1、Scott A.SnellCornell University393 Ives HallIthaca,NY 14853(607)255-4112scott.snellcornell.eduCompeting through Knowledge:The Human Capital ArchitectureIBMIBM“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)
2、Hardware,software,and services Nobel prize-winning scientists 3,768 patents(1993-1995)Whats Happening Today?Industry Changes Globalization Information technologyNeed for Organizational agility Speed Innovation Cost Knowledge-based strategies Core competencies Innovation External partnershipsNew Busi
3、ness EquationCore 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 techn
4、ologyUntethered comm.Core Benefit toCompetence CustomerCRITERIA valuable unique extendable learning Benefits VALUE=-Costs UNIQUE=(social complexity+causal ambiguity)LEARNING=(experience x challenge)Competing Through People Identify&develop core skills Integrate diverse activities Respond with agilit
5、y&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 KNOWLEDGE -customer -technology -operations -managing PROCESSES -customer segmentation -just-in-time(hrs)-mass customization -b
6、uild 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 involvement -third party service maintainers(TPM
7、s)-distribution agreements(UPS,Airbourne)“Virtual Integration”“A low-value product can be made by anyone anywhere.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 Merck KNOWLEDGE -
8、customer -technology -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 intim
9、acy(Boeing)-Platinum councils -supplier partnerships(Sony)-employee involvement -third party service maintainers(TPMs)-distribution agreements(UPS,Airbourne)“Positively Outrageous Service”Southwest Airlines KNOWLEDGE -microbiology -biochemistry -microbiology -imunodiagnostics (antibodies/conjugates)
10、PROCESSES -R&D/Mfg.-bioconjugation -antibody purification -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(scienc
11、e/mkt)C2=“Rapid Learning”An 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 QuinnBIOTECH INC
12、.Benefits =-CostsCombination of people and systemsleads to.Human CapitalSocial CapitalOrganizationalCapitalBioTech,Inc.:Intellectual capitalPeopleSystems KNOWLEDGE -microbiology -biochemistry -bioconjugation -imunodiagnostics PROCESSES -R&D/Mfg.-bioconjugation -antibody purification -PCR amplificati
13、on -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(science/mkt)C2=“Rapid Learning”PEOPLESYSTEMSCore CompetenceKnowledge
14、KnowledgeTechnologiesTechnologiesProcessesProcessesRelationshipsRelationshipsBenefitsVALUE=-CostsUNIQUE=(social complexity+causal ambiguity)LEARNING=(experience x challenge)How does human capital contribute to the core competence?Value UniqueResources need to be:Benefits VALUE=-CostsDrives innovatio
15、nResponds to customer demandsProvides excellent customer serviceAchieves highest qualityInstrumental in process improvementsDevelops new business opportunitiesDirectly affects efficiency and productivityMinimizes costs of production,service,deliveryNot widely available in the marketCannot be bought
16、or appropriatedDifficult to imitate or duplicateSpecialized KSAsDifficult to replaceCustomized to our firmDeveloped through on-the-job experiencesDistinguishes us from our competitorsR&DManufacturing/Operations Distribution SalesSales TMTCustServHRR&D RapidsFinCustomerServiceMfgR&DR&DPartnersCore Kn
17、owledgeLow VALUE highLow UNIQUE highBIOTECH,INC:Mapping Human CapitalKEY Finance HR TMT MIS Mfg/Operations Market/Sales R&D Quality Biologicals Cust.Service Rapid Diag.Legal/Reg.Distribution RapidsScott A.Snell,Cornell UniversityC2=Rapid LearningHRLegalMISBiologicalsFinQualityTMTCompulsory Knowledge
