Recent workshop presentation including exercises on talent management and employee engagement introducing the Management Pathfinder case studies

1. Employee
Engagement
Nicholas J Higgins, DrHCMI MCMI MSc Fin (LBS) MBA (OBS)
CEO, VaLUENTiS Ltd & Dean, International
School of Human Capital Management (‘ISHCM’)

2. This version is for print distribution and certain slides from the workshop presentation
have been omitted or amended.
All rights reserved. No part of this presentation may be reproduced, translated, stored in a
retrieval system or transmitted in any form or by any means, electronic, mechanical,
photocopying, microfilming recording or otherwise without the express permission of the
author.
Please e-mail nicholas.higgins@valuentis.com regarding any matters of reproduction/
organisational distribution.
© 2013

3. ‘Celebrating ten years
2003-13’

4. Our mission
“As evidence-based management practitioners, our
purpose is to enhance effective people management
(and its impact on productivity/performance) in
organisations, whilst enabling greater individual
managerial professionalism.”

5. Recently published!

7. Talent
Management

9. Part I
Baselines…

10. The traditional view of employee engagement
contributing to improved organisational
performance...
Higher
employee
engagement
Higher
productivity
Higher
organisation
performance

11. “Employee
engagement is an
‘outcome-based’
concept.
It is the term used to
describe the degree to
which employees can
be ascribed as ‘aligned’
and ‘committed’ to an
organisation such that
they are at their most
productive.”
VaLUENTiS International School of HCM 2005

12. Human capital management practice and
employee engagement contributing to improved
organisational performance (‘POP’ system)
More effective
human capital
management
Higher
productivity
Higher
employee
engagement
Higher
organisation
performance

13. “Human Capital
Management is the
term which is used to
describe an
organisation’s multidisciplined and
integrated approach to
optimising the
capabilities and
performance of its
management and
employees.”
VaLUENTiS International School of HCM 2005

14. Impaired Employee Engagement:
Impact on individual and team productivity/performance
Sub-optimal performance,
i.e. less than achievable
Or
Sub-optimal costs,
i.e. higher than necessary
Or
Both

15. Organisations and employee engagement:
The ‘4-ball’ practice model
‘We don’t...’
‘It’s all about PR…’
Play down
Play act
‘At least we audit/
benchmark...’
Play safe
‘We do it…’
Play make
The four progressive states
of employee engagement
embeddedness in
organisations

16. The ‘Six Pillars’…
1. Grounded understanding of Employee Engagement
2. Working definition of Employee Engagement
3. Measurement wisdom
4. Actioning infrastructure
EE PLAYBOOK
DELETE
5. Dynamic EE-Performance ‘playbook’
6. Competent leadership/management

17. The ‘4-ball’ Employee Engagement reality matrix
‘PLAY DOWN’
Pillar
‘PLAY ACT’
‘PLAY SAFE’
‘PLAY MAKE’
Little.
Limited.
Mostly ephemeral in nature.
Exists in pockets with
variation in line
management.
Good working knowledge
embedded across
organisation.
Maybe borrowed with
internalisation or adapted
after some organisational
focus.
Distributed ‘ownership’,
whether borrowed, adapted
or created.
I
Grounded
understanding of
employee engagement
II
Working definition of
employee engagement
No definition in use.
Most likely borrowed
without any real ownership,
or ‘false’ ownership.
III
Measurement wisdom
Limited to absenteeism
metrics, employee surveys
seen as event driven if done.
Probably undertaking
surveys but with no valid
construct; response rate/PR
main focus.
Will do measurement basics,
even to the extent of
engagement index etc.
Tick box is main focus.
People management
evaluation/measurement
seen as ‘core’ on a par with
CRM , finance etc.
IV
Actioning
Infrastructure
Probably in the form of basic
training/management
courses.
Probably in the form of basic
management courses. Most
likely carry out some form of
branded programme.
Will have a number of
actioning elements in place
but not necessarily joined
up.
Will have necessary ‘toolkit’
to hand with ongoing
programmes to suit
organisation focus.
Does not exist.
May have something
articulated on ‘strategies’.
Most likely collection of
irrelevant case studies.
Playbook in the form of
‘manager manual’ or on-line
knowledge-share. Still being
developed.
Easy access in different e/physical formats at
different levels. Signals
‘embedded’ intent.
Will have varied mix of
skilled people managers.
Existing good performers
more through luck.
Will have varied mix of
skilled people managers.
Existing good performers
more through luck.
Will have varied mix of
skilled people managers but
level of competency higher
than Play-Act organisations.
Cohort of well-trained
people managers exists with
talent pools. Regular
evaluation/reinforcement.
NEGATIVE
NEGATIVE
NEUTRAL
POSITIVE
V
VI
EE-Performance
Playbook
Competent leadership/
management
Overall value to organisation
performance/competitive
advantage
17

19. VaLUENTiS 5D Employee Engagement
Framework
Line-of-Sight
Work Environment
Objectives awareness
Cultural elements
Behaviour alignment
Role ‘fit’
Performance management
Feedback
Team dynamics
Organisation operating
culture
Capability
Remuneration equity
Bonus/incentives
Benefits
Role equity
Recognition
Promotional aspects
Reward (equity)
© VaLUENTiS Ltd 2002-13
Communication
Resources
Local management
Physical environment
Organisation design
Performance/talent
management
‘Corporate’ Leadership
Communication
Decision rights
Work values
Trust
Career progression
Competencies
Succession planning
Job/ Role architecture
Training/ Learning
Coaching/ Mentoring
Development

