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Human Capital Risk Management: Open Forum

Orlando Ashford, Senior V.P. and Chief Human Resources Officer of MMC (Marsh & McLennan), covered a lot of ground in his Innovator Lecture on the opportunities and challenges presented by framing human capital practices as a key element in enterprise risk management.

We’d like to know what you think. Listen to the lecture recording and post your comments here. What aspects of this topic are most important for organizations to understand? What’s missing from the dialogue?

Human Capital Risk Management – Lecture video

Orlando Ashford, Senior Vice President and Chief Human Resources Officer of MMC (Marsh & McLennan Companies) provided perspective  on human capital risks and insights on how leaders should address them during his Innovator Lecture on Nov. 6.

See the video of Ashford’s lecture, during which he explores:

  • A view of risk as including both upside and downside affects
  • A definition of human capital as a key competitive lever
  • Framing human capital risk as part of Enterprise Risk Management (ERM). ERM includes compliance, operational, hazard, strategic, financial and human capital risks.
  • Recognizing “predictable” and “unpredictable” types of human capital risks
  • Examples and case studies of human capital risks and challenges
  • An approach to managing human capital risk that requires two components: A new mindset that clearly recognizes the importance of human capital to business performance, and the ability of leaders to use analytics to correlate human capital performance to business performance

“In today’s ‘knowledge economy,” Ashford concludes, “risk to human capital has emerged as one of the biggest potential threats to the value of the enterprise. The challenge for HR professionals is to correlate human capital performance to business impact through education, effectiveness and evidence. As the ‘War for Talent’ characterized the 1990s, the critical capability and value creator for HR over the next decade will be human capital risk management.”

Human capital risk management – Innovator Lecture Nov. 6

On Friday, Nov. 6 the Center for Learning and Organizational Change and Northwestern’s Master’s Program in Learning & Organizational change will sponsor a lunchtime Innovator Series Lecture featuring Orlando Ashford, Senior Vice President and Chief Human Resources Officer of MMC (Marsh & McLennan Companies).

The event will be held at Catalyst Ranch, 656 W. Randolph, Chicago, beginning at 11:30 a.m.

We are thrilled to have Orlando join us this fall. He brings a rich perspective on leading all aspects of Human Resources including talent management, diversity, rewards, HR operations and global employee communications.

Orlando’s Innovator Lecture will explore the topic of human capital risk management. Human capital risks range from those that are easily correlated to business operations (e.g., turnover) to more difficult challenges such as inspiring a culture of innovation while mitigating the risk of rogue behavior that can lead a company toward catastrophe. What is the role of HR leaders in addressing these challenges – and what practices can they leverage?

Prior to joining MMC in 2008, Orlando was with the Coca-Cola Company in human resource management, most recently as Group Director of Human Resources for Eurasia and Africa. While at Coca-Cola, he reorganized and rebuilt the company’s corporate center HR team and headed a company-wide cultural change initiative. Prior to Coca-Cola, Orlando held positions with Motorola, the Delta Consulting Group (subsequently Mercer Delta Consulting), Ameritech and Andersen Consulting.

The MSLOC Innovator Lecture Series provides a unique opportunity  to engage in a discussion of this highly relevant topic, as well as network with area professionals in the human capital field.

Additional details on how to RSVP for this event will be posted within the week.

Project and research update

Throughout the year, graduate students in the Master’s Program in Learning & Organizational Change (MSLOC) engage in consulting projects and applied research across a wide range of organizational issues. We’ve provided a snapshot of some of the most recent work on the Capstone Research Summaries and the Practicum Project Summaries pages.

You can access these pages via the new Projects & Research tab at top, or via the links under the TKL Site Guide at right.

“Space Matters” – Insights from the event’s expert panelists

On May 7, 2009, Northwestern University’s Master of Science in Learning and Organizational Change (MSLOC) Program, the Center for Learning and Organizational Change (CLOC) and Catalyst Ranch presented Space Matters, an examination of how the design and space of a workplace can impact organizational culture. A panel of experts offered ideas and practical tips on how individuals and organizations can transform physical space to help improve organizational performance.

The program’s expert panelists included:

Professor Elizabeth Gerber, PhD, Northwestern University, Assistant Professor of Mechanical Engineering, Segal Design Institute and Kellogg School of Business.

Tom Mulhern is a strategist, writer and facilitator with Gensler, an international firm specializing in architecture, design, planning and consulting.

Eva Niewiadomski founder of Catalyst Ranch, an innovative meeting and event space in Chicago.

As a follow-up to the event, panelists Mulhern and Niewiadomski answered additional questions collected from the audience. The questions and answers can be found on the Events page of TKL.

Experts join panel lineup for May 7 “Space Matters” Innovator Lecture Series

Panelists for the May 7 “Space Matters” Innovator Lecture Series (see Events for more details and registration information) will bring a range of expert perspectives to the panel discussion in the impact of space and design on organizational culture.