18、Idiosyncratic KnowledgeAncillary KnowledgeHuman Capital ArchitectureHumanCapital unique value HRMSystem Employ Mode Core Human Capital High Value:Direct link to core competence High Uniqueness:Firm-specific knowledge and skillsEmployment Mode:knowledge workEmployment Relationship:organization-focuse
19、dExamples:software developers(Microsoft)drug researchers (Merck)fund managers(Fidelity)“gold-collar”workersHigh ValueHigh ValueLow ValueLow ValueUniqueGenericGenericIdiosyncraticIdiosyncraticAncillaryAncillary CompulsoryCompulsoryHuman Capital ArchitectureCoreR&DManufacturing/OperationsDistribution
20、SalesSales TMTCustServHRR&D RapidsFinCustomerServiceMfgR&DR&DPartnersTRADITIONAL JOB-BASED EMPLOYMENTALLIANCE/PARTNERCONTRACT WORKKNOWLEDGE WORKLow VALUE highLow VALUE highLow UNIQUE highLow UNIQUE highBIOTECH,INC:Mapping Human CapitalKEY FinanceHRTMTMISMfg/Operations Market/Sales R&DQualityBiologic
21、alsCust.ServiceRapid Diag.Legal/Reg.Distribution KEY FinanceHRTMTMISMfg/Operations Market/Sales R&DQualityBiologicalsCust.ServiceRapid Diag.Legal/Reg.Distribution RapidsScott A.Snell,Cornell UniversityC2=Rapid LearningHRLegalMISBiologicalsFinQualityTMTHigh ValueHigh ValueLow ValueLow ValueUniqueGene
22、ricGenericCoreCoreIdiosyncraticIdiosyncraticAncillaryAncillaryHuman Capital ArchitectureHuman Capital ArchitectureHuman Capital ArchitectureHuman Capital ArchitectureCompulsoryEmployment Mode:traditional jobEmployment Relationship:job-focusedExamples:staff accountants(Andersen)sales people(Sears)tru
23、ck 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 skillsR&DManufacturing/OperationsDistribution SalesSales TMTCustServHRR&D RapidsFinCustomerServiceMfgR&
24、DR&DPartnersTRADITIONAL JOB-BASED EMPLOYMENTALLIANCE/PARTNERCONTRACT WORKKNOWLEDGE WORKLow VALUE highLow VALUE highLow UNIQUE highLow UNIQUE highBIOTECH,INC:Mapping Human CapitalKEY FinanceHRTMTMISMfg/Operations Market/Sales R&DQualityBiologicalsCust.ServiceRapid Diag.Legal/Reg.Distribution KEY Fina
25、nceHRTMTMISMfg/Operations Market/Sales R&DQualityBiologicalsCust.ServiceRapid Diag.Legal/Reg.Distribution RapidsScott A.Snell,Cornell UniversityC2=Rapid LearningHRLegalMISBiologicalsFinQualityTMTEmployment Mode:contract workEmployment Relationship:transactionalExamples:assemblers(Nike)clerical worke
26、rs(Halliburton)payroll(Continental)catering(ARAMARK)High ValueHigh ValueLow ValueLow ValueUniqueGenericGenericCoreCoreIdiosyncraticIdiosyncraticCompulsoryCompulsoryHuman Capital ArchitectureHuman Capital ArchitectureHuman Capital ArchitectureHuman Capital ArchitectureAncillaryAncillary Ancillary Hum
27、an Capital Low Strategic Value:Operational role Low Uniqueness:Generic knowledge and skillsR&DManufacturing/OperationsDistribution SalesSales TMTCustServHRR&D RapidsFinCustomerServiceMfgR&DR&DPartnersTRADITIONAL JOB-BASED EMPLOYMENTALLIANCE/PARTNERCONTRACT WORKKNOWLEDGE WORKLow VALUE highLow VALUE h
28、ighLow UNIQUE highLow UNIQUE highBIOTECH,INC:Mapping Human CapitalKEY FinanceHRTMTMISMfg/Operations Market/Sales R&DQualityBiologicalsCust.ServiceRapid Diag.Legal/Reg.Distribution KEY FinanceHRTMTMISMfg/Operations Market/Sales R&DQualityBiologicalsCust.ServiceRapid Diag.Legal/Reg.Distribution Rapids
29、Scott A.Snell,Cornell UniversityC2=Rapid LearningHRLegalMISBiologicalsFinQualityTMTR&DManufacturing/OperationsDistribution SalesSales TMTCustServHRR&D RapidsFinCustomerServiceMfgR&DR&DPartnersTRADITIONAL JOB-BASED EMPLOYMENTALLIANCE/PARTNERCONTRACT WORKKNOWLEDGE WORKLow VALUE highLow VALUE highLow U
30、NIQUE highLow UNIQUE highBIOTECH,INC:Mapping Human CapitalKEY FinanceHRTMTMISMfg/Operations Market/Sales R&DQualityBiologicalsCust.ServiceRapid Diag.Legal/Reg.Distribution KEY FinanceHRTMTMISMfg/Operations Market/Sales R&DQualityBiologicalsCust.ServiceRapid Diag.Legal/Reg.Distribution RapidsScott A.
