Developing Human Capital in Your Organization

1. Developing Human Capital in Your Organization Tom Huberty Senior Quality Engineer

2. Are your employees ready for peak performance? Pikes Peak, Colorado

3. We will cover the following during this presentation: • Workforce Focused terms, core values and concepts • My most recent experience as an application writer; • Review of Best Practices related to Category 5 (Workforce Focus) with linkage to performance excellence in the other Baldrige categories; • Map examples in the winning Baldrige applications; • Develop a list of workforce approaches that answer the criteria and an action plan for documenting and communicating this information;  • Provide tools (or worksheets) for addressing leading edge issues in Workforce Focus; • Consider some future directions for workforce approaches.

4. Workforce-Focused Terms • Workforce • Workforce Engagement • Workforce Enrichment • Workforce and Leader Development • Assessment of Workforce Engagement • Workforce Environment • Workforce Capability • Workforce Capacity • Workforce Climate

5. Core Values and Concepts

6. My Journey/Methodology • Wrote the organizational profile • Mapped organizational workforce cycle against “flow” of Baldrige criteria • Downloaded selected application summaries from NIST website http://baldrige.nist.gov/Contacts_Profiles.htm • Conducted the research necessary to understand workforce processes • Read application summaries, highlighting those practices that resonated with the organizational profile • Introduced benchmarked ideas into the organization for implementation • Wrote the application with the application team • Sent off the application to Baldrige and state level organizations • Site visit at the state level last month

7. Workforce Linkage through the Baldrige Criteria Organization Profile Leadership Strategic Planning Workforce Focus Item 7.4 Workforce Results • Culture • Mission, Vision, Values • Employee Segments • Technologies • Strategic Challenges Deployment of leadership messages to the workforce HR Plans to accomplish strategic objectives and action plans 5.1 Workforce Engagement 5.2 Workforce Environment Levels, trends, comparisons of workforce engagement, capability and capacity, and climate

8. Selected Baldrige-winning Summaries

9. Baldrige Winners’ Exemplary Practices Ritz-Carlton Hotel Co. ”We are Ladies and Gentlemen serving Ladies and Gentlemen” Three Steps of Service The Basic Empowerment Process Daily Line-up “Skilled and Empowered Work Force Operating with Pride and Joy” Karlee Core Values Team member growth and development Encouragement and recognition A clean and safe environment Mutual trust, honesty and respect Social responsibilities OMI Most employees are inherited when OMI takes over the contract to operate the wastewater treatment facilities and its OMI’s policy to retain as many former employees as possible. When starting a new project, OMI brings former municipal employees, now OMI associates to ease the transition Obsessed with Quality process is cultural basis “At OMI, associates are paid to think.” Branch-Smith Printing Division Process-mapped culture with strong Christian values Pre-employment screening tool for assessing attitudes of job candidates regarding integrity, responsibility, and work ethic Detailed orientation plan Best employee satisfaction among the 13 organizations with employee satisfaction mapped by various areas linking improvements to productivity

10. Pal’s Sudden Service Video Insert your video here. Make as large within bordersas your system performance will allow

11. Baldrige Winners’ Exemplary Practices Caterpiller Financial Services Living our shared values program: “We are people of integrity who respect and care for others in our workplace and our world. We are driven by the freedom and responsibility to exceed expectations of those we work with and serve. Six sigma culture with very well-defined planning process Employee Performance Management System Boeing Aerospace Support Second Baldrige for David Spong (First-C17) The Leadership System is a wonderful model that walks the examiner around a wheel beginning with setting stakeholder requirements and expectations to set and communicate direction. The system, or “wheel” also includes Planning, performance, rewards and recognition and organizational and employee learning Monfort School of Business High touch, wide tech, professional depth is the underpinning of the HR plans and work system Reward and recognition program Extensive employee education in career development, technology training, and continuous improvement Staff survey results commendable Sunny Fresh Foods Second Baldrige Award Crosby-based Quality Approach-4 Absolutes Continuous Improvement training for all Superlative recognition and reward process, both formal and informal linked to core values Sunny Fresh University ESL classes as well as Spanish classes

