Optimising human capital: measuring what really matters
Optimising human capital: measuring what really matters By Les Pickett
Companies with the greatest commitment to investing in people reap the highest financial return, yet Australia ranked below average in a recent global study on human capital management.
Sustainable profitability, particularly in high cost developed nations, requires a strong focus on human capital as people provide the only enduring source of wealth creation in the knowledge era. Consistently effective organisations are those that: •
Although we live and work in the knowledge era, we still have industrial era accounting and reporting systems. Many firms are playing a knowledge era game by industrial era rules. One of the more serious long term implications of this historic focus is a chronic pressure to under-invest in the development and management of people. Stock market and shareholder pressure for short term corporate profits frequently penalises firms that invest in the development of their people.
Have superior strategies for managing and developing people;
The payoff performance.
financial
A national study carried out last year in the United States for the American Bankers Association by McBassi & Company explored the relationship between an organisation’s investment in human capital and its overall business performance. A number of America’s leading banks participated in the study. It concluded
Focus on both individual capability and organisational capability;
•
Have learned to measure people as assets as well as costs; and
enjoy the greatest financial returns.”
Are able to resist the short-run
that a bank’s increased focus on, and
pressures that cause chronic underinvestment in people.
commitment to, human capital factors
•
that “those institutions that demonstrate the greatest commitment to human capital “The results of our initial study show
should be expected to improve future
Figure 1: HUMAN CAPITAL FRAMEWORK Financial and Non-Financial Business Results
Leadership Practices
1. Communication 2. Inclusiveness 3. Supervisory Skills 4. Executive Skills 5. Systems
Employee Engagement
Knowledge Accessibility
Workforce Optimisation
1. Job Design 2. Commitment to Employees 3. Time 4. Systems
1. Availability 2. Collaboration & Teamwork 3. Info Sharing 4. Systems
1. Processes 2. Conditions 3. Accountability 4. Hiring Decisions 5. Systems
Leadership Practices - Overall
•
superior
•
The market tends to regard investment in people as a diversion of profit. It does not reward forward thinking executive teams which invest resources in the development of people to ensure that the organisation has the capacity for future growth and success.
PAG E 1 2
is
Learning Capacity
1. Innovation 2. Training 3. Development 4. Value & Support 5. Systems
Employee Engagement - Overall
AUGUST 2005 • TRAINING AND DEVELOPMENT IN AUSTRALIA 5.0 4.0
5.0
4.3
4.0
4.2
foptimising e a t uhuman r e s capital financial performance,” according to Laurie Bassi, Chief Executive Officer of McBassi & Company. A further study of 750 large publiclytraded forms found that organisations with the best human capital practices provide returns to shareholders that are three times greater than those companies with weak human capital practices (Pfau & Kay, 2002). A common cause of corporate malfunction is the failure to properly integrate the many diverse activities that combine
an integrated approach that has three complementary tiers: organisational results (both financial and non-financial); human capital outcomes; and human capital foundations – enablers, resources, operations and systems. Extensive research has shown that the categories of human capital management, shown in the middle tier of the Human Capital Framework, provide a core set of measures that senior management can use to increase the effectiveness of their investment in people and improve overall
corporate performance. Organisations that focus on the attributes listed under each category of human capital management will start to reap considerable benefits. They will be able to: •
Link ‘human capital’ to their business results;
•
Pinpoint with considerable precision the specific aspects of the work and learning environment that drive business results – both for good and bad;
to enable the organisation to function. Many serious problems are caused by busy executives looking at critical factors (including future plans) in isolation rather than reviewing them in the overall context of business effectiveness. The integration of corporate strategies and human capital programs and initiatives is frequently canvassed in the boardrooms and executive suites – but not implemented often enough.
LINKING STRATEGY TO HUMAN CAPITAL How can these executives better address the gap that currently exists between corporate strategy and human capital? A little initiative by senior executives can significantly improve organisational performance and increase profitability by ensuring that corporate planning integrates the overall activities of their respective enterprises and aligns human capital programs and initiatives with business objectives and strategies. Far too often, functional business plans are developed in isolation, reinforcing the highly problematic maintenance of organisational silos and petty fiefdoms. To address these issues, the Human Capital Framework (see Figure 1) provides AUGUST 2005 • TRAINING AND DEVELOPMENT IN AUSTRALIA •
PAGE 13
optimising human capital •
Create road maps for the human agenda – the development and management of people – that will have the biggest impact on their business;
•
Shift their focus from cost cutting to value creation; and
•
Become stronger organisations and better places to work.
