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1、Scott A. SnellCornell University393 Ives HallIthaca, NY 14853Competing through Knowledge:The Human Capital Architecture1IBMIBM“You can get capital and erect buildings, but it takes people to build a business.”Thomas J. Watson, IBMDid IBM forget? $168 billion (Tobins Q = 2.1) Hardware, software, and
2、services Nobel prize-winning scientists 3,768 patents (1993-1995)2Whats Happening Today? Industry Changes Globalization Information technologyNeed for Organizational agility Speed Innovation Cost Knowledge-based strategies Core competencies Innovation External partnershipsLeading toNew Business Equa
3、tion3Core Competenceis a bundle of skills and technologies that enables a company to provide a particular benefit to customers. Hamel and Prahalad, 1994 SONY Miniaturization PocketabilityFEDERAL EXPRESS Logistics On-time deliveryHONDAEngine design/mfg.Reliable performanceMOTOROLAWireless technologyU
4、ntethered comm. Core Benefit toCompetence Customer4KnowledgeKnowledgeTechnologiesTechnologiesProcessesProcessesRelationshipsRelationshipsCRITERIA valuable unique extendable learning Benefits VALUE = -Costs UNIQUE = (social complexity + causal ambiguity) LEARNING = (experience x challenge)Competing T
5、hrough People Identify & develop core skills Integrate diverse activities Respond with agility & speed Empower action InnovateCore Competenceis a bundle of skills and technologies that enables a company to provide a particular benefit to customers. -Hamel and Prahalad 5 KNOWLEDGE - customer - techno
6、logy - operations - managing PROCESSES - customer segmentation - just-in-time (hrs) - mass customization - build to order (AIM) - ROIC metrics - experimentation TECHNOLOGY - Premier pages - software installation - TPM triggers (parts, service) - customer purchasing systems RELATIONSHIPS - customer i
7、ntimacy (Boeing) - Platinum councils - supplier partnerships (Sony) - employee involvement - third party service maintainers (TPMs) - distribution agreements (UPS, Airbourne)“Virtual Integration”Leading to ValueValue Uniqueness Uniqueness Learning Learning“A low-value product can be made by anyone a
8、nywhere. When you have knowledge no one else has access to -thats dynamite. We guard our intellectual assets even more carefully than our financial assets.” -Roy Vagelos, former CEO Merck6 KNOWLEDGE - customer - technology - operations - managing PROCESSES - customer segmentation - just-in-time (hrs
9、) - mass customization - build to order (AIM) - ROIC metrics - experimentation TECHNOLOGY - Premier pages - software installation - TPM triggers (parts, service) - customer purchasing systems RELATIONSHIPS - customer intimacy (Boeing) - Platinum councils - supplier partnerships (Sony) - employee inv
10、olvement - third party service maintainers (TPMs) - distribution agreements (UPS, Airbourne)“Positively Outrageous Service”Southwest Airlines7 KNOWLEDGE - microbiology - biochemistry - microbiology - imunodiagnostics (antibodies/conjugates) PROCESSES - R&D/Mfg. - bioconjugation - antibody purificati
11、on - PCR amplification - DNA hybridization - TQM - commercialization TECHNOLOGY - immunoassays - ELISA (serum/blood) - rapid diagnostics - DNA based RELATIONSHIPS - CRC-DT, CDC - U.S. Army - World Health Org. - universities - distribution network - employee (science/mkt)C2 = “Rapid Learning”Leading
12、toAn organization at the frontier of its intellectual field is more likely to stay at the frontier. It can attract and challenge more and better intellect than its competitors. By solving more advanced problems, it has more capacity to solve others. And so on.” - JB Quinn ValueValue Uniqueness Uniqu
13、eness Learning LearningBIOTECH INC. Benefits = - Costs8Combination of people and systemsleads to.Human CapitalSocial CapitalOrganizationalCapitalBioTech, Inc.: Intellectual capitalPeopleSystems KNOWLEDGE - microbiology - biochemistry - bioconjugation - imunodiagnostics PROCESSES - R&D/Mfg. - bioconj
14、ugation - antibody purification - PCR amplification - DNA hybridization - TQM - commercialization TECHNOLOGIES - immunoassays - ELISA (serum/blood) - rapid diagnostics - DNA based detection RELATIONSHIPS - CRC-DT, CDC - U.S. Army - World Health Org. - universities - distribution network - employee (
15、science/mkt)C2 = “Rapid Learning”PEOPLESYSTEMSCore Competence9How does human capital contribute to the core competence?ValueUniqueResources need to be: Benefits VALUE = - CostsDrives innovationResponds to customer demandsProvides excellent customer serviceAchieves highest qualityInstrumental in proc
