The Human Value of the Enterprise

More about the book

People are our most important assets is a common saying in organizations, but can you prove it? This ground-breaking book helps you answer that question in a new era where intellectual capital is more crucial than traditional financial metrics. Value creation is what truly matters, and only people can deliver it for stakeholders in any organization. Despite this understanding, we remain trapped in an accounting framework that relies on outdated definitions of assets and liabilities. This leads to the challenge of measuring a business's most vital resource: its human value. The author confronts today's managerial challenge by proposing quantitative methods to measure and account for human value. He identifies three key areas for measurement: the intrinsic value of individuals, their contributions to financial and non-financial value, and the environment that supports their contributions. These measures should be integrated into the organization’s performance monitoring system. The book guides you in selecting strategically important measures based on cause-and-effect chains. It is rich with practical examples and tools, demonstrating how value-based thinking can be applied to human resource processes, learning and knowledge management, and mergers and acquisitions.