Strategic Human Capital Insights

Strategic HR: The Advocate of Human Asset Management

This is the third blog in our Human Asset Management series. To view the first two blogs,
click here.

Close up of a man selecting a profile picture on digital screenIf people are your most important asset, what is the impact of HR in your organization?   

Integral to the topic of Human Asset Management is an honest organizational evaluation of the ‘keeper of human capital’, the human resources department. If human capital is truly going to be elevated to the level of human asset management, an organization needs a highly-regarded HR department driving the strategic discussion of people. Embedded in HR’s responsibilities are:

  • Human Asset Risk Management assessing if:
    • employee costs equal required productivity
    • employees are value creators, value sustainers or value eroders
    • employee skills are:
      • appreciating and pacing with strategic initiatives
      • stagnant and maintaining current levels but not growth levels
      • depreciating and creating a negative drag on performance, productivity and profitability
  • Human Asset Complex Consequence Analysis focusing on:
    • near-term, mid-term and long-term time horizons
    • near-term – long-term human capital bench strength resulting in business resiliency
    • near-term – long-term impact on organizational agility – the ability to deploy relevantly-skilled people, on demand
  • Human Asset Impact Analysis on:
    • Competitive Advantage
    • Market Sustainability
    • Growth Acceleration

The Research – The HR / Business Strategy Paradox

If an organization is truly focused on Human Asset Management, a seat in the C-Suite is critical. HR must be involved in the decision-making process, and not informed about decisions after the fact.  Here’s what the research says:

1. The importance of human capital to corporate strategy is NOT reflected by its role in the C-Suite & Boardroom                                                       

22% - Workforce issues drive strategy at the board level

28% - HR advises C-Suite, but does not have a voice in decision making

26% - HR is not consulted at all about business planning

24% - Workforce issues are an afterthought in business planning. HR is consulted after high-level decisions have been made.

Result:  Impact Severe. HR is not in the information loop and lacks insights & status to be truly strategic.  Companies are not making progress toward meeting workforce goals. Business Performance Suffers

2. Regarding HR & Workforce Data – The Gap 

What HR says

  • Only 38% have ample workforce data to understand strengths & potential vulnerabilities from a skills perspective
  • Only 42% know how to extract meaningful insights from the data available to them 

What the C-suite says

  • They think HR is using metrics and benchmarking as a normal part of workforce development strategy.

Result: Impact Severe. The inability to translate the value of workforce excellence into the language of growth and profitability is a BIG problem for HR and the business.


Where is your organization on the Human Asset Management continuum? 


To find out more about an alternative method to evaluate the issues of human asset management, we invite you to watch Part 2 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.

Watch the Video Series >>


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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