Phoenix Strategic Performance for Arizona Technology Council: Human Capital Strategy As a Strategic Business Differentiator www.phoenixstrategicperformance.com

1. The
Impact
of
Human
Capital
WorkFit
2020
Human
Capital
Strategy
As
a
Strategic
Business
Differen=ator
Joanne
Flynn
Fred
Mapp

2.
Era
of
Growth
• As
industries
around
the
world
turn
their
a>en?on
to
a
new
era
of
growth,
the
importance
of
an
enterprise’s
human
capital
has
risen
drama=cally.
• Acquiring
and
retaining
new
customers,
genera=ng
new
ideas,
improving
produc=vity
are
challenges
that
place
new
demands
on
the
workforce
and
those
who
lead
it.
• Economic
downturn
and
the
speed
of
marketplace
change
have
outstripped
the
ability
of
tradi?onal
talent
management
programs
to
meet
business
needs.
• Execu?ves
must
now
pursue
a
more
comprehensive,
integrated
and
balanced
human
capital
strategy
that
includes
the
management
of
talent
as
well
as
the
associated
leadership,
• Those
who
can
effec?vely
translate
their
business
strategy
into
an
ac=onable
human
capital
strategy
can
drive
a
new
kind
of
compe==ve
advantage—one
extremely
difficult
for
others
to
imitate.

3. Whether the labor market is tight or flooded with talent, putting
together a top-notch team is one of the biggest challenges facing
managers. What is your strategy to address business issues and
foster business savvy among your people? How do you
determine the best mix of skills for your team and develop
effective leadership?
“How
well
do
we
mo=vate
and
manage
our
people?”
“Do
we
have
the
right
skills?”
“What
is
the
most
effec=ve
way
to
be
organized?”
“What
happens
if
someone
leaves
and
who
are
the
successors?”
“Should
we
contract
or
Outsource?”
Organizing, Recruiting, Developing &
Retaining the Right Team of People
“What
is
our
HC
strategy?”

4.
Are
You
Focused
on
People
or
Human
Capital?

5. To improve your abilities to support customers, are you developing
a strategy for recruitment, development and retention processes that
include:
• Recruitment Program
• Performance Planning and Evaluation
• Relationship management training
• Project management training (PMI)
• Develop business acumen
• Management training program
• Leadership development program
• Succession Planning
• Mentoring program
• Talent Reviews
• Open Ear Policy
“Our
people
are
key
to
success”
Do You Have the Right People Focus?

6.
Value
Proposi?on
“The
best
corporate
strategy
can
fail
at
implementa6on
without
a
human
capital
strategy
suppor6ng
it”
A
Business
Discipline
for
Human
Capital
Planning
and
Development
The
Goal
Human
Capital
Strategy
aligned
to
Business
Strategies
focused
on:
– Growth
Accelera=on,
Organic
or
M&A
– Organiza=onal
Agility
– Business
Resiliency
– Strategic
Alignment
– Peak
Performance
Against
the
Benchmark
How
Can
You
Achieve
these
Goals?
A
disciplined,
sustainable
assessment-­‐based
solu6on
to
strategically
align
people
to
business
strategy
and
objec6ves

7.
Alignment
with
the
Business
Linking
business
strategies
to
human
capital
requirements
is
the
key
to
success.
HR
is
tasked
with
acquiring,
developing
and
deploying
the
people
needed
for
an
enterprise
to
be
successful.
Many
HR
departments
struggle
to
gain
a
deep
enough
understanding
of
how
business
goals
translate
into
specific
workforce
and
organiza?on
needs.
What’s
missing
at
many
companies
is
a
strong
program,
led
from
the
top,
to
ar?culate
the
human
capital
dimensions
of
a
business
vision
at
a
strategic
level.
Without
this
human
capital
strategy,
HR
can’t
see
at
a
broad
enough
level,
and
senior
management
can’t
see
at
a
detailed
enough
level.

8.
Crea?ng
&
Implemen?ng
a
Human
Capital
strategy
A
program
to
create
and
implement
a
human
capital
strategy
involves
mul?ple
phases
of
work
across
four
primary
work
streams:
• Organiza=on
• Culture
• Leadership
• Talent
It
requires
support
by
program
management
and
governance
to
guide
the
en?re
endeavor.

