HUMAN CAPITAL MANAGEMENT

Presented at the 22nd Annual Caribbean Conference of Accountants St. Lucia ± June 2004
L. Anthony Watkins
CEO / Principal Consultant ODYSSEY CONSULTinc
law@odysseyconsultinc.com www.odysseyconsultinc.com

. managing and maintaining the human capital needed to maximise organisational performance. knowledge and experience  Human Capital Management = A strategic responsibility increasingly shared by all an organisation¶s leaders A strategic approach to marshalling.Human Capital Management ² What it is  Human Capital = The sum of a workforce¶s skills.

Developing and Retaining Talent Targeted Investment in People HC approaches tailored to meet organisational needs  Results-oriented Organisational Cultures Empowerment and Inclusiveness Performance linked to organisatioanl goals .H C M Cornerstones  Leadership Commitment to HCM Role of HC Function  Strategic Human Capital Planning Integration and Alignment Data-driven HC Decisions  Acquiring.

The goal is to maximise value while managing risk. An organisation¶s Human Capital approaches should be designed. implemented and assessed by the standard of how well they help the organisation achieve results and pursue its mission  Source: United States General Accounting Office ± March 2002 .H C M ² Fundamental Principles  People are assets whose value can be enhanced through investment.

So What is Different??     No longer the sole province of the HR Function Increasing shift from ³talk´ to ³walk´ for all disciplines HR traditionally seen as a cost centre but is increasingly being seen as a strategic partner The business realities: Collaboration and teamwork at Executive Levels in organisations Collective input to Corporate Strategy at senior levels Increasing multidisciplinary exposure The push towards µvalue-added¶ .

Some Recent Findings   36% revenue spent on Human Capital Expenses but only 16% express anything more than a moderate understanding of RO(HC)I CFO¶s see HC as a key Value Driver 92% link it to Customer Satisfaction 82% link it to Profitability 72% link it to Innovation and New Product Development    49% report that investors are beginning to ask about HC issues 23% report Boards involved in HC issues In two years 36% expect such involvement .

mercerhr.com   .Some General Challenges Persist  Few (38%) explicitly consider Human Capital Value when making layoff decisions Measuring and quantifying the Human Capital Value remains an intractable issue HR information technology appears to have not delivered as much as expected in terms of helping to manage and quantify Human Capital issues Source: © 2004 Mercer Human Resource Consulting LLC .www.

attitudes and expectations .HCM in Context ² evolving realities  Economics. Development and Migration Appeal of the metropole World-view Uneven rates of development (intra-regional and sectoral) Crime Social Unrest  Production of Human Capital Our History Our educational systems    Elitist? or Mass Production? Relevance Quality Techno-colonisation.

HCM in Context ² evolving realities  DISEASE / PANDEMICS / HIV-AIDS Loss of productive capacity   the dead the living Individual National (allocation of resources) Cost of care   Impact on the young human capital (orphans) Replacement costs  FTAA and CSME Mobility Competition for scarce resources (loss and cost) .

Imperatives for Action at all levels       Regional National Professional Discipline Organisational Managerial Individual ± Family HCM is a societal issue manifesting itself and creating a mandate for action in all spheres  .

others and organisations through growth and change towards achieving results and fulfilling a vision or purpose .Revisiting HCM Cornerstones  Leadership Commitment to HCM Role of the HC Function  The ODYSSEY CONSULTinc perspective on Leadership: The process of influencing self.

Revisiting HCM Cornerstones  Strategic Human Capital Planning Integration and Alignment Data-drive Human Capital Decisions  Staying alert and constantly checking Utilising a Strategic Thinking Framework What¶s happening? (exploring perspectives) What does it mean? (discerning significance) What might we do? (envisioning possibilities)  .

Retaining Talent Targeted investment in people HC approaches tailored to meet organisational needs  Conversations about ³win-win´ development Profitability of the ³human spirit´  Creative action at critical leverage points Identifying key issues Connecting with ³touchstone´ people . Developing.Revisiting HCM Cornerstones  Acquiring.

Revisiting HCM Cornerstones  Results-Oriented Organisational Cultures Empowerment and Inclusiveness Performance linked to goals  Creating Architecture Freedom within Frameworks Expectations and consequences  Empowerment Choice Competence Meaningfulness Progress .

our people need our action!! .The Way Forward Let us take our professional leadership responsibility. our organisations. guided by our personal understanding and commitment and make a difference in the way we manage our Human Capital across the region!! Our future.

Play On !!! .

ODYSSEY CONSULTinc CONSULTinc Limited « BEYOND BUSINESS « .

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