when barry met sammy
DESCRIPTION
This story was written by Lyle Potgieter to show how Human Capital systems are lagging. Barry is a chair. Sammy is a Marketing Manager. Both joins the organization at the same time but are treated differently... For full story go to http://www.peoplestreme.biz/when_barry_met_sammy.shtmlTRANSCRIPT
When When BarryBarry met met SammySammy
meet barry
Barry joined the organization in
2001…
meet sammy
Sammy joined as Marketing
Manager also in 2001…
Barry cost $782…
amortised over 10 years, that’s
$78.20 per annum
Sammy costs the organization $189,742 per
annum
Barry came with…
…that was scanned and attached
to the depreciation schedule
Sammy came
with…
…that was lost after she was hired
Each year the accountants value…
Each year Sammy’s value…
But this increase is not
recorded anywhere.
Upgrade
After After 5 5 yearsyears……
AGAIN this upgrade cost is noted in the depreciation
schedule
Master Degree in Digital Design
considered one of
the Best Talent
in the se
ctor
After After 5 5 yearsyears……
AGAIN her new skills are not listed
neither is the cost of study
Each year, the CEO formulates a
strategy
Barry does not know his part
of the strategy
neither neither does does
SammySammy
Both keep doing their jobs hoping
they are aligned to the strategy
Barry does a great job
Clients comment on how successful the company must
be to have such a nice Regional Board Room
Everyone is proud of Barry
and the Board Room
Sammy develops the best Digital Campaign the organization ever had
Sales increase by
40%
She feels good about this
but…
No-one gives her credit
for her work
Barry gets a promotion
He is to represent the organization in its head office
board room
Sammy is not aware of a vacant position for…
She hears about the role after it has
just been offered to a person with…
less experience
less formalqualifications
and knows nothing about the
organization
…as he was appointed from outside the organization
SammySammy gets gets frustratedfrustrated……
…and request a meeting with HR
President
The meeting is booked
here
As Sammy enters the board room, she meets a young accountant who has
just finished valuing Barry
The accountant introduces Sammy to Barry…
…as she explains that Barry is one of the organization’s most valued assets
The accountant has a lengthy record of
Barry’s performance over the years…
Barry’s Net Value to the organization,
locations Barry has served,
and net costto the organization
Barry has cost the organization
$703.80
Sammy has cost the organization
+$2,000,000
…and has made the company
10 x 2,000,000 = $20,000,000
…but this is not recorded
anywhere.
As the president of HR walks in,
Sammy asks him…
“Do you know what I
do for the company?”
“Do you know how much you have
invested in me?”
“Do you know what I can do for
the company?”
“Don’t be like that, you
are one of our most
valued assets.”
In that moment, Sammy knows that the organization knows more about a chair than about her
She knows the organization has
spent more time…
Valuing
Developing
Recording
…capabilities of a chair
than they have with her.
What does this What does this meanmean
In most organizations, Human Capital
management processes are still in the
Industrial Age where…
…people are viewed as a costrather than an asset.
Most organizations cannot find talent
within,…
…leaving existing employees feeling a
distinct lack of appreciation.
Most organizations don’t inventory their employees capabilities and skills, therefore…
…roles are filled externally.
Most organizations have moreinformation on their board room
chairsthan their senior executives
Sad but True.
Financial systems are
mature,
Human Capital systems in
their infancy.
Reporting systems are based on Industrial Age thinking…
Information Age thinking is about people
not dead Assets – sorry Barry
BarryBarry met met SammySammy……
but that’s where it ended, just like most careers with companies that can’t adapt
to change.
Come to the Information Age of Human Capital -
Find your Find your peoplepeople
Know your Know your peoplepeople
Manage your Manage your peoplepeople
For the full story on “When Barry met Sammy”,
please go to:
http://www.peoplestreme.biz/when_barry_met_sammy.shtml