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Chances are, you first think about your balance sheet measures: how much revenue did we generate last quarter, how much was our growth in sales and profits or what gains did we make in our market share? Next, you may think about the costs: equipment, material, travel and so on. Or perhaps it is your customer measures that come up for consideration: have complaints increased, are they repurchasing our products? These key performance indicators (KPIs) are important and you consider them on a weekly, monthly and quarterly basis.

What is often missing from this list is an area that accounts for one of your largest expenses and perhaps creates the most value: your people, or what many now call “Human Capital”. People are one of the most important indicators of an organization’s ability to create and sustain value: they come up with the ideas for new innovations, they delight your customers, and they produce your products. In spite of this, many organizations have difficulty demonstrating how spending on people and people programs produce a return on investment.


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