Accenture Human Capital
Development Framework
Developed by the Accenture Human Performance Service Line &
Accenture Institute for High Performance Business
Project Overview
© 2004 Accenture. All rights reserved.
Workforce and HR Performance are a top
Executive Priority…
Source: The Accenture High-Performance Workforce Study 2004
…Yet few executives are highly satisfied with their progress on
these initiatives
2© 2004 Accenture. All rights reserved.
High Performance businesses are characterized by
leading edge human capital capabilities.
Human Capital Efficiency
Workforce Adaptability
Workforce Performance
Talent Management
Ability to ChangeEmployee Engagement
Leadership Capability
High Performance
Framework
High
Performance
Anatomy
Market
Focus
Distinctive
Capabilities
Human Capital
Capabilities*
* Tier 3 of Accenture’s Human Capital Development Framework
3© 2004 Accenture. All rights reserved.
Productivity Quality Innovation Customers
Key Performance Drivers
Business Results
Human Capital Processes
Competency
Management
Career
Development
Performance
Appraisal
Succession Planning Recruiting Workforce
Planning
Workplace
Design
Rewards and
Recognition
Employee
Relations
Human Capital
Strategy
Learning
Management
Knowledge
Management
Human Capital
Infrastructure
Human Capital Capabilities
Tier 1
Tier 2
Tier 3
Tier 4
Workforce
Performance
Employee
Engagement Workforce Adaptability
Ability to
Change
Talent
Management
Leadership
Capability
Human Capital
Efficiency
Workforce
Performance
Employee
Engagement Workforce Adaptability
Ability to
Change
Talent
Management
Leadership
Capability
Human Capital
Efficiency
Change
Management
Revenue
Growth
ROIC or
ROE (FS only)
Total Return to
Shareholders Future Value Illustrative Business Measures
The Accenture Human Capital Development Framework is
a tool to measure how well companies master these
critical Human Capital Capabilities
4© 2004 Accenture. All rights reserved.
The Framework produces a Scorecard indicating
performance on all elements of the framework along
with a detailed assessment of the results.
Rewards
and
Recognition
Employee Relations
Human Capital
Strategy
Learning
Management
Knowledge
Management
Human Capital
Infrastructure
Change Management
Workforce
Performance
Employee
Engagement
Workforce Adaptability Ability to Change
Human
Capital
Efficiency
Productivity
Quality
Innovation Customers
Key Performance Drivers
Business Results
Leadership
Capability
Human Capital Capabilities
Tier 1
Tier 2
Tier 3
Human Capital Processes
Competency
Management
Career
Development
Performance
Appraisal
Succession Planning Recruiting
Workforce
Planning
Workplace Design
Tier 4
Talent Management
Revenue Growth
ROIC or
ROE (FS only)
TRS Future Value Illustrative Business Measures
Human Capital
Efficiency
Top Quartile
Bottom Quartile
Note: Numbers represent survey responses (means). Color codes indicate
performance compared to benchmarks
5© 2004 Accenture. All rights reserved.
Initial implementations of the Framework reveal that
financially successful organizations have more
mature human capital processes
6© 2004 Accenture. All rights reserved.
Analysis of initial implementations of the framework
have also answered important questions on the
minds of executives today
1. What are the key activities that lead to a more engaged workforce?
(see Outlook article, Harnessing the Power of an Engaged Workforce, February,
2005)
2. Are my assumptions about effectively managing and developing
human capital correct? What are the surprising findings that go
against common wisdom?
3. What processes most impact critical human capital capabilities like
workforce performance, workforce adaptability, and leadership?
4. (see forthcoming Accenture white paper, The Accenture Human Capital
Development Framework: Assessing, Measuring and Guiding Investments in
Human Capital for High Performance)
5. 4. Where can I invest in people to get maximum value for my
dollar?
6. (see Outlook article, Making the Right Investments in People, 2004)
7© 2004 Accenture. All rights reserved.
Appendix
© 2004 Accenture. All rights reserved.
