Metrics are only part of the measurement of HCM

[Jon Ingham]

HCM metrics continue to receive hgh levels of focus.

I do think this is an important agenda. I was an associate member of Investors in People UK's human capital metrics group in the UK, which looked at setting up a standard list of HCM metrics (I'm not sure what's happened to it now).

But "the pig doesn't get fatter just by measuring it".

I think we need to re-orient the agenda from measurement to management.

What do you think?

[Tia Carr Williams]

Jon,

There is surely value in both measurement and management. The old adage 'If you can't measure it, you can't manage it' would seem an appropriate truism. What is under scrutiny is what is it that can and should be measured? Certainly, Ive some posits on this but I d be curious to know from you, given your interest as an Investor In People, what you feel merits measurement.

[Rob Peters]

Measurement is an important process in order to manage for effectiveness.
How is competency measured in creating relationship capital with other people? Keeping commitments is a part of competency, but not the whole story. What are your thoughts on measuring competency?

[Denis W Barnard]

I am intrigued to hear that you were on that panel; some of us who were not necessarily big fans of the IiP were wondering how they would find the time!!

HCM metrics are still the playground of big players, who use metrics to try to prove a point; the Royal Bank of Scotland have a whole department set up on this topic, and they have made great play of how the metrics proved that they were all aligned with the business, etc etc. Events of the past month or two will suggest otherwise... or is the CEO hubris-driven acquisitions of ABN Amro not a measurable? I contend that it is; the structure of an organisation is the key to how it will perform and behave.

[Joanne Bintliff-Ritchie]

Our clients generally see Talent (or Human Capital) Measurement as a decision support tool that supports Talent Management, HR Management, and for the lucky ones Business Performance Management. Measurement provides evidence for the decisions they make about investments, practice design and execution, resource allocations, process improvement, staff performance, etc. Good talent measurement not only provides information, but insights into the impacts of workforce performance, HR services and talent management practices on business outcomes. Organizations use quantitative measurement to manage all other areas of their business; we need to do this with human capital management as well.

[Gireesh Kumar Sharma]

In one of my blog posts - I have addressed a similar question.

"Going through a book on Six Sigma, I came across this very popular statement “You Can Only Improve What You Can Measure“. Does it hold true for HR also? Why not?

If the answer to above is ‘Yes’, then for HR to improve its processes it is important to measure the current effectiveness."

Read this post: You Can Only Improve What You Can Measure