Retooling Mental Models of Human
Capital Risk
Retooling Human Capital Risk Using Management Frameworks
Management
Traditional HR Risk
Retooled Approach to HR
Framework Applied to
Framing
Risk
HR
“Minimize the risk Portfolio analysis
“Balance risk in talent
of talent being
balances the risks of
planning, by investing in
unprepared for the several uncertain future talent for several future
future by
scenarios against their scenarios according to their
developing generic returns, combining
relative likelihood and risk.”
competencies that resource investments
will apply across
that fit several future
the board.”
possibilities.
© 2014 University of Southern California
Retooling Mental Models of Human
Capital Risk
Retooling Human Capital Risk Using Management Frameworks
Management
Traditional HR Risk
Retooled Approach to HR
Framework Applied to
Framing
Risk
HR
“Top performers in Performance- tolerance “Minimize risk in risk-averse
every position, to analysis optimizes
performance situations,
minimize the risk performance
embrace it in risk-loving
of bad
improvement against
performance situations, by
performance”
risks, costs, and
focusing on return on
benefits.
improved performance
(ROIP)”
© 2014 University of Southern California
Retooling Mental Models of Human
Capital Risk
Retooling Human Capital Risk Using Management Frameworks
Management
Traditional HR Risk
Retooled Approach to HR
Framework Applied to
Framing
Risk
HR
“Minimize the risk Customer segmentation “Balance the risk of
of employee
optimizes product and dissatisfaction or inequity
dissatisfaction by service features to
against the return by
agreeing to
customize against
customizing where it
customized deals, market segments,
achieves the greatest return
or minimize the
according to their value and standardizing where it
risk of inequity by and cost.
does not.”
doing the same
thing for
everyone”
© 2014 University of Southern California
Retooling Mental Models of Human
Capital Risk
Retooling Human Capital Risk Using Management Frameworks
Management
Traditional HR Risk
Retooled Approach to HR
Framework Applied to
Framing
Risk
HR
“Minimize the risk Inventory management “Turnover levels and time-toof employee
optimizes holding costs, fill are optimized to create
shortages by filling ordering costs, and
the level of employee
all requisitions as shortage costs by
shortages or surpluses that
quickly as possible planning for shortages best balances risks of
and keeping
or surpluses.
surpluses and shortages
turnover to a
against costs.
minimum.”
© 2014 University of Southern California
Retooling Mental Models of Human
Capital Risk
Retooling Human Capital Risk Using Management Frameworks
Management
Traditional HR Risk
Retooled Approach to HR
Framework Applied to
Framing
Risk
HR
“Minimize risk by Logistics management “Optimize the risk and return
having successors optimizes transport
to succession by balancing
for every position, patterns to balance the the costs, benefits and timing
who have all
risk of unavailability
of different career paths.”
completed the
against the costs and
careerreturns to following
development path various pathways.
requirements”
© 2014 University of Southern California