Human Capital Management

Vital and Tactical Planning www.hiresmart.com 480.503.2945

2011 HireSmart
All Rights Reserved.

Presenter Bio
Dr. Neil Clark is an Arizona Licensed Psychologist with over twenty years of professional experience in personnel and organizational psychology. Neil is a leading expert in human capital strategy and management. His mission is to help managers improve their talent management effectiveness. He is currently the Executive Director of HireSmart, a human capital management firm that uses online sourcing, screening and selection tools to help companies reduce the high cost of hiring mistakes. His doctoral research was in organizational development. He currently works with many small firms and with several Fortune 500 companies to develop and monitor high performance work systems. Dr. Clark has served as a staffing consultant to Penske Automotive Group for the last fifteen years. He designed Penskes screening and selection system for sales and management talent. Dr. Clark is a Strategic Business Partner of Profiles International Inc., a leading international human capital assessment company. He is also a Professional Associate of Human Resource Development Press. Neil is a current member of the Arizona Psychological Association, the Knowledge Management Forum and the Arizona Better Business Bureau.

2011 HireSmart
All Rights Reserved.

Agenda Day 1
Introduction to Human Capital Management Human Capital Measurement Human Capital Strategic Plans Recruitment Strategy Best Practices in Hiring Performance Management

2011 HireSmart
All Rights Reserved.

Agenda Day 2
Introduction to Human Capital Development Human Asset Profiles Career Development Plans Coaching, Training and Mentoring Programs Emerging Management Roles Closing Comments, Discussion, Next Steps

2011 HireSmart
All Rights Reserved.

Introduction to Human Capital Management

The only vital value any enterprise has is the experience, skills, innovativeness and insights of its people. The success of any company will depend on its ability to understand how human capital links to its performance and its wealth. The most competitive companies will have the best strategies and methods for attracting, hiring, managing, developing and retaining top performing talent. Managers need training on how to apply human capital management (HCM) principles and methods to business strategy and performance. Today, we are going to learn about several new management tools and how others are using them to reach their business goals.

2011 HireSmart All Rights Reserved.

Major Contributions to Human Capital Management

1986 The Know-How Company Karl Erik Sveiby 1997 The New Wealth of Organizations Thomas Stewart 2000 The ROI of Human Capital JacFitz-Enz 2001 The Human Value of the Enterprise Andrew Mayo 2002 Corporate Longitude Leif Edvinsson

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The History of Human Capital Management

1986- Sveiby publishes "The Know-How Company" on managing intangible assets 1987- Amidon publishes Managing the Knowledge Asset into the Twenty-First Century 1988- Sveiby publishes "The New Annual Report" introducing "knowledge capital" 1989- Sveiby publishes "The Invisible Balance Sheet" 1989- Handy publishes The Age of Paradox 1990- Sveiby publishes "Knowledge Management" 1991- Stewart publishes first "Brainpower" article in Fortune 1991- Skandia appoints Leif Edvinsson as the worlds first Director of Intellectual Capital 1992- Stewart publishes second "Brainpower" article in Fortune 1993- St. Onge establishes concept of Customer Capital 1994- Stewart authors "Intellectual Capital" cover article in Fortune 1994- Mill Valley Group decides to host a gathering of IC managers 1996- SEC symposium on measuring intellectual / intangible assets 1996- Sullivan and Parr book, "Licensing Strategies", published 1996- Lev founds Intangibles Research at New York University 1997- Sveiby publishes "The New Organizational Wealth" 1997- Edvinsson and Malone publish a book, "Intellectual Capital 1997- Stewart book, "Intellectual Capital is published 1997- Hoover Institution conference on measuring intellectual capital 1998- Sullivan book, "Profiting from Intellectual Capital", published

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Principles of Human Capital Management

Building a powerful human capital strategy requires solid facts, measures, and processes for discerning where the firm will get the most leverage from its people. Recent technological advances have been the catalysts for the emergence of new approaches to human capital management. Business models and human capital strategies must match. Taking advantage of the observations and records of actual events maintained in your companys HR information systems helps you discern how your business model and human capital strategies have been working for or against each other.

2011 HireSmart All Rights Reserved.

Principles of Human Capital Management

Theres a floor to cost reduction but no ceiling to value creation. Find the key points of leverage for increased profits. View your human capital as a value-producing asset instead of a cost to be minimized, reduced, or reined in. New management tools now exists to help you analyze how key outcomes such as productivity are affected over time by human capital attributes and practices. These tools help you predict the return on your human capital investments. Identifying and focusing on whats important will drive value.

