Human Asset Management Strategy: A New Approach

A critical question for today’s leadership: Are your employees appreciating in value, maintaining their value, or declining in value?

Businesses consistently refer to employees as “their most valuable assets.” However, when we look at how organizations view employees, many fail to deliver on that mantra. Employee management continues to be based on models developed in the late 20th century. Along with outdated employee management models, we see Human Resources struggle to transition from organizational operations, support, and compliance to a true strategic partner role.

In that role, Human Resources must drive Human Asset Management Strategy (HAMS) to encourage leaders to shift their approach to the critical element of success - employees.

Is Your Leadership Up to the Task?

Answer these six strategic leadership questions:

1. Can your leadership truly lead in today’s business environment?

2. In the VUCA World (Volatile, Uncertain, Complex, and Ambiguous), what is leadership’s role?

3. Do your leaders possess the top attributes required to excel in today’s world?

4. Are you developing the skills in your organization to address these issues?

5. Are you building the bench strength for innovation, continuity, and sustainability?

6. Would you rehire your current team of leaders and employees?

Through the last economic downturn, organizational challenges forced many companies to focus on the size of their workforce. Typically, these traditional strategies managed the size and composition of the workforce, which included: cost-cutting/rightsizing, LIFO reductions based on employees’ level and tenure; selections based on organizational politics; and increased reliance on contractors. While these tactical strategies provided short-term relief, what was the long-term organizational impact of these decisions? HAMS approaches this issue differently. It considers the key attributes required for success by determining that key functions can be performed without “burning out” the remaining employees while ensuring that the critical skills are in place for continued, sustainable, long-term growth.

How Do You Develop a Robust HAMS?

What is the key to developing a robust HAMS? Several steps will begin the transition to strategic human resources focusing on organization development aligned to key strategic initiatives. Implement an approach that includes HAMS in your organization’s strategic planning. Evaluate contributors as value creators or value maintainers. Identify staff that is no longer robust contributors but have become value eroders. 

We invite you to download our latest eBook: "Human Asset Management Strategy: A New Approach," which provides a multifunctional operational guide to human capital capacity planning. You can also schedule a complimentary assessment with a member of our team.