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Human Capital

Human Capital

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Human Capital

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  1. Human Capital

  2. Human Capital (HC) TRACC HC Human Capital The HC TRACC will clarify the roles and responsibilities of HR and line management in order to manage and develop human capital effectively, whilst ensuring that HR play a role in supporting the organisation in its improvement journey. Human Capital is a company's most important asset and as such the HR department cannot be solely responsible for their development. To obtain optimum performance from people, line management must take active responsibility for employees’ growth and development. HC TRACC - Enabling TRACC

  3. Operations TRACC Suite House of Excellence V5.1 Operations TRACC Suite Autonomous Maintenance Asset Care Set-up Time Reduction(Manufacturing Flexibility) Quality Environmental Sustainability Administrative Excellence Health and Safety Teamwork 5S Visual Management Focused Improvement Human Capital Leading and Managing Change HC TRACC - Enabling TRACC

  4. V3 Supply Chain TRACC Suite Supply Chain TRACC Suite House of Excellence Operations TRACC(a suite of Operations TRACCs) Warehouse Management Transportation Management Product Portfolio Management Transactional Excellence Procurement Demand Planning Integrated Business Planning Supply Planning Sales & OperationsPlanning Supply Chain Alignment Human Capital Leading and Managing Change HC TRACC - Enabling TRACC

  5. HC TRACC Overview 1 2 The services an HR department needs to provide The roles and responsibilitiesof line management in relation to people development HC TRACC - Enabling TRACC The Human Capital TRACC focuses on what world class organisations need to do to manage their human resources effectively It addresses both: 5

  6. HC TRACC: What are the Benefits • Create an understanding of HR’s role throughout the various stages of organisational maturity 1 Adopt a bird’s eye view of HR’s interlinked functions including planning, strategy, measurement and implementation. 2 • Articulate line management’s role in managing and developing human capital effectively 3 This TRACC will helpyou to: • Put various HR basics in place before introducing sophisticated systems 4 • Understand HR and Line management’s pivotal role in the organisation’s continuous improvement best practices 5 • Equip HR to hand over core employee development to line managers through a structured development process 6 • Develop HR to play a more strategic role in the business by aligning their outputs to the organisation’s world class journey 7 HC TRACC - Enabling TRACC 6

  7. Developments in Human Resources • HR as a discipline has changed hugely in the last five to ten years and means that HR leaders have to be exceptionally adept at anticipating the future trends. HR leaders will be expected to know: What value-adding services does HR need to focus on — both at present and in the future? How should HRservices be delivered? What HR capabilitiesneed to be in place? How are HR capabilities transferred to line management? How is a high-performance culture sustained? HC TRACC - Enabling TRACC 7

  8. Value Adding Focus Areas 1 2 • Core HR drivers • Workforce optimisation • Knowledge accessibility • Leadership practices • Organisational learning capacity • Employee engagement • New reputational and strategic areas • Codes of conduct and ethics • Health and safety • Environmental sustainability • Supplier malpractices or non-conformances • Mergers and acquisitions • Performance improvement initiatives New HR Competencies Speak the language of business Analysis of sound data Profit/loss and balance sheets Knowledge of local andglobal trends HC TRACC - Enabling TRACC

  9. Delivery of Services Transactional data Shared service centres On-line services Specialist HR information Centre of expertise HR advice Generalist HR data In-house business partners Line management support # HC TRACC - Enabling TRACC

  10. HR Capability • Technical Competencies • (What HR services) • All relevant HR services • Process Competencies • (How they are delivered) • Transaction andcommunication • Strategy and technology • Internal Competencies • (Specific to the HR function) • Data analysis • Strategic planning • Supply and management • Formal problem-solving HC TRACC - Enabling TRACC

  11. Line Management Capabilities HC TRACC - Enabling TRACC • Managers will get optimal performance from their people if they takeresponsibility for their growth and development • Challenges: • Managers lack competencies • Managers too busy • Poor handover from HR to line managers • HR personnel reluctant to give up knowledge • Managers lack the will 11

  12. Driving High Performance • Performance must be driven from the top by a leadership team thatrecognises the importance of spearheading change • HR can actively support the development of a high-performingorganisation by doing the following: • Monitoring and measuring the performance management process • Participating as a key member of the leadership team • Reviewing communication processes • Identifying new and innovative ways to accomplish work • Ensuring all policies, practices and processes acquire and retain talent • Designing development processes to cultivate inspirational leaders • Continually reviewing systems and practices • Focusing learning and development on maintaining the required culture • Fostering the development of change management capability at all relevant levels • Developing, implementing and overseeing a comprehensive knowledge sharing platform HC TRACC - Enabling TRACC 12

