How to Make the Difference Hans Christian Steckling Human Capital Strategy June 2004, © HCS-CONSULTING THE F1 CHALLENGE ? Hans Christian Steckling Human Capital Strategy June 2004, © HCS-CONSULTING THERE IS A CHOICE ..... Wrong people x Right match x Right development x Right leadership x Right Environmental factors = False starts Right people x Wrong match x Right development x Right leadership x Right environmental factors = Anxiety Right people x Right match x Wrong development x Right leadership x Right environmental factors = Depreciation Right people x Right match x Right development x Wrong leadership x Right environmental factors = Demotivation Right people x Right match x Right development x Right leadership x Wrong environmental factors = Frustration Right people x Right match x Right development x Right leadership x Right environmental factors = Boosted bottom-line (© getTalented 2004) Hans Christian Steckling Human Capital Strategy June 2004, © HCS-CONSULTING TODAY‘S LEADERSHIP CHALLENGES  Continuous uncertainty and volatility (scope with new risk dimensions)  Continued strong competition for talent (in general as well as demographically)  Leadership generation change “in process”  People‘s perception of values changing  Transition from “industrial/services” to “knowledge” society (transactional orientation vs interactive behavior) (job vs assignment mentality)  Striking the right balance between short term performance and medium term positioning Hans Christian Steckling Human Capital Strategy June 2004, © HCS-CONSULTING WHAT INVESTORS DO EXPECT Trend from Triple to Quadruple Bottom Line Reporting: SUSTAINABILITY 1. Financial Data (Volume, KPI KPI‘s, s, etc.) 2. Environment Reporting (EPI‘s) 3. Social Responsibility (Sponsoring, Aid, etc.) 4. Intellectual Capital Development (Skill + Knowledge+ Behaviour + Rate of Renewal = Leadership Culture) Hans Christian Steckling Human Capital Strategy June 2004, © HCS-CONSULTING THE VALUE POTENTIAL OF INTELLECTUAL CAPITAL Market Value (Leif Edvinsson) Shareholders‘ Equity Financial Capital Human Capital C i l Intellectual Capital St Structural t l Capital C it l Customer Capital Organizational Capital Innovation Capital Hans Christian Steckling Brand Capital Process Capital Human Capital Strategy June 2004, © HCS-CONSULTING LOOKING AHEAD “Talent “T l t and d knowledge k l d are the hard currencies of the future” Hans Christian Steckling Human Capital Strategy June 2004, © HCS-CONSULTING HOW TO RESPOND ……to unlock value, determine…..  Is your senior I i managementt team t prepared d and d equipped i d to t effectively deal with these leadership dimensions and challenges?  A you using Are i the th nextt generation ti human h capital it l strategy t t and d tools? t l ?  Do you have an IC rating system/ IC controller installed?  Who in your firm is in charge of the innovation process?  What is your market share of new business opportunities?  Chi f Executive Chief E ti Officer Offi or Chief Chi f Inspiration I i ti Officer? Offi ?  ..... Hans Christian Steckling Human Capital Strategy June 2004, © HCS-CONSULTING AT THE END OF THE DAY, THERE IS ONLY ONE QUESTION YOU SHOULD BE ASKING YOURSELVES At what fraction of its potential is your workforce operating? 10-30% = potential that companies are able to convert into performance; i.e. only the top of the iceberg (© getTalented 2004) 70-90% = potential that companies rarely leverage; i.e. locked potential Hans Christian Steckling Human Capital Strategy June 2004, © HCS-CONSULTING THE POTENTIAL OPPORTUNITY GAP Productivity Creativity A B C Diversity Age Hans Christian Steckling Human Capital Strategy June 2004, © HCS-CONSULTING The Evolution of Reward Drivers Company Attractiveness + Employment Conditions Employee Benefits + Intellectual and Emotional Rewards + =  Brand  Compensation  Recognition  Self-esteem  Culture  Standards of  Innovation  Job excitement  Ranking Support  Inspiration  Values  Vision Excellence   Career  Challenges  Pride Opportunities  Career  Empowerment Working Exceptional Performance + Sustainability Development Conditions Hans Christian Steckling Human Capital Strategy June 2004, © HCS-CONSULTING THE NEW CONSULTING CONCEPT Diagnoses of Human Capital and Innovation Management Processes Hans Christian Steckling Calibration C lib i and d Priortization of Requirements Develop Value Creation Solutions A B Partnership for Excellence C Human Capital Strategy June 2004, © HCS-CONSULTING EXECUTION EXAMPLES Combined Solutions Benefits Results Managment Consulting Talent Selection Talent Cultivation Coaching / Mentoring Leadership Assessment Succession Planning Recruiting Process Team Building Executive Search Interim Management Cost Efficiency + Risk Reduction + Value Creation + Innovation Exceptional Performance + Market Leadership Sustainability + Common Values HRM Outsourcing Board Composition Hans Christian Steckling Human Capital Strategy June 2004, © HCS-CONSULTING THE INTEGRATED APPROACH TO VALUE CREATION 1 + 1 = 11? Hans Christian Steckling Human Capital Strategy June 2004, © HCS-CONSULTING THE MISSION: CREATE INNOVATION To cultivate: T lti t “…break “ b k up the th surface soil around in order to destroy weeds, prevent crusting, and preserve growth conditions… conditions…” (Webster’s Dictionary) Hans Christian Steckling Human Capital Strategy June 2004, © HCS-CONSULTING THE BREAKTHROUGH “Creating “C i mutuall value l is i learning l i get results with others,, rather to g than from others” Hans Christian Steckling Human Capital Strategy June 2004, © HCS-CONSULTING want to Make the Difference ? [email protected] HTTP://WWW. HCS-CONSULTING.CH Tel. 0041 1 915 50 33 Hans Christian Steckling Human Capital Strategy June 2004, © HCS-CONSULTING