Key Points

• Once management understands the facts about the current workforce, it must determine what that workforce should be in light of the company’s business strategy. Gaps between the current reality and the ideal workforce then must be closed.

• Business Impact Modeling is a family of quantitative tools that establishes the impact of human capital practices on business results.

• The statistical models of ILM analysis and Business Impact Modeling are useful tools for strategy making because they give fact-based, company-specific answers to what-if questions about the future.

• The best human capital strategies result from the integration of ILM analysis, Business Impact Modeling, and qualitative data.