9. Change of strategic direction.
Alignment and transformation: 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?
What is your strategy?
Former
Skills
New
Skills
Example: Do You Have the Right Skills for Change?
New Strategy

10.
Sources
• Oxford
Economics,
2014
• The
Conference
Board
• Development
Dimensions
Interna?onal,
2014
• Phoenix
Strategic
Performance,
Inc.
• McKinsey
&
Co.
• Insead
–
MIT
Review

11.
Current
State
of
Strategy
&
Human
Capital
Alignment
• The
importance
of
human
capital
to
corporate
strategy
is
NOT
reflected
by
its
role
in
the
C-­‐
Suite
&
Boardroom
• Impact:
Severe
– HR
not
in
the
informa?on
loop
– HR
lacks
insights
&
status
to
be
truly
strategic
Overall:
Companies
not
making
progress
toward
mee=ng
workforce
goals.
Business
Performance
Suffers
Oxford
Economics,
2014

12.
HR’s
Seat
at
the
Table
22%
-­‐
Workforce
issues
drive
strategy
at
the
board
level
28%
-­‐
HR
advises
C-­‐Suite,
but
does
not
have
a
voice
in
decision
making
26%
-­‐
HR
is
not
consulted
at
all
about
business
planning
24%
-­‐
Workforce
issues
are
an
aderthought
in
business
planning;
HR
is
consulted
ader
high-­‐level
decisions
have
been
made.
Stress
Test
Where
does
your
organiza?on
live
on
this
con?nuum?
Oxford
Economics,
2014

13.
HR’s
Seat
at
the
Table
Regarding
HR
&
Workforce
Data
–
The
Gap
What
HR
says:
• Only
38%
-­‐
have
ample
workforce
data
to
understand
strengths
&
poten?al
vulnerabili?es
from
a
skills
perspec?ve
• Only
42%
-­‐
know
how
to
extract
meaningful
insights
from
the
data
available
to
them
GAP
What
the
C-­‐suite
says:
• They
think
HR
is
using
metrics
and
benchmarking
is
a
normal
part
of
workforce
development
strategy
Result:
The
inability
to
translate
the
value
of
workforce
excellence
into
the
language
of
growth
and
profitability
is
a
BIG
problem
for
HR
and
for
businesses,
at
large.
Oxford
Economics,
2014

14.
Execu?on
&
Vision
Gap
Execu=on
&
Vision
are
Out
of
Balance
The
responses
• 52%
have
a
defined
execu?on
plan
for
achieving
our
vision
of
workforce
management
• 53%
say
workforce
development
is
a
key
differen?ator
for
our
firm
in
terms
of
growth
&
bo>om-­‐line
results
• 32%
have
a
strong
vision
for
the
workforce
we
want
to
build
in
three
years
Oxford
Economics,
2014

15.
Vision
Gap
Results
‘Running
in
Place’
“For
all
the
talk
of
change”…..
more
than
half
of
respondents
say
they
will
have
made
only
slight
or
moderate
progress
toward
mee?ng
strategic
workforce
goals
in
five
years.
Oxford
Economics,
2014

16.
4
Major
Obstacles
Inadequate
leadership
34%
Employee
longevity/
loyalty
35%
Inadequate
technology
34%
Skilled
talent
28%

17.
The
ROI
of
Good
Leadership
So,
what’s
the
impact
of
good
leadership?
“McKinsey
research
has
consistently
shown
that
good
leadership
is
a
cri6cal
part
of
organiza6onal
health,
which
is
an
important
driver
of
shareholder
returns.”
McKinsey,
“Decoding
Leadership:
What
real
ma>ers,”
Claudio
Feser,
Fernanda
Mayol
and
Ramesh
Srinivasan

18.
When
Organiza?ons
Get
it
RIGHT
Results
– 20%
higher
than
average
leadership
quality
&
bench
strength
– 28%
more
cri?cal
posi?ons
can
be
filled
immediately
– 2.3
X
more
likely
to
outperform
other
companies
on
financial
metrics
Organiza=onal
consequences:
• Increased
organiza?onal
agility
• Increased
business
resiliency
• Increased
ability
to
maximize
market
/
compe??ve
opportuni?es
DDI,
2014
PSP,
2014

19.
When
Organiza?ons
Get
It
WRONG
Results
• 67%
lower
than
average
leadership
quality
&
bench
strength
• 21%
fewer
cri?cal
posi?ons
can
be
filled
immediately
Organiza=onal
Consequences:
– Compromised
organiza?onal
agility
– Decreased
business
resiliency
– Missed
market
/
compe??ve
opportuni?es
DDI,
2014,
PSP,
2014

20.
CEO
Challenge
–
Leaders
Aren’t
Ready
Only
52%
of
execu?ves
say
that
current
leadership
have
the
skills
to
effec?vely
manage
talent.
Global
Leadership
Forecast
asked
leaders
to
assess
their
own
readiness
to
execute.
Their
self-­‐assessments
are
sobering:
– Regarding
leadership
behaviors
• never
were
more
than
50%
“very
prepared”
to
address
any
of
the
leadership
challenges
– In
the
human
capital
challenge
• only
27%
of
leaders
reported
they
were
“very
prepared”
to
be
a
leader
who
creates
an
op?mal
workplace
where
employees
deliver
their
very
best
– HR
leaders’
appraisal
• was
even
more
harsh:
Only
9%
indicated
their
leaders
were
“very
ready”
to
address
human
capital
challenges
DDI
2014

21.
Leading
in
a
VUCA
World
Vola=lity
Uncertainty
Complexity
Ambiguity
• An?cipa?ng
and
reac?ng
to
the
nature
and
speed
of
change.
• Maintaining
effec?veness
despite
constant
surprises
and
a
lack
of
predictability.
• Naviga?ng
through
complexity,
chaos,
and
confusion.
• Ac?ng
decisively
without
always
having
clear
direc?on
and
certainty.

