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Book Review: Developing Human Capital, by Gene Pease, Bonnie Beresford, and Lew Walker
We often hear it said these days that the most successfulcompanies pay a lot of attention to data. Data about everything. But you mightbe surprised to learn that the data highly successful companies pay attentionto includes learning and development (L&D). They do this to measure thebusiness benefit of L&D and to be able to optimize the results they getfrom individual L&D expenditures.
Until now, there has been little information to guidemanagers in every company about howto do this. Gene Pease, Barbara (Bonnie) Beresford, and Lew Walker have writtenthe book that fills this need.
Beyond ROI
Developing HumanCapital is not a book about return on investment (ROI), although ROI isimportant and it is part of the approach the authors use on the way to showingthe reader how to optimize L&D investments through analytics. The objectiveis not to look backward, but to ensure that human capital dollars are wellspent. Developing Human Capitalexplores learning and development from a data-driven, analytical standpoint,and it does an extremely thorough job of it.
I have never seen a presentation or discussion of analyticsapplied to L&D as complete as what the authors provide here. In ninechapters and seven appendices, DevelopingHuman Capital steps the reader through the continuum of human capitalanalytics, including methodology, tools and technology, case studies, andadvice. This is not theory. It is solid, sound practice that has been shown tobe effective.
An outstanding team of authors
In the foreword, Thomas H. Davenport, fellow at the MIT Centerfor Digital Business and co-founder and director of research at InternationalInstitute for Analytics, says, “As I read the book, it seemed highly likelythat corporate learning would have a much more analytical future.” Gene Peaseand his co-authors are well-qualified to advise L&D managers on the detailsof how to apply analytics to learning and how to be ahead of that trend. Peaseis a pioneer in the field of workforce optimization. Beresford is anindustry-recognized human capital strategist and performance consultant withover 20 years of experience in the field of human performance improvement.Walker has had a very successful career in the disciplines of human resources,serving in many vice-president roles at AT&T and SBC Wireless.
Making L&D strategic
At the conclusion of the book, the authors state:
If you are able to calculate an isolated ROI, you will be armed with powerfuljustification at budget time. However, going beyond ROI is where the richnessof measurement really kicks in—when you start using measurement to improve, andnot just to prove. This strategic shift means moving into the world ofoptimization through predictive analytics. This is where you will find the deepinsights that will prepare you to rise to the performance and developmentchallenges presented by the changing workforce. This powerful data science willradically change the way you plan and deploy learning programs.
I join the authors in urging you to begin developing yourL&D measurement map, to align and map your learning investments to businessoutcomes, and to measure their impact and identify opportunities foroptimization. Doing so could well be the most strategic decision you will makein your career.
