Table of Contents

Executive summary

 

Chapter 1: Introduction

  • The value of human capital
  • The market for talent in the capital markets and investment banking sector
    • Teamwork and the individual
    • Regulation and risk
  • Can treating people as a strategic asset deliver returns?
    • Assessing talent
  • Evolution of strategic talent management
  • The implications for organisational structure
  • A turning point?

 

Chapter 2: Talent portfolio management: portfolio segmentation and investment management

  • A strategic approach to managing human resources
  • Case study 1: US institution – radical shift to reflect scale of people investments 

Chapter 3: Human capital metrics for talent portfolio management

  • Case study 2: FleetBoston Financial sees ROI of US$50m per year
  • Eight key features of human capital measurement: a different view of the organisation
  • Historic emphasis on cost, headcount and turnover creates perverse incentives
  • Human capital is not owned by the business
  • Responsibility for human capital spreads across the organisation
  • Human capital measures inform executive decisions; judgement is still required
  • Indicators should be relevant to business objectives
  • A mix of quantitative and qualitative measures provide the best platform
  • Statistical modelling can help an understanding of causal links
  • Systems thinking: recognition that an organisation is a complex social entity
  • Inter-organisation interaction
  • Developments in human capital measures
  • Case study 3: RBS – human capital reports help drive business strategy
  • Making realistic claims
  • Capturing value; avoiding ‘fads’
  • ROI on human resource initiatives: a challenge
  • How good is the data?

Chapter 4: Different approaches to human capital metrics

  • Corporate-wide measures
    • A more relevant measure of profitability
    • Organisation-wide human capital measurement
    • Intellectual capital
    • Internal labour market
    • Balanced scorecard
  • Human resource benchmarking
  • Individual-level measures: the asset value of key individuals
    • A calculation for the net financial value of an individual
  • Return on investment: gauging the impact of a human resource initiative
    • A human capital index
    • ROI for human resource programmes

Chapter 5: Links between strategic people management, engagement, and the bottom line

  • People management research findings
    • Financial services returns
    • High-performance work practices
    • Impact of human resource strategies
    • ROI from understanding the internal labour market
  • Case study 4: Digitt – US$150m annual ROI by re-aligning reward
  • Case study 5: National City Bank – ROI for training initiative
    • Stronger returns through human resource practices
    • Survival rates of IPOs
    • The power of the social network at work
  • Case study 6: Standard Life – improved retention with the help of employee surveys
  • Stock analysts begin to study employee data
  • Impact on stock prices
  • Case study 7: HSBC – integrating strategic planning and talent management
  • Financial impact of engagement
  • Research criticism
  • Case study 8: US institution – CEO drives strategic talent management
  • Human capital measures in the capital markets and investment banking sector

Chapter 6: Implications for CEOs and business managers

  • The fundamental role of the CEO: chief talent officer
  • CEO influence and the role of the human resource function
  • Capital markets and investment banking sector research
  • Specific aspects of talent management
  • Stars
  • Player-managers
  • Who is managing the banks’ human resources?
  • Moves to a talent portfolio management approach
  • The challenge of introducing measures
  • Gradual development of metrics
  • Human capital metrics in practice
  • Case study 9: Citigroup – risk management as people management
  • Case study 10: European bank – attention to compensation and risk
  • Summary

Chapter 07 Adding value and managing risk: the role of the strategic human resource adviser

  • Human resource function influence
    • Recruitment and selection
      • Process
      • Decision-making
    • Compensation and benefits
      • Process
      • Decision-making
    • Training and development
      • Process
      • Decision-making
    • Performance management
      • Process
      • Decision-making
    • Business strategy
      • Process
      • Decision-making
  • Implications of the initial research and follow-up survey
  • Human resource professionals as credible business partners
  • Evolution of the human resource function
  • High-level contributions
  • Credibility
  • Credibility in the human resource function
  • Individual credibility
  • Rating individual credibility qualities
  • Regulation and risk management
  • Combating people-related risk
  • Some organisations have made the breakthrough
  • Summary: growing influence for the human resource function
  • Case study 11: US institution – consensus approach to building and measuring talent
  • management
  • Case study 12: UBS – leadership on talent management from the top
  • Case study 13: Lehman Brothers – moving towards an investment concept for talent

 Chapter 8: Conclusion

  • Implications for the organisation
  • Key factor 1
  • Key factor 2
  • Key factor 3
  • Key factor 4
  • Key assertion
  • Implications for human capital measures
  • Challenges to introducing measures
  • The stock analyst’s view
  • In summary: talent portfolio management

List of tables and figures

  • Table 1.1: Case study format
  • Table 2.1: Changes in management approach
  • Table 6.1: Bulge-bracket banks
  • Table 6.2: Talent portfolio management approach
  • Table 6.3: Human capital metrics used by organisations in capital markets and investment banking
  • Table 7.1: Perceived effectiveness of human resources managers
  • Table 7.2: Correlations between domain rankings
  • Table 7.3: Credibility factors: the human resource executives’ view
  • Table 7.4: Credibility factors: the business executives’ view
  • Table 8.1: Senior management talent strategy/human resource function
  • Table 8.2: Banks’ gross operating profit per capita, 2005 (€, %)
  • Figure 7.1: Model of future human resources competencies