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Managing Human Capital: Key Issues and Insights
Dr Clinton Strahan
Why?
• Reduced labour costs
• Improved productivity & culture
• More effective budgeting & workforce planning
• Brand/Corporate Image “Employer of Choice”
Critical Challenges
1. Identifying Talent
2. Improving Leadership Effectiveness
Identifying Talent
Identifying Talent
Case Study 1 – CQ Processing Plant • Problems:
– Low productivity, high absenteeism, equipment damage, re-work, high LTIs – Labour churn – “Culture” – Short-term focus (getting the job done today) and limited learning
• Current selection model: “Know How”
– People sourced from local town – Advertise in local paper & word-of-mouth – Resume/Interview
• Revised selection model: Best person in Australia for the job
– Recruitment marketing campaign – Select on ability, attributes and attitudes that support an effective performance – Focus on use of “objective” data to make hiring decisions
Outcomes: - ↓ LTIs - Hitting production targets for the first time in 5years
2. Improving Leadership Effectiveness
• Key considerations:
– Identification i.e. What makes a good leader?
– Do we “build” or “buy”? • How do we build?
What makes a good leader?
Vision
People
Tasks
Avoid the “Wally Lewis” bias
Build vs Buy
• Buy: – Look for “can do” & “want to”
• Ability • Attributes • Motivation
– Track Record – Keep it objective!
• Build:
– What can/cant be learned or trained? – How do we build?:
• Training programs • Leadership development programs
– Requires: time, effort, feedback, learning & practice.(on the job!)
• Combination of build/buy
Case Study 2: NT
• Problem: – High LTIs
• Current state: – “Wally Lewis”/Tenure-based/Referral methods of
selection to supervisory roles
– Ad-hoc formal training/support
– Limited incident follow up or “tracking” of safety or performance data
Case Study 2: NT
Injury Total by crew, January 2010 -April, 2011.
Supervisor #1
0 5 10 15
DUNN, AARON
FOSTER, COLIN
SODENKAMP, JOE
HYDE, MATTHEW
OSTARJAS, DAMIR
BREEN, MICHAEL
TODD, GEOFFREY
DONO, SAMUEL
LAL, VIJAY
TARA, TOLLY
BRUMMELL, NATHAN
MCALLISTER, PETER
WEBBER, WILLIAM
CRAFT, CHAD
JORDON, OWAIN
RHODES, DANIEL
TOWNSEND, PHILIP
BUCHBACH, ANTHONY
BURNS, JOHN
DIEFENBACH, GRAHAM
JONES, DOUGLAS
MARTIN, VANCE
MITCHELL, KENNETH
REID, KEVIN
SHAW, NEVILLE
WEHRMAN, JOEL
Injury TOTAL, April 2011
The benefits of data... Supervisor # 1
v
Relative Improvement
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Y1 Y2 Y3 Y4
Safe
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CIF
R (
% d
ecr
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e)
Safety Visits (Safe Behaviour Observations)
CIFR (Classified Injury Frequency Rate)
0
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Y1 Y2 Y3 Y4
Co
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lose
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t (%
im
pro
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Inci
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nt
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po
rtin
g (%
incr
eas
e)
Corrective Action Closeout Incident Reporting
Positive Behaviour Change Increased Personal Accountability
Positive Culture Change
Key Learnings
• Understand what drives on-the-job performance
• Measure it objectively
• Make data-driven people decisions
• Adapt, learn & drive change
