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, we need to think about them as any other organizational asset, which is a good thing. We give considerable 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 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 can impact 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/burning 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 a competitive advantage.

What are the organizational costs and risks 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.

Download Your Copy of the eBook

 

Topics: Human Asset Management

Posted by Joanne Flynn

Joanne Flynn

Joanne T. Flynn heads up the human capital advisory group, Phoenix Strategic Performance, Inc. Previously, she was a Managing Director with Phoenix Group International and was Vice President / Director of Global Learning and Development at Goldman, Sachs for nine years. Joanne works with organizations as they face global growth and competitive challenges. She works with her clients to be both externally focused and internally responsive. With her unique background, she aligns competitive strategic efforts with related internal organizational leadership challenges. With the benefit of her career-long focus, Joanne contributes the unique insight of aligning strategy to internal organizational structure and process. She focuses on human capital relative to strategic initiatives, accelerated business growth, value creation, and business development. Joanne holds a Master of Arts degree in Business Management from the University of Oklahoma. In addition, she holds a double degree major in History and German from St. Elizabeth University, as well as certificates from a variety of leading universities and professional training and development organizations. Joanne has recently published her latest book, Accelerating Business Success, The Human Asset Management Strategy.

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