The Human Capital Value Chain: [Click here for full-sized image]

Defining the Problem:

  • Healthcare organizations are challenged to change business models, grow, consolidate, improve quality, and dramatically lower costs
  • These challenges require transforming organizational structures, role expectations, and even cultures
  • Such ongoing transformation demands an agile Human Capital Value Chain that enables organizations to:
    • Identify, hire, and retain talent to deliver services aligned with organizational goals
    • Rebuild and refocus the talent base to have the right priorities, capabilities, and structure
    • More effectively manage their most important resource…human capital

What You Should Know and Consider:

  • Components of the GE Human Capital Value Chain Model shown above are highly interdependent and either strengthen or weaken other parts of the value chain
    • Workforce Development should include components of Talent Acquisition, Total Rewards, Performance Development, and Talent Development
    • Workforce Management should include components of Demand-based Staffing, Daily Shift Management, Labor Productivity, and Management Structure
  • Success requires a systemic approach that addresses and leverages these interdependencies

Solution Dynamics:

Organizations must create an agile value chain of integrated and aligned processes that enables:

  • Clarity around workforce development needs - including current workforce demographics, trends and future state requirements
  • Proactive deployment of talent acquisition processes and creation of total rewards structures that will attract and retain top talent
  • Continual development of workforce capabilities and culture to support strategic and operational goals
  • Efficient, effective, and equitable deployment of labor that drives outcomes, minimizes cost and feels equitable to team members

Assessments must be utilized to:

  • Understand gaps in current state and desired future state, and include reviews of data, observations and interviews with key stakeholders
  • Review findings with key stakeholders and executives to develop a road map for implementation, which includes identification of critical co-dependencies, and resource needs to drive necessary changes

GE Value Statement:

GE’s systemic approach addresses required solution dynamics while leveraging and addressing interdependencies across the value chain; ultimately focusing and aligning organizational efforts that support sustainable, transformational change.

Most organizations dive right into making changes to the organization, including finding ways to reduce the cost of labor. They miss the first step--which is critical--to guarantee sustainable change; without it, most attempts fail. Organizations must first use an analytical approach to understand the overall workforce development, including current workforce demographics, and identify how that must change to remain relevant over the years to come.

Key analytics include:

  • Employee career progressions and demographics throughout the organization to determine where and when attrition issues occur
  • Key skills gaps and the cost/impact of utilizing training vs. hiring
  • Skill mix changes based on actual and needed usage to more efficiently align staffing with current and future needs – whether to identify gaps or to reduce costs
  • Diversity needs, successes and challenges
  • Talent acquisition successes, including candidate profiles, sources and retention

These analytics are critical to determining how organizations can reduce the intensity of their labor costs now, and create an affordable, sustainable workforce into the future. Armed with this underpinning, the organization can develop flexible strategies around its technology needs, its process changes, and its people, to create a nimble, successful, community health provider.

Human Capital Value Chain Quicklinks:

Talent Acquisition

Total Rewards

Performance Management

Talent Development

Demand-Based Staffing

Daily Shift Management

Labor Productivity

Management Enablers

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