A presentation at Dublin City University's Leadership & Talent Institute conference 23 March 2016 on the emergence of Human Governance

1. Leadership for a
Sustainable
World
The advent of
Human Governance

2. Value orientation – short, longterm;narrow or
broadbased?
“
”
Theparadox is that by not pursuing profitability to the
exclusion ofall 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)

3. Defining & adding Value
3
€
+ =
Increased Output (O)
Reduced Cost (C)
Increased Revenue (R)
Increased Quality (Q)Value of
business now
Value of
Business in
1, 2, 5, 10 years
ADDED VALUE
€
€
Societal value generated by producing the best quality
products/services at the lowest possible cost (including
any external harm e.g. environmental)

4. HUMAN
GOVERNANCE
People’s
behaviour
aligned
4
A Coherent Model for Societal & Business
Value through Human Governance
BUSINESS
aims
to maximise
returns
SOCIETY
determines
acceptable
corporate
behaviour
VALUE

5. Understanding how human capital drives value & risk:

6. • “In principle, our organization can only maximize its value if it
aims to maximize the value potential of all its capitals; including
the human capital it directly employs or utilizes via its value
(supply) chain, or through other third party stakeholders.”
• “As a responsible organization, using scarce resources, the only
legitimate and sustainable management philosophy is one of
never-ending, continuous improvement.”
• “We can only produce the best shareholder and societal value by
providing our best possible products/services at the best
possible cost, without undue external impact e.g. on the
environment.”
Human Governance emerges with the recognition that the
organization is committed to the never-ending pursuit of
societal value through realizing the full potential value of its
entire human capital.
Maturity statements

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. Measuring or rating maturity:
8
“Art is about learning to
see and to observe. And
the sciences are about
seeing and observing.” –
Ed Catmull, Pixar

9. Stage 2
Basic
professional
practice &
simple
processes
Stage 3
Seeking more
from people
using more
effective
methods
Stage 4
Human capital
recognised as
integral to
business
operations
Stage 5
Transition
period from
operational
to strategic
focus
Stage 1
Compliance
only
Board & Executive do not
recognize potential value of
human capital
Stage 6
Organisation
becomes a
whole human
governance
system
Stage 0
No interest in
professional
management
of people
The MI & OMS Scales – Board/Exco & Investor Perspectives
OMS© 2016
HIGH VALUE REALIZATION –
REDUCED INVESTMENT RISK –
GREATER STABILITY
UNREALIZED VALUE – GREATER
INVESTMENT RISK & INSTABILITY
OMR©
AA-
AAA
BBB
BBB-
BB+
B-
D
CCC-
BB
BB-
B
B+
CCC+
CCC
C
CC
BBB+
A-
A
A+
AA+
AA

10. The Organization
Maturity Index:
OMI:150 (UK)
View the live index at:
www.omservices.org

11. 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
Human
Governance
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

12. Linking Purpose, Human Governance & Value

13. Thank you
www.maturityinstitute.com
www.omservices.org
Stuart.woollard@omservices.org
@MATURITYinstitute
@OMS_LLP
@StuartWoollard