22.
Working
Within
the
VUCA
Vortex
How
do
current
leaders
rank
on
the
VUCA
Vortex?
– Vola?lity
41%
– Uncertainty
37%
– Complexity
36%
– Ambiguity
31%
DDI
2014

23.
Leaders’
VUCA
Results
• Organiza=ons
Overall
Response
– 25%
report
their
leaders
are
not
VUCA-­‐capable
• At
C-­‐Suite
Level
– Only
19%
iden?fied
their
leaders
as
‘very
capable’
• Leaders
Self
Evalua=on
– Only
65%
of
leaders
said
they,
were
either
“highly
confident”
or
“very
confident”
in
their
ability
to
meet
the
four
VUCA
challenges
• HR
Response
– 40%
of
HR
professionals
viewed
their
organiza?on’s
leaders
as
not
capable
of
mee?ng
the
challenges
DDI,
2014

24.
VUCA
&
Business
Results
• Organiza=ons
with
high
VUCA
capability
–
3.5
X
more
likely
to
have
a
strong
leadership
bench
to
meet
future
challenges
• VUCA
capability
links
to
financial
results
– Top
20%
of
organiza?ons
performing
well
financially
are
3X
more
likely
to
have
VUCA-­‐
capable
leaders
DDI,
2014

25.
Leader
Quality
&
Bench
Strength
Which
Countries
Make
the
Grade?
Current
Future
India
India
Mexico
Philippines
South
Africa
South
Africa
USA
Australia
Canada
Taiwan
Thailand
Indonesia
DDI,
2014

26.
Solu?ons
/
Tools
• Now
that
we
know
what
the
problem
is….
• Here
are
steps
to
take
to
fix
it.
• Ignore
the
looming
crisis
&
the
gap
will
become
the
great
abyss.
• Wishing
will
not
change
things

27.
Results
• Increase
the
ROI
of
your
people
investment
–
unlock
your
human
capital
poten6al
• Through
organiza6onal
alignment,
improved
results
of
business
objec6ves
by
improving
your
people’s
performance
• Forecast
current
&
future
people
poten6al
&
capacity
to
keep
pace
with
strategic
business
objec6ves
• Through
the
Phoenix
Strategic
Performance
(PSP)
System,
create
a
sustainable,
governance
process
to
ensure
con6nuous
alignment
tying
people’s
performance
to
strategy
Value
Proposi?on

28.
Phoenix
Strategic
Performance
Ins?tute
'You
can’t
manage
what
you
can’t
measure’
Business-­‐driven
learning
&
development
solu=ons
aligned
with,
and
responsive
to,
individuals
and
business
goals.
Our
approach
is:
• Targeted,
highly
focused
and
individually
relevant
• Delivered
in
a
short,
highly-­‐efficient
format
• Designed
to
‘s=ck’,
with
immediately
ac=onable
takeaways
to
implement
Learning
&
Development
Solu=ons
• Professional
Skills
Track
• Communica=on
Skills
Track
• Leadership
&
Management
Skills
Track
• Sales
&
Business
Development
Skills
Track

29.
Conclusion:
Sustaining
your
Compe??ve
Differen?a?on
The
nature
of
compe??on
today
is
shiding
across
almost
every
industry.
Can
companies
con=nue
to
innovate,
and
to
execute
strategy,
at
the
speed
required
to
compete
in
the
marketplace?
The
answer
to
that
ques?on
largely
depends
on
an
enterprise’s
investments
in
its
human
capital
assets.
Sourcing
and
retaining
top
talent
in
the
right
numbers
and
the
right
places
is
a
key
part
of
the
equa?on.
The
War
for
Talent
is
becoming
the
War
to
Develop
Talent.
Equally
important,
however,
are
the
leadership
quali=es,
cultural
characteris=cs
and
organiza=on
structures
that
enable
workforce
talent
to
help
the
company
as
a
whole
achieve
high
performance.

30. Joanne
Flynn:
email
jflynn@phoenixstrategicperformance.com
www.phoenixstrategicperformance.com
Fred
Mapp:
email
fred@mapping-­‐it.com
www.mapping-­‐it.com