12. Baldrige Winners’ Exemplary Practices DynMcDermott Profit-sharing based on DM performance fee New employee orientation addresses key organizational needs with operations, requirements and responsibilities at the SPR Performance Improvement training JIT by employees trained in six sigma 3-year “Managers to Leaders” development plan Workplace preparedness training with drills Park Place Lexus High performance Work System which links vision, mission, goals to leadership system, strategic planning to drive member engagement for alignment, growth, and performance Initiative/empowerment/flexibility/innovation English and Spanish Foundations-3 days of employee orientation 30-day training feedback report/Q12 results North Mississippi Medical Center- Servant Leadership “Placing employees in the center reflects our realization of the importance of a motivated, engaged, workforce in accomplishing our mission and ensuring a sustainable organization” PEOPLE drive everything Hiring Process Leadership Development & Succession Planning MESA Products Senior leadership System for setting, creating environment, deploying and communicating HR Plans: Training plans, employee performance review process, hiring and retention plan, and comp/benefits review process President owns HR system: ”Right people, right skills in right jobs” to support our customers

13. Item 5.1-Workforce Engagement • Workforce Enrichment • Key factors affecting workforce engagement-Park Place Lexus • Organizational culture-North Mississippi Medical Center • Workforce performance management system-Caterpiller • Workforce and Leader Development • Workforce Development-Pal’s Sudden Service • Leader Development-Caterpiller/Boeing • Assessment of Workforce Engagement • Assessing Workforce Engagement-Branch-Smith • Relating assessment findings to key results in Category 7 to identify opportunities for improvement-MESA and Montfort

14. 5.2 Workforce Environment • Workforce Capability and Capacity • Assess workforce capability and capacity needs including skills, competencies, and staffing levels-North Mississippi Medical Center • Recruiting, hiring, placing, and retaining new employees-Branch-Smith • How do you manage and accomplish the work of your organization-Ritz-Carlton Hotel Company & Karlee • How do you prepare for changing capability and capacity needs? Minimize workforce reductions? OMI • Workforce Climate • Ensure and improve workplace health, safety, and security-DynMcDermott • Support for workforce via policies, services, and benefits-North Mississippi Medical Center

15. Leadership Education and Performance (LEAP) Development • Monitors Goals/projections • Links goals/objectives to individual SMART objectives • Facilitates discussions between supervisors & employees • Documents training needs, training experience follow-up for skills/knowledge application & experiential leadership development opportunities • Flexible & agile to respond to mandated CUE training Goal Planning -Critical Success Factors -Parent Organization Strategy -Division Strategy -Department Goals -NSPS SMART objectives Training & Development -IDP including education or CUE training -Mentoring/coaching -Career Planning -Developmental Assignments Competency Evaluation -NSPS self-assessment -Scan of Leadership Values -CUE career guide -Supervisor feedback -Certifications Feedback Adapting Caterpiller’s Performance and Development Process

16. Knowledge Skills Retention Tool Worse case scenario if we lose the FTE (How do we still get the job done?):

17. The Evolution of Workforce Focus 13 Baldrige Winning “benchmarks” out of 36 possible winning companies since 1999 Future Best Practices -Results Only Work Environment (ROWE) -Talentship Decision Science Dave Ulrich’s Talent Trifecta

18. HC Bridge Framework and 7 Key Questions Anchor Points for Talentship Linking Elements Key Questions Baldrige Items Sustainable Strategic Success How do we intend to compete and defend? Cat 2/3.1 Impact Resources and Processes What must we build, execute, and protect? Cat 2/6 Cat 1/Cat 2 HR Plans/Cat 5 Organization and Talent What roles and structures must we improve? Interactions and Actions How do individuals need to behave and cooperate? Cat 5 Effectiveness What characteristics must employees have collectively and individually? Cat 1/5 Culture and Capacity Policies and Practices What programs and activities must we implement? Cat 5/6 Efficiency What resources must we acquire and how should we allocate them? Cat 2 HR Plans Cat 5 Investments

19. Ulrich’s Talent Trifecta Writing in Workforce Management-September 10, 2007… Competence, commitment, and contribution are the three essential ingredients for the science of acquiring talent; “Right skills, right place, right job.” • Create competence standards by turning future customer expectations into present employee requirements • Assess individuals and organizations • Invest in talent improvement: The “killer bees” (my term) buying, building, borrowing, bounding, bouncing, binding • Follow up and track competence • Get commitment • Help employees find abundance by contributing-the personal fulfillment and meaning we seek in life (Connects with Item 5.1 Workforce Engagement)

20. Summary • Mine the Baldrige winners for hints on models to adapt to your organization • Be a strategic partner to your organization in seeking the Baldrige-winning approaches/models by adopting and adapting them in your organization • Do you want to get better? Win? Or at least attract the attention of the examiners? • If you choose a measure from the “best practice” checklist, ask you, “What relevance will that metric have to the senior leaders or others in the organization?” • Thank YOU. Tom Huberty BAE Systems Thomas.huberty@baesystems.com 612-801-2847