Business has long struggled with the notion of "human capital," but do companies really know the value of their people? All too frequently, companies lay off thousands of workers to boost share price while, at the same time, their annual reports promise that "people are our greatest asset!" Now, for the first time, human capital experts Brian Friedman, James Hatch, and David M. Walker show how companies can deliver on this promise. They reveal how Arthur Andersen's breakthrough five-stage framework, "Human Capital Appraisal," enables managers to measure, manage, and leverage their companies' investment in people.

The authors describe specifically how managers can evaluate the current effectiveness of a firm's human capital strategies and the efficiency of its current Human Resources programs. They explain how to measure the amount of time and money management spends to recruit, develop, and manage human resources. Then they focus on how a firm can assess the return on this investment, minimize risk, and leverage the value of its human capital resources. Finally, the authors demonstrate how such leading companies as Colgate Palmolive, The Chicago Tribune, Mobil Oil, The Body Shop, Holy Cross Hospital, Hyatt Hotels, IBM, and British Petroleum are realizing the value of their people through human capital programs. This unique, proven, and proprietary methodology makes this invaluable book required reading for every chief executive, human resources director, and line manager.

Brian Friedman is Global Managing Partner of Arthur Andersen's Human Capital Services Practice based in London and has actively pioneered Human Capital Appraisal in countries as diverse as Japan, South Africa, and India as well as in the United States and the United Kingdom.

Preface

Acknowledgments

1. Human Capital: From Promise to Reality
2. Global Human Capital: A World of Wealth
3. Human Capital Appraisal(TM): A Five-Square Approach
4. Clarification: Defining the People Impact of Business Strategy
5. Assessment: Measuring the Fit, Cost, and Value (TM) of Current Human Capital Programs
6. Design: Creating New Programs for Human Capital
7. Implementation: Making Human Capital Programs Work
8. Monitoring: Tracking Human Capital Initiatives Against Strategy
9. Assessing Human Capital Fit: Strategies for All Seasons
10. Assessing Human Capital Cost: New Frontiers
11. Assessing Human Capital Value: The Ultimate Question
12. Human Capital: The Road Ahead

Epilogue

Appendixes

1. Case Studies
2. Implementation Worksheets for Twelve Initiatives
3. Pensions: Strategic, Best Practice, and Market Fit
4. Pensions: Cost Analysis
5. Pensions: Fit-Cost-Value (TM) (FCV) Report and Recommendations
6. Arthur Andersen's Worldwide Human Capital

GlossaryBibliography

Index

About the Authors