20. The concept of Employee Engagement:
A synthesis of antecedent theories and empirical evidence with human capital
management practice related to organisation performance – 100 years in the making
•Leadership theory
•Decision-making theory
•Organisational ‘fit’ theory
•Organisation performance &
measurement*
•High performance work systems
•Conflict theory
•Commitment theory
•Trust theory
•Goal setting and task theory
•Teams theory
•Group theory
Human Capital Management practice/systems:
•Talent management
•Expectancy theory
•Equity (justice) theory
•Performance management
•Motivation theory
•Reward & recognition
•Job satisfaction
Immediate
Team
Individual
•Needs theory
•Trait theory
•Employer brand
Wider
Group
Organisation
•Human capital retention
•Resourcing & selection
•Training & Development
•Social cognitive/
self efficacy theory
•Workforce diversity
•Psychological contract
•Leadership
•Organisation Citizenship Behaviour
•Organisation design
•Taylor - Scientific management
•Emotional Intelligence
•Organisation communication
•Munsterberg - Industrial psychology
•Behaviourism
•Organisation culture
•Fayol - Principles of management
•Cognitive dissonance
•Learning theory
•Follett - Management relations/integration
•Wellbeing/Burnout
•Other I/O psychology
contributions
•Mayo/Hawthorne studies
•Lewin (MIT) - group dynamics/behaviour
•Likert – Management system/measurement scale
•Tavistock – Socio-technical systems
•McGregor Theory X/Y
•Hertzberg – Two factor theory
•Drucker – Practice of management
Source: The antecedents of Employee Engagement, Nicholas J Higgins - VaLUENTiS technical paper 2003
•Kahn – Personal engagement

21. The concept of Employee Engagement:
A synthesis of antecedent theories and empirical evidence with human capital
management practice related to organisation performance – 100 years in the making
•Leadership theory
•Decision-making theory
•Organisational ‘fit’ theory
•Organisation performance &
measurement*
•High performance work systems
•Conflict theory
•Commitment theory
•Trust theory
•Goal setting and task theory
•Teams theory
•Group theory
Human Capital Management practice/systems:
•Talent management
•Expectancy theory
•Equity (justice) theory
•Performance management
•Motivation theory
•Reward & recognition
•Job satisfaction
Immediate
Team
Individual
•Needs theory
•Trait theory
•Employer brand
Wider
Group
Organisation
•Human capital retention
•Resourcing & selection
•Training & Development
•Social cognitive/
self efficacy theory
•Workforce diversity
•Psychological contract
•Leadership
•Organisation Citizenship Behaviour
•Organisation design
•Taylor - Scientific management
•Emotional Intelligence
•Organisation communication
•Munsterberg - Industrial psychology
•Behaviourism
•Organisation culture
•Fayol - Principles of management
•Cognitive dissonance
•Learning theory
•Follett - Management relations/integration
•Wellbeing/Burnout
•Other I/O psychology
contributions
•Mayo/Hawthorne studies
•Lewin (MIT) - group dynamics/behaviour
•Likert – Management system/measurement scale
•Tavistock – Socio-technical systems
•McGregor Theory X/Y
•Hertzberg – Two factor theory
•Drucker – Practice of management
Source: The antecedents of Employee Engagement, Nicholas J Higgins - VaLUENTiS technical paper 2003
•Kahn – Personal engagement

22. ‘Management
Pathfinder®’

23. Management Pathfinder ‘one-line descriptors’
[Reference]
Leadership [F1]
The perceived effectiveness of overall management within the organisation
collectively at each level
Employer Brand [E1]
The degree to which the organisation has an identifiable brand and its
contribution/effectiveness in related organisational areas
Talent Management [F2]
The effectiveness of current organisational approaches to talent, its scope and its
management
Diversity [E2]
The focus and effectiveness of diversity of the workforce and diversity policies
within the organisation
Performance Orientation [F3]
The degree to which the organisation is viewed as effective in terms of focus and
actions re performance related areas
Learning & Development [E3]
The degree to which current approaches and application of training, learning and
development are effective
Resourcing [V1]
The effectiveness of current resourcing policies and processes/activities in terms of
organisation requirements
Organisation Climate [S1]
The degree to which the current operating environment with in the organisation is
seen to be a positive/negative factor
Retention [V2]
The effectiveness of current organisational retention approaches and efforts
Organisation Communications [S2]
The current effectiveness of communications in the organisation as perceived by
managers and employees across all levels
Reward [V3]
The effectiveness of current reward policy/strategy across all levels of the
organisation
Organisation Design [S3]
The degree to which the overall organisation architecture, e.g. management
structure, job/role design is effective
HR Governance [H1] [expanded version only]
The overarching management of HR as a function governance of Human Capital
Management within the organisation.
Employee Centricity [legacy indicator] optional reporting indicator
The degree to which the organisation has ‘employee-centric’ policies in place and
delivers on them in terms of effectiveness including historical perspective
HR Operational Excellence [H2] [expanded version only]
The degree to which the HR function possesses the requisite competence and
executes its delivery objectives in terms of quality and effectiveness

24. VaLUENTiS Management Pathfinder®:
Client example (extended version)
LEARNING &
DEVELOPMENT
TALENT
MANAGEMENT
DIVERSITY
EMPLOYEE
CENTRICITY
813
REWARD
EMPLOYER
BRAND
674
599 416
657
RETENTION
615
742
HR
GOVERNANCE
431
684
487
HR
OPERATIONAL
EXCELLENCE
642
RESOURCING
603
594
628
‘Out-performing’
(world class)
‘Out-performing’
(peer)
‘Comparable’
(peer)
‘Under-performing’
(peer)
PERFORMANCE
ORIENTATION
LEADERSHIP
796
ORGANISATION
DESIGN
ORGANISATION
COMMUNICATIONS
ORGANISATION
CLIMATE