HOW AUSTRALIA RANKS During November 2004, 175 organisations around the world participated in a study carried out by McBassi & Company.
Leadership is the foundation for ensuring that human capital is developed, sustained, and deployed successfully. Leadership practices thus lay the foundation for the achievement of all organisational goals. Many researchers have concluded that this category is the most important driver of an organisation’s ability to retain its top performing people. Why it matters: Low scores in leadership practices are associated with difficulties in motivating employees and problems in retaining top performing employees.
EMPLOYEE ENGAGEMENT Twelve Australian organisations submitted data. Althoughand the Non-Financial Financial sample is small, the outcomes provide a basis for a Business review of Results This is an organisation’s capacity to engage, retain, and optimise current practices, highlighting areas in which improvements can the value of its employees. It hinges on how well jobs are be made. designed, how employees’ time is used, and the commitment Participating organisations provided information using a self- shown to employees. assessment tool on five key human capital indicators: managerial The most successful organisations are those proactively managing Knowledge Leadership Employee Workforce Learning effectiveness/leadership practices; employee engagement/talent talent retention by creating desirable work environments, Accessibility Practices Engagement Optimisation Capacity retention; knowledge accessibility/optimisation; workforce including designing jobs purposefully, ensuring that employees’ optimisation; and learning effectiveness/capacity. time is well used, recognising and valuing employees and their The survey indicates how Australian organisations compare with work, and providing opportunities for employee advancement. 1. average Communication 1. Joborganisations Design 1. Innovation Availability 1. Processes the overall of all participating and1.against Why it matters: Low scores in employee engagement reflect an Financial and Non-Financial 2. Inclusiveness 2. Conditions 2. Training 2. Commitment 2. Collaboration best practice organisations (those who scored in the top 20 per environment where employees are3.unlikely to contribute their to Employees & Teamwork 3. Supervisory Skills Development Business Results3. Accountability cent of all4.respondents) for each category. Executive Skills 3. Time 3. Info Sharing 4. causing Hiring Decisions 4. Value & Support best efforts, problems in the important area of customer 4. Systems satisfaction 5. Systems 4. Systems 5. and Systems 5. Systems loyalty. On a scale of one (the lowest) to five (the highest), Australian organisations scored 3.1 in overall human capital management. Practices Employee Engagement - Overall The global averageLeadership was 3.3, while best- Overall practice organisations scored 4.1.
Knowledge Leadership Employee Accessibility Practices Engagement Within 5.0the specific categories, results for Australian companies 5.0 are shown below. 4.3 4.0 4.0 3.0
3.3
3.0 3.1 1. Communication 1. Availability 1. Job Design 2.0 2.0 2. Inclusiveness 2. Commitment Collaboration These1.0include managers’ and leaders’ communications2. and 1.0 to Employees & Teamwork 3. Supervisory Skills feedback, inclusiveness, performance supervisory skills, 0.0 4. Executive Skills 3. Time 3. Info Sharing0.0 demonstration of key organisational values, and ability to instill Australia Overall Avg Best 5. Systems 4. Systems 4. Systems Practices confidence.
LEADERSHIP PRACTICES
Leadership Practices - Overall Knowledge Accessibility - Overall 5.0 5.0 4.04.0
4.64.3
3.03.0 2.02.0 1.01.0 0.00.0
PAG E 1 4
3.1 2.9
3.43.3
Australia Overall Overall Avg Australia Avg
•
Best Best Practices Practices
Workforce Optimisation
Learning Capacity 4.2
3.0
3.2
1. Processes 1. Innovation 2. Conditions 2. Training 3. Accountability 3. Development 4. Value & Support 4. Hiring Decisions Australia Best 5. Systems Overall Avg5. Systems Practices
Employee Engagement - Overall
Workforce Optimisation - Overall KNOWLEDGE ACCESSIBILITY
This is the extent of an organisation’s ‘collaborativeness’ and 5.0 5.0 its capacity for making knowledge and ideas widely available 4.0 to employees. Organisations that capture,4.44.2 apply and re-use 4.0 3.0 3.53.2 3.0 3.4 knowledge 3.0 and best practices among departments and divisions, 2.0 and have 2.0 successful, collaborative team structures, are best able 1.0 to leverage 1.0 their knowledge and talent for business results. 0.0 Why0.0 it matters: Low scores in Avg knowledgeBest accessibility are Australia Overall Australia Overall Avg Best associated with redundancies within and across departments and Practices Practices
