The programme for introducing human capital management is illustrated in Figure 11.1.
- obtain, analyse and report on data that inform the direction of HR strategies and processes;
- inform the development of business strategy;
- use measurements to prove that superior HRM strategies and processes deliver superior results;
- reinforce the belief that HRM strategies and processes create value through people;
- determine the impact of people on business results;
- assess the value of the organization’s human capital;
- improve the effectiveness of HR;
- provide data on the performance of the organization’s human capital for the Operating and Financial Report;
- demonstrate that HR processes provide value for money.
The programme continues with the identification of possible measures and how they can be used, as set out in Table 11.2.
The analysis of possible measures leads to the development of a strategy for introducing and using them. It is often best to start with information that is readily available and extend the range of data as experience is gained. And it is important to remember that it is the quality of the information that counts, not the quantity.