26. Part II
Welcome to the future…

28. Learning
Implementation
Models
Strategies
TM playbook content

29. Survey of people management practice
• Line completions
• HR completions
• Aggregate perception and
contrasted perception
• Eight line-item answer categories
HR/People metrics
and activity volumes
Spend data
TRAINING &
DIVERSITY
DEVELOPMENT
TALENT
MANAGEMENT
EMPLOYEE
CENTRICITY
81.3
+
EMPLOYER
BRAND
67.4
+
REWARD
£
59.9 41.6
65.7
RETENTION
61.5
74.2
68.4
48.7
HR
OPERATIONAL
EXCELLENCE
64.2
RESOURCING
60.3
+
PERFORMANCE
ORIENTATION
HR
GOVERNANCE
43.1 +
59.4
62.8
LEADERSHIP
79.6
+
ORGANISATION
DESIGN
ORGANISATION
COMMUNICATIONS
ORGANISATION
CLIMATE
• HR spend
• People management spend
(e.g. recruiting, training)
• Organisation spend/income
• HR transaction levels
• ‘People’ metrics
• HR metrics
• Existing survey re-cut for
comparability to provide employee
‘checker’ against Line/ HR people
management completions
Existing employee survey data

30. Management Pathfinder projects include:
• Derive HR strategy
• Various analytics/modelling/benchmarking projects
• Business case/mandate for HCM/OD intervention
• Baseline evaluation for change initiative
• Merger and acquisition
• Workforce planning
• HR function realignment
• Baseline and evaluation of MD programme
• Improve HR function’s professional standing
• HR spend/activity review
• Management development itself
• Accelerated initiation for new HR Director/new team

31. Sector benchmarks (for what it’s worth)…
Private
• Biotechnology
• Business services
• Chemicals
• Construction
• Distribution
• Energy
• Engineering
• Facilities Management
• Food Production
• Financial services:
o Insurance
o Investment banking
o Retail banking
o Other
• FMCG
• Healthcare
• Leisure
• Manufacturing/Mining
• Pharmaceutical
• Professional service firms
• Retail
• Telecommunications
• Transport
• Utilities
Public
• Government:
o Agency
o Central
o Local
• NHS-Health
• Higher Education
• Police

32. HCM (Talent) Management…

33. TRAINING & DIVERSITY
DEVELOPMENT
TALENT
MANAGEMENT
REWARD
686
683
650
558
392
HR
GOVERNANCE
393
621
481
582
401
633
PERFORMANCE
ORIENTATION
660
479
398
405
RESOURCING736
EMPLOYER
724 BRAND
492
594
597
627
584
544
795
RETENTION
EMPLOYEE
CENTRICITY
HR
OPERATIONAL
EXCELLENCE
686
640
561
613
LEADERSHIP
751
703
ORGANISATION
ORGANISATION
CLIMATE
DESIGN
ORGANISATION
COMMUNICATIONS

34. Operational indicator review: Performance Orientation [example]
Detail not available for
distribution due to IP
restrictions

35. Performance Orientation: Areas for enhancement [example]
Detail not available for
distribution due to IP
restrictions

36. TM Action Priority Matrix
Detail not available for
distribution due to IP
restrictions

37. Embedding good employee engagement practice:
‘Mapping the management reality’
Against embedding
(Status quo OK)
Let it happen
(Ambivalent/
non-committal)
Help it happen
(qualified
supportive)
Individual Board members
Senior managers
Middle managers
Line managers
Supervisors/Team leaders
Remember ‘actions speak louder than words…’
Make it happen
(Actively
championing)

38. Example of Employee Engagement
structured module…
LM Module: Employee Engagement
Problem
Solving
Pre-module
preparation
Case
study
2-hr ‘work’ sessions
½ day workshop
Structured coaching/
work group
CI
CI
CI
Critical
Incident
CI
CI
CI
Critical
Minicase
study
Problem
solving
Incident
Level 2 & 3
evaluation
diagnostic
Behavioural event journal
Pre-course
assessment
questionnaire
Post-course
assessment
questionnaire
Level 2 Pre-course
Post-course
evaluation assessment
assessment
diagnostic questionnaire questionnaire
3-6 Months (typical timeframe)
Employee benchmark data (time series set)
Employee benchmark data (nominal set)
1 day workshop

39. Mapping employee engagement and
organisation performance (example):
Leadership
Leadership
&
&
governance
governance
Human
Human
Capital
Capital
Practices
Practices
Trust
Shareholder
performance
value
Employer
Employer
brand
brand
Work values
Work values
Safety
Portfolio mix
Line - of -sight
Line - of -sight
Development
Development
Reward
Reward
Clinicalselling
X - treatment
Staff
Employee
Engagement
Engagement
Work environment
Work environment
Individual/
Individual/
team
team
Productivity
Productivity
Patient focus
Service
Prompt service
Portfolio mix
Environment
X - selling
Community
Service
External
External
Value
Value
Proposition
Proposition
Patient
Customer
Satisfaction
Satisfaction
Quality of
Revenue
services
Growth
Patient
Customer
experience
Loyalty
Use of Resources
Profitability
Staff
Employee
Retention
Retention
‘Local’
‘Local’
Management
Management
Compliance
Compliance
Cost control
Cost control
Example ‘Macro’ model NHS version 1.20
© VaLUENTiS VBM Analytics methodology 2008-13

