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“Shaping an investment industry that serves the greater good” rstanding value creation & risk from human c n introduction to Organization Maturity Rati Improve your Organization’s Maturity Increase your Organization’s Value Enhance your Societal Impact & Reputation OMS Organizational Maturity Services LLP
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Page 1: OMR2015

“Shaping an investment industry that serves the greater good”

Understanding value creation & risk from human capitalAn introduction to Organization Maturity Ratings

Improve your Organization’s MaturityIncrease your Organization’s ValueEnhance your Societal Impact & Reputation

OMS Organizational Maturity

Services LLP

Page 2: OMR2015

How much does human capital

matter?

OMS Organizational Maturity

Services LLP

Page 3: OMR2015

Understanding how human capital drives value & risk:

Page 4: OMR2015

Value orientation – short, long term; narrow or broad based?

The paradox is that by not pursuing profitability to the exclusion of all else, the Great Engine companies in their Golden Age would achieve enormous increases in value...whereas, by single-mindedly pursuing profit...these same companies and their successors actually created less genuine, lasting wealth; indeed, they would often destroy it.

(The Puritan Gift, Kenneth & William Hopper)

Page 5: OMR2015

Profit is critical for a healthy organisation but value is much broader, cleaner and sustainable

OMS Organizational Maturity

Services LLP

Page 6: OMR2015

Stage 2Good ProfessionalPractice

Stage 3Effective Management

Stage 4Human Capital becomes integral to business operations

Stage 5Transition: operationalto strategic focus

Stage 1PersonnelAdministration

Board & Executives resistant/unaware of people & human capital value up to

this point

Stage 6Organisation becomes a whole system

Stage 0No ConsciousPeopleManagement

Maturity spectrum:OMR ‘AAA’ Scales

LONG TERM - STABILITYSHORT TERM - UNSTABLE

A+

to

AA

-

AA

A

BB

B to

AB

BB

-

BB

+

BB

C B

OMR

OMS Organizational Maturity

Services LLP

Page 7: OMR2015

THE TEN ‘PILLARS’Maximizing value & understanding risk:

Page 8: OMR2015

Maturity in practice: value outcomes

Early indicators

Exec expectations of human capital & value now aligned across the business Organization now adopting a new language around HCM 10 Pillars embedded into assessment of planned HC activities Maturity provides new framework for value based assessments and decision making Mature thinking becomes conscious & senior execs now lead on HC initiatives Practically NSW HR team now focused on the business rather than blindly adopting "best practice”

Page 9: OMR2015

How Maturity Pillars can predict value creation & destruction

Page 10: OMR2015

Maturity drives higher value, lower risk & ‘good’ outcomes

“social, economic, environmental, and ethical factors directly affect business strategy—for example, how companies attract and retain employees, how they manage the risks and create opportunities from climate change, a company’s culture, corporate-governance standards, stakeholder-engagement strategies, philanthropy, reputation, and brand management.” – David Blood 2007

Page 11: OMR2015

Thank you

www.omservices.org [email protected]

Improve your Organization’s MaturityIncrease your Organization’s ValueEnhance your Societal Impact & Reputation

OMS Organizational Maturity

Services LLP