2011 HireSmart All Rights Reserved.

Human Asset Profiles Career Development Plans

Performance Management

Coaching & Mentoring

Human Capital Strategy

Revenue Per Employee

Selection

Core Values

Recruitment
Cost Per Employee

Core Competencies

Performance Improvement 2011 HireSmart All Rights Reserved.

Profit Per Employee

Activities of Human Capital Management

The quality and performance of our people is what sets us apart in an intensely competitive market!
Recruiting and hiring the best available talent Developing and motivating people to reach their fullest potential Retaining talent (and the investments made in them) Minimizing risk and cost on the human side of the business Designing talent management information systems Implementing performance based compensation systems Developing your Employer of Choice Brand Designing coaching and mentoring programs Applying performance management technologies

2011 HireSmart All Rights Reserved.

Finance Driven Business Model

Money Drives Value - Budget Driven!
Focus on tangible assets Valuation of physical and financial assets Use decision criteria for physical capital investments Manage costs Focus on the past (cost measurement) People are treated as expenses and salary costs Focus on present cash flow Focus on fixed budgets and periods Focus on short-term profitability

2011 HireSmart All Rights Reserved.

Human Capital Driven Business Model

People Drive Value - Event Driven!
Focus on tangible and intangible assets Valuation of physical, financial, human and structural assets Use decision criteria for knowledge and human capital investments Process and customer cost focus Focus on the future (value creation measurement) People are treated as expenses and investments Focus on present cash flow and future revenue streams Focus on dynamic budgets and revenue streams Focus on short-term and long-term profitability, addedvalue and sustainability

2011 HireSmart All Rights Reserved.

HCM Glossary
Human Capital Strategy
A business strategy that links the competencies, motivations and satisfactions of its employees directly with drivers of value for customers, which in turn drives profitability for the enterprise. Human Capital decisions are guided by data-driven, results-oriented planning and accountability systems. The keys to a successful HCM strategy are process efficiencies, effective use of information technology and business metrics.

Talent Management
Identifying mission-critical values, competencies and talents needed in the current and future workforce. Clarifying the methods that will be used to recruit, hire, develop, manage and retain a high performing workforce.

Performance Culture
A diverse, results-oriented, high performance workforce, with a performance monitoring system that effectively differentiates between high and low performance and links individual / team / departmental performance to organizational goals and strategic objectives. Compensation is directly linked to performance.

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HCM Glossary
Human Capital
The sum of a company's employees including their skills, competencies, talents, creativity and knowhow. Within each employee is the knowledge the company seeks to utilize.

Intellectual Capital
The sum of a company's ideas, inventions, technologies, knowledge, computer programs, patents, trademarks, designs, methods, systems, processes and publications. When codified, defined, written or committed to media form, the company's intellectual assets can be moved, leased, or sold. When these intellectual assets (IA) are legally protected we call them intellectual property (IP).

Structural Capital
The sum of a company's tangible assets including financial assets, buildings, machinery and equipment, manufacturing facilities, distribution channels and sales outlets.

Customer Capital
The sum of a company's customers including their names, contracts, contact databases, loyalty, satisfaction, references, testimonials and future revenues.

2011 HireSmart All Rights Reserved.

About HireSmart
HireSmart is a human capital management firm that provides consultation and outsourcing for strategic recruiting, talent assessment, selection, development and performance management. We help businesses increase productivity, reduce turnover and improve performance. Our mission is to help clients maximize their Return on Investment in human capital. We help managers lower the costs and risks associated with unproductive hiring decisions including: turnover, low performance, litigation, absenteeism, sabotage and theft. HireSmart provides customized solutions that measure the organizations outcomes for each human capital strategy implemented. We make your staffing process more attractive, convenient, efficient and cost-effective. We facilitate continuous improvements in your talent management systems leading to increased profit per employee.

2011 HireSmart All Rights Reserved.

Contact Info
HireSmart, LLC Human Capital Solutions 4140 E. Baseline Road, Ste. 101-317 Mesa, Arizona 85206 480.503.2945 (phone) 866.296.4277 (fax) neil.clark@hiresmart.com (eMail)

2011 HireSmart All Rights Reserved.