1. Company LOGO Leading, Connecting, Transforming UNC… …Through Its People Human Capital Management

2. UNC Mission and Goals The University of North Carolina is dedicated to the service of North Carolina and its people. In order to efficiently and effectively fulfill its three- pronged mission of education, research and scholarship, and public service in the 21st century, the University should proactively anticipate and identify the needs facing our state over the next twenty years and, consistent with its mission, develop and implement responses to those needs. (UNC Tomorrow Report) Our goal is to produce a more proactively responsive University focused on meeting the challenges of the state over the next 20 years. To achieve this goal, we must answer three basic questions: 1.What challenges facing our state do North Carolinians want UNC to respond to? 2.How can UNC best respond to these challenges? 3.How can UNC sustain this focus over the long-term? 2

3. Human Capital Management The University of North Carolina is a human capital intensive enterprise. The effectiveness and sustainability of the UNC Tomorrow effort is dependent upon the quality, quantity, knowledge, skills, and spirit of its people. Fortunately, each campus already has in place a basic infrastructure for human capital management (HCM). In many cases that infrastructure will need to be retooled and refocused in order to provide the human resource capabilities essential to UNC Tomorrow’s success. The HR Council is ready to engage its leaders and campus HCM professionals in developing and implementing effective strategies that will ensure UNC Tomorrow’s objectives of leading, connecting, and transforming the University over the next 20 years. This investment in people needs to pervade the planning, design, and construction of a responsive and sustainable future. 3

4. HCM Cycle Action VisionFocusPlanningDesign Direction Engagement IntegrationAssessment 4

5. Key HCM Issues Competitiveness Effective resource utilization Transparency Engagement Performance and Accountability …as defined by the UNC Tomorrow report 5

6. Examples of HCM Actions Effective Human Capital Management:  Create/sustain High Performance Culture  Create/continually refine Workforce Plan  Assess current human capacities (skills; job needs; gaps)  Develop gap-filling strategies (knowledge transfer; cultural transfer; continuity planning) 6

7. 7 To build a strong executive bench at UNC, we must consider our organizational design, business strategy, and recruitment, development, and retention of our executives Factors Impacting Leadership Quality and Financial Performance Organizational Design Defining roles and responsibilities to best support strategic goals Adapting roles to fully leverage talent capabilities Organizational Design Defining roles and responsibilities to best support strategic goals Adapting roles to fully leverage talent capabilities Executive Recruiting Selecting successors for their leadership ability Hiring for organizational compatibility Focusing on scarce skills and fit with position Executive Recruiting Selecting successors for their leadership ability Hiring for organizational compatibility Focusing on scarce skills and fit with position Executive Development Providing rising executives with full business exposure Senior executives committing to development Organization reinforcing development importance Executive Development Providing rising executives with full business exposure Senior executives committing to development Organization reinforcing development importance Executive Retention Promoting of best performers “Weeding out” worst performers Executive Retention Promoting of best performers “Weeding out” worst performers Organizational Strategy Aligning organizational talent strategy with business needs Strategy accounting for changing business needs Safeguarding critical business positions Organizational Strategy Aligning organizational talent strategy with business needs Strategy accounting for changing business needs Safeguarding critical business positions Leadership Quality and Financial Performance Expanding UNC’s Focus on Succession Source: Corporate Leadership Council Succession Management Survey, 2003.

8. Essential Elements of Campus HCM  University Leadership  Supportive Community  Policy Improvements  Financial Improvements  Pay and Benefits (TOTAL COMP)  Academic Quality & Competitiveness 8 ECU Experience

9. Campus Examples What others are currently doing in response to UNC Tomorrow… 9

10. Investment in People Overview 1. Develop human capacity assessment: a. Identify and match people needs with other institutional needs (focus, function, fit). b. Assess growth demand and project options and costs for meeting the demand (include faculty, staff, administrators). 2.Identify critical “people” opportunities for the future and align opportunities with the strategic direction outlined in the UNC Tomorrow report. 3. Maintain focus on the “people” side of the UNC Tomorrow initiative beyond the strategic design phase. Work collaboratively with faculty, staff, and administrators to share a common vision and achieve common goals (HCM sustainability/continuity plan). 10

11. Sample Data Analyses Workforce Demographics (distribution of workforce; net change over time; pay and benefit distribution…by region, age, group, etc.) Competency demands and assessments of current and future employee populations. Retention strategies (comparative data of effective approaches used elsewhere) 11

12. Connecting HCM to UNC Tomorrow 5.1 Maximize utilization of people (faculty, staff, administrators) 5.2 Match people & competencies with programs and needs 5.3 Promote competitiveness/Refine incentive systems 5.4/5.5 Recruit/retain high-quality talent (workforce planning; continuity planning; incentives; benefits; etc.) 5.6 Seek efficient use of resources (sustainable deployment of HCM through collaboration; technology; training; etc.) 5.7 Encourage/facilitate collaboration across functional areas, campuses, etc. (cross-campus training, resource sharing, etc.) 5.8 Establish transparent accountability and performance measures (demonstrate success) …HR Council’s potential contribution to the UNC Tomorrow effort 12

13. Key HR Opportunities Integrated Strategic Planning (HR + + +) Involvement of HR in all HCM activities Building a productive “team” culture Creating effective accountability measures Identifying core HCM activities and achieving them—collectively. 13

14. Next Steps for the HR Council 1.Develop collaborative partnership with UNC Tomorrow leaders to develop an Investment in People initiative. 2.Create a framework/template that will integrate effective HCM with the UNC Tomorrow effort. 3.Develop a workforce master plan that is nimble, responsive, and flexible to ensure the achievement of each institution’s objectives. (Example: partner with experts such as SAS to develop a higher ed version of the workforce planning model created for NC state government). 14

15. Company LOGO Leading, Connecting, Transforming UNC… …Through Its People Human Capital Management