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Human Capital Conference
Balanced Scorecard Collaborative, Inc. 55 Old Bedford Road
Lincoln, MA 01773 Tel: 781.259.3737 Fax: 781.259.3389 bscol.com
Creating an Integrated Human Capital Strategy
Beth HummelsVice President, Human ResourcesWells Fargo Home and
Consumer Finance Group
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1Discussion Topics
Business and Human Resources/Communications Overview Balancing
Business and Human Capital Needs Overview of the Human Capital
Strategy Alignment Defining Moments Key Roles Next Steps
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2Wells Fargo & Company
Data as of February 2005
Community Banking
Total TMs in org = 63,981
Wholesale Banking
Total TMs in org = 14,872
Home & Consumer Finance Group
Total TMs in org = 54,430
Other Businesses
Total TMs in org = 20,925
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3Home and Consumer Finance Group
Wells Fargo Home
Mortgage
Wells Fargo Home
MortgageWells Fargo Consumer
Credit Group
Wells Fargo Consumer
Credit GroupWells Fargo
Financial Wells Fargo
Financial Group
& WFSC
-Origination:-First Mortgages-Home Equity Lines -Home Equity
Loans-Servicing-ARM Loan Portfolio-Captive Reinsurance-Ancillary
Products
-Home Equity Lines-Home Equity Loans-First Mortgages-Personal
Loans-Personal Lines
-Trustee Services:-Mortgages-ABS-CDO-Municipals
-Servicing-Master Servicing
-Consumer Products:-First Mortgages-Home Equity Loans-Home
Equity Lines-Automobile Loans-Personal Loans -Revolving Credit
Lines-Credit Cards
-Retail / Commercial:-Retail Private Label -Auto Dealer
Credit-Lease Financing-Receivables Lending
Group&
WFSC
-Human Resources / Communications
-Strategic Development-Government Relations -Technology
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4Group Net Income Trend
2000 2001 2002 2003
32% CA
GR
CAGR = Constant Annual Growth Rate
2004
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5Delivery Model
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6Balancing Business Line Needs with Group Needs
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7Common Where Possible, Custom Where it Counts
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8Balancing Business Line Specific Needs with Group Needs An
Example
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9Objectives for Creating the HCFG Human Capital Strategy
To focus on human capital needs for future success To provide a
framework for designing and implementing solutions To create
capacity to extend quality and reach of HR/C services
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How the HCFG Human Capital Strategy was Developed
Purposefully determined time to kick-off strategy work to ensure
effective timing for our team and in context of business needs
Interviewed HCFG Business Leaders and HR/C Leadership Team to
discuss business needs, priorities and expectations of HR/C
Validated Group EVPs expectations to leverage an enterprise-wide
approach for HR/C services
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12
Evolution of the Human Capital Strategy
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Alignment To the Business Strategy
HCFG Global Programs a collaborative effort in eight areas of
commonality Real Estate Secured Lending Value Chain Drive Customer
Value Common where Possible, Custom where it Counts Capture $1.8
trillion opportunity
HR/C as a Strategic Business Partner Leading Change through the
Human Capital Strategy Leadership Communication Tool
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Alignment Whats Expected from HR/C
Creation of Service Level AgreementsSLA Strategy three levels
Includes 9 HR/C Core ServicesConsistent template
Measure performance through Client AssessmentMeasures 9 HR/C
Core ServicesAdministered to Group EVPs direct reports and
two-downsBaseline assessment completed in December 2004On-going
performance measured on annual basis
Shared ServiceSLA
Business Line SLA
HCFG HR/C Master Core Services
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Alignment Understanding Where Were At HR/C Human Capital
Strategy Survey
All HR/C Team MembersAdministered May 04, November 04 and May
05A way to understand HR/C climate, the status of the strategy
implementation process and effectiveness of learning tools
Identify levers, strengths and opportunities
ResultsMovement from awareness and understanding to utilization
and
applicationPerformance of survey results used for Learning &
Growth
Perspective measures
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Alignment HR/C Team Member Goals
Integration of Human Capital Strategy into HR/Cs Performance
Management (MPP) and Incentive Compensation (ICP)
HR/C Leadership Team and their direct reports completed 2005
MPP/ICP goals by the end of 2004 linkages made to Human Capital
Strategy
Cascading of MPP/ICP goals to all HR/C team members will be
completed by 1Q2005 HR/C EVP
HR/C Leadership Team
All Others TMs
HR/C Leadership Team Direct Reports
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Defining Moments
Change in leadership behavior HR/C MPP/ICP generic Human Capital
Strategy goal in mid 2004 Completion of measures in August 2004
September 2004 off-site meeting with HR/C Leadership teams
direct
reports new organizational structure Town Hall meetings
Perception of the Strategy moved from being extra work to the work
Completing 2005 HR/C MPP/ICP goal planning early
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Defining Moments cont.
Group EVP including Human Capital objectives in HCFG
ExecutivesICP Goals
Quarterly Human Capital Strategy review meetings more strategy
focused and performance driven
Openness for feedback and dedication to taking action HR/C EVP
and HR/C Leadership Team Assessment All HR/C Human Capital Strategy
Survey (May and Nov. 2004) HR/C Human Capital Strategy and Voice of
the Team focus groups
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Key Role Business Partners
Provide feedback Convey business direction Support the design
for the enterprise and deliver to the business
approach Approve shared resources to implement initiatives Move
beyond awareness of Human Capital Strategy to execution
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Key Roles - HR/C Team
HR/C EVP and Leadership TeamOwnership Accountability Results
Driven Consulting
HR/C Leadership Team Direct ReportsAccountability Leadership
Empowerment Consulting
Measure LeadersHuman Capital Data Experts Influence Strategy
Advocates
Consulting All HR/C Team Members
Collaboration Alignment Execution Consulting Share Successes
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Next Steps
Continuous alignment with business strategies Development and
execution of Service Level Agreements Continued strategic
consulting with business partners Continued development of
governance systems (link to risk
management, budget development/management and project
management)
Continued delivery of HR/C consulting and core services
Continued evolution of the Human Capital Strategy
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Questions
Creating an Integrated Human Capital StrategyDiscussion
TopicsWells Fargo & CompanyHome and Consumer Finance Group
Common Where Possible, Custom Where it CountsBalancing Business
Line Specific Needs with Group Needs An ExampleObjectives for
Creating the HCFG Human Capital StrategyHow the HCFG Human Capital
Strategy was DevelopedEvolution of the Human Capital
StrategyAlignment To the Business StrategyAlignment Whats Expected
from HR/CAlignment Understanding Where Were AtAlignment HR/C Team
Member GoalsDefining MomentsDefining Moments cont.Key Role Business
PartnersKey Roles - HR/C TeamNext Steps