40. Human Capital Operating Statement
Human Capital Productivity Statement
PeopleFlow® Statement
CONTRACTED RESOURCE
OPERATING INCOME
st
ye 31 st
ye
ye 31st Dec 2012 Dec 2012 31st Dec 2011 31 Dec 2011
ye
%
Revenue (£000s)
Total number of FTE days contracted in year
1,057,0 16
3,530,340
3,401,289
1,015,0 2 0
333,144
336,987
16,047
Total number of FTE vacation days taken in
FTEs
16,352
year
ye 31st Dec 2012
ye 31st Dec 2011
Revenue per FTE
64,641
3,193,353
3,068,145
TOTAL NUMBER OF CONTRACTED FTE
%
DAYS AVAILABLE
No of full-time staff at start of year
14,011
13,865
OPERATING COSTS
STAFFING
Number of part time staff at start of year (FTE
Total operating costs (£000s)
WORK RESOURCE ADJUSTMENT
eqv)
1,932
FTE days gained through recorded overtime
People costs (£0 00s)
Number of other at start of year (FTE eqv)
104
work (+)
Human Capital Intensity (HCI)
Full time equivalents (FTEs) at tart of
s
16,047
FTE days lost to illness (-)
year
FTE days lost to work related illness/injury (-)
OPERATING INCOME ATTRIBUTABLE
FTE days lost to industrial action (-)
TO HC (HCIR per FTE)
STAFFING MOVEMENTdays recorded as lost under miscellaneous
FTE
(-)
Number of FTEs recruited in period (+)
1,427
ACTUAL NUMBER OF CONTRACTED FTE
Number of acquisitioned DAYSduring ED
FTEs WORK period (+)
-
1,491
904,371
61,932 532,181
175
18,431
2,773
249
%
3,233,069
Full time equivalents (FTEs) at end of year
£192.96
£190.59
£2.37
HC Performance
£
-
%
3,110,442
8,1 76
217
2,314
740
£185.42
£182.90
76
6,254
£2.52
256
16,352
5.2
Mean age of workforce
34
Retirement population
5,391
£
71.3
Sustaining +
2,954
691
6,879
68.5
17,740
16,047
71.0
35.06
BB-BB-R
7,342
53
69.2
HUMAN CAPITAL MANAGEMENT INDEX FTE )
HC LEVERAGE (HCIR /A PC per
Mean tenure (years)
1,874
36,029
%
1,075
1,065
-
STAFFING MISCELLANEOUS
VB-HR Rating
167
£
56 .96
1,874
Outplacement RELATED INDICES
EMPLOYER-EMPLOYEE costs (£000s)
Employee engagement index
Employer Total index
brand
38,041
763
996
Number of FTEs outsourced in period
464,317
2,816
1,427
Training & Development costs (£000s)
HCI*Revenue or FTE day (optimal)
Number of FTEs made redundant per outplaced
35
Recruitment costs (£000s)
in period (-)
HCI*Revenue per FTE day (actual)
Number of FTE retirements inHealth &FTE day costs (£000s)
period Safety differential
91
HCI*Revenue per (-)
HR functional and related costs (£000s)
(-)
815,094
65,371
5 8 .85
15,531
19,016
ANCILLARY PEOPLE COSTS (APC)
Number of voluntaryPRODUCTIVITY period- ( -)
leavers (FTE) in
63,253
17,919
32.26
5.3
34
5,304
BB-B-R
Sustaining +
%

41. Employee Engagement triangulation
“Squaring the circle…”
New (re)hire data
Customer/client/
patient/citizen/
passenger data
Performance
appraisal data
Social media
data
Employee/management
survey data
Critical
incident data
Case data
Organisation
event log data
Other internal
survey/assessment
data
Exit data

42. “To this - The Engagement-Performance Matrix”
Performance area
New (re)hire data
Performance
appraisal data
Employee/manage
ment survey data
Case data
Other internal survey/
assessment data
“There is
much that
organisations
can do for
themselves”
Exit data
Organisation event
log data
Critical incident
data
Social media data
Customer/client/
patient/citizen data
‘Hawthorne’
for the 21st
Century
organisation”

44. 
Organisation X
Organisation Y
Organisation Z
Organisation R
Summary
slide only
Refer to
exercise pack
Key:
‘Out-performing’
(world class)
‘Out-performing’
(peer)
‘Comparable’
(peer)
‘Under-performing’
(peer)

45. x-group observations
Organisation X - observations
Organisation Z - observations
Organisation Y - observations
Organisation R - observations

46. Executive summary
(currently based on ‘headline’ preliminary findings):

47. HR Function related…

48. HR as a portfolio of service & compliance
activities
Simplified
Illustration
High
Value Add
Corporate Governance
Services
Professional
& Advisory
Services
Nature of
Activity
Employment Services
Transaction Services
Marginal
Value Added
Complexity of Interaction
Low
High

