Unlocking the 2014 value of your human capital

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Information about Unlocking the 2014 value of your human capital
Business & Mgmt

Published on February 15, 2014

Author: jtabacman

Source: slideshare.net

Description

In a constantly changing market, how do you link the resources under your control (such as your Human Capital) to your desired business outcomes in order to fend off current and future competitors from inside and outside your industry?

SIMMETHOD A new way to measure and predict your corporate risk and performance What your human capital reveals about your strategy and execution as predictors of your future performance 2/15/2014 WWW.SIMMETHOD.COM 1

The Way We Measure Corporate Performance Is Broken Mervyns Circuit City Wachovia Washington Mutual Borders Blockbuster 2/15/2014 Why do Businesses fail? WWW.SIMMETHOD.COM Linen n’ Things 2

SIMMETHOD™ Risk and Opportunity Alerts 2/15/2014 WWW.SIMMETHOD.COM 3

Unlocking the value of your Human Capital to become 2014 Best-In-Class Your Human Capital contribution to Best-In-Class performance and risk reduction in Technology, Software, Social Media, Human Resources and Business Services 2/15/2014 WWW.SIMMETHOD.COM 4

Key Predictive Questions • Is your Human Capital predictive of your future risk and performance? • How much value is your human capital adding to your customers, your business and your valuechain? 2/15/2014 WWW.SIMMETHOD.COM 5

Key Predictive Questions • Is your human capital aligned to business value creation? • How much value is your human capital adding to your business in comparison to your peers, the Best-In-Class and current and future competitors? 2/15/2014 WWW.SIMMETHOD.COM 6

Key Predictive Questions • In a constantly changing market, how do you link the resources under your control (such as your Human Capital) to your desired business outcomes in order to fend off future competitors from inside and outside your industry? WWW.SIMMETHOD.COM 2/15/2014 7

SIMMETHOD Industry Agnostic Value Creation Correlations Correlation between the HR and the Value Creation Index 2/15/2014 WWW.SIMMETHOD.COM 8

-5 NHN Visa Apple Mastercard Checkpoint Baidu Infosys Netease Google Yahoo Cognizant Priceline Tata Services Cielo Intuit AOL Paychex Wipro Vmware Aggreko Accenture Experian Dassault HCL Moody's Oracle Citrix LinkedIn Microsoft Amadeus SAP H & R Block DKSH IBM Salesforce Amazon Ebay Teradata SIMMETHOD’s 2013 Top 50% Correlation Between HR and Value Creation Index 25 20 15 SIMMETHOD HR Index 10 5 0 2/15/2014 WWW.SIMMETHOD.COM SIMMETHOD Value Creation Index of the Best-In-Class -10 -15 9

-5 2/15/2014 Facebook Automatic Data EMC Verisk Analytics WWW.SIMMETHOD.COM Computer Sciences American Express Expedia Atos Capgemini Symantec Adecco Fidelity National Information -15 Dell Manpower NetApp Tui Sodexco Fiserv CA Innolux United Technology Alliance Quanta Computer Western Union HP Compal Elecronics Randstad Honeywell International -10 Thomas Cook Brambles Adobe SIMMETHOD’s 2013 Bottom 50% Correlation Between HR and Value Creation Index 15 10 5 0 SIMMETHOD HR Index SIMMETHOD Value Creation Index -20 -25 10

Gap to Best-In-Class Performance Bottom 50% to Top 50% The Human Capital profile and competitive advantage of the SIMMETHOD Best-in-Class and bottom 50% WWW.SIMMETHOD.COM 2/15/2014 11

Gap to Best-In-Class Performance Bottom 50% to Top 50% Is your Human Capital gap to the SIMMETHOD Best-In-Class a predictor of your future risk and performance? 2/15/2014 WWW.SIMMETHOD.COM 12

Gap to Best-In-Class Performance Bottom 50% to Top 50% SIMMETHOD’s BestIn-Class businesses create 4.2x more profit per employee 2/15/2014 WWW.SIMMETHOD.COM 13

Gap to Best-In-Class Performance Bottom 50% to Top 50% SIMMETHOD’s Best-InClass businesses create 4.2x more profit per employee with half the debt per employee 2/15/2014 WWW.SIMMETHOD.COM 14

Gap to Best-In-Class Performance Bottom 50% to Top 50% SIMMETHOD’s Best-InClass businesses create 2.5x more value per employee with half the debt per employee 2/15/2014 WWW.SIMMETHOD.COM 15

