Human Capital Analytics: How to Harness the Potential of Your Organizations Greatest Asset

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Human Capital Analytics by Gene Pease

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Human Capital Analytics (Sas)

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Human Capital Analytics How to Harness the Potential of Your Organization's Greatest Asset

Alignment is a plan that explicitly connects investments to strategic goals via the metrics. Alignment is about nding the relevant stakeholders in the company and connecting them to the parts in that plan.

Alignment positions human resources as a strategic partner in support of the business. To follow through on alignment means that HR understands and helps drive business goals rather than the converse, where business drives HR goals. It requires a fundamental shift in thinking from HR as a cost center to HR as an investment, a business partner, and an important seat at the C-suite table. It is crucial for HR to design people investments that drive business goals.

We do not think HR can design those investments without systematically evaluating and improving on the impact of those investments on key metrics. For human capital investments to be truly successful, they must be aligned with business goals and, ultimately, to the organization s strategy. All too often, HR interventions are designed without business outcomes in mind. Although they may be worthwhile investments, in and of themselves, the money is wasted if the investment does not make a strategic connection back to the business.

The value of alignment ismultifaceted. To be considered a strategic partneriscerta in lygoodforHR s reputation, but more important, it ensures that HR is driving business performance.

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If you investigate leading companies, you will learn that the vast majority of them have aligned their HR functions with business strategy. Laurie Bassi has de ned the good company as an organization that is a good employer and a good steward for the interests of its community. Bassi puts this concept to the test by managing an investment fund,Bassi Investments,that hasinvested in these good companies.

Her conclusion is that companies that invest in their people outperform their peers.

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The alignment process outlined in this chapter involves de ning success for an investment, gaining stakeholder buy- in to the indicators of success, and ensuring that success is measurable. Doing so reduces the risk of the investment by designing for the out- comes you want to drive and assuring the support of your business partners whom will be impacted.

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