Human Capital Management

Vital and Tactical

Planning
www.hiresmart.com
480.503.2945
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 Presenter Bio
Dr. Neil Clark is an Arizona Licensed Psychologist with over twenty years of
professional experience in personnel and organizational psychology.  Neil is a
leading expert in human capital strategy and management. His mission is to help
managers improve their talent management effectiveness.  He is currently the
Executive Director of HireSmart, a human capital management firm that uses
online sourcing, screening and selection tools to help companies reduce the high
cost of hiring mistakes.  His doctoral research was in organizational development. 
He currently works with many small firms and with several Fortune 500 companies
to develop and monitor high performance work systems. Dr. Clark has served as a
staffing consultant to Penske Automotive Group for the last fifteen years. He
designed Penske’s screening and selection system for sales and management
talent. Dr. Clark is a Strategic Business Partner of Profiles International Inc., a
leading international human capital assessment company.  He is also a
Professional Associate of Human Resource Development Press.   Neil is a current
member of the Arizona Psychological Association, the Knowledge Management
Forum and the Arizona Better Business Bureau.

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 Agenda – Day 1

• Introduction to Human Capital Management

• Human Capital Measurement
• Human Capital Strategic Plans
• Recruitment Strategy
• Best Practices in Hiring
• Performance Management

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 Agenda – Day 2

• Introduction to Human Capital Development

• Human Asset Profiles
• Career Development Plans
• Coaching, Training and Mentoring Programs
• Emerging Management Roles
• Closing Comments, Discussion, Next Steps

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 Introduction to
Human Capital Management
• The only vital value any enterprise has is the experience, skills,
innovativeness and insights of its people.

• The success of any company will depend on its ability to understand

how human capital links to its performance and its wealth.

• The most competitive companies will have the best strategies and
methods for attracting, hiring, managing, developing and retaining
top performing talent.

• Managers need training on how to apply human capital

management (HCM) principles and methods to business strategy
and performance. 

• Today, we are going to learn about several new management tools

and how others are using them to reach their business goals.

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 Major Contributions to
Human Capital Management
• 1986 – The Know-How Company – Karl Erik Sveiby

• 1997 – The New Wealth of Organizations – Thomas Stewart

• 2000 – The ROI of Human Capital – JacFitz-Enz

• 2001 – The Human Value of the Enterprise – Andrew Mayo

• 2002 – Corporate Longitude – Leif Edvinsson

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 The History of
Human Capital Management
1986- Sveiby publishes "The Know-How Company" on managing intangible assets
1987- Amidon publishes “Managing the Knowledge Asset into the Twenty-First Century”
1988- Sveiby publishes "The New Annual Report" introducing "knowledge capital"
1989- Sveiby publishes "The Invisible Balance Sheet"
1989- Handy publishes “The Age of Paradox”
1990- Sveiby publishes "Knowledge Management"
1991- Stewart publishes first "Brainpower" article in Fortune
1991- Skandia appoints Leif Edvinsson as the world’s first Director of Intellectual Capital
1992- Stewart publishes second "Brainpower" article in Fortune
1993- St. Onge establishes concept of Customer Capital
1994- Stewart authors "Intellectual Capital" cover article in Fortune
1994- Mill Valley Group decides to host a gathering of IC managers
1996- SEC symposium on measuring intellectual / intangible assets
1996- Sullivan and Parr book, "Licensing Strategies", published
1996- Lev founds Intangibles Research at New York University
1997- Sveiby publishes "The New Organizational Wealth"
1997- Edvinsson and Malone publish a book, "Intellectual Capital”
1997- Stewart book, "Intellectual Capital“ is published
1997- Hoover Institution conference on measuring intellectual capital
1998- Sullivan book, "Profiting from Intellectual Capital", published

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 Principles of Human
Capital Management
• Building a powerful human capital strategy requires solid
facts, measures, and processes for discerning where the
firm will get the most leverage from its people.

• Recent technological advances have been the catalysts for

the emergence of new approaches to human capital
management.

• Business models and human capital strategies must match. 

• Taking advantage of the observations and records of actual

events maintained in your company’s HR information
systems helps you discern how your business model and
human capital strategies have been working for or against
each other.

