The Executive Challenges:
Showcasing Examples of Innovation
and Current Practices in Workforce
Measurement
SHRM Foundation
October 3, 2003
2003 SHRM Research Quarterly
“Human Capital (HC) is the only intangible asset that can be influenced, but
never completely controlled, invested in wisely, or wasted thoughtlessly, and still
have tremendous value. There distinguishing features are what make HC
unique, and also what makes it an elusive asset.”
- Leslie A Weatherby
American Century® Investments
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2
Heard on the Street
“If you can’t measure, we cannot support it…”
- Some CEO’s
“If you can’t measure it, we will not fund it…”
- Some CEO’s
“I want your support… and funding… but I cannot measure”
- Most HR
American Century® Investments
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Also Heard on the Street…
“When we design our incentive plan, we’ll create the performance measures…”
- Some Sales Managers
“Tell me the desired performance and we can design the incentive plan…”
- Some HR Professionals
American Century® Investments
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4
American Century Overview… Who Are We?
• Investment management firm serving the individual and institutional customer for over 40
years
• Multi-disciplined money manager with global assets over $80 billion, offering diverse
investment products including mutual funds, separate accounts, college savings plans and
co-mingled trusts
• 1,800 employees headquartered in Kansas City, Missouri, with offices in New York, Denver
and San Francisco
• Premier Investment Manager
“the ultimate measure of our performance is the success of our customers,
people, owners and communities”
American Century® Investments
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5
Evolution of Company Strategy…
How do we grow?
Past… Breadth of Financial Services
• New or expanded service offerings to customers
• New or expanded distribution channels for mutual fund products
• Increased focus on high-net worth customers
Present/Future…Premier Investment Manager
• Building capacity as an investment product-focused company
• Strengthening our customer relationships and optimizing
efficiency in our processes
• Relentless focus on delivering superior performance in activel
managed investment products
American Century® Investments
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Our Path to Success
Purpose
Premier Investment
Manager:
We succeed by
making others



Performance
Customer Relationships
Culture and Knowledge/Skills
successful.
We measure our
success by the
contributions we
make to the success
of our customers,
Principles





Customer value
Challenging and Inspiring our
People
Financially Sound
Adaptable and Innovative
Integrity
Priorities




