Book Review: High-Impact Human Capital Strategy: Addressing the 12 Major Challenges Today’s Organizations Face

Abstract

High-Impact Human Capital Strategy Addressing the 12 Major Challenges Today's Organizations Face Edited by Jack J. Phillips and Patricia Pulliam Phillips AMACOM, 2015, $33 (hardcover), 304 pagesJACK AND PATTI PHILLIPS HAVE dedicated their professional lives to building accountability into human resources and training departments through the development of the ROI Methodology. The ROI Methodology has been used in over 66 countries and within a variety of Fortune 500 organizations across multiple industries.High-Impact Human Capital Strategy was written as a guidebook for practitioners who want to go beyond traditional human resource management in an ever-changing environment. The authors maintain that no function, process, or issue in an organization is more important than the human capital managed by the HR department (p. vii). Further, human capital strategy is critical to all organizations, whether public or private, for-profit or not-for-profit, and governments. As an example, Phillips and Phillips contend that a major cause of the financial crisis in Greece stemmed from human capital issues manifested through bloated payrolls, excessive benefits, and a lack of accountability.A relatively quick read at 304 pages, this book does not have to be read straight through in order to be valuable. The first two chapters of the book are background chapters, focusing on the importance of human capital strategy (Chapter 1) and historical approaches to human capital strategy (Chapter 2). I recommend reading Chapter 1 before reading any other chapter since Phillips and Phillips make a compelling argument for the necessity of human capital strategy. In an environment where replacing people with machines is a common concern for employees, and managers often consider people a necessary evil for doing business, the authors maintain that investment in people is always necessary, but may vary based upon the level of automation. Their arguments for mandatory investment are interesting, for they are essentially advocating a right-sizing philosophy. They suggest: 1) that minimizing numbers of employees is not necessarily bad because it can increase efficiency and employee welfare and create motivating jobs; 2) that investment in people is necessary at some level, as decisions must be made and problems solved; and 3) that people with higher skill sets are necessary even in highly automated workplaces, and organizations that use automation to eliminate low-skill jobs while creating high-skill jobs add the most value to the economy.The remaining 12 chapters of the book are built around the 12 goals the authors maintain are necessary for HR to increase its influence and ultimately its reputation in organizations. The 12 goals chosen by the authors align with their ROI Methodology and other publications. 1) Set the Proper Investment Level sets the optimal investment level for human capital and reviews this expenditure periodically. 2) Align with Business Needs aligns HR programs to the business as they are initiated, developed, and implemented. 3) Manage Talent for Value explains managing critical talent in the organization, ensuring that the appropriate number and quality of talented employees are available, addressing skills shortages, and ensuring that talent remains in the organization. 4) Engage Employees at Work details pursuing a program of employee satisfaction, commitment, and job engagement, so that employees are fully involved in their work, remain loyal to the organization, and help attract others to the organization. …