Is Your Fortune 500 Company Prepared for The Future?

Feb 07, 2018

Fortune 500

The organization of the future is here thanks to the rapid rate of technological changes. With an abundance of technology and tools available to Fortune 500 companies, is your organization prepared to generate a higher rate of return on your human capital?

American businesses are at an exciting crossroads in which artificial intelligence (AI) is no longer a futuristic idea. It is a reality. However, large corporations still need highly-trained, motivated, and properly-aligned employees to take advantage of the technology advancements to grow the bottom line.

Companies that understand how to create a culture that blends advanced technology with a highly-productive workforce will realize their growth potential in this new era. This intersection was described by Deloitte as the "Big Shift" in their 2017 Global Human Capital Trends Report.

The key is understanding how to build teams across multiple divisions, locations, and countries that align with your company objectives. This will help your company develop a long-lasting culture and ultimately stand out from the competition.

Identify the KPIs That Tie to Human Capital

The process of evaluating your human capital to take advantage of technology starts at the top of your Fortune 500 company.

There are assuredly companies with executive teams that place a high priority on investing in their people -- particularly in innovative or disruptive industries with intense competition for the talent pool. When this is not the case, the HR manager or leader should take an influential role with the C-Suite. It's important for human capital leadership to emphasize the impact that team building investment has on the bottom line.

The executive team then needs to come together to identify the key performance indicators (KPIs) for each job title. Once that analysis is complete, the executive team should use the most important and measurable KPIs for each job title to assess employee productivity.

It is imperative that this strategy is implemented through a top-down approach to create universal buy-in across every division in your organization. Then, you play a vital part executing the plan by documenting performance measurements and ensuring that all managers within the organization have the tools needed to conduct proper evaluations.

What Should You Look for in Financial Performance?

Think of your role as clearing out the previous way of managing human capital and making way for a new era that ensures each team in the organization is capable of utilizing technological advancements.

The signs that indicate it's time to bring out the bulldozer include year-over-year and five-year decreases in profitability, top-line revenue, and market share.

When you see these trends on your internal financial reports or SEC filings, you should evaluate the team culture issues within your organization that correlate to a decline in productivity.

You also need to evaluate the overall culture of your organization and the subcultures within the organization before implementing the new strategy. Otherwise, you will face resistance to change, keeping your company at a dangerous status quo level -- at risk of limiting future growth potential.

Why is Culture So Important to Implement Changes?

In a Fortune 500 company, situations may arise where employees settle into the background because of the sheer size of the company. Their mindset could be that the organization is so large that they are just another number, possibly leading to demotivation.

Unfortunately, that mentality could spread to the entire organization because one unproductive subculture can infect the rest of the culture. This is something that cannot be ignored.

As the HR manager or leader, you should locate the gaps in productivity that tie to the KPIs identified by the executive team. If a subculture or the overall company culture is not aligned with these indicators, then you know what needs to be addressed.

You are not looking for subcultures to be a clone of the overall culture, as each subculture has its unique personality made up of the individuals in that subculture. However, the subculture should still reflect the values and big-picture items that the overall culture supports.

Until you complete this analysis, you will not be able to pave the way for your organization to implement technological advancements to help your company grow. You need a scientific tool to assess each employee to build better teams within the culture and subcultures.

Pair Together the KPIs and an Assessment

Once the KPIs have been established in your organization, managers should have each direct report take an assessment. Then, the managers should review their employees' results to achieve two objectives:

  • Compare the assessment results to other top performers in their role
  • Determine whether the employee aligns with the manager and culture

If the results show that an employee is a better fit for a different role in the organization, then you have measurable information to help make an HR decision. The measurable information is an important piece of a collection of evidence to help decide whether to move an employee to another role where they are more naturally aligned with the manager and culture.

Using an assessment will also help you communicate the decision to an employee. You will not have to rely on a "gut feeling," which the employee could dispute or interpret as a personal attack, potentially causing more cultural issues and hurting productivity.

With an assessment, you have objective evidence to support your conclusion that the employee would best-suited in a different role. Then, you can take action to achieve your goal of ensuring the employee is more productive, the culture is addressed, the employee is in a role that aligns with their motivations, and the overall business can grow.

Once the employee is realigned, you can also use the assessment to provide coaching and training opportunities. This will help address gaps or blindspots in the employee's performance capabilities that were revealed in the assessment results.

Your Fortune 500 Company is Ready for the Future

To review, each step in the process of preparing your company for the future requires commitment from multiple teams and individuals:

  • Executive team: Identify KPIs tied to performance
  • Evaluate whether KPIs are declining
  • Identify culture and subculture issues tied to performance
  • Have employees complete assessment
  • Adjust teams to ensure alignment and productivity
  • Implement technology to become an Organization of the Future

Once teams are properly aligned, you should begin to see results generating a higher ROI on your human capital. These should be reported back to the executive team to compare trends before and after alignment.

To support HR managers in Fortune 500 companies, ZERORISK HR offers the Clear Direction Team and Communication Development Program. This tool includes a Team Directory Report that provides counsel on how managers should communicate with and motivate their employees to create more productive teams. This is especially important when implementing new technology to become an organization of the future.

Contact our team today to get started on using this team-building program to generate more ROI on your human capital.

ZERORISK helps organizations build great cultures by identifying, developing, and retaining top talent. The ZERORISK Hiring System blends a revolutionary behavioral science with state-of-the-art technology to reduce unwanted turnover and improve employee performance. For more information contact us at (800) 827-5991.

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