when barry met sammy

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When When Barry Barry met met Sammy Sammy

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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.shtml

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Page 1: When Barry Met Sammy

When When BarryBarry met met SammySammy

Page 2: When Barry Met Sammy

meet barry

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Barry joined the organization in

2001…

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meet sammy

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Sammy joined as Marketing

Manager also in 2001…

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Barry cost $782…

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amortised over 10 years, that’s

$78.20 per annum

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Sammy costs the organization $189,742 per

annum

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Barry came with…

Page 10: When Barry Met Sammy
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…that was scanned and attached

to the depreciation schedule

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Sammy came

with…

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…that was lost after she was hired

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Each year the accountants value…

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Each year Sammy’s value…

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But this increase is not

recorded anywhere.

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Upgrade

After After 5 5 yearsyears……

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AGAIN this upgrade cost is noted in the depreciation

schedule

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Master Degree in Digital Design

considered one of

the Best Talent

in the se

ctor

After After 5 5 yearsyears……

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AGAIN her new skills are not listed

neither is the cost of study

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Each year, the CEO formulates a

strategy

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Barry does not know his part

of the strategy

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neither neither does does

SammySammy

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Both keep doing their jobs hoping

they are aligned to the strategy

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Barry does a great job

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Clients comment on how successful the company must

be to have such a nice Regional Board Room

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Everyone is proud of Barry

and the Board Room

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Sammy develops the best Digital Campaign the organization ever had

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Sales increase by

40%

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She feels good about this

but…

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No-one gives her credit

for her work

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Barry gets a promotion

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He is to represent the organization in its head office

board room

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Sammy is not aware of a vacant position for…

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She hears about the role after it has

just been offered to a person with…

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less experience

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less formalqualifications

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and knows nothing about the

organization

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…as he was appointed from outside the organization

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SammySammy gets gets frustratedfrustrated……

…and request a meeting with HR

President

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The meeting is booked

here

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As Sammy enters the board room, she meets a young accountant who has

just finished valuing Barry

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The accountant introduces Sammy to Barry…

…as she explains that Barry is one of the organization’s most valued assets

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The accountant has a lengthy record of

Barry’s performance over the years…

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Barry’s Net Value to the organization,

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locations Barry has served,

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and net costto the organization

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Barry has cost the organization

$703.80

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Sammy has cost the organization

+$2,000,000

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…and has made the company

10 x 2,000,000 = $20,000,000

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…but this is not recorded

anywhere.

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As the president of HR walks in,

Sammy asks him…

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“Do you know what I

do for the company?”

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“Do you know how much you have

invested in me?”

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“Do you know what I can do for

the company?”

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“Don’t be like that, you

are one of our most

valued assets.”

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In that moment, Sammy knows that the organization knows more about a chair than about her

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She knows the organization has

spent more time…

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Valuing

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Developing

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Recording

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…capabilities of a chair

than they have with her.

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What does this What does this meanmean

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In most organizations, Human Capital

management processes are still in the

Industrial Age where…

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…people are viewed as a costrather than an asset.

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Most organizations cannot find talent

within,…

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…leaving existing employees feeling a

distinct lack of appreciation.

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Most organizations don’t inventory their employees capabilities and skills, therefore…

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…roles are filled externally.

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Most organizations have moreinformation on their board room

chairsthan their senior executives

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Sad but True.

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Financial systems are

mature,

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Human Capital systems in

their infancy.

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Reporting systems are based on Industrial Age thinking…

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Information Age thinking is about people

not dead Assets – sorry Barry

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BarryBarry met met SammySammy……

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but that’s where it ended, just like most careers with companies that can’t adapt

to change.

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Come to the Information Age of Human Capital -

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Find your Find your peoplepeople

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Know your Know your peoplepeople

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Manage your Manage your peoplepeople

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For the full story on “When Barry met Sammy”,

please go to:

http://www.peoplestreme.biz/when_barry_met_sammy.shtml