Developing Human Capital 1 © Andrew Mayo 2008 Andrew Mayo, Professor of Human Capital at Middlesex University,President of the HR Society and Director,

Developing Human CapitalDeveloping Human Capital 1 © Andrew Mayo 2008

Andrew Mayo, Professor of Human Capital atMiddlesex University,President of the HR Society

andDirector, Mayo Learning International Ltd

Melbourne, December 2008

Creating (or renewing) a Business Driven L&D Strategy


AGENDAAGENDA

• Expectations and Experiences

• A Systematic Framework

• The “General” Drivers of our Strategy

• “Current” initiatives needing support

• Processes and Tools

• Implementation


The truth is….

• Nothing can be achieved without people – the right people at the right time with the right skills in the right place

• Every problem in organisations is ultimately due to an issue with people – their capability, their motivation and the way they are organised

• HR/L&D are (should be) the professionals who work in partnership with managers to maximise

achievement and minimise problems in the business


STRATEGY- a much overused word!STRATEGY- a much overused word!

Its about:

• what we should do, and why

• what we should not do, and why

Strategy is about choices of direction, which lead to policies, processes and plans

and thenand then::• how we will deliver


BY “WHAT?” WE MEAN…….BY “WHAT?” WE MEAN…….

Policies, programmes and processes for

• the culture for learning

• the enhancement of knowledge and skills

• the development of potential and careers

• the personal development of employees


Populations

Programmes- ongoing

- customised

Processesand tools

BELIEFS AND

PRINCIPLES

POLICIES

A FRAMEWORK FOR L&D STRATEGYA FRAMEWORK FOR L&D STRATEGY


A LEARNING AND DEVELOPMENT A LEARNING AND DEVELOPMENT STRATEGYSTRATEGY

Beliefs and Principles

Policies

Processes

ProgrammesSuccess indicators


POSSIBLE PURPOSES OF AN HRD POSSIBLE PURPOSES OF AN HRD STRATEGYSTRATEGY

• Required as part of the Strategic Planning Process

• Communication- to top management

- to line managers

- to all staff

• Managing Expectations * Visibility/Credibility

• Consultations with Management * External Publicity

• Meeting External Standards * HRD Planning

• Approval/Endorsement * Integration Across Units

• Influencing change * To establish competitive

advantage


TARGET AUDIENCES FOR AN HRD TARGET AUDIENCES FOR AN HRD STRATEGYSTRATEGY

• Chief Executive• HR Director “approval” & “resources”• Line Managers “developing people”

“meeting business goals”• Employees• HRD Staff• TU/Staff representatives• External People - Committees

- IIP- Fund Providers- Political overseers


WHERE DO WE START FROM?WHERE DO WE START FROM?

We may not have a strategy written down, butunless we are starting a “green field” we do have one – it is what we are currently doing and how we deliver it

So our discussion is about “reviewing and renewing”as much as about “creating”.


The Organisationfor which we

need a strategy

What theorganisationis trying to

achieve as a business

External constraintsimpacting us

Internal issuesto address

Group Policies and Professionalbest practice

A SUMMARY OF THE INFLUENCES ON HR STRATEGYA SUMMARY OF THE INFLUENCES ON HR STRATEGY

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44


““PESTLE” ANALYSISPESTLE” ANALYSIS

FACTORS IMPLICATIONS FOR L&D

Political

Economic

Social

Technological

Legal

Environmental


““SWOT” ANALYSISSWOT” ANALYSIS

STRENGTHS WEAKNESSES

OPPORTUNITIES THREATS


HOW BUSINESS STRATEGY DRIVES HR/HRD STRATEGY HOW BUSINESS STRATEGY DRIVES HR/HRD STRATEGY

Organisational strategy and philosophy

Mediumto

long term Mission, vision,values, principles,long term goals

BUSINESS DIRECTION

DELIVERINGTHROUGH EFFECTIVE

ORGANISATION

Organisationaland cultural

strategy Structure, systems andprocesses, measures,

behaviours

AND THROUGH MANAGING

HUMAN CAPITAL

People Management and Development

strategy Policies and processes

for people management/ development

Short termgoals

Remedial

Operating strategiesobjectives and targets

Operating problems,deviations and issues

Organisation and resourcing changes

Change projects

Supporting HR/HRD initiatives

Supporting HR/HRD Initiatives

Delivering the Strategy

Nothing is achieved without people; + every problem has people behind it!


