What is the Kinross Human Capital Assessment (HCA)?
The HCA is an independent evaluation of a company’s leadership team undertaken as part of the due diligence process prior to funding or investment.
At Kinross Partners we build management teams for high growth business. We focus on the people element.
Research shows that management and organisational issues are key factors in business performance. By thoroughly understanding the management team’s strengths and weaknesses, investors can proactively minimize risks and achieve a higher expectation of a successful liquidity event or positive ROI.
You wouldn’t think of funding a deal without legal and financial due diligence. Due diligence on the people element is just as important and just as specialised.
When is the Human Capital Assessment Undertaken?
The HCA process typically occurs as part of the due diligence process after a term sheet has been issued.
What does the Kinross Human Capital Assessment Include?
- Business plan review
- Management team interviews
- Competency assessment
- Psychometric testing (optional)
- Credit and criminal checks
- Company Office checks
- Reference checks
- Recommendations and report
Kinross Partners have well developed expertise in management and organisational assessments and human capital planning derived from many years of experience across industry sectors. As an uninvolved party we offer an independent third party point of view.
A Hypothetical Human Capital Assessment Case Study
In evaluating a company’s management team prior to private equity investment we interviewed the management team, checked references, and reviewed the company’s people strategy and hiring plan. We identified past ethical discrepancies with one of the principals, and flagged several skill gaps, notably that one of the team members had overstated his experience in developing sales channel strategies.
Prior to funding, the private equity investor was able to leverage out the principal over the ethics issues, and to make funding contingent on hiring a channel manager. The investor believes the assessment significantly helped to de-risk the investment and set the stage for success.
The Human Capital Assessment answers the key question—does your management team have the composition and capability to execute the plan?
"At the end of the day you bet on people, not strategies."
Larry Bossidy"If you think hiring professionals is expensive, try hiring amateurs."
Anonymous"The key for us, number one, has always been hiring very smart people."
Bill Gates
Outcomes you can expect from engaging Kinross
- Understanding of management team strengths and weaknesses
- Identification of potential deal-stopping red flags
- Go-forward staffing recommendations
