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What is Human Capital and How Can I Manage Resources Efficiently

By  Geoff Lewis Geoff Lewis  on 2014-06-09 04:24:00  |  Featured in  Insurance
Geoff Lewis
Posted By Geoff Lewis
in Insurance
on 2014-06-09 04:24:00

Human capital management may sound like a strange concept, likening people to other types of non-physical resources, but considering the money that goes into compensating people, it’s virtually impossible not to look at human resources this way. In order to maintain a thriving business, managing human capital must be done with a careful strategy in mind. This concept is about making companies more efficient and enabling them to deliver better products to the marketplace as quickly as possible without hurting their bottom line.

But just what is human capital, really? Basically, the human capital within an enterprise is made up of the employees who complete projects and keep operations running. Rather than looking at people as numbers, one may look at people as valuable resources that ought to be utilized in a manner that is most beneficial to the company, so it can grow and offer better products and services to its customers. Among the best approaches to managing human capital is the Studio Model, a project-based model that pools human capital resources, combining in-house resources and outside consultants to ensure an efficient workflow benefiting individuals as well as the enterprise.

The Studio Model Approach to Human Capital

The Studio Model is a framework for managing human capital during the completion of a project in order to be faster, more effective and cost-efficient while delivering high-quality products and services to the market. When utilizing the Studio Model, enterprises must assess the delays in delivering projects, the sources of high costs and the wastefulness that is keeping the company from being as productive as possible. This model relies on the addition of an outside consulting team to complete various aspects of a project more resourcefully and to assist in-house teams with areas of the project they lack the skills, expertise and manpower to complete.

Of course, project managers may face heavy resistance from key stakeholders when they bring in expert consultants, which is why it is also important to keep lines of communication open and create an environment where positive attitudes are encouraged during any given project. Studio solutions to project human capital management are designed to achieve a less wasteful operational model, build a foundation for a stronger organization, create a plan and strategy to maintain strength and growth well into the future, reduce inefficiencies and provide the kind of support that is necessary to achieve every organizational goal.

How the Studio Model Approach to Human Capital Makes Management More Efficient

When implementing the Studio Model, it’s necessary to analyze the structure and internal architecture of the enterprise, determine where budget improvements can be made and develop a more streamlined system whenever possible and appropriate. Most companies either create one budget for all projects; divide budgets by departments, offices or regions with different teams scrambling to get a piece of the pie for their project; assess the needs and costs of various budgets throughout the year in order to identify what is needed to complete each individual project; or utilize some combination of all these models. The Studio Model is different, as it applies the most effective tools and solutions to each project based on the unique requirements of the tasks at hand and the budget available to complete them. When assessing the needs of your enterprise’s project portfolio, it is vital that you plan, fund, manage and complete each project with these critical features in mind:

  • Approach to the project delivery
  • Business case or justification
  • Commitment
  • Compliance
  • Costs and funding
  • Delivery and management of the project
  • Planning
  • Preparedness within the organization
  • Prioritization
  • Risk management
  • Resources available in-house
  • Outside resources necessary to complete the job efficiently

With the help of an experienced and knowledgeable consultancy, it’s more than possible to create the proper infrastructure to achieve a successful Studio Model and maximize your human capital management structure for maximum results. That means lowering your budget, increasing your profits and creating an environment for growth and innovation long into the future. With the right outside voices and insights into your business model, it’s possible to sustain growth, deliver better products at a more competitive speed and manage your resources more efficiently. And the best part is that you can sustain this type of progress for years to come with the right approach to managing your precious human capital.

Geoff Lewis

Geoff Lewis

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Geoffrey Lewis is a Vice President and the leader of Paragon’s Corporate & Enterprise consulting practice for Life Sciences. In this role, Geoff builds and retains relationships with client executives, and acts as a key advisor to those executives, project sponsors and key decision makers. Geoff’s career spans over 20 years of experience developing and operationalizing strategies, increasing revenues, and improving operational efficiencies for Fortune 500 organizations across diverse industries. Geoff holds a Graduate Certificate in Business Management from the Macquarie Graduate School of Management, Sydney, Australia.

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