OMR introduction

1. “Shaping an investment industry that
serves the greater good”
Understanding value creation & risk from human capital
An introduction to Organization Maturity Ratings
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2. How much does human
capital matter?
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3. Understanding how human capital drives value & risk:

4. Valueorientation – short, longterm; narrow or
broadbased?
“
”
Theparadox is that by not pursuing profitability to the
exclusion of all else, the Great Engine companies in their
Golden Age would achieve enormous increases in
value...whereas,by single-mindedly pursuing profit...these
same companies and their successors actually createdless
genuine, lasting wealth; indeed, they would often destroy
it.
(The Puritan Gift, Kenneth & William Hopper)

5. Profit is critical for a
healthy organisation but
value is much broader,
cleaner and sustainable
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6. Stage 2
Good
Professional
Practice
Stage 3
Effective
Management
Stage 4
Human Capital
becomes integral
to business
operations
Stage 5
Transition:
operational
to strategic
focus
Stage 1
Personnel
Administration
Board & Executives
resistant/unaware of people
& human capital value up to
this point
Stage 6
Organisation
becomes a
whole system
Stage 0
No Conscious
People
Management
Maturity spectrum:
OMR ‘AAA’ Scales
LONG TERM - STABILITYSHORT TERM - UNSTABLE
A+to
AA-
AAA
BBBto
A
BBB-
BB+
BB
C
B
OMR
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7. THE TEN ‘PILLARS’
Value
Motive
Whole
system
Learning
Organization
Improvement
philosophy
People risk
Human
capital ethos
Trust,
engagement,
cooperation
Performance
system
Communication
Business/peo
ple strategy
Maximizing value & understanding risk:

8. Maturity in practice: value outcomes
Early indicators
 Exec expectations of human capital & value now aligned across the
business
 Organization now adopting a new language around HCM
 10 Pillars embedded into assessment of planned HC activities
 Maturity provides new framework for value based assessments and
decision making
 Mature thinking becomes conscious & senior execs now lead on HC
initiatives
 Practically NSW HR team now focused on the business rather than
blindly adopting "best practice”

9. How Maturity Pillars can predict value creation & destruction

10. Value vs supply
chain orientation
Embedded societal
value &
responsibility
Truly inclusive
workplaces
Best/sustainable
resource use
Learning,
knowledge &
innovation
High trust,
cooperation &
informed decision
making
Maturity drives
higher value,
lower risk &
‘good’ outcomes
“social, economic, environmental, and ethical factors
directly affect business strategy—for example, how
companies attract and retain employees, how they
manage the risks and create opportunities from climate
change, a company’s culture, corporate-governance
standards, stakeholder-engagement strategies,
philanthropy, reputation, and brand management.” –
David Blood 2007

11. Thank you
www.omservices.org
Stuart.woollard@omservices.org
Improve your Organization’s Maturity
Increase your Organization’s Value
Enhance your Societal Impact &
Reputation
OMS Organizational Maturity Services
LLP