational development models

Scientifically Rigorous

Client-Centered

We take pride in "going the extra mile" to ensure that change initiated becomes change sustained


Partial Client ListPartial Client List


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.

Human Capital Strategy Human Capital Strategy

● 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.31Prepared by WLH Consulting, Inc.

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

Sample Human Capital Strategy ProjectsSample Human Capital Strategy Projects

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 tosupport the development of Individual Development Plans


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

Leadership Development Sample ProjectLeadership Development Sample Project

● 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.


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.

Leader Led Learning ProjectsLeader Led Learning Projects

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.