Knowledge Accessibility - Overall Learning Capacity - Overall Workforce Optimisation - Overall AUGUST 2005 • TRAIN ING AND DEVELOPMENT IN AUSTRALIA
5.0
5.0
4.0
foptimising e a t uhuman r e s capital 5.0
3.0
4.0 3.0
3.1
3.3
2.0
3.1
4.3 2.0
1.0
4.0
4.3 3.3 5.0
3.0
4.0 3.0
3.0
3.2
4.2 2.0 3.0
3.2
1.0
2.0 0.0 Australia Overall Avg Best Australia Overall Avg 1.0 1.0 Practices it matters: Low scores in learning capacity reflect an reflect0.0 factors that cause difficulties in getting cross-functional Why 0.0 organisation Australia that has failed to Avg take the Best steps necessary to work completed in a timelyOverall and effective Australia Avg manner. Best Overall enable learning and innovation. Such organisations poorly Optimisa Practices Practices are Workforce Knowledge Accessibility - Overall al and Non-Financial equipped to respond effectively to constantly (and inevitably) siness Results changing conditions in the market and the economy. Knowledge Accessibility - Overall Workforce Optimisation - Overall 5.0 5.0 CONCLUSION 4.6 4.0 4.0 3.5 A3.4 practical human capital framework provides a logical 3.4 guide for 5.0 5.0 3.0 3.0 2.9 4.6 future4.0 business success. The alignment of human capabilities with 4.0 4.4 2.0 2.0 3.4Learning 3.5 Knowledge 3.0 Workforce business objectives enhances the potential contribution of people 3.4 3.0 1.0 2.9 1.0 Accessibility Optimisation Capacity who provide organisations with their only sustainable competitive 2.0 2.0 0.0 0.0 advantage. In the final analysis people make it happen! Australia Overall Avg Best Australia Overall Avg 1.0 1.0 Practices 0.0 0.0 Australia Overall1.Avg Best Innovation . Availability 1. Processes Australia Overall Avg Best Learning Capacity Practices - Overall Practices 2. Training 2. Conditions . Collaboration 3. Development & Teamwork 3. Accountability . Info Sharing 4. Value & Support Learning Capacity - Overall 4. Hiring Decisions . Systems WORKFORCE 5. Systems OPTIMISATION 5. Systems 5.0
0.0
4.0 4.2 This is the organisation’s success in optimising the performance 5.0 3.2 3.0 - Overall 3.1 of its employees.Employee It does Engagement so by establishing essential processes 4.0 4.2 2.0 for getting work done, providing good working conditions, 3.2 3.0 3.1 1.0 establishing accountability, and making good hiring choices. 5.0 0.0 Since human capital represents a 2.0 major portion of most 4.0 4.2 Australia Overall Avg Best 1.0quality of the practices, organisations’ total operating costs, the 3.2 Practices 3.0 3.0 0.0employees are effective is systems and processes for ensuring that 2.0 Australia Overall Avg Best a foundational determinant of business results. Practices 1.0 Why it matters: Low scores in workforce optimisation reflect REFERENCES 0.0 B. N. Pfau and I. T. Kay, 2002, The Human Capital Edge, inefficiencies and unnecessarily high costs.Best Australia Overall Avg Practices McGraw-Hill.
Workforce Optimisation - Overall
5.0 4.4
4.0 3.0
3.4
3.5
L. Bassi and D. McMurrer, 2004, How’s Your Return on People?, Harvard Business Review, March. This article is an edited extract from ‘Optimising Human Capital: Human Resource and People Management in Action’, a presentation given by Les Pickett to the Adelaide Graduate School of Business on 27 April 2005.
2.0 1.0
Les Pickett (FCIS, MAICD, AFAIM, FAHRI) is the Chief
0.0 Australia
Overall Avg
Best Practices
ing Capacity - Overall
LEARNING CAPACITY
3.2
This is an organisation’s overall ability to learn and innovate – and ultimately, to achieve a continual level of improvement. Hence,4.2 training, development and innovation must be valued and supported in order for an organisation to have the capacity to respond to changing conditions and consistently achieve strategic goals.
Overall Avg
Executive of Pacific Rim Consulting Group, which has a strategic alliance partnership with McBassi & Company. Les is a former national president of the AITD and is past chairman of the executive board, International Federation of Training and Development Organisations. Les can be contacted on 0418 330 544 or [email protected]. You can visit the Pacific Rim website at www.pacrimconsult.com
Best AUGUST 2005 • TRAINING AND DEVELOPMENT IN AUSTRALIA • Practices
PAGE 15
Companies with the greatest commitment to investing in people reap the highest financial return, yet Australia ranked below average in a recent global study on human capital management.
