Strategic Human Capital Insights

An Innovative & Relevance-Based Approach to Human Asset Management


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. We give a considerable amount of thought to capital equipment and perform a great deal of due diligence when we both purchase and maintain that capital equipment. Do we put that much effort into our hiring and developing our human assets?

Let’s compare and contrast a piece of capital equipment diligence relative to human asset management.

Here’s how companies often evaluate the decision to purchase and maintain a valued piece of capital equipment compared to how companies manage and retain human assets:

Human Asset Management-2.png


How do these two approaches compare and contrast? If we look at human capital through the human asset and risk management lens, below are the big questions to ask when evaluating your people and your teams:

  • 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:
Consider that Unless your human assets are in a state of continual appreciation the following will be the potential impacts to your organization.

  1. Your growth initiatives will stall and not accelerate or optimize.
  1. Your productivity issues will have obsolescence built into your strategy impacting growth acceleration.
  1. You will be wearing out your human assets, compromising organizational agility and business resilience, and impacting the ability to grow and optimize. 
  1. You may be funding prolonged underperformance, impacting productivity, capacity and profitability. 
  1. 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 is current, trending & static
  • Identify the cost structure & the real cost of your people by productivity percentages against 100%:

    Human Asset Management 2.png

  • 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

If you're interested in learning more, download our human asset management strategy eBook and discover the critical steps to developing a robust strategy that focuses on organization development and human assets aligned to key strategic initiatives.

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Topics: Human Asset Management

Posted by Joanne Flynn

Joanne Flynn

In 2014, Joanne Flynn founded Phoenix Strategic Performance, a strategic human capital advisory firm. Prior to this, Joanne was Vice President at Goldman Sachs for 10 years responsible for global learning and development. She then led the consulting practice of Phoenix Group International, a consulting firm specializing in global financial service. Joanne is now taking best practices from the people-intensive financial services industry and adapting those best practices to startup and growth businesses. She is a thought leader in the areas of strategic organizational alignment, organizational agility, human capital gap analysis, leadership challenges for the new workplace and transformation leadership.

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