The Accenture Human Capital Development
Framework
What: A diagnostic tool, that measures how well a company masters
it’s human performance capability, and links the maturity of the
organization’s human capital processes to business and
financial outcomes.
Why: Enables organizations to set strategy, validate human capital
investments and redirect investments for greater business
impact.
How: Uses web-based surveys, executive interviews, and financial
and HR data worksheets to collect perceptual and factual data.
Who: For use by any organization that wants to use a comprehensive,
repeatable, metrics-based approach for managing their human
capital programs and investments
9© 2004 Accenture. All rights reserved.
Accenture Human Capital
Development Framework
Survey House
HR Boutique
HR Scorecards
The Accenture Human Capital Development
Framework is much more comprehensive in scope
than other frameworks.
Innovation Customers
Key Performance Drivers
Revenue
Growth
TRS
Business Results
Human Capital Processes
Human Capital Capabilities
Tier 1
Tier 2
Tier 3
Tier 4
Employee
Engagement
Key Performance Drivers
Revenue Growth ROIC TRS
Business Results
Human Capital Processes
Competency
Management
Career
Development
Performance
Appraisal
Recruiting Workforce
Planning
Rewards and
Recognition
Employee
Relations
Human Capital
Strategy
Human Capital Capabilities
Tier 1
Tier 2
Tier 3
Tier 4
Key Performance Drivers
Revenue Growth ROIC TRS Future Value
Business Results
Human Capital Processes
Competency
Management
Career
Development
Performance
Appraisal Recruiting
Workforce
Planning
Rewards and
Recognition
Employee
Relations
Human Capital
Strategy
Human Capital Capabilities
Tier 1
Tier 2
Tier 3
Tier 4
Key Performance Drivers
Revenue Growth ROIC TRS Future Value
Business Results
Human Capital Processes
Competency
Management
Career
Development
Performance
Appraisal Recruiting
Workforce
Planning
Rewards and
Recognition
Employee
Relations
Human Capital
Strategy
Human Capital Capabilities
Tier 1
Tier 2
Tier 3
Tier 4
Key Performance Drivers
Revenue Growth ROIC TRS Future Value
Business Results
Human Capital Processes
Competency
Management
Career
Development
Performance
Appraisal Recruiting
Workforce
Planning
Rewards and
Recognition
Employee
Relations
Human Capital
Strategy
Human Capital Capabilities
Tier 1
Tier 2
Tier 3
Tier 4
Innovation Customers
Key Performance Drivers
Revenue
Growth
TRS
Business Results
Human Capital Processes
Human Capital Capabilities
Tier 1
Tier 2
Tier 3
Tier 4
Employee
Engagement
Key Performance Drivers
Revenue Growth ROIC TRS
Business Results
Human Capital Processes
Competency
Management
Career
Development
Performance
Appraisal
Recruiting Workforce
Planning
Rewards and
Recognition
Employee
Relations
Human Capital
Strategy
Human Capital Capabilities
Tier 1
Tier 2
Tier 3
Tier 4
Key Performance Drivers
Revenue Growth ROIC TRS
Business Results
Human Capital Processes
Competency
Management
Career
Development
Performance
Appraisal
Recruiting Workforce
Planning
Rewards and
Recognition
Employee
Relations
Human Capital
Strategy
Human Capital Capabilities
Tier 1
Tier 2
Tier 3
Tier 4
10© 2004 Accenture. All rights reserved.
Other diagnostic approaches do not track
complete linkages and many do not provide
evidence for the relationship to shareholder value
Human Capital Development Framework Gallup Q12 Engagement Survey
• Comprehensive model that distinguishes between cause
and effect, or between intermediate business results (tier
2) and current and future-oriented financial results (tier 1),
and between HC processes (tier 4) and HC outcomes (tier
3).
• Assesses the maturity of an organization’s processes,
enabling the HCDF to suggest prescriptive, action-
oriented advice
• More accurate assessments based on input from
employees, HR executives, business leaders, internal
databases, and external benchmarks
• Using standard measures across firms, the tool can show
which HC processes most impact business results.