Sustainable profitability, particularly in high cost developed nations, requires a strong focus on human capital as people provide the only enduring source of wealth creation in the knowledge era. Consistently effective organisations are those that: •
Although we live and work in the knowledge era, we still have industrial era accounting and reporting systems. Many firms are playing a knowledge era game by industrial era rules. One of the more serious long term implications of this historic focus is a chronic pressure to under-invest in the development and management of people. Stock market and shareholder pressure for short term corporate profits frequently penalises firms that invest in the development of their people.
Have superior strategies for managing and developing people;
The payoff performance.
financial
A national study carried out last year in the United States for the American Bankers Association by McBassi & Company explored the relationship between an organisation’s investment in human capital and its overall business performance. A number of America’s leading banks participated in the study. It concluded
Focus on both individual capability and organisational capability;
•
Have learned to measure people as assets as well as costs; and
enjoy the greatest financial returns.”
Are able to resist the short-run
that a bank’s increased focus on, and
pressures that cause chronic underinvestment in people.
commitment to, human capital factors
•
that “those institutions that demonstrate the greatest commitment to human capital “The results of our initial study show
should be expected to improve future
Figure 1: HUMAN CAPITAL FRAMEWORK Financial and Non-Financial Business Results
Leadership Practices
1. Communication 2. Inclusiveness 3. Supervisory Skills 4. Executive Skills 5. Systems
Employee Engagement
Knowledge Accessibility
Workforce Optimisation
1. Job Design 2. Commitment to Employees 3. Time 4. Systems
1. Availability 2. Collaboration & Teamwork 3. Info Sharing 4. Systems
1. Processes 2. Conditions 3. Accountability 4. Hiring Decisions 5. Systems
Leadership Practices - Overall
•
superior
•
The market tends to regard investment in people as a diversion of profit. It does not reward forward thinking executive teams which invest resources in the development of people to ensure that the organisation has the capacity for future growth and success.
PAG E 1 2
is
Learning Capacity
1. Innovation 2. Training 3. Development 4. Value & Support 5. Systems
Employee Engagement - Overall
AUGUST 2005 • TRAINING AND DEVELOPMENT IN AUSTRALIA 5.0 4.0
5.0
4.3
4.0
4.2
foptimising e a t uhuman r e s capital financial performance,” according to Laurie Bassi, Chief Executive Officer of McBassi & Company. A further study of 750 large publiclytraded forms found that organisations with the best human capital practices provide returns to shareholders that are three times greater than those companies with weak human capital practices (Pfau & Kay, 2002). A common cause of corporate malfunction is the failure to properly integrate the many diverse activities that combine
an integrated approach that has three complementary tiers: organisational results (both financial and non-financial); human capital outcomes; and human capital foundations – enablers, resources, operations and systems. Extensive research has shown that the categories of human capital management, shown in the middle tier of the Human Capital Framework, provide a core set of measures that senior management can use to increase the effectiveness of their investment in people and improve overall
corporate performance. Organisations that focus on the attributes listed under each category of human capital management will start to reap considerable benefits. They will be able to: •
Link ‘human capital’ to their business results;
•
Pinpoint with considerable precision the specific aspects of the work and learning environment that drive business results – both for good and bad;
to enable the organisation to function. Many serious problems are caused by busy executives looking at critical factors (including future plans) in isolation rather than reviewing them in the overall context of business effectiveness. The integration of corporate strategies and human capital programs and initiatives is frequently canvassed in the boardrooms and executive suites – but not implemented often enough.
LINKING STRATEGY TO HUMAN CAPITAL How can these executives better address the gap that currently exists between corporate strategy and human capital? A little initiative by senior executives can significantly improve organisational performance and increase profitability by ensuring that corporate planning integrates the overall activities of their respective enterprises and aligns human capital programs and initiatives with business objectives and strategies. Far too often, functional business plans are developed in isolation, reinforcing the highly problematic maintenance of organisational silos and petty fiefdoms. To address these issues, the Human Capital Framework (see Figure 1) provides AUGUST 2005 • TRAINING AND DEVELOPMENT IN AUSTRALIA •
PAGE 13
optimising human capital •
Create road maps for the human agenda – the development and management of people – that will have the biggest impact on their business;
•
Shift their focus from cost cutting to value creation; and
•
Become stronger organisations and better places to work.