Eva Niewiadomski founded Catalyst Ranch in 2002 and quickly grew the company. Eva is a CPA with an MBA from Northwestern University’s Kellogg School of Management and has more than 25 years in Accounting, Brand Management, and Product Development.

Tom Mulhern is a strategist, writer and facilitator with Gensler, an international firm specializing in architecture, design, planning and consulting. He designs and delivers high-energy syntheses activities that help business leaders, design teams, end users and other stakeholders discover the right challenges to tackle and the right ways to approach them for clients including Goodyear Tire & Rubber Company, Hollister, Inc. and Brown Shoe Company.

Professor Elizabeth Gerber, PhD, Northwestern University, Assistant Professor of Mechanical Engineering, Segal Design Institute and Kellogg School of Business. Professor Gerber conducts research on human-centered design practices. She uses behavioral science to understand and inform the design of innovative products and services. Specifically, she is interested in creative confidence in the face of uncertainty.

May 7 Innovator Lecture Series Event: “Space Matters”

Northwestern University’s Master of Science in Learning and Organizational Change (MSLOC) Program, the Center for Learning and Organizational Change (CLOC) and Catalyst Ranch are pleased to announce our newest Innovator Lecture Series event, Space Matters.

Space Matters will feature an expert panel focused on the influences of design and space on organizational culture, with emphasis on how space can change a culture. The learning event will begin with breakfast and networking at 7:30 a.m. CST on Thursday, May 7, 2009, followed by a moderated discussion. The moderated discussion will begin promptly at 8:00 a.m. CST. Individuals unable to attend in person are encouraged to participate virtually via live webinar.

Space and Culture

Long ago our early ancestors were drawn together around a cave fire. Over time, the medieval piazza, village square, corner pub, proverbial office water cooler and, most recently, the local coffee shop, have served the same purpose: to provide a shared space where relationships develop, individuals form group ties, and community engagement begins.

In the past few decades, organizational development experts, sociologists, psychologists and others have realized the importance of space design in supporting employee engagement, thus transforming cultures in such a way as to increase organizational performance.

MSLOC and Catalyst Ranch are honored to be hosting a panel discussion that will feature renowned space experts affiliated with the Ranch and the public and academic sectors. Look for further updates on the Events page and in TKL blog posts as panelists are confirmed.

Catalyst Ranch

catalyst-ranch-logo-smallCatalyst Ranch, located at 656 W. Randolph Street, is an extraordinarily unique event and meeting facility in downtown Chicago, IL. Designed to inspire, the Ranch enables guests to explore their creativity while brainstorming, innovating, and problem-solving. We at Northwestern University are delighted to offer our community members an opportunity to experience the influences of space as they learn.

Register Now

Please register here to reserve your spot at this exciting event. Registration is $5.00 for current MSLOC students and $20.00 for all others. Please note that registration fees apply to virtual participants as well.

Space is limited and pre-event registration is required. Registration will close at 8:00 p.m. on Monday, May 4th.

MSLOC students selected for “Economic Innovators” project

Three students in the MSLOC program were recently selected for a special nationwide project on “Economic Innovators.” Katherine Bower, Mandy Cheung and Kristine Nirdlinger will research a socially responsible company to create a case study for use in business schools across the country.

The nonprofit organizations Net Impact and the Hitachi Foundation are leading this project to research organizations that have positive social impact by improving the lives of lower-income employees. The case study and teaching notes that the MSLOC students develop will be published and used in courses at leading graduate schools. “The intent is to encourage MBA curricula to feature more socially responsible case studies,” notes MSLOC assistant director Terri Cramer.

The requirements of the project are that the company must generate impressive business performance and also expand opportunities for workers earning less than $40,000 a year. The MSLOC students plan to research a company in the health care industry. They will identify and analyze an organization that has implemented initiatives addressing its lower-income employees. “We are going to look at socially responsible companies that provide training programs to impoverished workers,” says Cheung.

Bower, Cheung and Nirdlinger were selected through a highly competitive application process as one of the Economic Innovator project’s two teams. MSLOC instructor Mark Clare, a researcher, writer and consultant with 20 years of experience in knowledge management, technology and business strategy, is serving as their faculty advisor.

The students’ interest in the project grew out of their MSLOC course work and their commitment to social responsibility in business. Cheung explains, “I wanted to be part of this project because the case study will provide best practices for other companies and be used for MBA school materials. It is highly related to my work in MSLOC because this is an opportunity to help transform the business school curriculum and inspire future leaders.”

Nirdlinger agrees, “This project was of particular interest to me because it focuses on a lot of the key concepts we learn about in the MSLOC program. I have always been interested in organizations that address social need and am very interested in studying organizations that have initiatives that address social issues, even if the mission of their organization is not to address these issues.”

Bower sees the timing for this project as especially fortunate. “I’m excited to work on the Economic Innovators project because it gives the three of us an opportunity to put our new knowledge into practice while promoting organizations that are creatively exploring ways to benefit employees. I feel that this study is particularly relevant given the current economic climate, and I hope that our research will motivate future executives to follow others’ leads,” she notes.