16、ess improvementsDevelops new business opportunitiesDirectly affects efficiency and productivityMinimizes costs of production, service, deliveryNot widely available in the marketCannot be bought or appropriatedDifficult to imitate or duplicateSpecialized KSAsDifficult to replaceCustomized to our firm
17、Developed through on-the-job experiencesDistinguishes us from our competitors10R&DManufacturing/Operations Distribution SalesSales TMTCustServHRR&D RapidsFinCustomerServiceMfgR&DR&DPartnersCore KnowledgeLow VALUE highLow UNIQUE highBIOTECH, INC: Mapping Human CapitalKEY Finance HR TMT MIS Mfg/Operat
18、ions Market/Sales R&D Quality Biologicals Cust. Service Rapid Diag. Legal/Reg. Distribution RapidsScott A. Snell, Cornell UniversityC2 = Rapid LearningHRLegalMISBiologicalsFinQualityTMTCompulsory KnowledgeIdiosyncratic KnowledgeAncillary Knowledge11High ValueHigh ValueLow ValueLow ValueGenericGeneri
19、cCoreIdiosyncraticAncillaryCompulsoryUniqueUniqueHuman Capital ArchitectureHumanCapital unique value HRMSystem Employ Mode12 Core Human Capital High Value: Direct link to core competence High Uniqueness: Firm-specific knowledge and skillsEmployment Mode: knowledge workEmployment Relationship: organi
20、zation-focusedExamples: software developers (Microsoft) drug researchers (Merck) fund managers (Fidelity)“gold-collar” workersHigh ValueHigh ValueLow ValueLow ValueUniqueGenericGenericIdiosyncraticIdiosyncraticAncillaryAncillary CompulsoryCompulsoryHuman Capital ArchitectureCore13High ValueHigh Valu
21、eLow ValueLow ValueUniqueGenericGenericCoreCoreIdiosyncraticIdiosyncraticAncillaryAncillaryHuman Capital ArchitectureHuman Capital ArchitectureHuman Capital ArchitectureHuman Capital ArchitectureCompulsoryEmployment Mode: traditional jobEmployment Relationship: job-focusedExamples: staff accountants
22、 (Andersen)sales people (Sears)truck drivers (UPS)HighValue: Direct link to strategyHigh Uniqueness: Generic knowledge and skills Compulsory Human Capital High Value: Direct link to core competence Low Uniqueness: Generic knowledge and skills14Employment Mode: contract workEmployment Relationship: t
23、ransactionalExamples: assemblers (Nike)clerical workers (Halliburton)payroll (Continental)catering (ARAMARK)High ValueHigh ValueLow ValueLow ValueUniqueGenericGenericCoreCoreIdiosyncraticIdiosyncraticCompulsoryCompulsoryHuman Capital ArchitectureHuman Capital ArchitectureHuman Capital ArchitectureHu
24、man Capital ArchitectureAncillaryAncillary Ancillary Human Capital Low Strategic Value: Operational role Low Uniqueness: Generic knowledge and skills15Employment Mode: partnershipEmployment Relationship: collaborativeExamples: “wild ducks” (IBM) design engineers (w/ Boeing) trainers (Merck/Forum) au
25、thors (McGraw-Hill)High ValueHigh ValueLow ValueLow ValueUniqueGenericGenericCoreCoreIdiosyncraticIdiosyncraticAncillaryAncillaryCompulsoryCompulsoryHuman Capital ArchitectureHuman Capital ArchitectureHuman Capital ArchitectureHuman Capital Architecture Idiosyncratic Human Capital Low Strategic Valu
26、e: Intermittent link to competence High Uniqueness: Specialized knowledge and skills16TRADITIONAL JOB-BASED EMPLOYMENTALLIANCE/ PARTNERCONTRACT WORKKNOWLEDGE WORKS-specific jobT&D-short-termT&D-current jobT&D-external$-internal equityS-immediate perform$-groupJob-narrow/simple$-short-termPA-qualityJ
27、ob-customized$-bonus$-performance$-industry experienceS-strategy contribute$-salaryJob-rotationS-solve problemsS-best Job-security$-highJob-empowerPA-strategy contributeT&D-investmentPA-work w/othersT&D-OJTT&D-teamT&D-continuousS-potentialS-promote w/inPA-developJob-dynamicJob-standardized$-hourlyKE
28、Y Job design Staffing Training Appraisal CompensationLow VALUE highLow UNIQUE highPlotting HR PracticesSTUDY:152 multi-product firms 200 employeesCEO, VPHR, line execsLepak & Snell, 2001Lepak & Snell, 200117RewardsAppraisalDevelopmentStaffingJob Design enriched & empowered customized aptitude (able
29、to learn) promote from within continuous on-the-job firm-specific focus on strategic contribution developmental external equity (high wages) pay for knowledge, experience, seniority ownership and perksCOMMITMENT-BASED HRM SYSTEMHigh ValueHigh ValueLow ValueLow ValueUniqueGenericGenericIdiosyncraticI
30、diosyncraticAncillaryAncillary CompulsoryCompulsoryHuman Capital ArchitectureCoreCore Human CapitalEmployment Mode: knowledge workEmployment Relationship: organization-focused18RewardsAppraisalDevelopmentStaffingJob Design clearly defined moderately empowered external recruitment achievement limited
31、 to firm-specific short-term focus developmental focus on performance external equity (market rate) pay for performanceHigh ValueHigh ValueLow ValueLow ValueUniqueGenericGenericCoreCoreIdiosyncraticIdiosyncraticAncillaryAncillaryHuman Capital ArchitectureHuman Capital ArchitectureHuman Capital Archi
