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8/6/2019 Accenture_HCDF_FOW

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Accenture Human CapitalDevelopment FrameworkDeveloped by the Accenture Human Performance Service Line &

Accenture Institute for High Performance Business

Project Overview


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2Accenture 2004 All Rights Reserved. Patent Pending.

Workforce and HR Performance are a top

Executive Priority

Key HR nitiative

14%

11%

12%

11%

6%

64%

65%

66%

68%

69%

0% 10% 20% 30% 40% 50% 60% 70% 80%

Improving the delivery of HR services

Improving employee engagement with/advocacyfor the company

Facilitating organizational change

Improving the adaptability of the business to new

opportunities

Improving worker productivity

Satisfaction with Progress Importance

Source: The Accenture High-Performance Workforce Study 2004

Yet few executive are highly ati fied with their progre onthe e initiative


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High Performance businesses are characterized by

leading edge human capital capabilities.

Human Capital Efficiency

Workforce Adaptability

Workforce Performance

Talent Management

Ability to ChangeEmployee Engagement

Leadership Capability

High Performance

Framework

High

Performance

Anatomy

Market

Focus

Distinctive

Capabilities

Human Capital

Capabilities*

* Tier3

Accentures Human Capital Development Framework


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Initial implementations of the Framework reveal that

financially successful organizations have more

mature human capital processes

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0 uccessi & n Planning/

) eadershi 1 2 evel & 1 ( ent

3 areer 2 evel & 1 ( ent

Hu(

an3

a1ital Infrastructure

4 ( 1l

&

5

ee Relati&ns

Hu(

an3

a1ital

0trateg

5

rocess aturity core(score based on relative performance to peers in the benchmarkin g database)

I6 6 7

8

9 @ A B C D A @ 7

8

A E

F

B 7

8

9 @ A B 7

8

9 @ AH

G H I E

F

B 7

8

9 @ A

(organizations that

scored in thebottom quartile offinancial results)

H f

w f

(organizationsthat scored in the

top quartile of

financial results)

Companies with mature human capital processes have superior

financial results

1 2 4

2.2

1.8

1.7

1.P

1.7

2.2

1.8

Q.

R

Q.

Q

Q . P

Q.

R

Q.

R

Q.4

Q .4

1 2Q

4P

KnowS T U V T W X

nagement

Learning Management

Succession Planning/

Leadership Development

Career Development

Human Capital Infrastructure

Employee Relations

Human Capital Strategy

Process Maturity Score(score based on relative performance to peers in the benchmarkin g database)

Immature Moderately Mature Mature Highly Mature

(organizations that


High Performers

Low Performers


top quartile of

financial results)

(organizations that


High Performers

Low Performers


top quartile of

financial results)


financial results


financial results

1 2 4


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Appendix


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Other diagnostic approaches do not track

complete linkages and many do not provide

evidence for the relationship to shareholder value

Human Capital Development Framework Gallup Q12 Engagement Survey

Comprehensive model that distinguishes etween cause

and e ect, or etween intermediate usiness results (tier

2) and current and uture-oriented inancial results (tier1),

and etween HC processes (tier 4) and HC outcomes (tier

3).

Assesses thematurityofan organi ations processes,

ena ling the HCDF to suggest prescriptive, action-

oriented advice

More accurate assessments ased on input from

employees, HR executives, usiness leaders, internal

data ases, and external enchmar s

Using standard measures across firms, the tool can show

which HC processes most impact usiness results.

Assesses one human capital capa ilityonly: employee

engagement.

Simple and easy to implement 12 question survey

administered to employees only.

Questions are very general and are una le to suggest theroot cause of lowor high levels ofemployee engagement,

or suggest action-oriented advice concerning how to

improve it.

Using standard measures across firms, Gallup has shown

a correlation (not causality) etween high levels of

engagement and some intermediate and financial

usiness results.

Innovation Customers

KeyPerformanceDrivers

ROIC TRS

BusinessResults

HumanCapital Processes

HumanCapital Capabilitie s

Tier 1

Tier 2

Tier 3

Tier 4

Employee

Engagement

Productivity Quality Inn o vation C us tom ers

K ey Performance Dr ivers

Business R esults

Human Capital Processes

C omp etenc y

Manage ment

Career

Deve lopm ent

Performance

App raisalSuccess ion Plann ing R ec ru iting

W org

force

Planning

W org

p lace

Des ign

Re w ards and

Rec ognition

Emp loy ee

Relations

H uman

Ca p ital

Strategy

Learning

Manage ment

Know ledge

Manage ment

H u man Cap ital

Infrastructure

Human Capita l Capabilities

Tier 1

Tier 2

Tier 3

Tier 4

W o rg force

Performance

Emp loy ee

EngagementW o r

gforce Adap ta

hi l i ty

Ah ility to

Change

Talent

Manage ment

Leadersh ip

Ca p ah

ility

H uman

Ca p ital

Efficienc y

Change

Manage ment

Revenue

Grow thRO IC or

R O E ( F So nly )TR S Future Value

Innovation Customers

KeyPerformanceDrivers

ROIC TRS

BusinessResults

HumanCapital Processes

HumanCapital Capabilitie s

Tier 1

Tier 2

Tier 3

Tier 4

Employee

Engagement

Productivity Quality Inn o vation C us tom ers

K ey Performance Dr ivers

Business R esults

Human Capital Processes

C omp etenc y

Manage ment

Career

Deve lopm ent

Performance

App raisalSuccess ion Plann ing R ec ru iting

W org

force

Planning

W org

p lace

Des ign

Re w ards and

Rec ognition

Emp loy ee

Relations

H uman

Ca p ital

Strategy

Learning

Manage ment

Know ledge

Manage ment

H u man Cap ital

Infrastructure

Human Capita l Capabilities

Tier 1

Tier 2

Tier 3

Tier 4

W o rg force

Performance

Emp loy ee

EngagementW o r

gforce Adap ta

hi l i ty

Ah ility to

Change

Talent

Manage ment

Leadersh ip

Ca p ah

ility

H uman

Ca p ital

Efficienc y

W o rg force

Performance

Emp loy ee

EngagementW o r

gforce Adap ta

hi l i ty

Ah ility to

Change

Talent

Manage ment

Leadersh ip

Ca p ah

ility

H uman

Ca p ital

Efficienc y

Change

Manage ment

Revenue

Grow thRO IC or

R O E ( F So nly )TR S Future Value


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Other diagnostic approaches do not track

