Human Capital Analytics: How to Harness the Potential of Your Organization's Greatest Asset

Introduction

Realizing the Dream: From Nuisance to Necessity

Personnel and Training are in the annex. We put them where they can’t hurt anyone.”

That was the direction I received on a beautiful September morning in 1969 when I walked into the headquarters of Wells Fargo Bank in San Francisco. I arrived for my new position in the training department. Naturally, I went to the great granite edifice that housed the main branch and many floors of offices at 464 California Street. Much to my surprise, I was directed to the annex four blocks away. As I walked two blocks east and two blocks north, I wondered, “Why am I going to the annex when most of my customers, managers, and employees are in the main building?”

This stunning experience started me dreaming. It eventually brought me to the work of Gene Pease and Boyce Byerly, the coauthors of this book. About 10 years ago, Boyce initiated the groundwork to develop the methodology and analytical tools that form the core intellectual assets of Capital Analytics today. The work began with applying statistical analysis to training investments. It drifted into HR, as clients began to request the application of predictive analytics to increasingly complex investments. A few years later, I learned about Boyce’s business partner Gene and their work at Capital Analytics, where they were applying statistical analysis to a broad range of human capital issues. Eventually, I invited Gene to speak at the Human Capital Metrics conference I run each ...