Gap to Best-In-Class Performance Bottom 50% to Top 50% SIMMETHOD’s Best-InClass businesses generate 70% more cash per employee with half the debt per employee 2/15/2014 WWW.SIMMETHOD.COM 16

Gap to Best-In-Class Performance Bottom 50% to Top 50% SIMMETHOD’s Best-InClass businesses create 2.5x more value per employee with 10% lower overheads per employee 2/15/2014 WWW.SIMMETHOD.COM 17

Gap to Best-In-Class Performance Bottom 50% to Top 50% SIMMETHOD’s Best-InClass businesses can generate the same profit as the bottom 50% with only 25% of their workforce 2/15/2014 WWW.SIMMETHOD.COM 18

Gap to Best-In-Class Performance Bottom 50% to Top 50% SIMMETHOD’s Best-InClass businesses need 2.5x less employees to create the same $1 of market value as the bottom 50% 2/15/2014 WWW.SIMMETHOD.COM 19

SIMMETHOD Industry and Business Trends Industry and Business Trends 2/15/2014 WWW.SIMMETHOD.COM 20

SIMMETHOD Industry and Business Trends • Are you mistaking any positive growth for real competitive advantage? • When your rate of performance improvement is slower than the SIMMETHOD Best-In-Class your level of business risk is increasing. 2/15/2014 WWW.SIMMETHOD.COM 21

SIMMETHOD 2014 Industry and Business Trends • SIMMETHOD’s Strategy & Execution Performance Predictive Indices and trends are not deterministic. Businesses that act on their leading indicators and risk alerts will improve their 2014 performance as will be shown in the forthcoming update of the SIMMETHOD database, performance predictive Indices and correlations. WWW.SIMMETHOD.COM 2/15/2014 22

SIMMETHOD Industry and Business Trends (2012-2013) Case Studies: • Apple • Google • SAP • Microsoft • Oracle • Vmware • Yahoo • Intuit • Amazon 2/15/2014 • • • • • • • • • • Salesforce IBM LinkedIn Dell HP Moody’s Brambles Manpower Randstad Adecco WWW.SIMMETHOD.COM 23

SIMMETHOD Industry and Business Trends HR contribution to Business Value 2012 to 2013 60 Although still above average B-I-C Apple‘s Strategy/Execution Performance Predictive Index and HR Index have decreased at a faster rate than the B-I-C average showing a drop in competitive advantage against peers and the Best-In-Class 50 40 30 2012 20 10 2013 0 Apple Strategy /Execution Performance Predictive index 2/15/2014 B-I-C Strategy /Execution Performance PredictiveIindex Apple HR Index WWW.SIMMETHOD.COM B-I-C HR Index 24

SIMMETHOD Industry and Business Trends HR contribution to Business Value 2012 to 2013 40 Although HR contribution to Business Value has decreased at a faster rate than the Best-In-Class, Google’s indices are all above Best-In-Class average 35 30 25 2012 20 15 10 2013 5 0 Google Strategy /Execution Performance Predictive index 2/15/2014 B-I-C Strategy /Execution Performance predictive Index Google HR Index WWW.SIMMETHOD.COM B-I-C HR Index 25

SIMMETHOD Industry and Business Trends HR contribution to Business Value 2012 to 2013 35 HR contribution to Business value has dropped to negative scores and the Strategy/Execution Performance Predictive Index has dropped at a faster rate than the SIMMETHOD Best-In-Class 30 25 20 2012 15 10 2013 5 0 -5 SAP Strategy /Execution Performance Predictive index 2/15/2014 B-I-C Strategy /Execution Performance Predictive Index SAP HR Index WWW.SIMMETHOD.COM B-I-C HR Index 26

SIMMETHOD Industry and Business Trends HR contribution to Business Value 2012 to 2013 35 Although still at B-I-C level, Microsoft’s HR contribution to Business value has dropped triggering (among other factors) a drop in the Strategy/ Execution Performance Predictive Index 30 25 2012 20 15 10 2013 5 0 Microsoft Strategy /Execution Performance Predictive index 2/15/2014 B-I-C Strategy /Execution Performance Predictive Index Microsoft HR Index WWW.SIMMETHOD.COM B-I-C HR Index 27

