Human Capital Strategy Introduction
According to Strategy “guru”, Michael Porter, Operational Excellence is NOT Strategy. So, what’s the difference? Still according to Porter(*), Operational effectiveness (TQM, 6Sigma, etc.) means “performing similar activities better than rivals perform them.” Strategic positioning, on the other hand means “performing different activities from rivals’ or performing similar activities in different ways“. Different AND Better rather than just Better!
Maybe you have an Organisational Strategy, and you probably have Human Capital Activities (Recruitment, Development, etc.) – but do you have a Human Capital Strategy? The diagram below is from the Human Capital Institute and represents a framework for Human Capital Management.
The diagram demonstrates that the “Activities” of Planning, Acquiring, Engaging, Development, Deploying, Leading and Retaining high performers, is driven and defined by a Human Capital Strategy that, in turn, is driven by the Business Strategy of the organisation.
The diagram on the left depicts the Spectrum of Management. For any organisation there are a number of key “competing” elements – Customers, Investors and Potential Employees. The role of management is to maximise customer experience that will drive maximum ROI for investors, and do this by attracting and retaining people with the rights attitude, knowledge and skill to achieve this.
So the “Spectrum of Management” is contained in the clover-leaf central pattern of People Performance, Organisational Performance and Organisational Value, and driven by the central Data, Systems, and Information.
Finding, engaging and retaining high performers able to drive Organisational Performance that leads to increased Organisational Value is the core responsibility of management today.
Your Human Capital Strategy needs to define how your organisation will do this differently from your competition so that you attract, engage and retain high performers with the skills, knowledge, attitude and culture that meets the needs of the organisation’s Business Strategy.
At TalentAlign we have a product that will help you not only to define and create your IT Human Capital Strategy, but also, to ensure that it is implemented as you planned.
, do is designed to assist our clients create and build a Human Capital Strategy that will help them become the “Employer of Choice” and attract, retain and manage high performers that drive Organisational Effectiveness.
Click here to see how TalentAlign can help with your Human Capital Management.
Click here to see how TalentAlign can help with your Human Capital Planning
Click here to see how TalentAlign can help with your Human Capital Acquiring
Click here to see how TalentAlign can help with your Human Capital Development
Click here to see how TalentAlign can help with your Human Capital Aligning
* Michael Porter, “What is Strategy?”, Harvard Business Review, November-December 1996.