This is the second blog in our Human Asset Management series. To view the first blog, click here.
What is Human Asset Management? If we say that people are our most important asset, then we need to think about them as any other organizational asset, and that’s a good thing. Let’s compare and contrast a piece of capital equipment diligence relative to human asset management.
Here’s how we would evaluate the decision to both purchase and maintain a valued piece of capital equipment and how we manage human assets these days:
How do these two approaches compare and contrast? If we look at human assets through the human asset and risk management lens, below are the big questions to ask:
- Are your Human Assets appreciating, static or depreciating assets?
- Are your Human Assets aligned with present-to-future initiatives?
- Can your organization predictably forecast human asset capability?
- What are the near and long-term organizational risks when human assets are mismanaged?
- Do your people have the relevant and robust total skill set to do the job today and tomorrow?
Human Asset Impact Analysis: Unless your human assets are in a state of continual appreciation:
- Your growth initiatives will stall and not accelerate or optimize.
- Your productivity issues will have obsolescence built into your strategy impacting growth acceleration.
- You will be wearing out your human assets, compromising organizational agility and business resilience, and impacting the ability to grow and optimize.
- You may be funding prolonged underperformance, impacting productivity, capacity and profitability.
- You may be compromising the ability to maximize strategic opportunities and create competitive advantage.
What are the organizational costs and risks that are impacted by static or depreciating human assets?
- Identify – who’s current, trending & static
- Identify the cost structure & the real cost of your people by productivity percentages against 100%.
- Identify the risk, cost and productivity drain:
- When top producers (appreciating assets) leave and under producers (depreciating assets) stay
- When negative organizational agility and resiliency impact business initiatives
In our next blog, we will show you a new method to evaluate your people though an asset management lens.
To find out more about an alternative method to evaluate the issues of human asset management, we invite you to watch Part 1 of our video series: "The Impact of Human Capital on Your Organization", or you can also schedule a complimentary assessment with a member of our team.