5 Elements of Human Capital Governance That Will Drive Your Organization’s Strategic Results

Governance has become a pervasive and every-day part of today’s business.  Deposit a check with your favorite bank and you have just experienced one example of where, and how, the role that governance plays in even our most common of business transactions.  When you deposit your check into an ATM, for example, a governance process is deployed that evaluates, authenticates, values, accounts for and credits the proper amount of funds to your bank account.  Deceptively simple and convenient, the ATM governance model employs a host of assessments, decisions, procedures, polices, checks/balances, regulations and security measures.  The process is reliable and accountable - each time you make a deposit, you will experience the same constant and consistent application of the governance model/process.

Likewise, business entities are formally and informally governed by internal and external policies and processes, cultural and marketplace norms, regulations, and decisions that seek to:

  • Define actions
  • Grant authority/power
  • Verify performance
  • Mitigate risk and liability

Clearly, governance is a desired, accepted and critical element of our business experience.  Why, then, don’t we see a similarly aggressive approach that defines, authorizes, verifies and mitigates risk (i.e. governs) human capital performance? 

From experience, today’s typical performance review and creation of a related individual development plan or roadmap is an infrequent, retrospective, passive and reactive exercise. It should be a regular, dynamic and living human capital governance assessment that defines and develops employee competencies and aligns performance of those competencies directly to the achievemnet of an entity’s culture and commercial strategy and objectives.

Here are the 5 elements of Prism Partners International's human capital governance model that will drive your organization’s performance and strategic results:

  1. Establish – Establish, align and communicate the strategy, culture, roles, competencies and performance expectations throughout the organization.
     
  2. Assess – Determine if employees understand the organization’s objectives.   Is employee performance in alignment with the culture and strategic objectives?  Is performance advancing organizational objectives and results?
     
  3. Analyze – Analyze the resulting data of your assessment; identify performance gaps and trends.
     
  4. Derive – Derive solutions from the analysis that hold employees and managers accountable for improved performance to achieve organizational results.
     
  5. Repeat – Repeat the steps above – regularly.  The key to human capital governance is that it is constant and consistent. The steps of Establish, Assess, Analyze, Derive and Repeat will mitigate the inherent risk and liabilities of human capital performance, if done with discipline and regularity.

A rigorous organizational monitoring system or human capital performance governance model ensures your employees’ performance is constantly relevant, focused, engaged and aligned with the dynamic  culture and strategy of your organization.

At Prism Partners International we understand that organizational results are dependent on a dynamic performance governance model linking your strategy with your people – your human capital. We know that objectives are realized only when people match and align with your culture and the pace of your strategy.

We can help you realize the value of aligning people to strategy by assessing, developing and aligning people’s performance against your organization’s dynamic strategy. The result? A more engaged workforce, a notably enhanced customer experience and improved financial returns.

Please contact us to learn how we can help.  We invite you sign-up for our weekly blog posts at http://www.prismpartnersintl.com/blog and access our management reference material on our website’s Resources page. We also ask that you join our LinkedIn group, Strategic Human Capital Alignment Forum, Like Us on Facebook (Prism Partners International) and Follow Us on Twitter (@PrismPartners).