In our 2008 Workforce/Workplace Forecast, we discussed the growing importance of metrics (measurement) in human resources to drive more money to the bottom line.
Recently, we met Janet Walsh, president of Birchtree-HR, LLC, the person who coined the term “Human Capital Financial Management.”
“In HCFM, we evaluate investments in people for their returns and link them to business strategy,” she said. “Research studies conclusively prove organizations that link human capital programs with business strategy enjoy 6 to 38 percent higher return on total capital than those that don’t.”
The best systems are the ones where there is a “clear line of sight” between the people programs and the business strategy.
Walsh and her colleagues have created an HR simulation, called “At the Table,” a one-day competitive case study program that trains business executives in the use of human capital financial management techniques to increase organizational return on total capital.
Participants are challenged to create an optimal solution incorporating business and HR metrics including competitive industry measures, financial analysis techniques, HR program design in total rewards, staffing, training, performance management and ethical decision making considerations.
What makes this training program unique is the real-world, business issues in the case study, and the advice and guidance of the simulation executives.
We believe that “At the Table” is a great example of the kind of simulations that will become more and more popular in the future.
From The Herman Trend Alert, by Joyce Gioia-Herman, strategic business futurist. www.hermangroup.com