HOW AUSTRALIA RANKS During November 2004, 175 organisations around the world participated in a study carried out by McBassi & Company.
Leadership is the foundation for ensuring that human capital is developed, sustained, and deployed successfully. Leadership practices thus lay the foundation for the achievement of all organisational goals. Many researchers have concluded that this category is the most important driver of an organisation’s ability to retain its top performing people. Why it matters: Low scores in leadership practices are associated with difficulties in motivating employees and problems in retaining top performing employees.
EMPLOYEE ENGAGEMENT Twelve Australian organisations submitted data. Althoughand the Non-Financial Financial sample is small, the outcomes provide a basis for a Business review of Results This is an organisation’s capacity to engage, retain, and optimise current practices, highlighting areas in which improvements can the value of its employees. It hinges on how well jobs are be made. designed, how employees’ time is used, and the commitment Participating organisations provided information using a self- shown to employees. assessment tool on five key human capital indicators: managerial The most successful organisations are those proactively managing Knowledge Leadership Employee Workforce Learning effectiveness/leadership practices; employee engagement/talent talent retention by creating desirable work environments, Accessibility Practices Engagement Optimisation Capacity retention; knowledge accessibility/optimisation; workforce including designing jobs purposefully, ensuring that employees’ optimisation; and learning effectiveness/capacity. time is well used, recognising and valuing employees and their The survey indicates how Australian organisations compare with work, and providing opportunities for employee advancement. 1. average Communication 1. Joborganisations Design 1. Innovation Availability 1. Processes the overall of all participating and1.against Why it matters: Low scores in employee engagement reflect an Financial and Non-Financial 2. Inclusiveness 2. Conditions 2. Training 2. Commitment 2. Collaboration best practice organisations (those who scored in the top 20 per environment where employees are3.unlikely to contribute their to Employees & Teamwork 3. Supervisory Skills Development Business Results3. Accountability cent of all4.respondents) for each category. Executive Skills 3. Time 3. Info Sharing 4. causing Hiring Decisions 4. Value & Support best efforts, problems in the important area of customer 4. Systems satisfaction 5. Systems 4. Systems 5. and Systems 5. Systems loyalty. On a scale of one (the lowest) to five (the highest), Australian organisations scored 3.1 in overall human capital management. Practices Employee Engagement - Overall The global averageLeadership was 3.3, while best- Overall practice organisations scored 4.1.
Knowledge Leadership Employee Accessibility Practices Engagement Within 5.0the specific categories, results for Australian companies 5.0 are shown below. 4.3 4.0 4.0 3.0
3.3
3.0 3.1 1. Communication 1. Availability 1. Job Design 2.0 2.0 2. Inclusiveness 2. Commitment Collaboration These1.0include managers’ and leaders’ communications2. and 1.0 to Employees & Teamwork 3. Supervisory Skills feedback, inclusiveness, performance supervisory skills, 0.0 4. Executive Skills 3. Time 3. Info Sharing0.0 demonstration of key organisational values, and ability to instill Australia Overall Avg Best 5. Systems 4. Systems 4. Systems Practices confidence.
LEADERSHIP PRACTICES
Leadership Practices - Overall Knowledge Accessibility - Overall 5.0 5.0 4.04.0
4.64.3
3.03.0 2.02.0 1.01.0 0.00.0
PAG E 1 4
3.1 2.9
3.43.3
Australia Overall Overall Avg Australia Avg
•
Best Best Practices Practices
Workforce Optimisation
Learning Capacity 4.2
3.0
3.2
1. Processes 1. Innovation 2. Conditions 2. Training 3. Accountability 3. Development 4. Value & Support 4. Hiring Decisions Australia Best 5. Systems Overall Avg5. Systems Practices
Employee Engagement - Overall
Workforce Optimisation - Overall KNOWLEDGE ACCESSIBILITY
This is the extent of an organisation’s ‘collaborativeness’ and 5.0 5.0 its capacity for making knowledge and ideas widely available 4.0 to employees. Organisations that capture,4.44.2 apply and re-use 4.0 3.0 3.53.2 3.0 3.4 knowledge 3.0 and best practices among departments and divisions, 2.0 and have 2.0 successful, collaborative team structures, are best able 1.0 to leverage 1.0 their knowledge and talent for business results. 0.0 Why0.0 it matters: Low scores in Avg knowledgeBest accessibility are Australia Overall Australia Overall Avg Best associated with redundancies within and across departments and Practices Practices
