This ground-breaking book sets out to help you to do so. We have already moved into a completely new era, where the intellectual capital of organizations is far more important than the traditional balance sheet. It is value that matters. And it is only people who deliver and create value for the stakeholders of any organization, private or public.
While managers are bombarded with ideas on how to do everything better, what really governs their life are numbers, but the problem is that we still live in an accountancy world which looks back to the last century for its definitions of assets, liabilities and capital. But people do not fit the strict financial definition of an ‘asset’. They cannot be transacted at will, their contribution is both individual and variable and they cannot be valued according to traditional financial principles, but it is people, and people alone, who build the value.
In this major new book Andrew Mayo confronts the challenge to today's managers – finding a way to monitor, measure and manage a business's most crucial resource – its human value. Building on the pioneering work of Kaplan and Norton’s ‘balanced scorecard’, Mayo introduces the Human Capital Monitor model, which enables any organization to effectively monitor and manage its greatest assets. He proposes sound quantitative ways for measuring and tracking three fundamental areas – the intrinsic worth of people as individuals, their contribution to both financial and non financial added value, and the environment in which they make that contribution.
The realization of how critical the contribution of people – and especially high value talented people – is to organizational success has probably never had a higher profile than now. The need for sound measures for managing them as assets – rather than mere costs – is essential for the modern organization.
