“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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“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
How much does human capital
matter?
OMS Organizational Maturity
Services LLP
Understanding how human capital drives value & risk:
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)
Profit is critical for a healthy organisation but value is much broader, cleaner and sustainable
OMS Organizational Maturity
Services LLP
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
THE TEN ‘PILLARS’Maximizing value & understanding risk:
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”
How Maturity Pillars can predict value creation & destruction
“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