SIMMETHOD Industry and Business Trends HR contribution to Business Value 2012 to 2013 30 Oracle’s HR Index has dropped signaling a drop on HR’s contribution to Business value in relation to the B-I-C. The Strategy/Execution Performance Predictive Index has dropped faster than the SIMMETHOD B-I-C 25 20 15 2012 10 2013 5 0 Oracle Strategy /Execution Performance Predictive index 2/15/2014 B-I-C Strategy /Execution Performance Predictive Index Oracle HR Index WWW.SIMMETHOD.COM B-I-C HR Index 28

SIMMETHOD Industry and Business Trends HR contribution to Business Value 2012 to 2013 25 Although Vmware experienced drops in HR and Strategy /Execution Performance Predictive indices, their scores are still aligned to B-I-C averages 20 15 2012 10 2013 5 0 VMware Strategy /Execution Performance Predictive index 2/15/2014 B-I-C Strategy /Execution Performance Predictive Index VMware HR Index WWW.SIMMETHOD.COM B-I-C HR Index 29

SIMMETHOD Industry and Business Trends HR contribution to Business Value 2012 to 2013 30 Yahoo has improved its competitive position against its peers and the SIMMETHOD B-I-C partially driven by its HR increased contribution to Business value 25 20 15 2012 10 2013 5 0 Yahoo Strategy /Execution Performance Predictive index 2/15/2014 B-I-C Strategy /Execution Performance Predictive Index Yahoo HR Index WWW.SIMMETHOD.COM B-I-C HR Index 30

SIMMETHOD Industry and Business Trends HR contribution to Business Value 2012 to 2013 25 Intuit has improved its competitive position against its peers and the SIMMETHOD B-I-C partially driven by increasing HR Business value contribution 20 15 2012 10 2013 5 0 Intuit Strategy /Execution Performance Predictive index 2/15/2014 B-I-C Strategy /Execution Performance Predictive Index Intuit HR Index WWW.SIMMETHOD.COM B-I-C HR Index 31

SIMMETHOD Industry and Business Trends HR contribution to Business Value 2012 to 2013 25 Amazon’s drop in the Strategy/Execution Performance Predictive Index against the SIMMETHOD B-I-C is not driven by its HR that is still above B-I-C average 20 15 2012 10 2013 5 0 Amazon Strategy /Execution Performance Predictive index 2/15/2014 B-I-C Strategy /Execution Performance Predictive Index Amazon HR Index WWW.SIMMETHOD.COM B-I-C HR Index 32

SIMMETHOD Industry and Business Trends HR contribution to Business Value 2012 to 2013 25 A slight improvement on Salesforce’s HR Index was not sufficient to drive its Strategy/Execution Performance Predictive Index above SIMMETHOD’s B-I-C average 20 15 10 2012 2013 5 0 -5 Salesforce Strategy /Execution Performance Predictive index 2/15/2014 B-I-C Strategy /Execution Performance Predictive Index Salesforce HR Index WWW.SIMMETHOD.COM B-I-C HR Index 33

SIMMETHOD Industry and Business Trends HR contribution to Business Value 2012 to 2013 25 Although IBM’s HR Index has improved was still below B-I-C average and not sufficient to drive its Strategy/Execution Performance Predictive Index to average B-I-C level 20 15 2012 10 2013 5 0 -5 IBM Strategy /Execution Performance Predictive index 2/15/2014 B-I-C Strategy /Execution Performance Predictive Index IBM HR Index WWW.SIMMETHOD.COM B-I-C HR Index 34

SIMMETHOD Industry and Business Trends HR contribution to Business Value 2012 to 2013 25 LinkedIn’s drop on the HR Index is in line with the B-I-C average. Its Strategy/Execution Performance Predictive Index has improved considerably in relation to peers and the SIMMETHOD’s B-I-C 20 15 2012 10 2013 5 0 LinkedIn Strategy /Execution Performance Predictive index 2/15/2014 B-I-C Strategy /Execution Performance Predictive Index LinkedIn HR Index WWW.SIMMETHOD.COM B-I-C HR Index 35

SIMMETHOD Industry and Business Trends HR contribution to Business Value 2012 to 2013 30 Lost of competitive advantage at both HR and Strategy/Execution Performance Predictive Index 20 10 2012 0 -10 Dell Strategy /Execution Performance Predictive index B-I-C Strategy /Execution Performance Predictive Index Dell HR Index B-I-C HR Index 2013 -20 -30 -40 2/15/2014 WWW.SIMMETHOD.COM 36