49. HR
ORGANISATION RESOURCING
GOVERNANCE
DESIGN
REWARD
EMPLOYEE
RELATIONS
& COMMS
EMPLOYEE
HEALTH &
SAFETY
HRIS &
MEASUREMENT
9.1
HRIS Strategy
Human Capital Management
Activity-Delivery map
1.3
HR Delivery Structure
1.4
HC Reporting
1.5
HR Capability
1.6
HR Policy
1.7
HR Performance/
Strategy Review/
Audit
1.8
Managing External
Consultants/
Outsource Providers
An
HR roles
Cr
Dv Ds I
L
Pl Pr
4.1
Needs
Assessment
5.1
Performance (Talent)
Management
Assessment
6.1
Total Reward
Programme
7.1
Employee
Communications
8.1
Risk Management/
Regulatory
Compliance/ Security
3.2
Candidate
Identification
Services
4.2
General Training
Design, Development
and Delivery
5.2
Performance (Talent)
Management
Development
6.2
Wage And Salary
Management
7.2
Benefits
8.2
Risk Assessment
2.3
Organisational
Design/ Capability
Planning –
Global Level
3.3
Job Profile Services/
Requisition
Processing
4.3
Training &
Development
Management
5.3
Performance
Reviews
6.3
Bonus/Incentive/
Stock Options
Compensation
2.4
Job Classification/
Evaluation
3.4
Candidate Selection
4.4
Technical/
Functional/ Policy &
Procedure Training
5.4
Succession (Talent)
Management
6.4
Senior/ Executive
Compensation
2.5
Organisation
Restructure/ Change/
Development
3.5
Temporary and
Contractor Staffing
4.5
Employee Induction/
Orientation
2.6
Acquisition/
Divestiture/ Start-up
Due Diligence/
Support
3.6
General Employment
Services
4.6
Competencies/ Skills
Model Development
And Assessment
2.7
Managing External
Consultants/
Outsource Providers
3.7
Relocation
4.7
Leadership/
Management
Development
3.8
Outplacement
Services
4.8
Executive
Development
4.9
Career Development
5.9
Consulting To Line
Managers On
Performance Issues
3.10
Consulting Line
Managers On Staffing
Issues
1.2
HR Value Proposition
3.1
Workforce Planning
3.9
Employment Law
Services
1.1
Employer brand
Ad
Cp
2.1
Organisational
Design/ Capability
Planning –
BU Level
PERFORMANCE
TRAINING &
(TALENT)
DEVELOPMENT MANAGEMENT
4.10
Consulting On
Managerial Issues
5.10
Managing ASP/ERP/
Software Providers
3.11
Managing
ASP/software/
Outsource Providers
4.11
Managing ASP/ERP/
software/ Outsource
Providers
2.2
Organisational
Design/ Capability
Planning –
Multi-country Level
5.5
Attendance
Management
6.5
Expatriate
Compensation
7.3
Attendance/ Leave
Of Absence/ Exit
Interviews
7.4
Return-To-Work and
Job Accommodation
7.5
Company Policies
And Procedures
9.2
HRIS Planning
PAYROLL
10.1
Payroll
10.2
Employee/ Manager
Interaction/ Problem
Resolution
8.3
Accident Prevention
and Training
Programmes
9.3
HRIS Support
8.4
Health/Medical
Programmes
9.4
Employee Research
& Modelling
10.4
Special Pay,
Adjustments And
Deductions
8.5
Incident Tracking and
Reporting
9.5
Benchmarking
10.5
Payroll Accounting/
Recon/ Manual
Calculations &
Disbursement
8.6
Managing External
Consultants/
Outsource Providers
9.6
Measurement and
Reporting
Corp
Centre
Centres
of
Excellence
10.6
Tax Reporting/ Audit
9.7
Employee
Records/Case
management/Data
Maintenance
DELIVERY
CHANNELS
10.7
Employee
Reimbursement
10.3
Time Reporting
6.6
Compensation
Analysis/Pay review
7.6
Collective
Bargaining/
Negotiating/
Consultative
Processes
5.7
Employee
Counselling/ Case
management
6.7
Healthcare/ Welfare/
Statutory/ Other
Benefit Programmes
7.7
Work Practices For
Represented
Employees
5.8
PM Compliance
Support
6.8
Pension
Management
7.8
Conflict and Issue
Resolution
9.8
Reporting/ Interfaces
9.9
Managing
ASP/software/
Outsource Providers
Service
Centre
(Shared)
HR Field
Manager
10.8
Statutory Benefits/
Miscellaneous Admin
7.9
Corporate/
Community Social
Responsibility
Business
Partner
10.9
Reporting/ Interfaces
5.6
Employee Coaching
6.9
Retirement Planning/
Counselling And
Administration
6.10
Managing External
Consultants/
Outsource Providers
7.10
Government/
Legislative Issues
7.11
Managing External
Consultants
Line
Manager
10.10
Managing Outsource
Providers
Global HR Profiler™
© VaLUENTiS 2003-13

52. Index score (HR only): 639
Index score (Line only): 606
TRAINING &
DEVELOPMENT
TALENT
MANAGEMENT
+57
DIVERSITY
+25
+30
+33
REWARD
RETENTION
RESOURCING
EMPLOYEE
CENTRICITY
EMPLOYER
BRAND
+21
+14
+32
+51
+49
+42
HR
OPERATIONAL
EXCELLENCE
+12
+29
PERFORMANCE
ORIENTATION
HR
GOVERNANCE
+26
ORGANISATION
DESIGN
+62
ORGANISATION
COMMUNICATIONS
+18
LEADERSHIP
ORGANISATION
CLIMATE
Client Index score: 620
(Max of 1,000)

53. HR and Line congruency (or not!)
Disagreement
1
2
1. Key stakeholders have been involved in helping to shape
objectives and targets for people management work
2. Does HR utilise aspects of marketing in promoting the
function/its services?
3. HR systems are consistent across
global/regional/country areas; such as compensation,
benefits, performance management, career progression,
talent management etc
4. There is a recognised process for reviewing performance
against the objectives and targets contained in the HR
strategy
5. The recruiting process is consistent across the
organisation
6. [HR capability in] new employee and employee exit
administration
7. The organisation does a good job of providing
opportunities for personal development (for example,
project assignments, lateral transfers)
8. Recruiting efforts are specifically designed to support the
organisation's business plan
9. The organisation evaluates the effectiveness of training
people receive
10. Managers use available workforce data effectively when
making decisions
Mean HR responses
Mean Line responses
3
Agreement
4
5
6
7
8

