The ROI of Human Capital: Measuring the Economic Value of Employee Performance, 2nd Edition

CONTENTS......Page 6
PREFACE TO THE SECOND EDITION......Page 12
Acknowledgments......Page 16
PREFACE TO THE FIRST EDITION......Page 18
Acknowledgments......Page 23
The Shift......Page 26
Effects on Organizational Management......Page 29
Data for Management......Page 33
Data Conundrum......Page 35
Two Aspects of Human Capital......Page 36
What Human Resources Can Learn from Finance......Page 38
HRP......Page 39
People and Information......Page 41
Data-to-Value Cycle......Page 42
Organizational Capacity......Page 45
The ROI Race......Page 50
False Starts......Page 52
Points of Measurement......Page 54
Summary......Page 55
References......Page 56
CHAPTER 2 How to Measure Human Capital’s Contribution to Enterprise Goals......Page 58
Constancy and Alignment......Page 59
How to Become a Business Partner......Page 61
The First Step......Page 63
Human-Financial Interface......Page 64
A Strategic View......Page 65
Enterprise-Level Metrics: The Launch Point......Page 69
The H in Human Capital......Page 78
Human Capital Enterprise Scorecard......Page 84
How to Marry Quantitative and Qualitative......Page 85
The Willy Loman Syndrome......Page 87
Summary......Page 88
References......Page 89
Making Money Through Process Management......Page 91
In the Beginning......Page 93
The Return of Reason......Page 94
Positioning Business Unit Processes......Page 97
Process/Talent Case......Page 100
Supply Chain Management......Page 101
Human Capital in Processes......Page 103
Anatomy of a Process......Page 107
Process Performance Matrix......Page 111
Finding Human Capital Effects......Page 116
A Test Problem......Page 121
Summary......Page 127
References......Page 129
Whither HR?......Page 131
Top Reasons for Employees Leaving......Page 141
Human Capital Performance Evaluation......Page 143
Change Measurement......Page 153
Human Capital Scorecard......Page 154
Human Capital Accounting......Page 158
Benchmarking, Best Practices, and Other Fairy Tales......Page 161
Truly Effective Practices......Page 162
Summary......Page 166
References......Page 168
CHAPTER 5 End-to-End Human Capital Value Reports......Page 169
One Sure Path to Profitability......Page 171
Three Examples......Page 174
Cases......Page 179
An Integrated Reporting System......Page 184
Leading Indicators......Page 187
References......Page 189
CHAPTER 6 Human Capital Analytics: The Leading Edge of Measurement......Page 190
A Model and System......Page 191
Relationships and Patterns......Page 192
Fallacies in Trend Identification......Page 193
Finding Meaning......Page 194
Extrapolation......Page 195
The Importance of Context......Page 196
Charlatans......Page 197
Business Applications......Page 198
Performance Valuation......Page 199
Data Sensors: Forecasting and Predicting......Page 201
Toward a Human Capital Financial Index......Page 206
Index Application......Page 210
Data Sources......Page 212
Summary......Page 214
References......Page 215
Toward Leading Indicators......Page 217
Leading Indicator Examples......Page 218
Enterprise Futures......Page 220
Be Prepared......Page 221
Assessment......Page 224
Employee Mind-Sets......Page 225
Indirect Sign......Page 226
Competitiveness......Page 227
Indexing the Problem......Page 229
Scoreboarding Overview......Page 231
Summary......Page 233
References......Page 234
Rebirth of U.S. Business......Page 235
The New Age......Page 236
Measuring the New Capital......Page 237
Restructuring: A Fading Star......Page 239
Employee Engagement......Page 247
Contingent Workforce Management: The New Human Capital Challenge......Page 251
Mergers and Acquisitions: Buy vs. Make......Page 258
Benchmarking: A Value-Adding Approach......Page 266
Summary......Page 273
References......Page 275
CHAPTER 9 Outsourcing: A New Operating Model?......Page 277
Mixed Results......Page 278
Trends in Functional Outsourcing......Page 279
Outsourcing Life Cycle......Page 284
Service Initiatives and Satisfaction......Page 287
Getting It Right......Page 288
The Future: Web 2.0 and Outsourcing......Page 293
Beyond Cost Cutting......Page 294
References......Page 295
CHAPTER 10 How to Change the Game......Page 297
HR’s Disruptive Technology......Page 299
Process Optimization......Page 305
Integrated Delivery......Page 308
Analysis......Page 310
Predictive Metrics......Page 311
The New Game......Page 313
Summary: Learning While Doing......Page 314
References......Page 315
CHAPTER 11 Eleven Principles, Seven Skills, and Five Metrics......Page 316
Principle 2: Management Demands Data; Data Helps Us Manage......Page 317
Principle 4: Validity Demands Consistency; Being Consistent Promotes Validity......Page 318
Principle 7: Human Capital Leverages Other Capital to Create Value......Page 319
Principle 9: Volatility Demands Leading Indicators; Leading Indicators Reduce Volatility......Page 320
Seven Skills That Make It All Work......Page 321
Five Metrics of Life......Page 322
Conclusion......Page 324
B......Page 326
C......Page 327
E......Page 328
G......Page 329
H......Page 330
I......Page 331
M......Page 332
O......Page 333
P......Page 334
R......Page 335
T......Page 336
X......Page 337