SIMMETHOD Industry and Business Trends HR contribution to Business Value 2012 to 2013 30 Improvement on HR’s contribution to Business value plus other areas of the Business triggered an improvement in the Strategy/ Execution Performance Predictive Index (although still negative) 20 10 2012 0 -10 HP Strategy /Execution Performance Predictive index B-I-C Strategy /Execution Performance Predictive Index HP HR Index B-I-C HR Index 2013 -20 -30 -40 2/15/2014 WWW.SIMMETHOD.COM 37

SIMMETHOD Industry and Business Trends HR contribution to Business Value 2012 to 2013 25 Moody’s drop in its HR contribution to Business value is also reflected on its drop in the Strategy/Execution performance Predictive index against its peers and SIMMETHOD B-I-C 20 15 2012 10 2013 5 0 Moody's Strategy /Execution Performance Predictive index 2/15/2014 B-I-C Strategy /Execution Performance Predictive Index Moody's HR Index WWW.SIMMETHOD.COM B-I-C HR Index 38

SIMMETHOD Industry and Business Trends HR contribution to Business Value 2012 to 2013 25 Although Brambles has improved both its HR and Strategy/Execution Performance Predictive indices is still on negative score territory and below its peers and the B-I-C 20 15 10 2012 5 2013 0 -5 -10 Brambles Strategy /Execution Performance Predictive index B-I-C Strategy /Execution Performance Predictive Index Brambles HR Index B-I-C HR Index -15 2/15/2014 WWW.SIMMETHOD.COM 39

SIMMETHOD Industry and Business Trends HR contribution to Business Value 2012 to 2013 30 Manpower has narrowed the gap to the B-I-C although is still on negative score territory 20 10 2012 0 -10 Manpower Strategy /Execution Performance Predictive index B-I-C Strategy /Execution Performance Predictive Index Manpower HR Index B-I-C HR Index 2013 -20 -30 -40 2/15/2014 WWW.SIMMETHOD.COM 40

SIMMETHOD Industry and Business Trends HR contribution to Business Value 2012 to 2013 30 Randstad’s improvement on its HR Index has contributed to a corresponding improvement on its Strategy/Execution Performance Predictive Index 20 10 0 -10 -20 Randstad Strategy /Execution Performance Predictive index B-I-C Strategy /Execution Performance Predictive Index Randstad HR Index B-I-C HR Index 2012 2013 -30 -40 -50 2/15/2014 WWW.SIMMETHOD.COM 41

SIMMETHOD Industry and Business Trends HR contribution to Business Value 2012 to 2013 30 Adecco has lost competitive advantage against its peers and the SIMMETHOD Best-In-Class 20 10 2012 0 -10 Adecco Strategy /Execution Performance Predictive index B-I-C Strategy /Execution Performance Predictive Index Adecco HR Index B-I-C HR Index 2013 -20 -30 -40 2/15/2014 WWW.SIMMETHOD.COM 42

SIMMETHOD Competitive Intelligence HR View SIMMETHOD Case Studies: Competitive Intelligence 2/15/2014 WWW.SIMMETHOD.COM 43

SIMMETHOD Competitive Intelligence HR View 2013 35 30 25 SIMMETHOD HR Index 20 15 10 5 0 -5 Facebook 2013 -10 -15 -20 2/15/2014 Yahoo 2013 LinkedIn 2013 2013 B-I-C Yahoo’s HR contribution to Business value is reflected on an above B-I-C performance index. LinkedIn has also improved its competitive position at both HR and Strategy/Execution WWW.SIMMETHOD.COM SIMMETHOD Strategy /Execution Performance Predictive Index 44

SIMMETHOD Competitive Intelligence HR View 2013 25 20 Although IBM and Oracle have higher HR Index than SAP, Oracle and SAP are unlocking more value from their Human Capital than IBM (in relation to the SIMMETHOD B-I-C) SIMMETHOD HR Index 15 10 SIMMETHOD Strategy /Execution Performance Predictive Index 5 0 IBM Oracle SAP 2013 B-I-C -5 2/15/2014 WWW.SIMMETHOD.COM 45

