Human resource management and development is starting to move into the executive boardroom. If you want to gain more recognition, respect, resources, or ability to help the people you serve, you cannot avoid numbers. The answer lies in becoming more familiar, comfortable, and confident in using
Communicating value depends on a command of financial terms and a clear,
The terms used to communicate value must
A seat at the table will only be
Financially based communication has been shown to significantly increase persuasiveness, sales, and job search success.
Understanding how much their performance improvements have improved the bottom line can be just as important to
Step 1 of the financial value process: define audience
How to play the game and break the ROI code
How cascading metrics create financial value chains
How to translate from the language of performance to the language of finance and back again
Why you must make the translation clear for your audience
Why understanding your audience ‚ s ROI timeframe makes a difference in getting them to pay attention to your value statements.
‚“What is my return-on-investment for this program? ‚½ This question is one of the most frustrating questions today ‚ s WLP professional can face. Even if you, as a WLP professional, give what you think is a good answer, you may often get the sinking feeling that your audience is thinking politely that you just don ‚ t get it. Even if you ‚ ve gone to the effort to determine a return-on-investment answer of, for example, 125 percent, you may still be left with the sense that you didn ‚ t answer the real question and that you ‚ ve blown it, but you don ‚ t know why. What went wrong?
When people say ‚“my return-on-investment ‚½ or ‚“my ROI ‚½ or ‚“my value ‚½ for a program, sometimes they are asking for a number such as 125 percent, but more often, they are not. They are using ROI as a codeword ‚ a codeword that means something different for each person who uses it. To see how fast the definition of value changes and why it is important to be able to connect your answer to what is
Children usually play ‚“Rumor ‚½ with eight to 10 people. The players sit in a chain, and someone volunteers to go first. The first person makes up a rumor: the more fantastic, the better. He or she then whispers the rumor into the ear of the
Understanding value in an organization works much the same way as the game of ‚“Rumor. ‚½ What is described as
Using the principle of cascading metrics, the financial measures at the top (profit, liquidity ratios, cash flows) are always broken down into more specific measures for the next layer of management. That management layer breaks the metrics down again. Eventually, what