AccentureHumanCapitalDevelopmentFrameworkDevelopedbytheAccentureHumanPerformanceServiceLine&AccentureInstituteforHighPerformanceBusinessProjectOverview2©Accenture2004AllRightsReserved.PatentPending.WorkforceandHRPerformanceareatopExecutivePriority…KeyHRInitiatives14%11%12%11%6%64%65%66%68%69%0%10%20%30%40%50%60%70%80%ImprovingthedeliveryofHRservicesImprovingemployeeengagementwith/advocacyforthecompanyFacilitatingorganizationalchangeImprovingtheadaptabilityofthebusinesstonewopportunitiesImprovingworkerproductivitySatisfactionwithProgressImportanceSource:TheAccentureHigh-PerformanceWorkforceStudy2004…Yetfewexecutivesarehighlysatisfiedwiththeirprogressontheseinitiatives3©Accenture2004AllRightsReserved.PatentPending.HighPerformancebusinessesarecharacterizedbyleadingedgehumancapitalcapabilities.HumanCapitalEfficiencyWorkforceAdaptabilityWorkforcePerformanceTalentManagementAbilitytoChangeEmployeeEngagementLeadershipCapabilityHighPerformanceFrameworkHighPerformanceAnatomyMarketFocusDistinctiveCapabilitiesHumanCapitalCapabilities**Tier3ofAccenture’sHumanCapitalDevelopmentFramework4©Accenture2004AllRightsReserved.PatentPending.ProductivityQualityInnovationCustomersKeyPerformanceDriversBusinessResultsHumanCapitalProcessesCompetencyManagementCareerDevelopmentPerformanceAppraisalSuccessionPlanningRecruitingWorkforcePlanningWorkplaceDesignRewardsandRecognitionEmployeeRelationsHumanCapitalStrategyLearningManagementKnowledgeManagementHumanCapitalInfrastructureHumanCapitalCapabilitiesTier1Tier2Tier3Tier4WorkforcePerformanceEmployeeEngagementWorkforceAdaptabilityAbilitytoChangeTalentManagementLeadershipCapabilityHumanCapitalEfficiencyWorkforcePerformanceEmployeeEngagementWorkforceAdaptabilityAbilitytoChangeTalentManagementLeadershipCapabilityHumanCapitalEfficiencyChangeManagementRevenueGrowthROICorROE(FSonly)TotalReturntoShareholdersFutureValueIllustrativeBusinessMeasuresTheAccentureHumanCapitalDevelopmentFrameworkisatooltomeasurehowwellcompaniesmasterthesecriticalHumanCapitalCapabilities5©Accenture2004AllRightsReserved.PatentPending.TheFrameworkproducesaScorecardindicatingperformanceonallelementsoftheframeworkalongwithadetailedassessmentoftheresults.RewardsandRecognitionEmployeeRelationsHumanCapitalStrategyLearningManagementKnowledgeManagementHumanCapitalInfrastructureChangeManagementWorkforcePerformanceEmployeeEngagementWorkforceAdaptabilityAbilitytoChangeHumanCapitalEfficiencyProductivityQualityInnovationCustomersKeyPerformanceDriversBusinessResultsLeadershipCapabilityHumanCapitalCapabilitiesTier1Tier2Tier3HumanCapitalProcessesCompetencyManagementCareerDevelopmentPerformanceAppraisalSuccessionPlanningRecruitingWorkforcePlanningWorkplaceDesignTier4TalentManagementRevenueGrowthROICorROE(FSonly)TRSFutureValueIllustrativeBusinessMeasures3.43.22.83.33.23.73.83.23.23.63.03.83.33.53.03.23.23.42.93.23.13.93.73.02.7HumanCapitalEfficiencyTopQuartileBottomQuartileNote:Numbersrepresentsurveyresponses(means).Colorcodesindicateperformancecomparedtobenchmarks6©Accenture2004AllRightsReserved.PatentPending.InitialimplementationsoftheFrameworkrevealthatfinanciallysuccessfulorganizationshavemorematurehumancapitalprocesses2.21.81.71.51.72.21.83.63.33.53.63.63.43.412345KnowledgeManagementLearningManagementSuccessionPlanning/LeadershipDevelopmentCareerDevelopmentHumanCapitalInfrastructureEmployeeRelationsHumanCapitalStrategyProcessMaturityScore(scorebasedonrelativeperformancetopeersinthebenchmarkingdatabase)ImmatureModeratelyMatureMatureHighlyMature(organizationsthatscoredinthebottomquartileoffinancialresults)HighPerformersLowPerformers(organizationsthatscoredinthetopquartileoffinancialresults)Companieswithmaturehumancapitalprocesseshavesuperiorfinancialresults123452.21.81.71.51.72.21.83.63.33.53.63.63.43.412345KnowledgeManagementLearningManagementSuccessionPlanning/LeadershipDevelopmentCareerDevelopmentHumanCapitalInfrastructureEmployeeRelationsHumanCapitalStrategyProcessMaturityScore(scorebasedonrelativeperformancetopeersinthebenchmarkingdatabase)ImmatureModeratelyMatureMatureHighlyMature(organizationsthatscoredinthebottomquartileoffinancialresults)HighPerformersLowPerformers(organizationsthatscoredinthetopquartileoffinancialresults)(organizationsthatscoredinthebottomquartileoffinancialresults)HighPerformersLowPerformers(organizationsthatscoredinthetopquartileoffinancialresults)CompanieswithmaturehumancapitalprocesseshavesuperiorfinancialresultsCompanieswithmaturehumancapitalprocesseshavesuperiorfinancialresults123457©Accenture2004AllRightsReserved.PatentPending.Analysisofinitialimplementationsoftheframeworkhavealsoansweredimportantquestionsonthemindsofexecutivestoday1.Whatarethekeyactivitiesthatleadtoamoreengagedworkforce?(seeOutlookarticle,HarnessingthePowerofanEngagedWorkforce,February,2005)2.Aremyassumptionsabouteffectivelymanaginganddevelopinghumancapitalcorrect?Whatarethesurprisingfindingsthatgoagainstcommonwisdom?3.Whatprocessesmostimpactcriticalhumancapitalcapabilitieslikeworkforceperformance,workforceadaptability,andleadership?(see