E-Book Overview
People are our most important assets is a common saying in organisations-but can you prove it? This ground-breaking book sets out to help you answer that question. We have already moved into a completely new era, where the intellectual capital of organisations is far more important than the traditional sums in the balance sheet. It is value that matters. And it is only people who deliver and create value for the stakeholders of any organisation, private or public.The problem is that despite this knowledge we still live in an accountancy world which looks back to the last century for its definitions of assets, liabilities and capital. And what we can't measure, we can't manage.In The Human Value of the Enterprise Andrew Mayo confronts the challenge to today's managers-finding a way to measure (and account for) a business's most crucial resource, its human value. He proposes sound quantitative ways for measuring and tracking three fundamental areas: the intrinsic value of people as individuals, their contribution to both financial and non-financial added value, and the environment in which they make that contribution. Measures need to be integrated fully into the organisation's performance monitoring system.The Human Value of the Enterprise will help you select those measures that are strategically important, using the principle of cause and effect chains. It is full of practical examples and tools, and shows how value-based thinking is transferred into human resource processes and systems, learning and knowledge management, and mergers and acquisitions.
E-Book Content
Praise for The Human Value of the Enterprise “The Human Value of the Enterprise masterfully synthesizes theory, research, and practices on measuring human capital. It shows how to measure, track, and invest in human capital in ways that ensure business value. It turns abstract beliefs in the value of people into concrete measures which will enable business leaders to make informed human capital choices and insure that HR professionals act with data not just intuition. The ‘Human Capital Monitor’ architecture encompasses research to date and offers a pragmatic way to assess people performance in a firm. I learned a lot from reading the book and will refer to it frequently as a disciplined roadmap for deriving human capital value.” Professor Dave Ulrich, co-author of The HR Scorecard “A most impressive overview of human value metrics, with very practical references and models, such as the ‘Human Capital Monitor’ and the ‘Human Asset Register’, which focus on clarifying people as sustainable value creators, not costs.” Leif Edvinsson, former Director of Intellectual Capital at Skandia Assurance in Sweden and Professor of Intellectual Capital at the University of Lund “Few people are better qualified to write on this topical and important subject than Andrew Mayo. His contribution to our understanding of the relationship between human capital and sustainable business success will be invaluable to all those who are looking for rigorous argument and evidence to back their efforts to get Human Resource issues to the top of the Board agenda.” Philip Sadler CBE, former CEO and vice president Ashridge Management College “People are usually considered an organization’s most valuable asset, yet few knowledge management programmes address people issues seriously. Andrew Mayo skilfully combines two difficult aspects of knowledge management—people and measurement. He reviews previous work in both domains and comes up with his own ‘Human Capital Monitor’, a highly practical tool that should be part of every knowledge manager’s toolkit. Not only is this book thoughtful and challenging, it also gives practitioners the tools they need to address this tricky problem.” David Skyrme, author of Capitalizing on Knowledge “There is growing evidence that at