SIMMETHOD Competitive Intelligence HR View 2013 45 40 35 Although Amazon’s HR Index is above B-I-C, other areas of the Business drag the SIMMETHOD Strategy/Execution Performance Predictive Index down in relation to the SIMMETHOD B-I-C SIMMETHOD HR Index 30 25 20 SIMMETHOD Strategy /Execution Performance Predictive Index 15 10 5 0 Google 2/15/2014 Amazon Apple WWW.SIMMETHOD.COM 2013 B-I-C 46

SIMMETHOD Competitive Intelligence HR View 2013 30 20 10 SIMMETHOD Performance Predictive Indices show your strengths, weaknesses, risks and opportunities in relation to current and future competitors SIMMETHOD HR Index 0 HP Dell Microsoft -10 2013 B-I-C SIMMETHOD Strategy /Execution Performance Predictive Index -20 -30 -40 2/15/2014 WWW.SIMMETHOD.COM 47

SIMMETHOD Competitive Intelligence HR View 2013 25 20 Salesforce HR Index is below B-I-C level dragging down its Strategy/Execution Performance Predictive Index below the SIMMETHOD B-I-C SIMMETHOD HR Index 15 10 SIMMETHOD Strategy /Execution Performance Predictive Index 5 0 Vmware Salesforce Intuit 2013 B-I-C -5 2/15/2014 WWW.SIMMETHOD.COM 48

SIMMETHOD Competitive Intelligence HR View 2013 30 20 10 Randstad outperforms its competitors at HR Index level however, its Strategy/Execution Performance Predictive Index is negative SIMMETHOD HR Index 0 Adecco Manpower Randstad 2013 B-I-C -10 SIMMETHOD Strategy /Execution Performance Predictive Index -20 -30 -40 2/15/2014 WWW.SIMMETHOD.COM 49

SIMMETHOD Competitive Intelligence HR View 2013 50 40 30 SIMMETHOD HR Index 20 10 0 -10 American Express -20 -30 -40 Visa Mastercard 2013 B-I-C The SIMMETHOD Strategy/Execution Performance Predictive Index reflects your ability to strategize and execute against your peers and the B-I-C in multiple industries SIMMETHOD Strategy /Execution Performance Predictive Index -50 2/15/2014 WWW.SIMMETHOD.COM 50

SIMMETHOD™ Risk and Opportunities Alerts • The SIMMETHOD algorithms review business data and stockholders valuation-decisions across business sectors and build industryagnostic indices in order to identify, measure, correlate and predict your strengths, weaknesses, risks and opportunities against your current and potential future competitors from inside or outside your industry. 2/15/2014 WWW.SIMMETHOD.COM 51

SIMMETHOD’s Disclaimer • The purpose of the SIMMETHOD Strategy/Execution Performance Predictive Index, Reports and Risk/Opportunities Alerts is not to make a Business right or wrong but rather contribute towards the understanding of management actions in comparison to industry peers and the SIMMETHOD Best-InClass. 2/15/2014 WWW.SIMMETHOD.COM 52

SIMMETHOD’s Disclaimer • SIMMETHOD’s Strategy/Execution Performance Predictive Indices, metrics and risk/opportunities alerts do not seek to be exact but rather serve as a conduit to ask better questions and seek better answers in the performance improvement, risk minimization and value creation journey. 2/15/2014 WWW.SIMMETHOD.COM 53

SIMMETHOD’s Disclaimer • Sometimes, the value of a metric in itself does not provide the greatest of insights, but valuable actionable knowledge is gained from its ability to provide a trend or a common comparison yardstick with other businesses across a range of industries. 2/15/2014 WWW.SIMMETHOD.COM 54

SIMMETHOD’s Disclaimer • This report is for informational purpose only and SIMMETHOD shall not be liable for the contents of the report or risk/opportunities alerts or for any damage incurred or alleged to be incurred to any of the Businesses included in the Reports as a result of its content 2/15/2014 WWW.SIMMETHOD.COM 55

SIMMETHOD™ Risk and Opportunities Alerts SIMMETHOD is in the top 1% of most viewed in Slideshare and has been “Hot” on LinkedIn, Twitter and Facebook 44 times. 2/15/2014 WWW.SIMMETHOD.COM 56

Jorge Oscar Tabacman jtabacman@gmail.com Twitter ID: SIMMETHOD SIMMETHOD™ A New Way to Measure and Predict the Risk and Performance of Your Business and Alert You of New Threats and Opportunities 2/15/2014 WWW.SIMMETHOD.COM 57

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