55. Part III
Summary…

56. Now a REALITY to measure/map this in
(quasi) real-time
More effective
human capital
management
Higher
productivity
Higher
employee
engagement
Higher
organisation
performance

57. When leading edge means leading edge…
HCM Intelligence – ‘The Full Monty’
HC Measurement
& evaluation
Human capital
reporting
HC Productivity Statement
CONTRACTED RESOURCE
Total number of FTE days contracted in year
Total number of FTE vacation days taken in
year
TOTAL NUMBER OF CONTRACTED FTE
DAYS AVAILABLE
VB-HR™ Rating
FTE days gained through recorded overtime
work (+)
FTE days lost to illness (-)
R
B
B
RR
R
FTE days lost to work-related illness/injury (-)
Overall
ranking
r
3,401,289
336,987
•Absenteeism
•Turnover (voluntary)
•Turnover (involuntary)
•Recruitment cost per FTE
•Time to fill
•Training days per FTE
•Training spend per FTE
•Revenue per FTE
•Profit per FTE
•HR FTE: FTE
•Employee costs per FTE
•HR costs per FTE
•% females in senior management roles
333,144
3,068,145
WORK RESOURCE ADJUSTMENT
rmin
FTE days lost to industrial action (-)
61,932
(-)
Revenue (£000s)
RRR
FTEs
HR Strategy
ACTUAL NUMBER OF CONTRACTED FTE
DAYS WORKED
PeopleFlow® Statement
Revenue per FTE
65,371
18,431
19,016
2,773
2,816
ye 31st Dec 249
2005
OPERATING INCOME as lost under miscellaneous
FTE days recorded
ye 31st 167 2004
Dec
%
763
1,075
1,057,016
1,015,020
16,352
16,047
3,233,069
3,110,442
64,641
63,253
PRODUCTIVITY
B
B
HR Functional
Capital
R
BB
OrganisationalHCM
Capital
Human
Capital
CCC CCC R
HR Procurement
HCI*Revenue per
OPERATING COSTS FTE day (optimal)
£192.96
£185.42
HCI*Revenue per FTE day
Total operating costs (£000s) (actual)
£190.59
904,371
£182.90
815,094
People HCI*Revenue per FTE day differential
costs (£000s)
STAFFING
Human Capital Intensity (HCI)
532,181£2.37
ye 31 st Dec 2005
58.85
%
£2.52
464,317
ye 31 st Dec 2004
56.96
Employee engagement index
No of full-time staff at start of year
OPERATING INCOME ATTRIBUTABLE
Employer brand index
TO Number of part-time staff at start of year (FTE
HC (HCIR per FTE)
eqv)
69.2
14,011
71.3
38,041 1,932
EMPLOYER-EMPLOYEE RELATED INDICES
Number of other at start of year (FTEINDEX
HUMAN CAPITAL MANAGEMENT eqv)
BB
BB
BB
CCC CCC R
B CCC R
Workforce
Intelligence
HCM
Architecture
BB
B
B
BB
R
B CCC R
Management
B
B
R
Employees
HR Capability
BB
R
B
EFFECTIVENESS
B
R
HR Customeragency
MAINTENANCE
£
104
BB-BB-R
16,047
RISK
175
£
BB-B-R
15,531
Basic
metrics
%
Sustaining +
ANCILLARY PEOPLE COSTS (APC)
Training & Development costs (£000s)
STAFFING MOVEMENT
8,176
2,314 1,427
Number of acquisitioned FTEs
Health & Safety costs (£000s) during period (+)
HR functional and related costs (£000s)
Number of costs (£000s)
Outplacement voluntary leavers (FTE) in period (-)
Number of FTEs made redundant or outplaced
in period (-)
Total
Number of FTE retirements in period (-)
Number of FTEs outsourced in period (-)
HC LEVERAGE (HCIR/APC per FTE)
Full time equivalents (FTEs) at end of year
740
%
-
6,254 1,427
256
996
35
17,740
35.06
5.2%
8.6%
1.8%
£12,569
38 days
3.5
£871
£365,121
£67,119
1:112
£27,469
£1356
23%
•VB-HR™
Rating
•HC Performance
•HC leverage
•HCIR per FTE
•HC Investment ratio
•Employee engagement
•Voluntary turnover1
•Absenteeism1
•Accident/injury rate
68.5
13,865
71.0
36,029
1,491
%
Sustaining +
Number of FTEs recruited
Recruitment costs (£000s) in period (+)
BB
BB
FullVB-HR equivalents (FTEs) at start of
time Rating
year Performance
HC
Measurement
pyramid
ye 31st Dec 2004
3,530,340
Human Capital Operating Statement
Human Capital Management
AAA
AA
A
BBB
BB
B
CCC
CC
C
ye 31st Dec 2005
3,193,353
91
-
16,352
7,342 £
%
1,874
2,954
-
691
1,874
6,879
•HR spend per FTE
(adjusted using standard template)
•Formal job offer success
Plus portfolio of tertiary indicators which are more
context/organisation specific
1,065
53
Employee
engagement
•HCI (used with revenue per FTE to calculate HCIR per FTE)
•HR budget (adjusted using standard template)
•MD spend
•Internal/external management position fill ratio
•No of industrial tribunals
•% union membership
•HR service delivery (IT mix)
Plus portfolio of tertiary indicators which are more context/organisation specific
217
17,919
76
32.26
16,047
STAFFING MISCELLANEOUS
Mean tenure (years)
5.2
5.3
Mean age of workforce
1.1
Employer
brand
1.2
HR Value
Proposition
1.3
HR Delivery
Structure
1.4
HC Reporting
1.5
HR Capability
1.6
HR Policy
1.7
HR
Performance/
Strategy
Review/ Audit
1.8
Managing
External
Consultants/
Outsource
Providers
2.1
Organisationa
l Design/
Capability
Planning –
Business Unit
Level
4.1
Needs
Assessment
5.1
Performance
(Talent)
Management
Assessment
3.2
Candidate
Identification
Services
4.2
General
Training
Design,
Development
