Seven elements of Human Capital Strategy - Part 2
Human Capital Elements and how we can make them work together!
In the second blog we demonstrated the negative results from not having a Company Human Capital Strategy and Plan. Last week we introduced a short description of the seven elements of a Human Capital Strategy and Plan. Each element requires a strategy and plan. What are the goals and how will that element be accomplished?
Prior to implementation, each individual element’s strategy and plan must be reviewed against the strategies and plans of the other elements to confirm that they are fully integrated and cohesive with each other. Any inconsistencies or conflicts must be eliminated to allow the significant synergies to engage.
This is no small feat given that all of the above must also be done with an eye to the business plan, company culture, ownership philosophies and characteristics of target employees. The strategies and plans must be custom built for your company. When the plan is correctly constructed, the synergies and Return on Investment for the time and brain power spent are dramatic!!
In my career, each new VP of HR opportunity that I accepted brought another example of how not to do it. The Company would be implementing something in one element that was either nullifying or at least greatly reducing the benefits of what was being implemented in another element. The organization was spending money in two areas and either getting nothing for their investment or dramatically less then expected. The ROI was negative!!
The most obvious example of this is a badly conceived “Attract” strategy. It affects every other element in a negative way. I am sure everyone reading this blog could give numerous examples of how that has happened in their own company! (Sorry if that resurrected some painful memories!!)
More examples of Element conflict next week.
Clark Ingram, MBA, SPHR, CEBS, CPCU is the principal of People Profits which is a financially oriented Human Capital Strategy and Planning firm based in the OKC metro area. www.PeopleProfits.com. ©2012 People Profits, LLC