First step to OFR success is meeting the basic standards

Mervyn Davies was right to suggest that the production of “mere statistics” will be of little use when the first wave of Operating and Financial Reviews (OFRs) appears next year (News, Personnel Today, 26 July).

It is worth remembering that most organisations in the UK claim to measure the value of their workforce, but few actually believe the information they gather is of use. If, as we so often hear, most of a company’s worth is tied to the value of its employees, measures need to be developed that focus directly on issues affecting performance.

The Chartered Management Institute, the Centre for Applied HR Research and Oracle UK teamed up earlier this year to provide organisations with a process for better understanding the contribution made by their workforces.

It was clear from the research that while there have been many attempts to demonstrate the value of the workforce, most efforts to predict its contribution to the balance sheet have been inconclusive.

If OFRs are to be successful, organisations have to be confident that they can meet the basic standards expected of them. This means producing simple measures that demystify what many investors regard as HR jargon. After all, measures exist to be used, so they should be easy to understand by all stakeholders.

Measures should also not simply be a response to regulation, but should provide the fundamental information that is critical for those running or investing in an organisation.

Petra Cook
Head of public affairs
Chartered Management Institute

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