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 Principles of Human
Capital Management
• There’s a floor to cost reduction but no ceiling to value
creation. 
• Find the key points of leverage for increased profits.
• View your human capital as a value-producing asset instead
of a cost to be minimized, reduced, or reined in. 
• New management tools now exists to help you analyze how
key outcomes such as productivity are affected over time by
human capital attributes and practices. These tools help
you predict the return on your human capital investments.
• Identifying and focusing on what’s important will drive
value.

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 Human
Asset Profiles

Career
Development Plans Performance
Management

Coaching & Human Selection

Mentoring
Capital
Strategy
Core
Values
Revenue
Per
Recruitment
Employee
Core Cost Per
Competencies Employee

Profit Per
Performance Employee
Improvement
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 Activities of Human
Capital Management
The quality and performance of our people is what sets us
apart in an intensely competitive market!

• Recruiting and hiring the best available talent

• Developing and motivating people to reach their fullest
potential
• Retaining talent (and the investments made in them)
• Minimizing risk and cost on the human side of the business
• Designing talent management information systems
• Implementing performance based compensation systems
• Developing your Employer of Choice Brand
• Designing coaching and mentoring programs
• Applying performance management technologies

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 Finance Driven
Business Model
Money Drives Value - Budget Driven!

• Focus on tangible assets

• Valuation of physical and financial assets
• Use decision criteria for physical capital investments
• Manage costs
• Focus on the past (cost measurement)
• People are treated as expenses and salary costs
• Focus on present cash flow
• Focus on fixed budgets and periods
• Focus on short-term profitability

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 Human Capital Driven
Business Model
People Drive Value - Event Driven!

• Focus on tangible and intangible assets

• Valuation of physical, financial, human and structural assets
• Use decision criteria for knowledge and human capital
investments
• Process and customer cost focus
• Focus on the future (value creation measurement)
• People are treated as expenses and investments
• Focus on present cash flow and future revenue streams
• Focus on dynamic budgets and revenue streams
• Focus on short-term and long-term profitability, added-
value and sustainability

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 HCM Glossary

Human Capital Strategy

A business strategy that links the competencies, motivations and satisfactions of its employees
directly with drivers of value for customers, which in turn drives profitability for the enterprise.
Human Capital decisions are guided by data-driven, results-oriented planning and accountability
systems. The keys to a successful HCM strategy are process efficiencies, effective use of information
technology and business metrics.

Talent Management

Identifying mission-critical values, competencies and talents needed in the current and future
workforce. Clarifying the methods that will be used to recruit, hire, develop, manage and retain a
high performing workforce.

Performance Culture

A diverse, results-oriented, high performance workforce, with a performance monitoring system

that effectively differentiates between high and low performance and links individual / team /
departmental performance to organizational goals and strategic objectives. Compensation is
directly linked to performance.

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 HCM Glossary
Human Capital

The sum of a company's employees including their skills, competencies, talents, creativity and know-
how.  Within each employee is the knowledge the company seeks to utilize. 

Intellectual Capital
The sum of a company's ideas, inventions, technologies, knowledge, computer programs, patents,
trademarks, designs, methods, systems, processes and publications. When codified, defined,
written or committed to media form, the company's intellectual assets can be moved, leased, or
sold. When these intellectual assets (IA) are legally protected we call them intellectual property
(IP).

Structural Capital

The sum of a company's tangible assets including financial assets, buildings, machinery and
equipment, manufacturing facilities, distribution channels and sales outlets. 

Customer Capital

The sum of a company's customers including their names, contracts, contact databases, loyalty,
satisfaction, references, testimonials and future revenues. 

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 About HireSmart
 
HireSmart is a human capital management firm that provides
consultation and outsourcing for strategic recruiting, talent
assessment, selection, development and performance management.
We help businesses increase productivity, reduce turnover and
improve performance. Our mission is to help clients maximize their
Return on Investment in human capital. We help managers lower the
costs and risks associated with unproductive hiring decisions
including: turnover, low performance, litigation, absenteeism,
sabotage and theft.
 
HireSmart provides customized solutions that measure the
organization’s outcomes for each human capital strategy
implemented. We make your staffing process more attractive,
convenient, efficient and cost-effective. We facilitate continuous
improvements in your talent management systems leading to
increased profit per employee.

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 Contact Info
HireSmart, LLC
Human Capital Solutions
4140 E. Baseline Road, Ste. 101-317
Mesa, Arizona 85206
480.503.2945 (phone)
866.296.4277 (fax)
neil.clark@hiresmart.com (eMail)

2011 © HireSmart
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