MANAGING HUMAN CAPITAL IN CHANGING TIMES

1. MANAGING HUMAN CAPITAL IN CHANGING TIMES Edward B. Yost, PhD, SPHR August 2014

2. BEM VINDO A OHIO UNIVERSITY

3. Our Task Today – Three Levels of Analysis and Human Capital • #1 MACRO: Sustainability, Strategy, and the Business Model – Competent managers understand how value is created • #2 MESO: Talent Management, maximizing returns through human capital architectures – Talent pools, pivotal positions, differentiated human capital architecture that adds value • #3 MICRO: Employee Engagement – Crafting and leading for individual performance

4. Level 1 MACRO: Sustainability, Strategy, and the Business Model

5. What is Strategic Success? • Delivering high value results to significant stakeholders Financial Success Operational Success Customer Success Workforce (People) Success

6. Strategic Success Hierarchy

7. Strategic Success Chain Strategy Execution Competitive Advantage Sustainability

8. Defining the Business Strategy Strategy is: The central, integrated, externally oriented concept of how we will achieve our objectives. (Hambrick & Fredrickson)

9. Sharing our Experiences What is your organization’s “STRATEGY”?

10. Strategic Success Hierarchy

11. Strategic Success Hierarchy

12. Challenges and Responsiveness • Managing Human Capital has always been difficult but even more so going forward • Deloitte: Global Human Capital Trends 2014 – Three Key Areas of Strategic Focus • Lead and Develop • Attract and Engage • Transform and Reinvent

13. Challenge #1 - Lead and Develop “ The need to broaden, deepen, and accelerate leadership development at all levels; build global workforce capabilities; re-energize corporate learning by putting employees in charge, and fix performance management.” Deloitte 2014

14. Challenge #2 - Attract and Engage “ The need to develop innovative ways to attract, source, recruit, and access talent; drive passion and engagement in the workforce; use diversity and inclusion as a business strategy; and find ways to help the overwhelmed employee deal with the flood of information and distractions in the workplace” Deloitte 2014

15. Challenge #3 Transform and Reinvent “ The need to create a globalHR platform that is robust and flexible enough to adapt to local needs; reskill HR teams; take advantage of cloud based HR technology; and implement HR data analytics to achieve business goals.” Deloitte 2014

28. Developing Human Capital in Changing Times What IS Human Capital?

29. Human Capital Defined The collective sum of the attributes, life experience, knowledge, inventiveness, energy, and enthusiasm that people choose to invest in their work. Weatherly 2003

30. Human Capital Defined The collective sum multiplicative productof the attributes, life experience, knowledge, inventiveness, energy, and enthusiasm that people choose to invest in their work. Weatherly 2003 with a little help from Ed

31. Attributes of Human Capital Markets • Various levels of value • Appreciates and depreciates • Markets are shifting from Closed (balance sheet talent) to Open System (crowd sourcing) • Individually owned but collectively realized

32. Human Capital: The Invisible Resource • It is vested in the human resources often in the form of intellectual and social capital. • It is acquired, developed, utilized, and sustained through the management practices. • Being invisible it is harder to duplicate.

33. Human Capital Value inherent in the form of individuals collectively interacting in the context of formal and informal systems • Individuals are the repository for human capital • Systems, process, culture and context extract the value of individuals

34. Human Capital Has Value “People are our most valuable asset” PROVE IT! Must be demonstrated by management practices and actions that compose the Human Capital Architecture

35. Sharing our Experiences What do organizations you know value?

36. Expectativas de TodosquePossuemInteresseDiretoouIndiretonaOrganização • Acionistas(proprietários) desejam um retornoqueconsideramjusto no investimentofeito. • Clientesdesejam um alto valor agregadoaoprodutoouserviçoqueconsomem, e umamanutenção(garantia) quemantenhaseu valor. • Empregadosdesejamumarelação de empregoqueforneçacompensaçõesintrínsicas e extrínsicasemcontrapartidaàscontribuiçoesquefazem.   • Publicoesperaque a organizaçãotenharesponsabilidade social e se preocupetambém com o bemestar dos cidadãos (cidadania corporative)

37. Escolher as partesinteressadasemcada par que a suaorganizaçãoiriaconsiderarcomo a maisimportanteemtermos de tempo e outrasatribuições de recursos. • 1. Cliente___ Proprietário(acionista) ____ • 2. Empregado___ Cliente___ • 3. Empregado___ Publico___ • 4. Proprietário(Acionista) ___ Empregado___ • 5. Cliente___ Publico___ • 6. Proprietário(Acionista) ___ Publico___

38. Instruções para o preenchimento das questões Pense em uma organização com a qual você está familiarizado. Talvez a organização que você trabalha agora. Para cada par de partes interessadas selecionar o que você sente é mais importante para a organização que você escolheu. Pense sobre os recursos dedicados ou as políticas que afetam o grupo de partes interessadas. Quando você completar você irá gravar o número de vezes que você selecionou o grupo de partes interessadas e escrever o número no espaço fornecido.

39. Stakeholder Importance Vamos Compartilhar - Qual dos 4 stakeholders​​ (clientes, proprietários, público e empregados) a sua organização seria mais provável em atender:Em primeiro lugar?Última?

40. Importância das partesinteressadas

41. Knowing – Doing Gap How Big is the Gap? “Only 1 in 10 of the 88,000 respondents in our Global Workforce Study agreed that their organization’s senior leaders treat employees as vital corporate assets. A larger percentage reported that their leaders act as if employees don’t matter.” Gebauer ad Lowman, 2008

42. Level 2 #2 MESO: Talent management, maximizing returns through human capital architectures

43. Developing Human Capital in Changing Times Managing Talent for Strategic Success

44. The Challenge for Managers Human Capital IMPACTSthe Bottom Line To create value through Human Capital requires a fundamental change in how it is recognized and managed in most organizations.

45. What is Strategy Execution? • Value Creation – Enables the Value Proposition for all stakeholders • The aggregated combination of the firm’s resources applied by the strategic business units • Results from managerial decisions for resource allocations and tradeoffs

46. Application: Focus on a Strategic Business Unit -Primary Pharmaceutical Industry Strategy Execution Enables the Value Proposition for Stakeholders Production Research & Development Marketing Human Resources

47. Strategic Success Hierarchy

48. Critical Outcomes for Strategy Execution Research & Development Group in Primary Pharmaceuticals 1. New Product Applications 2. Reduce Time to Market

49. Talent Management • Talentship requires a redefinition of the traditional service role of HR managers in organizations. • This involves a managerial focus on the process of "talent segmentation" and the need to focus managerial attention on "pivotal talent pools".

50. Talent Segmentation • Talent segmentation is as vital to strategic success as customer segmentation. • Talent segmentation involves identifying pivotal talent pools where human capital makes the biggest difference to strategy execution