and Delivery
5.2
Performance
(Talent)
Management
Development
2.3
Organisationa
l Design/
Capability
Planning –
Global Level
3.3
Job Profile
Services/
Requisition
Processing
4.3
Training &
Development
Management
2.4
Job
Classification/
Evaluation
3.4
Candidate
Selection
4.4
Technical/
Functional/
Policy &
Procedure
Training
2.2
Organisationa
l Design/
Capability
Planning –
Multi-country
Level
3.1
Workforce
Planning
5.3
Performance
Reviews
5.4
Succession
(Talent)
Management
2.5
Organisation
Restructure/
Change/
Development
3.5
Temporary
and
Contractor
Staffing
4.5
Employee
Induction/
Orientation
2.6
Acquisition/
Divestiture/
Start-up Due
Diligence/
Support
3.6
General
Employment
Services
4.6
Competencies
/ Skills Model
Development
And
Assessment
2.7
Managing
External
Consultants/
Outsource
Providers
3.7
Relocation
4.7
Leadership/
Management
Development
3.8
Outplacement
Services
4.8
Executive
Development
3.9
Employment
Law Services
4.9
Career
Development
5.9
Consulting To
Line
Managers On
Performance
Issues
3.10
Consulting
Line
Managers On
Staffing
Issues
4.10
Consulting On
Managerial
Issues
5.10
Managing
ASP/ERP/
Software
Providers
3.11
Managing
ASP/software/
Outsource
Providers
4.11
Managing
ASP/ERP/soft
ware/Outsour
ce Providers
5.5
Attendance
Management
REWARD
EMPLOYEE
RELATIONS
& COMMS
6.1
Total Reward
Programme
7.1
Employee
Communications
6.2
Wage And
Salary
Management
7.2
Benefits
6.3
Bonus/Incenti
ve/ Stock
Options
Compensatio
n
6.4
Senior/
Executive
Compensatio
n
6.5
Expatriate
Compensatio
n
7.3
Attendance/
Leave Of
Absence/ Exit
Interviews
7.4
Return-ToWork and Job
Accommodati
on
7.5
Company
Policies And
Procedures
EMPLOYEE
HEALTH &
SAFETY
HRIS &
MEASUREMENT
8.1
Risk
Management/
Regulatory
Compliance/
Security
9.1
HRIS Strategy
8.2
Risk
Assessment
9.2
HRIS
Planning
34
Retirement population
PERFORMANCE
HR
ORGANISATION RESOURCING TRAINING &
(TALENT)
GOVERNANCE
DESIGN
DEVELOPMENT MANAGEMENT
34
5,391
5,304
HCM
Intelligence
PAYROLL
10.1
Payroll
10.2
Employee/
Manager
Interaction/
Problem
Resolution
8.3
Accident
Prevention
and Training
Programmes
9.3
HRIS Support
8.4
Health/Medica
l Programmes
9.4
Employee
Research &
Modelling
10.4
Special Pay,
Adjustments
And
Deductions
8.5
Incident
Tracking and
Reporting
9.5
Benchmarkin
g
10.5
Payroll
Accounting/
Recon/
Manual
Calculations
&
Disbursement
8.6
Managing
External
Consultants/
Outsource
Providers
9.6
Measurement
and Reporting
10.6
Tax
Reporting/
Audit
9.7
Employee
Records/Case
management/
Data
Maintenance
HR delivery
and
operational
risk
10.7
Employee
Reimburseme
nt
10.3
Time
Reporting
6.6
Compensatio
n
Analysis/Pay
review
7.6
Collective
Bargaining/
Negotiating/
Consultative
Processes
5.7
Employee
Counselling/
Case
management
6.7
Healthcare/
Welfare/
Statutory/
Other Benefit
Programmes
7.7
Work
Practices For
Represented
Employees
5.8
PM
Compliance
Support
6.8
Pension
Management
7.8
Conflict and
Issue
Resolution
9.8
Reporting/
Interfaces
9.9
Managing
ASP/software/
Outsource
Providers
TRAINING &
DIVERSITY
DEVELOPMENT
10.8
Statutory
Benefits/
Miscellaneous
Admin
7.9
Corporate/
Community
Social
Responsibility
10.9
Reporting/
Interfaces
5.6
Employee
Coaching
6.9
Retirement
Planning/
Counselling
And
Administratio
n
6.10
Managing
External
Consultants/
Outsource
Providers
7.10
Government/
Legislative
Issues
Modelling analytics linking
performance to human capital
(management)
10.10
Managing
Outsource
Providers
TALENT
MANAGEMENT
Leadership
Leadership
&
&
governance
governance
59.9 41.6
65.7
Human
Human
Capital
Capital
Practices
Practices
Line-of-sight
Line-of-sight
Reward
Reward
Employee
Employee
Engagement
Engagement
Work environment
Work environment
Individual/
Individual/
team
team
Productivity
Productivity
Portfolio mix
Portfolio mix
X-selling
X-selling
Service
Service
Employee
Employee
Retention
Retention
‘Local’
‘Local’
Management
Management
Compliance
Compliance
Cost control
Cost control
External
External
Value
Value
Proposition
Proposition
Customer
Customer
Satisfaction
Satisfaction
68.4
48.7
Customer
Customer
Loyalty
Loyalty
Profitability
Profitability
PERFORMANCE
ORIENTATION
HR
OPERATIONAL
EXCELLENCE
64.2
60.3
+
Revenue
Revenue
Growth
Growth
HR
GOVERNANCE
43.1 +
RESOURCING
Work values
Work values
Development
Development
61.5
74.2
Shareholder
Shareholder
value
value
Employer
Employer
brand
brand
EMPLOYER
BRAND
67.4
+
REWARD
RETENTION
7.11
Managing
External
Consultants
EMPLOYEE
CENTRICITY
81.3
+
59.4
62.8
LEADERSHIP
79.6
+
ORGANISATION
DESIGN
ORGANISATION
COMMUNICATIONS
ORGANISATION
CLIMATE
Management
Pathfinder
(OE indicators)
‘RADAR’
Source: The Enterprise-wide Application of Human Capital Intelligence (HCMi), N J Higgins & G Cohen ,VaLUENTiS white paper