31、Snell,Cornell UniversityC2=Rapid LearningHRLegalMISBiologicalsFinQualityTMTEmployment Mode:partnershipEmployment Relationship:collaborativeExamples:“wild ducks”(IBM)design engineers(w/Boeing)trainers(Merck/Forum)authors(McGraw-Hill)High ValueHigh ValueLow ValueLow ValueUniqueGenericGenericCoreCoreId
32、iosyncraticIdiosyncraticAncillaryAncillaryCompulsoryCompulsoryHuman Capital ArchitectureHuman Capital ArchitectureHuman Capital ArchitectureHuman Capital Architecture Idiosyncratic Human Capital Low Strategic Value:Intermittent link to competence High Uniqueness:Specialized knowledge and skillsTRADI
33、TIONAL 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-qualityJob-customized$-bonus$-performance$-industry experienceS-strategy contribute$-salaryJob-rotat
34、ionS-solve problemsS-best Job-security$-highJob-empowerPA-strategy contributeT&D-investmentPA-work w/othersT&D-OJTT&D-teamT&D-continuousS-potentialS-promote w/inPA-developJob-dynamicJob-standardized$-hourlyKEY Job design Staffing Training Appraisal CompensationLow VALUE highLow UNIQUE highPlotting H
35、R PracticesSTUDY:152 multi-product firms 200 employeesCEO,VPHR,line execsRewardsAppraisalDevelopmentStaffingJob Design enriched&empowered customized aptitude(able to learn)promote from within continuous on-the-job firm-specific focus on strategic contribution developmental external equity(high wages
36、)pay for knowledge,experience,seniority ownership and perksCOMMITMENT-BASED HRM SYSTEMHigh ValueHigh ValueLow ValueLow ValueUniqueGenericGenericIdiosyncraticIdiosyncraticAncillaryAncillary CompulsoryCompulsoryHuman Capital ArchitectureCoreCore Human CapitalEmployment Mode:knowledge workEmployment Re
37、lationship:organization-focusedRewardsAppraisalDevelopmentStaffingJob Design clearly defined moderately empowered external recruitment achievement limited to firm-specific short-term focus developmental focus on performance external equity(market rate)pay for performanceHigh ValueHigh ValueLow Value
38、Low ValueUniqueGenericGenericCoreCoreIdiosyncraticIdiosyncraticAncillaryAncillaryHuman Capital ArchitectureHuman Capital ArchitectureHuman Capital ArchitectureCompulsoryPRODUCTIVTY-BASED HRM SYSTEMEmployment Mode:traditional jobEmployment Relationship:job focusedCompulsory Human CapitalRewardsApprai
39、salDevelopmentStaffingJob Design well-defined limited scope outsourced(perhaps)contract for a specific task limited to rules&procedures administrative hourly or contract-contingent High ValueHigh ValueLow ValueLow ValueUniqueGenericGenericCoreCoreIdiosyncraticIdiosyncraticCompulsoryCompulsoryHuman C
40、apital ArchitectureHuman Capital ArchitectureHuman Capital ArchitectureAncillaryAncillaryCOMPLIANCE-BASED HRM SYSTEMEmployment Mode:contract workEmployment Relationship:transactionalAncillary Human CapitalRewardsAppraisalDevelopmentStaffingJob Design team-based enriched&autonomous ability to collabo
41、rate achievement continuous on-the-job firm-specific team-oriented goal accomplishment group-based incentives contract,salary,pay-for-knowledge High ValueHigh ValueLow ValueLow ValueUniqueGenericGenericCoreCoreIdiosyncraticIdiosyncraticAncillaryAncillaryCompulsoryCompulsoryHuman Capital Architecture
42、Human Capital ArchitectureHuman Capital ArchitectureCOLLABORATIVE HRM SYSTEMEmployment Mode:partnershipEmployment Relationship:collaborativeIdiosyncratic Human Capitallow Uniqueness high low Strategic Value high HumanCapital unique value HRMSystem Employ ModeRelational ExchangeTransactionalInternali
43、zationExternalizationIdiosyncratic HC Mode:Partnership HR:Collaborative -select 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-dire
44、ction -mistakes are importantCompulsory HC Mode:Traditional job 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
45、&procedures -narrow scope -error avoiding -hourly payR&DManufacturing/OperationsDistribution SalesSales TMTCustServHRR&D RapidsFinCustomerServiceMfgR&DR&DPartnersCore KnowledgeLow VALUE highLow VALUE highLow UNIQUE highLow UNIQUE highBIOTECH,INC:Mapping Human CapitalKEY FinanceHRTMTMISMfg/Operations
46、 Market/Sales R&DQualityBiologicalsCust.ServiceRapid Diag.Legal/Reg.Distribution KEY FinanceHRTMTMISMfg/Operations Market/Sales R&DQualityBiologicalsCust.ServiceRapid Diag.Legal/Reg.Distribution RapidsScott A.Snell,Cornell UniversityC2=Rapid LearningHRLegalMISBiologicalsFinQualityTMTCompulsory Knowl
47、edgeIdiosyncratic KnowledgeAncillary KnowledgeOne 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.Low VALUE highLow UNIQUE highBIO
48、TECH INC:Mapping Social CapitalTMTRapids&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&
49、U.S.RegulatoryCust.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 UniversityPATTERNS:Explicit -
50、TacitTransactional-Relational Effectiveness-Efficiency Low 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 ProcessProduction Plate CoatingLN:New Pr