Strategic Evolution
Distribution
Brand
Knowledge and Skills
people, owners and
communities.
American Century® Investments
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The Business Scorecard… Measuring our Success
American Century® Investments
Customer Success
Financial Success
Business Process
Success
Workforce Success
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Evolution of Scorecard…
The Past
Objective
Measure
• Increase shareholder value
• Investment Performance
• Increase efficiency as we manage accounts
• Three Year Earnings Growth
• Build new distribution channels and
• Market Share Asset Retention
enhance services
• Targeted customer growth
• New Revenue %
• New Service Introductions
American Century® Investments
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9
Evolution of Scorecard… Today
Objective
Measure
• Develop high performance in investment
• Investment performance
• Grow revenues faster than expenses
• Operating Margin
• Grow & develop long-term customer
• Market share growth
products
relationships
• Develop sales capability & provide quality
• Net Revenue
• Sales & Service outcomes
competitive service
American Century® Investments
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Problem Solver/
Facilitator
Customer Service
Workforce
Metrics
American Century® Investments
HR Service
Metrics
Strategic Partner
and
Advisor
Strategic
Player
Understand the
Business
Alignment (People
Practices & Culture)
Build
Relationships
Advisor
Lagging people
metrics
TRUST
Key Roles/
Competencies
Functional Expert
RELIABILITY
Key
Contribution
Transactions
And
Programs
CONTRIBUTION
HR’s Changing Role
Leadership
Coach/Consultant
Strategic
Measures for
Decision Making
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Workforce Metrics…
Looking Back
• Employee Retention (All)
• Internal placement % vs external placement %
• “100 Best” Company to Recognition
• % of employees with “Succession Plan”
• Some “HR Services”
American Century® Investments
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The Strategic Diagnostic…
Measurement with a Purpose
Strategic Talent
Capabilities Management
Strategic
Choices
+
Workforce
Measurement
+
Strategic Knowledge and
Culture Skill Development
+
Strategic
Work Design
(Structure)
American Century® Investments
Adapted from Dick Beatty
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Strategic Culture and Workforce Success
Our Strategy
Purpose:
Principles:
Priorities:
American Century® Investments
Premier Investment Manager:
Performance
Customer Relationships
Customer & Knowledge/Skills
Customer Value
Challenging & Inspiring
Financially Sound
Adaptable & Innovative
Integrity
Workforce Success
• Growth Mindset
• High Performance
• Shared Customer
Responsibility
• Living our Principles
• Strategy Driven
• Brand Alignment
• Investment Mindset
Strategic Evolution
Distribution
Brand
Knowledge/Skills
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Strategic Culture and Mindset…
Brand Alignment
Brand = Total of all perceptions held by customers, media,
and employees about a company and its product.
American Century Opportunities:
• Retail Mutual Fund
Investment Management Expertise
• Focus on Integrity in today’s environment
• Customers identify our people as a “differentiator”
The Challenge:
• Collaboration between Marketing and HR
• Investing in Internal Brand positioning
• Measuring
American Century® Investments
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Talent Management... Building Capabilities and Facilitating
Measurement
Employees must be able to answer:
1.
2.
3.
4.
5.
6.
What strategic contributions are expected?
How am I doing?
How do I collaborate?
What strategic competencies do I grow?
Where am I headed?
What’s in it for me?
Accountabilities:
•
Employees
Individual Success Plan
•Performance Goals
•Development Goals
•
•
Managers
Coaching and Essential Decision Making
Business Units Talent Assessment
American Century® Investments
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Growing Knowledge & Skills…
Deep Capabilities
Behavior
Attitude
Perception
Awareness
American Century® Investments
•Take Action (apply
Learning)
•Engagement
(learning activities)
•Question/Seek to
understand
(dialogue)
•Listen
(communication)
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Key Considerations…Knowledge & Skills
Core
Business
Knowledge
Leadership
and
Management
Specific
Work
Skills
How do we measure?
“Exam”
American Century® Investments
Engagement
Measure Application
of Skills
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Employee Engagement…
Evaluating Culture and Mindset
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
How satisfied are you with your company as a place to work?
I know what is expected of me at work.
I have the materials and equipment I need to do my work right.
At work, I have the opportunity to do what I do best every day.
In the last seven days, I have received recognition or praise for doing good
work.
My supervisor, or someone at work, seems to care about me as a person.
There is someone at work who encourages my development.
At work, my opinions seem to count.
The mission or purpose of my company makes me feel my job is
important.
My associates or fellow employees are committed to doing quality work.
I have a best friend at work.
In the past six months, someone at work has talked to me about my
progress.
This last year, I have had opportunities at work to learn and grow.
American Century® Investments
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
I understand how my role support the overall business strategy of American
Century.
I get enough information to do my job well.
American Century employees are held accountable for their work.
There is cooperation between my department and other departments with
whom I work.
I trust the management of this company.
American Century employees are treated with dignity and respect.
I understand generally how the company plans to succeed as a Premier
Investment Manger
People in my workgroup work well together.
People in our company anticipate, manage, and use change to our
advantage.
American Century is committed to supporting the communities in which
we work.
My coworkers at American Century practice ethical behavior.
American Century provides opportunity for top performers to be
recognized and rewarded.
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Workforce Metrics…
Evolving with Our Strategy
Company Scorecard (Public View)
Culture
• Employee
Engagement
Capabilities
Behaviors
• Retention (All)
• Productivity (All)
• Core Business
Knowledge
Improvement
• Sales productivity
• Distribution Channel
Quality
• Service Efficiency
• Product Investment
Performance
American Century® Investments
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Balanced Scorecard Workforce Metrics…
Evolving with Our Strategy
Company Scorecard (Public View)
Culture
• Employee
Engagement
Capabilities
Behaviors
• Retention (All)
• Core Business
Knowledge
Improvement
• Productivity (All)
• Sales Productivity
• Distribution Channel Quality
• Service Efficiency
• Product Investment
Performance
HR Measures (Private View)
• Engagement (Leadership)
• Engagement (Business Unit)
• Engagement (Manager)
• Time to fill open positions
Core
Support
American Century® Investments
• Retention (Key contributors)
• Involuntary turnover
Core
Support
• Developmental Assignments
• Allocation of “Training”
expenditures
• Leadership Development
Participation
• Compensation “dispersion”
• “ISP” compliance and
content
• Targeted Skill Assessment
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Key Learnings
“Kaplan Scorecard” concept may accomplish other purposes
Today’s “behind the curtain” measures are tomorrow’s key metrics
Fewer is better
HR must be proactive
American Century® Investments
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Balanced Scorecard Workforce Metrics…
Evolving with Our Strategy
Company Scorecard (Public View)
Behaviors Objectives
• Sales Productivity
Taken from TP’s Strategic Plan:
1.
Enhance wholesaler
effectiveness & productivity
2.
3.
• Distribution
Channel Quality
• Service Efficiency
1.
$239m purchases per sales
FTE from core business
Preferred platform status @ Amex $10m purchases per territory FTE
Heighten focus/ownership
$250m from new subadvisory
Taken from Direct’s Scorecard:
1.
Productivity Index
2.
Total Channel Purchases $2.56b
3.
Retail Tier 3 assets
(Redemptions/Beginning Assets)
2.
American Century® Investments
Metrics/Targets
Investor Quality Index (Direct’s
Scorecard)
Client Satisfaction (MAP value
score) – TP’s service goal
100%
$85%
100% (survey’s, follow-up phone calls)
100%
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