You are previewing Talent Valuation: Accelerate Market Capitalization through Your Most Important Asset.
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Talent Valuation: Accelerate Market Capitalization through Your Most Important Asset

Book Description

Master the first comprehensive, credible framework for measuring HR's value and the quality of its talent acquisition/management efforts! Reflecting their immense experience leading talent management and consulting on enterprise talent strategy, Linda Brenner and Tom McGuire introduce a powerful new metric: the Intellectual Capital Index (ICI). Built on extensive financial analysis of Fortune® 500 companies, ICI helps you rigorously identify specific areas of intellectual capital that drive the most value in your company, and refocus HR accordingly. Using it, you can:

  • More effectively quantify the return on your human capital investments

  • Measure the quality and value of your most important talent

  • Gain a deeper understanding of the drivers of value in their organization

  • Recognize the drivers of intellectual capital within their companies

  • Measure and improve talent quality: your most important talent metric

  • Brenner and McGuire help you finally overcome long-time controversies and obstacles to valuing talent. Using accepted financial techniques, you'll walk through:

  • Identifying which people and roles are producing disproportionate value

  • Determining the true asset of value of talent you don't "own"

  • Gaining deeper insight into the "active" and "inert" components of intellectual capital

  • Organizing structures and business processes to activate your talent and liberate latent value

  • Choosing and applying the most effective talent metrics

  • Refocusing HR on the talent issues, skills, and competencies that matter most

  • Talent Valuation offers indispensable tools and insights for C-level executives, HR leaders, strategists, investors, analysts, researchers, students – and anyone concerned with measuring, optimizing, and communicating the business value of talent.

    Table of Contents

    1. About This eBook
    2. Title Page
    3. Copyright Page
    4. Praise for Talent Valuation
    5. Dedication Page
    6. Contents
    7. Acknowledgments
    8. About the Authors
    9. Chapter Summaries
      1. Introduction
      2. Chapter 1: Important vs. Critical Talent: What if the Beatles Had Been a Company?
      3. Chapter 2: Is Your Most Important Asset Really an Asset?
      4. Chapter 3: Valuing and Evaluating Companies and Their Intellectual Capital
      5. Chapter 4: Understanding Active and Inert Components of Intellectual Capital
      6. Chapter 5: Identifying Critical Roles Through Work Processes
      7. Chapter 6: The New Talent Strategy Game Plan
      8. Chapter 7: The Only Metric that Matters
      9. Chapter 8: Attracting and Retaining the Human Capitalist Investor
      10. Chapter 9: Looking Back and Looking Forward
      11. Chapter 10: Who Is Responsible? What Is the Purpose of HR?
      12. Endnotes
    10. Foreword
    11. Introduction
      1. Endnotes
    12. 1. Important vs. Critical Talent: What if the Beatles Had Been a Company?
    13. 2. Is Your Most Important Asset Really an Asset?
      1. Endnotes
    14. 3. Valuing and Evaluating Companies and Their Intellectual Capital
      1. Insights and Considerations from an Analysis of Select Companies
        1. Size Doesn’t Matter
        2. IC: On or Off the Books?
        3. IC Varies by Industry Characteristics
        4. Using the ICI to Analyze Companies Within Industries
        5. Using the ICI to Analyze Individual Companies over Time
        6. Sourcing Data Used in the ICI Calculation
        7. The Potential Impact of Long-Lived Assets on the ICI Calculation
        8. Navigating Industry Oddities that Impact the ICI Calculation
      2. Endnotes
    15. 4. Understanding Active and Inert Components of Intellectual Capital
      1. Active Versus Inert
      2. Endnote
    16. 5. Identifying Critical Roles Through Work Processes
      1. Critical Success Factors (CSF)
      2. Work Processes
      3. Organization/Roles
      4. 3M
      5. Walgreen Co.
      6. UPS
    17. 6. The New Talent Strategy Game Plan
      1. Build
      2. Buy
      3. Borrow
      4. Talent Supply and Demand
        1. Senior Systems Support Manager
        2. Director of International Taxation
        3. Senior Product Support Engineer
        4. Market Development Manager
        5. In-House Search Expertise
        6. Compensation Decisions
      5. Build, Buy, Borrow and the Capital Structure of Talent
      6. The Importance of Talent Planning
      7. Endnotes
    18. 7. The Only Metric that Matters
      1. Knowing Quality When We See It
        1. Performance
        2. Potential
        3. Promotion
        4. Retention
      2. Endnotes
    19. 8. Attracting and Retaining the Human Capitalist Investor
      1. Define the Investor You Want
      2. Define Your Investment Offering
      3. Devise Your Campaign Strategy
      4. Execute and Measure Outcomes
      5. Laser Approach to Creating the Employment Brand Position
        1. Potential Vulnerabilities
        2. Potential Strengths
        3. Equivalent Equities
        4. Key Brand Equities
      6. Endnotes
    20. 9. Looking Back and Looking Forward
      1. Manager as Knowledge Conductor
      2. Enabling Results Based Work
      3. Value-Based Compensation
      4. Looking Forward
      5. Endnotes
    21. 10. Who Is Responsible? What Is the Purpose of HR?
      1. Where We’ve Been
      2. Where We Are Now
      3. The Real Reasons HR Doesn’t Have a Seat at the Table
        1. Lack of HR Credibility
        2. A Support Function Mindset
        3. Skill and Capability Gaps
      4. Where We Need to Go
      5. Finance and HR: The Odd Couple
      6. The Strategy
      7. The Leadership
      8. The Process
        1. Examples of Traditional HR Processes that Need to Change
      9. Over-Investing in Critical Roles: The Impact on Everyone Else
      10. The Outcomes
      11. Endnotes
    22. Conclusion
      1. Humanism Dominates; Capitalism Differentiates
      2. Endnotes
    23. Appendix
      1. 1. Disclosure approach
      2. 2. FASB Agenda Criteria
      3. 3. Pertinent Research Evidence
      4. Conclusion
      5. References
    24. Defined Terms
      1. Endnotes
    25. Index