CONSULTING

What is the Value of your Organisation’s Human Capital Balance Sheet?

HOW DO YOU ACCURATELY MEASURE THE VALUE OF YOUR COMPANY?

There is no simplistic answer, but it comes down to determining the organisation’s overall capital value. From a tangible point of view, this is calculated through a due diligence, which can lead to various growth strategies. However, research conducted on the S&P 500 market indicated a major shift during the past 45 years. Accordingly, in 1975, the market value ratio of tangible to intangible assets was 5:1. By 2020, the ratio was reversed to a 9:1 – intangible to tangible, which largely consists of the human component of any business. Therefore, CCI Professional holds to an internal conviction that human capital is not a pool of wealth; it is the foundation on which all other capital pools are built. This reality raises the question, what is your business’s human capital investment strategy? Furthermore, is your

human capital strategy aligned with your company’s overall growth strategy?

Employee engagement research, such as conducted by Gallup, indicates that managing people through a mechanised system approach usually delivers sub-standard results. The reason for this is that people are a living system, requiring a more organic approach. Therefore, CCI Professional utilises what we call, the Principle of Habitat. A habitat is an environment that is conducive for life to flourish. By following this principle, CCI Professional assists your company to create both an optimal environment for your people to flourish and support their individual growth. The result is, an optimal RoI through the following approach:

Four components are required to calculate a return on organic growth. This is best illustrated through the following agricultural example. When a farmer acquires a piece of property, they first conduct a study of which crops can potentially grow in the environment. The farming season then starts with the preparation of the land (Environment), followed by the sowing of the right kind of seed (Growth Variable). For the duration of the season until harvest time, the farmer has to understand what process (Time) is required to best take care of both the environment and the growing crops. The calculation of Environment, times Growth Variable, divided by Time will inform the farmer as to their expected RoI. CCI Professional follows the same approach in calculating a return on human capital investment:

FOUR COMPONENTS ARE REQUIRED TO CALCULATE A RETURN ON ORGANIC GROWTH

Our team of internationally qualified postgraduate consultants have a proven track record of conducting any human capital-related research project from an empirical basis.  This can be done from either a qualitative or a quantitative approach, by making use of leading artificial intelligent systems.

Understanding any business’ missional environment is critical for people to engage and perform optimally.  Ensuring that all the missional components are aligned will ensure this outcome.  To accomplish this outcome, CCI Professional takes both the overarching view of what we call Mission Alignment Process (MAP), or a more detailed approach that includes aspects such as purpose clarification, growth strategy development, high-performance culture, structural optimisation, performance optimisation, team dynamics, and learning and development architecture.

Human capital mastery is the learning and development approach that CCI Professional utilises to ensure the continuous growth of all stakeholders.  For labour and office teams, we focus on the domains of personal and team mastery, while management and specialist members also include performance and organisational mastery.  Our tailored customer-centric approach will address both your business’s training architecture, as well as provide access to over 40 standardised human capital investment modules (most of which are based on a neuro-leadership perspective).

Leading any organisational transition through experienced change management practitioners is critical for long-term sustainable success. Whether the focus is an organic growth period through the existing employee basis or a more aggressive approach, such as a merger or acquisition, CCI Professional is here to assist you in navigating and succeeding in the change.