58. ‘Thank you.’

60. Nicholas J Higgins
nicholas.higgins@valuentis.com
VaLUENTiS Ltd, 2nd Floor, Berkeley Square House,
Berkeley Square, London W1J 6BD
HO: +44 (0)207 887 6108
M: +44 (0)7811 404713
www.valuentis.com
www.ISHCM.com
www.NicholasJHiggins.com
www.HCglobal.blogspot.com

61. Employee Engagement Solutions
Evidenced based definition,
understanding and application
What we bring…
Global
reach
Measurement wisdom
and expertise
Senior management
feedback sessions
Performance
link
Line of
sight
Reward
(equity)
‘License to
manage’
programmes
Work
environment
On-line tools
and analytics
Development
Operating
culture
Frontline
blended
learning
VaLUENTiS Ltd,
2nd Floor, Berkeley Square House,
Berkeley Square, London W1J 6BD
HO: +44 (0)207 887 6108/21
www.valuentis.com
www.ISHCM.com
Survey design
expertise
Actioning
strategies and
tactics
THE
EE
PLAYBOOK
Project
management
expertise
‘Ten years of
innovation…’

62. M
anagement
P
athfinder®
Think Human
Capital.

63. Evaluation
level
BRONZE (Lite)
Level 1
SILVER
Level 2
GOLD
Level 3
Extended
options and
advisory
Who participates
Outputs
Benefits
TM Pathfinder
•Employees
•Managers
•HR personnel
...plus baseline HC metrics
and demographic data
1.Initial knowledge session
2.Employee engagement assessment (inc. recut of existing
survey data)
3.Level 1 TM Playbook including Organisation engagement
(15OE) assessment (‘RADAR’)
4.Best practice recommendations (lite)
5.Feedback/review session
- Provides robust and quantitative insight of
employee and organisation engagement
- Briefing on summary improvement actions
- Potential for further people management
insight and actioning
- Management learning particularly where
interwoven in MD programme
TM Pathfinder
•Employees
•Managers
•HR personnel
...plus baseline HC metrics,
demographic & HR spend
data
1.Initial knowledge session
2.Employee engagement assessment (inc. re-cut of existing
survey data)
3.Organisation engagement (15OE) assessment
4.Strategic HCM value driver analysis and assessment
5.Line/HR view congruency
6.HR spend analysis
7.Production of HC operating statements
8.Level 2 TM Playbook including recommendations &
routemap (80+ page technical report)
9.Feedback/review session and presentation
- Provides robust and quantitative insight of
employee and organisation engagement
- Detailed commentary on strengths, areas for
enhancement and corresponding
improvement actions (‘in loco’ HR strategy)
- Detailed insight of HC related operating
performance
- Comparative benchmarks to assess
performance and progress
- Management development
TM Pathfinder
•Employees
•Managers
•Personnel
...plus baseline HC metrics,
demographic, HR spend &
functional activity and
organisation performance
data
1.Initial knowledge session
2.Employee engagement assessment (inc. re-cut of existing
survey data)
3.Organisation engagement (15OE) assessment
4.Strategic HCM value driver analysis and assessment
5.Line/HR view congruency
6.HR spend analysis
7.Production of HC operating statements
8. Level 3 TM Playbook including full implementation
routemap with detailed actions (extended report)
9.Feedback/review session
- Provides robust and quantitative insight of
employee and organisation engagement
- Detailed commentary on strengths, areas for
enhancement
- Fully comprehensive implementation
routemap with detailed actions
- HR function ‘profile’ assessment
- Detailed insight of HC related operating
performance
- Comparative benchmarks to assess
performance and progress
- Management development
As required
- Bespoke additional services, analyses and reports to fit client
context and requirements
Provides extensive client solution coverage
Professional Services
www.valuentis.com
VaLUENTiS Ltd, 2nd Floor, Berkeley Square House, Berkeley Square, London W1J 6BD
+44 (0) 207 887 6108

64. Smart. Smarter. Smartest...
Professional Services
www.valuentis.com
‘The leading human capital
management specialists’
‘PEOPLE SCIENCE®’
Organisation Intelligence
to
improve organisation performance
•
•
•
•
•
•
•
•
•
•
SOLUTIONS
Human Capital Management Evaluation
Employee Engagement
Talent Management
Workforce Productivity & Performance
Predictive Analytics
HC Forensics & Risk
HR Function ROI Analysis
Organisation Measurement
Management Education
Organisation Strategy

65. …+
2nd Floor, Berkeley Square House,
Berkeley Square, London W1J 6BD
Tel: +44 (0)207 887 6121
Fax: +44 (0)207 887 6100
enquiries@ISHCM.com
www.ISHCM.com
Think HR. Think Human Capital.™
Human Capital
Management.
Only one place to learn
Being human is unique. Attaining an M Sc in HCM is even more so.