CIMA and RSA call on wisdom of the crowd to help develop a common framework for measuring the contribution people make to business outcomes
Charles Tilley FCMA, CGMA, Chief Executive, CIMA, said:
Measurement and analysis of talent continue to be a weakness for many organisations. Employees are the main source of competitive advantage, or disadvantage, and so all businesses need to be able to understand the value that their people create. They must be aware of whether their investment in talent is working.It seems out of place that investors do not always have access to data about the ‘people power’ behind a company’s outcomes and financial achievements. You simply can’t realise the true value of an organisation without an effective means of accounting for its workforce. This is what we are looking to achieve through the Valuing your Talent initiative.
Julian Thompson, Director of Enterprise at the RSA, said:
The big idea behind this Challenge is that the issue of human capital measurement and management is too important, too complex and too sensitive to local context, for any one group of specialists to develop or determine good approaches. HR practitioners, management consultants, academics, business leaders, accountants and employees obviously all have a key part to play. But arguably previous attempts have failed to catch on because models have been developed in isolation from each other, and/or on a closed, proprietary basis.This experimental Challenge hopes to be the start of an ongoing open innovation community on the topic of better human capital valuation. Innovation is more likely when this community is diverse. That’s why we also want to invite creative ‘outsiders’ such as designers, developers, innovators and analysts from other disciplines to be part of the process.But diverse collaboration is only possible when there is a shared foundation. The VYT framework provides a common focus for innovation around human capital value, but one that we expect to be continuously enriched and improved.