32、tectureCompulsoryPRODUCTIVTY-BASED HRM SYSTEMEmployment Mode: traditional jobEmployment Relationship: job focusedCompulsory Human Capital19RewardsAppraisalDevelopmentStaffingJob Design well-defined limited scope outsourced (perhaps) contract for a specific task limited to rules & procedures administ
33、rative hourly or contract-contingent High ValueHigh ValueLow ValueLow ValueUniqueGenericGenericCoreCoreIdiosyncraticIdiosyncraticCompulsoryCompulsoryHuman Capital ArchitectureHuman Capital ArchitectureHuman Capital ArchitectureAncillaryAncillaryCOMPLIANCE-BASED HRM SYSTEMEmployment Mode: contract wo
34、rkEmployment Relationship: transactionalAncillary Human Capital20RewardsAppraisalDevelopmentStaffingJob Design team-based enriched & autonomous ability to collaborate achievement continuous on-the-job firm-specific team-oriented goal accomplishment group-based incentives contract, salary, pay-for-kn
35、owledge High ValueHigh ValueLow ValueLow ValueUniqueGenericGenericCoreCoreIdiosyncraticIdiosyncraticAncillaryAncillaryCompulsoryCompulsoryHuman Capital ArchitectureHuman Capital ArchitectureHuman Capital ArchitectureCOLLABORATIVE HRM SYSTEMEmployment Mode: partnershipEmployment Relationship: collabo
36、rativeIdiosyncratic Human Capital21Human Capital ArchitectureHuman Capital Architecturelow Uniqueness high low Strategic Value high HumanCapital unique value HRMSystem Employ ModeRelational ExchangeTransactionalInternalizationExternalizationIdiosyncratic HC Mode: Partnership HR: Collaborative - sele
37、ct on past experience - develop the relationship - evolving scope - rewards for ideas Core HC Mode: Knowledge work HR: Commitment-based - staff based on potential - develop (firm-specific) - extensive pay & benefits - autonomy/self-direction - mistakes are importantCompulsory HC Mode: Traditional jo
38、b HR: Productivity-based - staff based on current skill - less development - market wage - focus on ST performance - mistakes above the water line Ancillary HC Mode: Contract work HR: Compliance-based - standardize/simple (outsource) - focus on rules & procedures - narrow scope - error avoiding - ho
39、urly pay22One flaw in knowledge management is that it often neglects to ask what knowledge to manage and toward what end. Knowledge should be managed within the context where value is created.-Tom StewartLink Back To Core Competence.23Low VALUE highLow UNIQUE highBIOTECH INC: Mapping Social CapitalT
40、MTRapids &Ext. PartnerR&D &GovernmentQuality TeamProduction & TMTMarketing& SalesFOCUS ON: Governance TMT Culture Value Chain Task Environment Stakeholders Remote EnvironmentProduction &Raw Mat SupR&D & SuppliersR&D & ProductionTech Support & CustomerR&D & CustomerR&D & QualityTMT /R&D &U.S. Regulat
41、oryCust. Service &CustomerCulture (TMT)TMT &U.S. R&D *TMT &U.S. R&D *TMT/R&D &U.S. Mfg.TMT &U.S. R&DTMT &CustomerR&D &External R&DGovernanceMarketing& CustomerR&D TeamProduction & SalesMIS & R&DProduction TeamProduction &QualityR&D & SalesSales/TMT &DistributorsScott A. Snell, Cornell UniversityPATT
42、ERNS: Explicit - TacitTransactional - Relational Effectiveness - Efficiency 24Low VALUE highLow UNIQUE highMapping Organizational CapitalFOCUS ON: Databases Patents Processes Systems ManualsLN: FeelingsLN: Sexions(Suggestions)LN: Gen NewsLN: Contact DatabaseLN: Research Databases (20+)R&D ProcessPro
43、duction Plate CoatingLN: New ProductsProduct ImprovementLN: CustomerIndustry NewsProduction ProcessesQualityShippingCustomerServiceManagementInfo. SystemPatentsScott A. Snell, Cornell UniversityBiotech, Inc.COREENABLINGSUPPORTINGLINKING25 Summary PointsMapping human capital helps structure the conve
44、rsation.Different types of human capital are (should be) managed in different ways. In addition to HC, there are social and organizational dimensions of IC.The architecture of these knoweldge-based assets underlies a firms core competence. 26Dynamique Yachts KnowledgeIntegrationHumanCapitalSocialCap
45、italOrganizationCapitalCore Competence.a bundle of skills and technologies that enables a company to provide a particular benefit to customers. It represents the sum of learning across these resources. ( Hamel & Prahalad)Human Resource Management PracticesStaffing, training, work design, participati
46、on, rewards, appraisal, etc.SystemsKnowledgeCreationIntellectual CapitalDynamic CapabilityPeopleKnowledgeTransferLearning and InnovationFlowStockChangeProcesses to integrate, reconfigure, gain, and release resourcesto match and even create market change. RenewalValuableRareInimitableOrganizedModel of Strategic HRMUnique27
