Human Capital As a Competitive Advantage. March 4, 2010

Transcription

1 Human Capital As a Competitive Advantage March 4, 2010

2 Is Human Capital a Competitive Advantage? Large Profitable Retail Company Decided to Pursue Additional Profits Buy Cutting High Paid Sales Staff Swung to a $400 million Loss in One Quarter Now Bankrupt

3 Analyst s Quotes Analysts said Circuit City had cast off some of its most experienced and successful people and was losing business to competitors who have better-trained employees. "I think even though sales were soft in March, this is clearly why April sales were worse. They were replaced with less knowledgeable associates," said Tim Allen, an analyst with Jefferies & Co. However, Baker also said Circuit City's situation is mostly a result of its loss of informed workers. Best Buy "will fare better because of market share gains driven by weakening customer service at Circuit City," he wrote. "We believe that Circuit City's store labor change... likely has had a worse than expected impact on Circuit City's service levels and has enabled [Best Buy] to take share."

4 Circuit City CEO 2008 In particular, to be successful, all of our actions must start with improving the customer experience in our stores.

5 IBM Wall Street Journal Advertisement How do We Make HR a Guardian of Strategy not Resumes How Can we Make HR as Innovative as R&D How Can we Grow Leaders Not Leavers Source: IBM Wall Street Journal Advertisement

6 Things I would Like to Discuss Five Year Journey at the SEC Steps We Have Taken to Become a Strategic Partner Challenges That Have Confronted Us Recent Successes Where We Go From Here

7 Where Did We Start? Traditional, Transactional Based HR Organization Expectations of Strategic Value Were Very Low Entrenched and at Times Resistant Leadership Team

8 Be a highly competent, strategically Support execution of the focused HR staff delivering SEC SEC mission human capital results through integrated systems, while maintaining operational excellence. Provide Operational Excellence C1. Provide timely, accurate information to the SEC C2. Ensure SEC human capital readiness/ capability I 3. Leverage administrative officers role in HR I 2. Utilize automation to optimize HR processes C3. Foster a results-driven culture across the SEC LG1. Know the business of the SEC C4. Deliver on employer of choice strategy Strategically Aligned Partnership I 5. Provide thought leadership to customers/ stakeholders F1. Optimize return on invested SEC human capital F2. Align fiscal resources to SEC strategy Integrated Human Capital Systems I 8. Provide world class employee development & knowledge management I 9. Increase bench strength for leadership positions Competency Models I 4. Formalize consultative relationship with clients I 1. Improve core processes Learning & Growth Deliver Effective Human Capital Systems Be a Trusted Strategic Partner Achieve HR Operational Excellence Internal (OHR) Process M1. Be the SEC source for strategic human capital leadership Financial Customer / Stakeholder Mission OHR Mission: LG2. Develop employee competencies to achieve OHR strategy I 6. Develop and execute a selection system aligned with SEC strategy LG3. Improve customer focus I 7. Shape and execute a strategic performance mgmt system LG4. Develop a resultsdriven culture

9 Customer Reactions to Strategy Presentations 1. The presentation was clear and well delivered. 4% 15% 59% 22% 2. I have a good understanding of the OHR strategy. 4% 15% 44% 37% 3. Executing the OHR strategy will make the OHR a more valuable strategic partner. 11% 63% 26% Strongly Disagree Disagree Neutral Agree Strongly Agree 13

10 Customer Reactions to Strategy Presentations 4. Executing the OHR strategy will lead to improved performance for the SEC. 4% 19% 63% 15% 5. I have confidence that the OHR will successfully execute its strategy. 4%4% 52% 30% 11% Strongly Disagree Disagree Neutral Agree Strongly Agree 13

11 How Have We Addressed Our Talent Needs? It all Starts With Talent and We Did Not Have the Talent to Execute Our Strategy Today We Have a Completely Different Workforce, Focused on the Strategy We have Strong Customer Service Metrics Learning & Growth We Lead the Agency on Performance Management Practices LG1. Know the business of the SEC LG2. Develop employee competencies to achieve OHR strategy LG3. Improve customer focus LG4. Develop a resultsdriven culture

12 How Have We Achieved Our Internal Themes Built Effective Human Capital Systems Formalized and Optimized Key processes Embedded Human Capital Consultants Internal (OHR) Process Achieve HR Operational Excellence I 3. Leverage administrative officers role in HR I 2. Utilize automation to optimize HR processes I 1. Improve core processes Strategically Aligned Partnership I 5. Provide thought leadership to customers/ stakeholders Integrated Human Capital Systems I 8. Provide world class employee development & knowledge management I 9. Increase bench strength for leadership positions Competency Models I 4. Formalize consultative relationship with clients I 6. Develop and execute a selection system aligned with SEC strategy I 7. Shape and execute a strategic performance mgmt system

13 OHR Mission: How Have Our Customers Responded? Be a highly competent, strategically focused HR staff delivering SEC human capital results through integrated systems, while maintaining operational excellence. Deliver Effective Human Capital Systems Be a Trusted Strategic Partner C1. Provide timely, accurate information to the SEC C2. Ensure SEC human capital readiness/ capability C3. Foster a results-driven culture across the SEC C4. Deliver on employer of choice strategy Financial Customer / Stakeholder Provide Operational Excellence F1. Optimize return on invested SEC human capital F2. Align fiscal resources to SEC strategy Our Funding Has Increased at Our Customer s Request We Have More Special Project Requests Then We Can Support We Are Actually Designing Strategic Plans For Our Customers

14 OHR Mission: Mission How Have We Supported the Mission? Be a highly competent, strategically focused HR staff delivering SEC human capital results through integrated systems, while maintaining operational excellence. Support execution of the SEC mission M1. Be the SEC source for strategic human capital leadership The Post Madoff Environment has Focused a Laser Beam on Human Capital Systems: 4. Executing the OHR strategy will lead to improved performance for the SEC. 4% 19% 63% Significant Funding Increases for Employee Development Support for Major Re-structuring Efforts We Are Exercising More Influence Than Ever Before 15%

15 Major Initiatives We Are Leading New Agency-wide Performance Management System New SEC-wide Employee Development Strategy Partner in Major Re-structuring Efforts Fundamental Re-design of Employee Selection Process Implementation of Comprehensive Leadership Development Strategy

16 Invested Human Capital Model We Must Know What We Have Invested in Our Workforce. Should be in Our Balance Sheet.

17 For Additional Information: Jeff Risinger Chief Human Capital Officer U.S. Securities and Exchange Commission (202)