EEA YouTube Show: Many CEOs Drive With Only One Eye on the Road

• Human capital management is the last bastion of value creation; yet many if not most organizations continue to leave money on the table. It is similar to the situation with total quality management in the 1980s, when the Japanese proved that people were willing to pay for quality and reliability and forced US organizations to strategically and systematically address quality.

• Organizations have traditionally treated human resources as sunk costs and people as units that can be easily replaced. The power shift has become so dramatic that some observers wonder whether companies might start laying off people and force a recession simply to reset the balance of power.

• A more productive solution is to understand that people are indeed a form of capital and value creation that can make the difference between a good and a great company in terms not only of financial performance but in terms of market share and brand equity.

• CEOs are not trained in a strategic and systematic approach to people management, but boards and CEOs are beginning to grasp the need for such knowledge.

• Boards are starting to look at human capital more seriously. We are seeing more human resources management on boards, but the issue is: are human resources people qualified to bring a business focus to people management?

• Organizations measure the potential return on investment of almost every business decision except human capital, when there are readily available measures to guide better decision making.

• There’s a misconception if one believes that we will be able to return to the command-and-control model. We need different measurements and practices.

• If CEOs and CFOs are not tracking the following metrics, they are driving with one eye on the road and almost undoubtedly leaving profits on the table in the same way they did in the 1980s in manufacturing when they built high levels of defects into product:

• Human Capital ROI. For a calculator, see: https://www.enterpriseengagement.org/Try-This-Free-Calculator-to-Track-Your-Company-s-HCROI/

• Human Capital Value Add. For the formula, see: https://medium.com/true-enterprise-mobility/human-capital-value-added-hcva-cd526f5b7be2#:~:text=HCVA%20%3D%20Revenue%20%E2%80%94%20(Total%20Costs,Total%20Costs%20%3D%20%24800%2C000%2C000

• 5% improvement in human capital ROI can generate 30% to 40% lift of profitability if at least 50% of your expenses go to people. 

• Companies should be trying to optimize the employee experience in the same way some are focusing on the employee experience.

• Founded in 2008, the Enterprise Engagement Alliance provides outreach, learning and certification in Enterprise Engagement, an implementation process for the “S” or Social of Stakeholder Capitalism and Human Capital Management and measurement of engagement across the organization.
• The Enterprise Engagement Alliance provides a training and certification program for business leaders, practitioners, and solution providers, as well as executive briefings and human capital gap analyses for senior leaders.
• The EEA produces an education program for CFOs for the CFO.University training program on Human Capital Management.
• Join the EEA to become a leader in the implementation of the “S” of ESG and Stakeholder Capitalism. 

• The ESM information portal and The Enterprise Engagement Advisors Network solution provider marketplace cover all aspects of stakeholder engagement, and the EEA information library lists dozens of resources.
• The RRN information portal and Brand Media Coalition marketplace address the use of brands for gifting, incentives, recognition, and promotions. The BMC information library provides information and research resources.

• Enterprise Engagement for CEOs: The Little Blue Book for People-Centric Capitalists. A quick guide for CEOs.
• Enterprise Engagement: The Roadmap 5th Edition implementation guide. A comprehensive textbook for practitioners, academics, and students.

• Organizations of all types develop strategic Stakeholder Capitalism and Enterprise Engagement processes and human capital management and reporting strategies; conduct human capital gap analyses; design and implement strategic human capital management and reporting plans that address DEI (Diversity, Equity, and Inclusion), and assist with managed outsourcing of engagement products and services.
• Human resources, sales and marketing solution providers profit from the emerging discipline of human capital management and ROI of engagement through training and marketing services.
• Investors make sense of human capital reporting by public companies.
• Buyers and sellers of companies in the engagement space or business owners or buyers who seek to account for human capital in their mergers and acquistions. 

Click here for complete information on Enterprise Engagement Alliance benefits and to join.