HRD STRATEGY

Values and Beliefs in People Development

“MEDIUM/LONG TERM GOALS”

Mission, Vision& Long Term Goals

MaintainingCore Competences

The externalenvironment

The OD Strategy

THE DRIVERS OF HRD STRATEGYTHE DRIVERS OF HRD STRATEGY


TO BE OR NOT TO BE……...TO BE OR NOT TO BE……...

• Investors in people?

• A learning organisation?

• Promoting self management of learning and self ownership of career progress?

• A developer of internal talent and the potential of all employees?

• A “knowledge sharing” organisation?


SMITH AND NEPHEW: “MANAGEMENT PRINCIPLES”SMITH AND NEPHEW: “MANAGEMENT PRINCIPLES”Our company will succeed through its peopleOur published values,PERFORMANCE INNOVATION TRUSTset challenging standards for the way we manage at every level and in every part of the Smith and Nephew world.

Management at all levels have the responsibility for defining and implementing policies,programmes and training to achieve these standards. In so doing however all managers in S&N subscribe to a company-wide belief that our employees are entitled to expect:

• clearly communicated goals and performance standards• an open constructive relationship with managers and supervisors• the training, information and authority needed to do a good job• fair recognition and reward based on performance• equality of opportunity based on merit• encouragement to learn and progress• respect and dignity at all times• encouragement to participate fully in the quest for continuous improvement Group Executive Committee July 2001


TO BE OR NOT TO BE……...TO BE OR NOT TO BE……...

Do the exercise “What We Believe In”

- share and discuss on your tables


Core CapabilitiesCore Capabilities• Essential knowledge and skills needed to win at our

business

• Capabilities which differentiate us from competition Build them to be:

- Valuable (in relation to the market)- Rare- Hard to imitate- Hard to substitute- Owned by us

We need to continuously acquire and develop these


THE FRAMEWORK OF POLICIES IN HRDTHE FRAMEWORK OF POLICIES IN HRDPolicies may cover ALL employees and/or be for specific groups

* Central control vs local discretion; authority levels

* Education/accreditation

* Approach to national initiatives

* Policy towards non -core staff

* Induction, mentoring, performance reviews & other processes

* “Mandatory” requirements for “training”

* Application of diversity requirements


££ reduced coststhrough more efficient resourcing

££ Higherrevenues through greater competence

productivity

motivation andcommitment

High levels ofexpertise

talent retention

Successionplanning

personalpotentialanalysis

Organisationalhealthaudit

Organisational

continuity

Completeclassificationof potential

Completedictionary

of capability

Role profiling

Effectiveresourcing

Performancemanagement

organisationalmapping

personal profiling

personal career

planning

Individual

continuity

Processes and tools linked togetherProcesses and tools linked together


HRD PROCESSES and TOOLSHRD PROCESSES and TOOLS

A learning culture

Growing knowledgeand skills

Developing potentialand careers

Personal developmentof employees


“CAPABILITY”the core of a person’s asset value


Measuring “Know-how” – levels of expertiseMeasuring “Know-how” – levels of expertise

A

BB

CC

DD

EE

= Aware

= Basic

= Competent

= Distinguished

= Expert


MEASURING CAPABILITYMEASURING CAPABILITY

PERSONAL SKILLS: 360 feedback +ve and -ve behaviours

NETWORK/CONTACTS: The proportion of customers known personally

# prospects we have based on a personal relationship # of competitors with whom we have a personal link # of relevant officials known# of experts outside the organisation who are known# of potential employees who are known.


