Develop and manage human capabilities as high-worth capital
20th century management administers the human resource function
Today’s 20th century management generally administers human resources as employees. Human capital management is talked about, but is not truly understood and is rarely put into practice. Since the business is not managed, human capital can not be managed as a part of the business. Humans tend to be assigned to a responsibility center to be managed by a specific manager, with human utilization and development depending on the outlook of the manager.
Human and knowledge development tend to be directed at the general needs of the enterprise, rather than the specific needs of the business. Humans are not developed and utilized as enterprise capital to create the highest value and to increase human capital worth.
R-pM manages human capital worth to produce result value-added for 21st Century Management
Result-performance Management (R-pM) organizes the business for 21st Century Management. R-pM follows 21st Century Management conventions, definitions, and standards to enable business collaboration and integration, common solutions and outsourcing, and an environment for human capital development that can be applied to any business. R-pM includes fundamental principles to improve the worth of human capital and the value-added to business results:
- Enterprise capital is organized by the human capabilities required to manage, develop, and support the capital
- Enterprise result sets are organized to utilize a common set of performance solutions, particularly human capability and outlook
- Human capital is organized as one category to be managed by those with human management and development capabilities
- Human personnel is readiness capital to maintain human capital ready to produce a set of results under a result management responsibility
- Human capability is production capital to define the capabilities needed by the business process for difficult high-value results to acquire or develop specific capabilities needed by the business
- Human knowledge is information capital to create and manage the knowledge to develop capabilities, and to utilize specific performance solutions to produce specific results
- Human capital worth is increased by additional capabilities developed and knowledge established through knowledge creation to produce results
- Human capital worth is assessed against the known result value-added produced and other factors to ensure that human remuneration is in line with the value created in the business
Human capital is the most difficult to acquire, develop, and manage in any business. R-pM places human capital where they have the interest, outlook, and capability to produce specific results and develops capabilities where humans have the interest, innate foundation, and prior experience.
R-pM manages three classes of human capital
R-pM organizes the business as a structure of business results to be produced and capital to be utilized to produce results. Human capital, the most important capital utilized by the business, is organized into three classes:
- Personnel capital: Each employed or contracted individual is a personnel capital solution. Personnel capital are oriented and trained to produce the day to day results of the enterprise. Personnel capital normally is deployed to produce a set of results on an on-going basis. All human time consumed produces personnel capital performance costs to know time spent on results of specific values
- Capability capital: Certain innate or developed capabilities like salesmanship, customer handling, analytical ability, facility expertise, and management skills, are required by the business to produce higher-value results. Capability solutions can be provided by multiple personnel solutions. Capability solutions are deployed to specific results on a continuing basis or as a need arises. The costs of developing capabilities are amortized against results employing the capability
- Knowledge capital: Knowledge solutions are developed to develop human capabilities and for specific application to the business to enable personnel and capabilities to properly utilize performance solutions and produce specific results. All capital development projects must produce the needed knowledge solutions to utilize new solutions and produce new results. The costs of developing knowledge are amortized against the results employing the knowledge
Personnel solutions are readiness capital to be in place to produce the first result in a set. Capability solutions are production capital to be utilized as needed to produce a specific result. Knowledge solutions are information capital to be delivered where needed to develop a capability or to utilize a specific solution and produce a specific result. Human capital is deployed as performance solutions to produce results, for which the human capital is interested and qualified.
Human capabilities are identified and defined to use the business process to produce results
Capabilities are high-worth human capital utilized for difficult or high-value results that require innate capabilities, developed skills, or specific expertise. Capabilities are the skills or experience required, rather than a particular personnel solution. Any personnel solution with the capability can be deployed as a capability solution to produce the result.
Capabilities are defined as part of the business process to document how capabilities are utilized by the business and to produce requirements for capability and knowledge development to produce specific results. Each capability is a performance solution to be deployed and utilized to produce results that require the capability. The development costs of the capability are charged against the result produced, for expected results over the payback period of the capability, until fully charged.
Human capital development is directed at developing and maintaining the capabilities required by the business.
Human capital development is specific to business needs. Human capital development develops and maintains the capabilities required by the business. Internal and external development programs can be designed and utilized to develop personnel to gain specific capabilities. Human knowledge solutions provide human capability development programs to ingrain knowledge of specific solutions and results as a human capability.
Career paths can be planned to build on innate capabilities to develop skills and gain experience needed to progress to produce and manage higher-value results. Human capital continues to produce higher-value results to increase human capital worth and justify increased human performance costs to increase human rewards. Personnel capital can be provided additional reward for the utilization of high-worth capabilities to produce high-value results.
Human capital can be utilized as teams to produce results
R-pM supports team building by providing three levels of results to produce. An individual may be responsible for an end-result. Many individuals are responsible for set-results and key results. These individuals are part of the team that must work together to produce the results that benefit all in the team. Capital development is performed by result teams to define result requirements and to ensure value is added to results, and by performance teams to specify, develop, and implement the solutions to meet result requirements and add value to results.
Result-performance Management develops and manages human capabilities as high-worth human capital
Result-performance Management sets up a human capital unit to manage the delivery, utilization, and development of human personnel, capabilities, and knowledge. All human capital is managed to produce results needed by the business and continually to increase the result value provided to justify increasing human experience and reward. The R-pM Toolkit, available through result-performance-management.com provides the details required to develop and manage capabilities as high-worth human capital.
