【正文】 riety of factors that we call human capital。 are service level agreements met。 HR will be proactive in identifying potential improvements and bringing suggestions to the business that improve bottomline results。Focus on past performance。View people as costs to the organizationregularlyThe HR Balanced Scorecard is also consistent with the initiatives many organizations are introducing to their peoplemanagement practices like crossfunctional staffing, variable pay, team and individual accountability and multiple feedback sources. The measure would eventually help the organization understand the effectiveness of HR policies and processes.As Kaplan and Norton note, the Balanced Scorecard has “...enabled panies to track financial results while simultaneously monitoring progress in building the capabilities and acquiring the intangible assets they would need for future growth. The scorecard wasn’t a replacement for financial measures。Financial measures dominate in reports looking backwards at performance categories A business and linked measurement framework focuses activity on those tasks that contribute to organizational success. This process lifts the role of HR from being viewed purely as a cost centre to that as strategic business partner. Measurement provides the data and facts to support business decisions, giving credibility to HR remendations and initiatives。s business strategy. This places many HR functions at risk in a number of ways:178。69 / 69When you sit down to evaluate your organization’s performance, what measures e to mind?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 e up for consideration: have plaints 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 e 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.Human Capital Measurement (HCM) bridges this gap by helping organizations focus on people measures, to better understand and predict how employees contribute to their success. It allows panies to quantify how employees are impacted by programs such as training and development, recognition and worklife balance. It also assesses how employees react to organizational changes such as mergers or major restructuring. Most importantly, it can provide the same level of rigor that other areas of your business apply to evaluate their investments.Hewitt Associates has developed a leadership position in the use of Human Capital Measurement. Our Best Employers research supports a growing amount of evidence connecting effective people management with longterm organizational performance. Similarly, we have a number of HCM approaches that we have applied to help organizations sharpen their people investment strategies. In this issue of HQ, we give you some insight into our approach to HCM and describe several specific client situations where this approach has helped them achieve their strategic goals and realize tangible results. Our philosophy toward HCM is to align the approach to your specific situation. We illustrate a wide range of approaches that describe how people scorecards and key organizational performance metrics are developed, optimal people behaviors identified and predictive models framed.HCM can appear daunting and plex but our consultants can work with you from wherever you are starting and to whatever level of sophistication you desire, to help you understand and realize the value of your human capital. HCM is fun, challenging and a leadingedge work. It provides our consultants with a feeling of success and it produces great value for our clients.Mick BennettManaging Director, Asia PacificHewitt Associates LLCThe average human life span has risen dramatically from a life expectancy of 40 in the early 1900s to 75 years at the turn of the millennium. The human race has learned what factors need to be monitored to increase longevity: a balanced diet, regular exercise, monitoring key measures such as blood pressure, cholesterol, etc. Identifying, monitoring and acting on the right measures has doubled the human life span in one century.Company life expectancy has not fared as well. In the late 1920s and 1930s the average pany life span was over 60 years. Now the average life span of panies is 1215 years. So many panies will “die” in their teens and only a handful will survive into the next century.To plicate the situation, the world as a marketplace is shrinking and petitors straddle the globe. A new service offering is duplicated within hours, a product launch sees petitors39。 these include quality of leadership, employee creativity, productivity, loyalty, passion and knowledge management. Scarcity in one or more of these areas or suboptimal productivity in them is often more constraining for businesses than financial capital. At times, businesses have been taken over merely to acquire their intellectual or human capital.“As the correlation between quality of human capital and business performance bees clearer, the notion of human capital being represented on financial statements has surfaced,” says Mark C Ubelhart, ValueBased Management Practice Leader with Hew