MEASURING CAPABILITYMEASURING CAPABILITY

EXPERIENCE:

Time spent Scope and stretch Parameters of size. Special circumstances

VALUES/ATTITUDES: • 360 feedback


EXAMPLES OF PROGRAMMES FOR EXAMPLES OF PROGRAMMES FOR SUPPORTING THE ‘UMBRELLA’ STRATEGYSUPPORTING THE ‘UMBRELLA’ STRATEGY


EXAMPLES OF PROGRAMMES FOR EXAMPLES OF PROGRAMMES FOR SUPPORTING THE ‘UMBRELLA’ STRATEGYSUPPORTING THE ‘UMBRELLA’ STRATEGY

Your own examples


HRD STRATEGY




“THIS YEAR’SBUSINESS GOALS”

Business Strategies and goals Organisation & manpower plans

Change initiatives



The OD Strategy

A MODEL FOR BUILDING HRD STRATEGYA MODEL FOR BUILDING HRD STRATEGY


HRD STRATEGY






Change initiatives

“PROBLEMS/ISSUES TO BE ADDRESSED”

Operational Issues

Individual needs

Team needs

External Changes



The OD Strategy



FROM BUSINESS GOALS TO LEARNING GOALS IN FROM BUSINESS GOALS TO LEARNING GOALS IN EIGHT STEPSEIGHT STEPS

What is the business goal What problem are we are trying to achieve? we trying to solve?

What are the milestones, What is the quantified

If any, en route to the goal? gap to be closed to

solve the problem?

What will influence success What are the possible in achieving the milestones? causes of the problem?

1

2


Who is involved in achieving the milestone or in the causes of the problem?

How does their capability need to increase and to what level?

Do we need diagnostic tools to measure the capability?

What therefore are the capability gaps to be closed? (= the learning goal)

Are the people involved able to make the capability change?

Do we have the time to make the capability changes? or should we recruit?

3

4

5

6

7

8


Choose one of the major “strategy drivers” in your part of Centrica. Working in pairs, Person A describes thedriver to Person B, who applies the eight steps as an L&Dconsultant.

Develop possible learning objectives as a result.

When completed, swap roles and repeat. At the end of the exercise note the learning points for you personally.

FROM BUSINESS GOALS TO LEARNING GOALSFROM BUSINESS GOALS TO LEARNING GOALS


Costs/difficulty of implementationHigh

High

Impact

PRIORITISATION OF DEMANDSPRIORITISATION OF DEMANDS

First priorities

Bottom of the in-tray

Second Priority-needing project

management

Quick wins

Low


HRD STRATEGY




“PROFESSIONAL CHOICES”



Change initiatives

“PROBLEMS/ISSUES TO BE ADDRESSED”

Operational Issues

Individual needs

Team needs

External Changes



The OD Strategy

•Approach to Learning•Populations•Methodologies•Resources and Funding•Marketing and Communication•Monitoring



STRATEGIC CHOICES IN HRD MANAGEMENTSTRATEGIC CHOICES IN HRD MANAGEMENTAPPROACHES: Training delivery vs learning consultancy• On-the-job learning - whose responsibility?• Managerial/ Individual / HRD roles in the learning process• Central control vs distributed learning activities• Building training schedules• Focus on individual vs team and organisational learning • Use of technology

RESOURCES: Internal/external; organisation, roles and skills;funding, pricing and facilities; partnerships

MEASURES OF SUCCESS: Targets, strategic and operational

MARKETING AND COMMUNICATION; media, sponsorship, credibility, gaining support


HRD FUNCTION

“

““THE WHEEL of PEOPLE DEVELOPMENT THE WHEEL of PEOPLE DEVELOPMENT ””

Seniormanagement

learnersmanagers

Learnercolleagues

subordinatessuppliers

• roles in the learning process?

• CapabilitiesCapabilities needed?needed?


ASSESSMENT OF WHERE WE ASSESSMENT OF WHERE WE AREARE

ON OUR OWN ON OUR OWN STRATEGIESSTRATEGIES

Please complete the strategy assessmentPlease complete the strategy assessmentchecklist, and define the gaps to be filledchecklist, and define the gaps to be filled


In a new role, when the MD was asked for my annual objectives he said “I wouldn’t have hired you if I thoughtyou didn’t know what needs to be done professionally. But Ishall judge you by whether our colleagues find you helpfulin achieving their objectives” .

Some years later, at the end of my annual appraisal with the Divisional President, he said “I sometimes have theimpression that your own agenda is more important than mine………”


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Documents

Developing Human Capital 1 © Andrew Mayo 2008 Andrew Mayo, Professor of Human Capital at Middlesex University,President of the HR Society and Director,