1. HR Management for Business Plans

2. Agenda Introduction Why Does “Human Resources” Exist?
Legal & Regulatory Compliance
Business Strategy Enablement
How Does HR Work?
Human Capital Lifecycle
Analytics
What Does “Success” Look Like?
Business Success
Societal Success
Personal Success
Wrap Up

3. Introduction My name is Matthew “Matt” Pulliam
Background is Engineering and Business – Advanced Polymers (BSE) and Finance (MBA)
Passion is Human Capital – Creating business value by enabling employees to reach their potential
I currently serve as the Chief Human Resources Officer for NH Learning Solutions Corporation
Also known as “New Horizons Computer Learning Centers”
World’s most successful independent provider of computer and business skills training
Responsible for all HR functions across 11 states
It is my privilege to speak with you today about the role of HR in a successful business
You are part of the best educated, best prepared, and most capable generation IN HISTORY
My job is to translate 20+ years of experience into YOUR competitive advantage
My hope is that you will use this information to become better business leaders and improve our world

4. Why Does Human Resources Exist?
Human Resources evolved from “Payroll” functions starting in the 1950’s
Original goal was to make sure employees received their pay accurately and on-time
Most work was done by pen and paper, and calculators were the most advanced tools
Employees were considered ”cogs in the machine”
Human Resources is still evolving, with two different “personalities”
Traditional HR focuses on compliance and paperwork (regulatory reporting, payroll, benefits)
Progressive HR focuses on supporting the business strategy and creating sustainable value
The current typical split is about 50% traditional and 50% progressive
We will focus on the “progressive” HR role through the Human Capital Lifecycle and Analytics
The Human Capital Lifecycle is a comprehensive view of employees as a component of the business
Analytics are the tools we use to predict future performance based on employee data

5. How Does HR Work? Human Capital Lifecycle Analytics
Attraction & Selection
Hiring & Onboarding
Alignment & Engagement
Performance & Reward
Training & Development
Advancement & Replacement
Human Capital Lifecycle
Attraction & Selection
Hiring & Onboarding
Alignment & Engagement
Performance & Reward
Training & Development
Advancement & Replacement
Analytics
Attract people who love what you do
Hire people likely to be successful
Show them what success means
Recognize and reward their success
Identify and enable their next success

6. How Does HR Work?
Each component of the Human Capital Lifecycle requires different ROLES and TRAITS:
Attraction & Selection requires RECRUITERS who believe in the company’s mission and demonstrate PASSION for the business
Hiring & Onboarding requires ADMINISTRATORS who appreciate process and demonstrate DISCIPLINE in following processes
Alignment & Engagement requires BUSINESS PARTNERS who understand the business model and demonstrate COLLABORATION with other functions
Performance & Reward requires SPECIALISTS who appreciate math & science and demonstrate BUSINESS SAVVY in balancing costs and benefits
Training & Development requires TEACHERS who understand how people learn and demonstrate OPTIMISM by seeing the greatest potential in every employee
Advancement & Replacement requires INNOVATORS who can visualize the future and demonstrate LEADERSHIP in positioning the right talent where it is needed and when

7. How Does HR Work?
Supporting each part of the lifecycle, Analytics requires strong math, science, and business skills:
Attracting people who love what you do requires knowledge of motivation and labor market economics
Hiring people likely to be successful requires a knowledge of human psychology and statistics
Showing them what success means requires a knowledge of finance and operations
Recognizing and rewarding their success requires a knowledge of accounting, tax, and law/regulation
Identifying and enabling their next success requires a all of the above, plus a deep understanding of the global, national, and local environments for business, politics, social & ethical issues, cultural norms, and language & customs
The Human Capital Lifecycle and Analytics combine to address the most important HR issue:
“What sustainable competitive advantage can be created by the behavior of people and teams, and what role does HR play in enabling and sustaining that behavior?”

8. What Does Success Look Like?
Business success is generally delivered through Profitable Growth
Fads come and go – e.g., growing revenue faster than growing losses yields high stock prices?!
Over the long-term, a sustainable business must grow revenue and grow profit
The key measure of success is Shareholder Value (NOPAT vs. Capital Charge)
Societal success is generally delivered through products & services that improve people’s lives
Fads come and go – e.g., paying money for a “pet rock” that creates no measurable value?!
Over the long-term, a sustainable business must provide value over-proportional to price
Individual success is generally delivered through personal balance and fulfilment
Fads come and go – e.g., free food, logo gear, “sleep pods” a reason to spend 20 hours per day at work?!
Over the long-term, a sustainable business enables employees to lead full, satisfying, and meaningful lives

9. Wrap Up HR is evolving from Traditional to Progressive
Still need legal & regulatory compliance, but increasingly automated
Real opportunity for increasing business value through people
Each aspect of the Human Capital Lifecycle and Analytics plays to different strengths
HR is not just for “people people”
Rapidly increasing opportunities for math, science, and business specialists
”Success” is measured in many ways, and HR has a role in supporting each one!