• Assesses one human capital capability only: employee
engagement.
• Simple and easy to implement 12 question survey
administered to employees only.
• Questions are very general and are unable to suggest the
root cause of low or high levels of employee engagement,
or suggest action-oriented advice concerning how to
improve it.
• Using standard measures across firms, Gallup has shown
a correlation (not causality) between high levels of
engagement and some intermediate and financial
business results.
11© 2004 Accenture. All rights reserved.
Other diagnostic approaches do not track
complete linkages and many do not provide
evidence for the relationship to shareholder value
(continued)
Watson Wyatt Human Capital Index HR Scorecard/Huselid
• Links some human capital processes directly to financial
results. Is not as comprehensive in its coverage of HC
processes as the HCDF. Does not distinguish between HC
processes and outcomes/capabilities, and does not include
intermediate business results.
• Assesses the effectiveness of HR programs by collecting
data from HR personnel only. This enables some prescriptive
advice about HR solutions, but it fails to assess the
effectiveness of the programs in supporting employees.
• Using standard measures across firms, the Human Capital
Index has shown correlation (not causality) between HC
practices and financial results.
• Does not use standard measures across firms, and
thus can not offer users validation that human
capital processes and capabilities impact business
results. Rather, it offers a tool to be customized for
the organization similar to the Balanced Scorecard.
Over time, if both HC processes and business
results improve in a single organization, a logical
(but not statistical) connection may be made.
• However, one of the developers of the HR
Scorecard, Mark Huselid, has published research
that shows a correlation (not causality) between
some HC processes and financial results.
12© 2004 Accenture. All rights reserved.
Data is collected through web enabled surveys,
executive interviews and financial data
worksheets.
Time CommitmentAudience
45 minute web based survey5 – 15 HR Executives
• Factual data collection (may be delegated)
– business financial data (access financial Controller)
– HR data web survey
• Provide employee information for those taking the survey
• Schedule interviews with executive committee
• days/week for 3 weeks then .5 days for 5 weeks to help manage effort
Project Manager
• Employees without supervisory responsibilities (~70%):
–20 minute web-based survey
• Employees with supervisory responsibilities (~30%):
–30 minute web-based survey
Cross section of 50 or more
employees
30 - 45 minute structured interviews
At least three executive interviews, one of which will be with an HR executive who
can articulate the HR strategy, and two of which will be with business executives who
can articulate the organization’s strategy .
Executives
13© 2004 Accenture. All rights reserved.
• Identify strengths,
weaknesses, and process
maturity in key human
capital capabilities
• Same as first execution
plus…
Company/Industry Data Collection
Framework
Execution 1 2 3 4 5 6 7….
Predictive Quality of Human
Capital Investments • Establish a baseline for
measurement that makes
it possible to track
financial impacts over
time
• Identify causality between
the tiers, not just
correlation
• Develop
recommendations on
specific actions to take to
improve capabilities
• Measure changes over
time related to the
effectiveness of human
capital measurement
• Provide a comparison of
where the organization
stands compared to
benchmarks
• Use as a significant input
to operational/fiscal
planning
• Identifies workforce
performance
opportunities
• Predict output of human
capital investments
First Execution Second Execution
The first execution of the framework identifies strengths and
opportunity areas. Subsequent executions measures the
impact of human capital programs over time and allows
identification of causal links.
14© 2004 Accenture. All rights reserved.
The Accenture Human Capital Development
Benchmarking Database
The benchmarking database consists of approximately 35 organizations across 16
companies, across industries.
Staffing firm
Motorcycle manufacturer (Harley-Davidson)
Professional services engineering/construction firms (2)
Equipment manufacturer (Briggs and Stratton)
Canadian utility
South African utility (Eskom)
Spanish utility
Software company (SAP America)
Mobile phone manufacturer
Government administration agency
Government defense agency
Investment bank
Insurance company
Retail/commercial bank
Health insurance provider
15© 2004 Accenture. All rights reserved.