Knowledge Accessibility - Overall Learning Capacity - Overall Workforce Optimisation - Overall AUGUST 2005 • TRAIN ING AND DEVELOPMENT IN AUSTRALIA
5.0
5.0
4.0
foptimising e a t uhuman r e s capital 5.0
3.0
4.0 3.0
3.1
3.3
2.0
3.1
4.3 2.0
1.0
4.0
4.3 3.3 5.0
3.0
4.0 3.0
3.0
3.2
4.2 2.0 3.0
3.2
1.0
2.0 0.0 Australia Overall Avg Best Australia Overall Avg 1.0 1.0 Practices it matters: Low scores in learning capacity reflect an reflect0.0 factors that cause difficulties in getting cross-functional Why 0.0 organisation Australia that has failed to Avg take the Best steps necessary to work completed in a timelyOverall and effective Australia Avg manner. Best Overall enable learning and innovation. Such organisations poorly Optimisa Practices Practices are Workforce Knowledge Accessibility - Overall al and Non-Financial equipped to respond effectively to constantly (and inevitably) siness Results changing conditions in the market and the economy. Knowledge Accessibility - Overall Workforce Optimisation - Overall 5.0 5.0 CONCLUSION 4.6 4.0 4.0 3.5 A3.4 practical human capital framework provides a logical 3.4 guide for 5.0 5.0 3.0 3.0 2.9 4.6 future4.0 business success. The alignment of human capabilities with 4.0 4.4 2.0 2.0 3.4Learning 3.5 Knowledge 3.0 Workforce business objectives enhances the potential contribution of people 3.4 3.0 1.0 2.9 1.0 Accessibility Optimisation Capacity who provide organisations with their only sustainable competitive 2.0 2.0 0.0 0.0 advantage. In the final analysis people make it happen! Australia Overall Avg Best Australia Overall Avg 1.0 1.0 Practices 0.0 0.0 Australia Overall1.Avg Best Innovation . Availability 1. Processes Australia Overall Avg Best Learning Capacity Practices - Overall Practices 2. Training 2. Conditions . Collaboration 3. Development & Teamwork 3. Accountability . Info Sharing 4. Value & Support Learning Capacity - Overall 4. Hiring Decisions . Systems WORKFORCE 5. Systems OPTIMISATION 5. Systems 5.0
0.0
4.0 4.2 This is the organisation’s success in optimising the performance 5.0 3.2 3.0 - Overall 3.1 of its employees.Employee It does Engagement so by establishing essential processes 4.0 4.2 2.0 for getting work done, providing good working conditions, 3.2 3.0 3.1 1.0 establishing accountability, and making good hiring choices. 5.0 0.0 Since human capital represents a 2.0 major portion of most 4.0 4.2 Australia Overall Avg Best 1.0quality of the practices, organisations’ total operating costs, the 3.2 Practices 3.0 3.0 0.0employees are effective is systems and processes for ensuring that 2.0 Australia Overall Avg Best a foundational determinant of business results. Practices 1.0 Why it matters: Low scores in workforce optimisation reflect REFERENCES 0.0 B. N. Pfau and I. T. Kay, 2002, The Human Capital Edge, inefficiencies and unnecessarily high costs.Best Australia Overall Avg Practices McGraw-Hill.
Workforce Optimisation - Overall
5.0 4.4
4.0 3.0
3.4
3.5
L. Bassi and D. McMurrer, 2004, How’s Your Return on People?, Harvard Business Review, March. This article is an edited extract from ‘Optimising Human Capital: Human Resource and People Management in Action’, a presentation given by Les Pickett to the Adelaide Graduate School of Business on 27 April 2005.
2.0 1.0
Les Pickett (FCIS, MAICD, AFAIM, FAHRI) is the Chief
0.0 Australia
Overall Avg
Best Practices
ing Capacity - Overall
LEARNING CAPACITY
3.2
This is an organisation’s overall ability to learn and innovate – and ultimately, to achieve a continual level of improvement. Hence,4.2 training, development and innovation must be valued and supported in order for an organisation to have the capacity to respond to changing conditions and consistently achieve strategic goals.
Overall Avg
Executive of Pacific Rim Consulting Group, which has a strategic alliance partnership with McBassi & Company. Les is a former national president of the AITD and is past chairman of the executive board, International Federation of Training and Development Organisations. Les can be contacted on 0418 330 544 or [email protected]. You can visit the Pacific Rim website at www.pacrimconsult.com
Best AUGUST 2005 • TRAINING AND DEVELOPMENT IN AUSTRALIA • Practices
PAGE 15
