competences as a strategic business measure heather lees sig: auckland i/o group april 8 th 2003

Competences as a strategic business measure

Heather LeesSIG: Auckland I/O Group

April 8th 2003

Heather Lees copyright 8/04/03

Human Capital Index

GroupHCI

IndividualHCI

IndividualHCI

Individual HCI

Individual HCI

IndividualHCI

CompetenceMean score


Human capital

• A separate entity it is NOT the people in the workforce

• It is WHAT employees contribute to the workforce that is of value


Competence

A cluster of related knowledge, skills, aptitudes and attitudes that are needed to effectively perform a role in an organisation


Nordhaug Typology

Non-technicalMeta-competencesIntra-organisationalIndustry

TechnicalStandard technicalTrade/ProfessionalUnique

Source O.Nordhaug (1993) Human Capital in organisations. Competence, training and learning. Oxford University Press, New York


Productivity

• The optimized utilization of all available resources, investigation into the best known resources and generating new resources through creative thinking, research and development and by use of all possible improvement techniques, methods and approaches for the production and distribution of quality goods and services.

• M.R.Ramsay (995) Enterprise productivity measurement and international labour productivity handbook., Advanced Productivity Quality Centre of Australia, Sydney, p.4


Human Capital Index

• Index- components are combined to give a number out of 100

Other HCIs

• Watson & Wyatt

• Deloitte & Touche


Positions

Organisations Positions

• Bank: CSR and CSO

• Law Firm: Lawyer (2)

• Supermarket: Manager

• Not for Profit: Engineer

• Gaming: Technician


Human Capital Index

GroupHCI 79-89

IndividualHCI 85-95

IndividualHCI 83-93

Individual HCI 75-85

Individual HCI 74-84

CompetenceMean score

Effective coaching skills =4


Lawyer HCI ResultsHCI HCI

Band

April

$000

Dec

$000

Group 84 79-89 409 1,429

Lisa 90 85-95 156 480

Aeda 88 83-93 104 330

Nick 80 75-85 77 333

Amy 79 74-84 72 286


Lawyer correlations

Fees %YTD 4 Mths $

HCI .86 .93

Tertiary Education .25 .25

Prizes &/ Honours .17 .17


Lawyer correlationsFees

%YTD4 Mths

$

Fees

%YTD

12 Mths

$

HCI .86 .93 .57 .89

Tertiary Education

.25 .25 -.61 .20

Prizes &/ Honours

.17 .17 -.46 .42


Benefits

• HCI: a measure of human capital-developed, understood and managed by HR - with credibility

• Evidence of impact of soft skills

• Competence-based human resource management


Lawyer competence correlations

• Non-technical competences strongly correlated to productivity measures

E.G.

Effective delegation of matters and/or tasksEffective coaching skills Effective supervision of junior staff


Who will this measure work for?

• Organisations with:– Productivity measures– Competence profile (Nordhaug’s)– A culture that accepts employee measurement


Feedback

Heather Lees• [email protected]

competences as a strategic business measure heather lees sig: auckland i/o group april 8 th 2003

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