The MSLOC students will not only see their case study published but will also present their work at the 2009 Net Impact Conference. Net Impact and Hitachi will feature the case studies in publications and outreach efforts to universities and the business community.

Net Impact is an international nonprofit organization dedicated to growing a community of leaders who use business to improve the world. The Hitachi Foundation is an independent nonprofit philanthropic organization, founded by Hitachi Ltd. to improve the well-being of socially and economically isolated people in the United States.

Talent strategy in times of change

Do the organizational activities required to develop a leadership competency framework result in added benefit during times of significant organizational change? The Practicum project undertaken by Talethea Best and Barbara Limanowka (MSLOC 2009) at a large Chicago-based not-for-profit organization provides a case study where the answer is “yes.”

The principal objective of their project was to develop strategies aimed at reducing the high attrition rate amongst the top-level management of the organization — an issue that had escalated during the past two years.

The increase in turnover began when two major and connected changes took place:

  • A new top-level management team came on-board.
  • The new leadership changed the core mission of the organization, which required an entire new set of skills of the top executive levels of management.

These changes, combined with a disconnect between the old success paradigm and the new objectives of the revised mission, eventually led to low morale, and eventually high attrition rate.

Talethea and Barbara’s background research led them to a point-of-view that focusing on talent development during times of change may provide a solid foundation for a comprehensive and integrated approach to increasing employee engagement and recognition.  It also provides an opportunity to implement or redesign performance metrics and provide new incentives.    Additionally, in an environment of uncertainty and constant change, focusing on talent development becomes critically important because it encourages increased collaboration and communication at all levels.

For their project, Talethea and Barbara tactically chose to define a new leadership competency model as the first step in establishing a talent management strategy. The new leadership model, they reasoned, would provide the structure the organization requires in assessing, defining, and acquiring talent.

A more detailed description of their approach and the project is available in their summary case study “Talent Management: A Transition Strategy to Attrition Reduction.”

The results of the project proved positive. The organization adopted a new leadership competency framework — based on the Talethea and Barbara’s assessment of existing leadership team strengths that were critical to the new mission. The organization also began implementing the first steps in a 9-month plan to build a more detailed talent management strategy based on the work around the leadership team competencies.

If you wish to contact Talethea and Barbara to learn more about their work, send an email to cloc@northwestern.edu.

Cognitive design and strategic change

During an MSLOC Practicum project with Kraft Foods, Alumni Katy Mess (MSLOC 2008) and current student Kori Lusignan developed and piloted a model that combines concepts of strategic change and cognitive design.

The Knowledge Lens asked Katy and Kori to share insights about their conceptual framework. The following is their point-of-view on how it might be applied to organization change situations.

The Model:

Cognitive Design Practicum Conceptual Framework

Cognitive Design Practicum Conceptual Framework

The first distinction offered by the model is the importance of purpose alignment. We feel that it is absolutely essential that business purpose drive business decisions and action, thereby making purpose the lens through which all daily work is viewed. In this case, we define business purpose as an understanding of value drivers, and what is key for the organization’s success. Although this seems fairly intuitive, we have observed that the impetus of most business activities is not its value drivers. Instead, short-term goals are inconsistent with long-term ones, and there is no common lens with which to drive action.

For the initial stage of this model, it is important to understand both how the company views itself, and how the company actually behaves. This provides a baseline from which to work and measure the success of any intervention we might propose. Our goal in a client engagement, according to this model, is to align the client’s business activities with the client’s business purpose. It is also critical to recognize that even the most attuned and thoughtful client may benefit from outside inquiry—a “fresh” perspective can help to refocus a project on its original intent, which, if significant, should be tied to the business purpose.

The next piece of our model breaks down our practice of cognitive design into three iterative steps: inquiry, prototyping, and reflection. Short cycle times through these steps with the client efficiently creates valuable solutions. The first stage, inquiry, involves information gathering. Ideally this would involve having the opportunity to talk with and observe stakeholders in the change effort. This step is ultimately about understanding business needs, and separating them from wants. Often, organizations wish to accomplish a great deal in a short time, but the realities of project deadlines and available resources forced you to focus on what is truly needed to meet long-term goals.

Insights:

The cognitive design process presented in this model is meant to be cyclical. At each stage, it is important to involve the learning from previous steps and iterations. Several iterations means the solution has been tweaked several times, resulting in a tighter, more effective, client-approved deliverable.  We were pleased to find that this process enabled us to be equally creative and strategic, and to employ the lessons learned from our cognitive design study. We feel this model neatly marries our strengths and skill sets to the strategic needs of organizations seeking change, and provides the inquiry, testing, and reflection necessary to work efficiently and effectively. – Katy Mess and Kori Lusignan

If you wish to contact Katy or Kori to learn more about their work, send an email to cloc@northwestern.edu.