complete linkages and many do not provide

evidence for the relationship to shareholder value

(continued)

Watson Wyatt Human Capital Index HR Scorecard/Huselid

Lin s some human capital processes directly tofinancial

results. Is not as comprehensive in its coverage ofHC

processes as the HCDF. Does not distinguish etween HC

processes and outcomes capa ilities, and does not include

intermediate usiness results. Assesses the effectiveness ofHR programs y collecting

data fromHR personnel only. This ena les some prescriptive

advice a out HR solutions, ut it fails to assess the

effectiveness ofthe programs in supporting employees.

Using standard measures across firms, the Human Capital

Index has shown correlation (not causality) etween HC

practices and financial results.

Does not use standard measures across firms, and

thus can not offer users validation that human

capital processes and capa ilities impact usiness

results. Rather, it offers a tool to e customi ed for

the organi ation similar to the Balanced Scorecard.Over time, if oth HC processes and usiness

results improve in a single organi ation, a logical

( ut not statistical) connection may e made.

However, one ofthe developers ofthe HR

Scorecard, Mar Huselid, has pu lished research

that shows a correlation (not causality) etween

some HC processes and financial results.

iey

performance

qrivers

Revenuer

rowt h ROIC TRS Futures

alue

tusiness Results

HumanCapitalp

rocesses

Competency

Management

Career

Development

Performance

AppraisalRecruiting

u

orv

force

Planning

Rewards and

Recognition

wmployee

Relations

HumanCapital

Strategy

HumanCapital Capaxi l ities

yier

yier

yier

yier

iey

performance

qrivers

Revenuer

rowt h ROIC TRS Futures

alue

tusiness Results

HumanCapitalp

rocesses

Competency

Management

Career

Development

Performance

AppraisalRecruiting

u

orv

force

Planning

Rewards and

Recognition

wmployee

Relations

HumanCapital

Strategy

HumanCapital Capaxi l ities

yier

yier

yier

yier

iey

performance

qrivers

Revenuer

rowt h ROIC TRS

t usiness Results

HumanCapitalp

rocesses

CompetencyManagement

CareerDevelopment

PerformanceAppraisal

Recruitingu

orv forcePlanning

Rewards and

Recognitionw

mployee

Relations

HumanCapital

Strategy

HumanCapital Capaxilities

y ier

yier

yier

yier

iey

performance

qrivers

Revenuer

rowt h ROIC TRS

t usiness Results

HumanCapitalp

rocesses

CompetencyManagement

CareerDevelopment

PerformanceAppraisal

Recruitingu

orv forcePlanning

Rewards and

Recognitionw

mployee

Relations

HumanCapital

Strategy

HumanCapital Capaxilities

y ier

yier

yier

yier


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Data is collected through web enabled surveys,

executive interviews and financial data

worksheets.

Time CommitmentAudience

45minute we ased survey5 15 HR Executives

Factual data collection (may e delegated)

usiness financial data (access financial Controller)

HR data we survey

Provide employee information for those ta ing the survey

Schedule interviews with executive committee

1.5 days wee for3wee s then .5 days for5wee s to helpmanage effort

Project Manager

Employees without supervisory responsi ilities (~70 ):

20 minute we - ased survey

Employees with supervisory responsi ilities (~30 ):

30 minute we - ased survey

Cross section of 50 or more

employees

30 - 45minute structured interviews

At least three executive interviews, one ofwhich will e with an HR executive whocan articulate the HR strategy, and twoofwhich will e with usiness executives whocan articulate the organi ations strategy .

Executives


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Identify strengths,

wea nesses, and process

maturity in ey human

capital capa ilities

Same as first execution

plus

Company/Industry Data Collection

FrameworkExecution

1 2 3 4 5 6 7.

Predictive Quality of HumanCapital Investments Esta lish a aseline for

measurement that ma esit possi le to trac

financial impacts over

time

Identify causality etween

the tiers, not justcorrelation

Develop

recommendations on

specific actions to ta e to

improve capa ilities

Measure changes over

time related to the

effectiveness ofhuman

capital measurement

Provide a comparison of

where the organi ation

stands compared to

enchmar s

Use as a significant input

tooperational fiscal

planning

Identifies wor force

performance

opportunities

Predict output ofhuman

capital investments

First Execution Second Execution

The first execution ofthe framewor identifies strengths and

opportunity areas. Su sequent executions measures the

impact ofhuman capital programs over time and allows

identification ofcausal lin s.


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The Accenture Human Capital Development

Benchmarking Database

The benchmarking database consists of approximately 35 organizations across 16companies, across industries.

Staffing firmMotorcycle manufacturer (Harley-Davidson) Professional services engineering construction firms (2)

Equipment manufacturer (Briggs and Stratton) Canadian utility South African utility (Es om) Spanish utility Software company (SAP America)Mobile phone manufacturer Government administration agency

Government defense agency Investment ban Insurance company Retail commercial ban Health insurance provider

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