  13. Implementing the HC TRACC Executive Management Team SCA Project Team SCA Implementation Team Exec Leadership Committee: Sourcingand Procurement Exec Leadership Committee: Planning Exec Leadership Committee: In-houseManufacturing Exec Leadership Committee: Distribution and Logistics Exec Leadership Committee: Corporate/Other Services PROC ITF DP ITF SSC SSC OFITF HCITF S&OP ITF ITF ITF WMITF TE ITF SP ITF ITF ITF TMITF HC TRACC - Enabling TRACC 13

  14. HC TRACC Themes HR Strategyor Structure Remuneration and Reward 1 5 Organisational Climate LabourRelations EmployeeWell-being Learning and Development 2 6 9 4 Organisational Design Performance Management Talent Management Knowledge Management 3 7 8 10 HC TRACC - Enabling TRACC 14

  15. HC TRACC Theme descriptors HR Strategyor Structure 1 The focus is on establishing strategies and structures which encourage people development, align to budgets and provide support. Ongoing HR development and support, with HR functions becoming decentralised as the organisation progresses. Organisational Climate The focus is on the organisation progressing from an unstructured, ad-hoc environment to one where values are expressed and are highly visible and reinforced throughout the organisation. Change is well managed and the organisation is globally recognised in terms of value/performance alignment. 2 Organisational Design 3 The organisation moves from being unstructured and informal to implementing procedures and specified job roles. Staff are clear about their roles and there is greater efficiency within all the well established organisational structures. LabourRelations Initially the organisation is vulnerable to labour-related risks as there are no formal policies and procedures in place. Structures begin to form and parameters are established for dealing with labour-related issues. HR continually benchmark's the organisations labour relations' strategy against global indicators. 4 Remuneration and Reward 5 Remuneration is decided ad-hoc, basic salary and benefit structures are in place. This progresses to a remuneration based on job grade system, and recognition and rewards supporting performance improvements are in place. These systems are benchmarked globally. HC TRACC - Enabling TRACC 15

  16. HC TRACC Theme descriptors EmployeeWell-being Employee wellbeing initiatives are poorly supported initially. It is recognised that employee wellbeing affects production and a Employee Assistance Programme (EAP) is developed initially focussing on employee health and well-being issues. Employees are supported and the organisation is a great example to the wider community. 6 Performance Management Team and individual performance is not managed, and exceptional performance is not recognised. The organisation realises the importance of this practice and a formal Performance Management (PM) system is effectively implemented and becomes widely accepted as the performance culture moves from compliance to ownership and self-management. 7 Talent Management 8 Initially there is no formal recruitment process and High Performing Individuals (HPIs) have not been identified. Policies and procedures are developed and HPIs are identified and managed effectively. Recruitment and diversity targets are established, and all targets (including ROI) are achieved. Learning and Development Leadership attend ad-hoc training and technical skills training is provided 'as needed'. This develops to the organisation creating a training plan and a learning and developing strategy which gets reviewed against the HR strategy to ensure alignment. Ultimately, the organisation's learning and development knowledge management systems are fully integrated and coaching and mentoring become a way of life. 9 Knowledge Management 10 This theme covers the development of a knowledge management system in the organisation with communities of practice and knowledge repositories through to a fully integrated system which incorporates learning and development, innovation and real-time knowledge transfers HC TRACC - Enabling TRACC 16

  17. HC TRACC Stages Anticipating the Future Personnel Administration 5 1 4 2 Stages 3 Value Adding Personnel Development Empowerment HC TRACC - Enabling TRACC 17

  18. What is Human Capital? TRACC Stages 5 5 1 1 4 4 2 2 Stage Stage 3 3 Personnel Administration There is no clear HR strategy in place and HR department is focussed on personnel administration and transactional issues. People Development At this stage there will be a growing awareness of the importance of the organisations employees and the role of HR role in helping to secure, develop and retain talent. HC TRACC - Enabling TRACC 18

  19. What is Human Capital? TRACC Stages 5 5 5 1 1 1 Empowerment During this stage HR begins to transfer capability for people development issues to the line with a major emphasis on coaching and mentoring. 4 4 4 2 2 2 Stage Stage Stage 3 3 3 Value Adding At Stage 4 the emphasis is on measuring and demonstrating the 'value add' of HR within the organisation through sound practices, measurement and benchmarking. Anticipating the Future There is now full integration of the HR strategy with the strategy of the business as a whole. HR is seen to add significant value to high level business decision making. HC TRACC - Enabling TRACC 19

  20. TRACC Performance-Practice Philosophy Embedding best practices sustains performance. World class organisations drive performance improvement by consistently standardising practices and continuously improving these standards and developing the competency of their people. WORLD CLASS Operational Excellence systems must show results by improving hard KPIsor they will lose support before they are embedded in the culture Can't go the distance Contenders Defining what 'good' looks like and monitoring best practice implementation ensures a focus not on current performance, but on long-term, sustainable market-beating performance Y = Performance Back of the pack Promising Stragglers X = Practices 1 2 3 4 5 20