Delivering on the Promise: How to Attract, Manage and Retain Human Capital [Hardcover]

Brian Friedman (Author), James A. Hatch (Author), David M. Walker (Author)

Book Description

Publication Date: October 9, 1998

Over the past couple of decades, management styles have evolved from strategic planning to total quality management to reengineering. Now in the newest and most cost effective trend to hit the boardrooms, there is a concentrated effort to view employment not as a perishible resource to be consumed but as a valuable commodity to be developed. While research shows that investments in capital result in higher returns to shareholders, the question is how should these investments be made, and how can returns on these investments be measured? DELIVERING ON THE PROMISE reveals Arthur Andersen's proprietry, technically based methodology - called The Five Square Approach - that will enable any manager to measure, manage and leverage human capital. Drawing on case-studies and research, this book is for any business manager who wants to evaluate and improve the current worth of their company's human resources.

Editorial Reviews

Amazon.com Review

After exploring strategic planning, TQM, and reengineering, many management consultants began seriously concentrating on the people who actually populate and drive the workplace--just as a tightening employment market makes it more difficult than ever to attract and retain a top staff. The consultants at Arthur Andersen, under a motto proclaiming they "realize the value of people," have been focusing on this so-called human capital side of business through a proprietary approach that's based upon their experiences with firms like Land Rover Vehicles, IBM, Mobil Oil, and the Ritz-Carlton Hotel Company. Previously offered only to clients, this methodology is now laid out for all to see (and use) in Delivering on the Promise: How to Attract, Manage, and Retain Human Capital. Partners Brian Friedman, James Hatch, and David M. Walker present a step-by-step exploration of the process and what it may mean to businesses in the future; along the way they explain how to evaluate existing personnel and personnel-related programs in relation to specific company goals and how to realign corporate focus whenever necessary. Individual chapters follow the five stages of human-capital development as identified in Anderson's "Five Squared" program: clarification, assessment, design, implementation, and monitoring. --Howard Rothman

Review

Michael R. Losey CEO, Society for Human Resource Management Delivering on the Promise provides a complete formula for measuring human capital assets and turning people advantages into real strategic business advantages. -- Review

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Product Details

• Hardcover: 240 pages
• Publisher: Free Press (October 9, 1998)
• Language: English
• ISBN-10: 0684856581
• ISBN-13: 978-0684856582
• Product Dimensions: 9.6 x 6.4 x 1 inches
• Shipping Weight: 1.1 pounds
• Average Customer Review: 3.8 out of 5 stars  See all reviews (5 customer reviews)
• Amazon Best Sellers Rank: #1,087,489 in Books (See Top 100 in Books)

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Customer Reviews

Most Helpful Customer Reviews

21 of 22 people found the following review helpful:

5.0 out of 5 stars "The Five Stages of Human Capital Appraisal.", May 25, 2000

By 

Turgay BUGDACIGIL (Istanbul, Turkey) - See all my reviews

This review is from: Delivering on the Promise: How to Attract, Manage and Retain Human Capital (Hardcover)

"Most companies have human resources personnel and various HR policies and programs", B. Friedman, J. Hatch, and D. M. Walker write, "but few companies know their value-or how to enhance it. In the view of too many corporate chiefs, HR managers are mere functionaries implementing programs that are no more than extra costs to be cut in times of trouble...Everyone in progressive organizations recognizes that the HR function must become more closely linked to strategy. As the HR function evolves from administrative to strategic, the question can be asked (and objectively answered), what are we doing to enhance the value of human capital in our organization? Although the effectiveness of the HR department is a part of this answer, it is only one part. Arthur Andersen has developed an approach that can help companies measure the value of all policies affecting human capital, and align these policies more closely to corporate goals. This method, which we can call 'Human Capital Appraisal', shows how companies can measure and increase the returns on their investments in people (p.39)."

In this context, they describe a series of necessary five stages in the management of human capital covering the five major human capital areas as (a). recruitment, retention, and retirement, (b). rewards and performance management, (c).career development, succession planning, and training, (d). organizational structure, and (e). human capital enablers, as follows:

1. Stage One - Clarification: In this stage, companies identify and confirm their overall business direction or strategy in the broadest sense of the terms.(for a detailed discussion of this stage see Chapter 4)

2. Stage Two - Assessment: In this stage, companies calculate the cost of investment in human capital, and the value employees place on this investment.(for a detailed discussion of this stage see Chapter 5)

3. Stage Three - Design: In this stage, companies begin to create programs that can yield better returns on human capital. (for a detailed discussion of this stage see Chapter 6)

4. Stage Four - Implementation: In this stage, companies put these proposed changes into practice. (for a detailed discussion of this stage see Chapter 7)

5. Stage Five - Monitoring: In this stage, companies check this new system. (for a detailed discussio of this stage see Chpter 8)

As conclusion, they argue that 'Human Capital Appraisal' is a holistic approach based on the two equally important dimensions of stages and areas-time and space. It is in the squaring of these elements that the real substance of human capital development can emerge. By following a sequence for enhancing human capital, and by ensuring coverage of all areas within each part of the sequence, companies can improve their returns on investment in this area-by far the most critical for companies today (p.45).

Strongly recommended for executives and HR professionals.

5 of 5 people found the following review helpful:

3.0 out of 5 stars Some good points, but reads like a homework assigment, April 20, 2004

By 

Michael Erisman (Seattle, WA) - See all my reviews

This review is from: Delivering on the Promise: How to Attract, Manage and Retain Human Capital (Hardcover)

There is one quote here which is worth the book price: "people are the only asset that does not show up on the balance sheet". This is a great way to start a dialog about the value of people.

This book, written by a team from the then famous, and now infamous, "Arthur Anderson", includes the basic premise that people are a measurable asset, and like capital, should be looked at as an investment that can bring big returns.

The book is however surprisingly flat and dry. If you have little business or financial experience and are a human resources professional, then this is a decently sound introduction to looking at people as a measurable part of a business performance criteria. I really had no issue with the way the topic was laid out, or how they described the various stages needed to start a measurable process. It was what the book lacked though that I found disappointing.

It reads like it was written by accountants. Wait, I guess it was. That said, I felt that the book lacked passion and inspiration. When discussing people, and how to look at them for their potential, I expect more information that is aligned to psychology and motivation. This book does not deliver that way. I would predict that someone could do everything outlined in the book, and yet not achieve the results because of not "what" was presented, but "how".

In the end people want to work for a cause, not just for a living (Soul of the Firm - ServiceMaster CEO). Check out a few other books that are less technical, but will probably help get better results for your company including "Leadership and Self Deception", and "Theory R Management".

7 of 9 people found the following review helpful:

5.0 out of 5 stars A rigorous investment perspective of the human organization., July 23, 1998

By A Customer

This review is from: Delivering on the Promise: How to Attract, Manage and Retain Human Capital (Hardcover)

The meaning of the term "human capital" is far from clearly established, but the authors press for the need to shift management's perspective of people from a supply or resource to being capital, requiring investment and valuation. With this view of organization as their springboard, the authors present a model for managing human capital that applies a five stage process to five broadly defined HR areas or functions. A central theme is that there must be a fit between human capital programs and strategy, along with a focus on cost and value.The aim of measuring the effectiveness of human capital remains a subject to be further explored in a sequel to this book. Overall, this is a worthy effort to create a more rigorous investment-oriented mindset for thinking about, and proactively addressing, the human dimension of organization.