So you have an idea…

1. Demand
- How many people want what you’re creating?

2. Expertise
- Do you have any expertise in the area you’re thinking about?

3. Resources
- Do you have what you need in order to turn your idea into a reality?

4. Profit
- How will you make money?

5. Distribution
- How are you going to distribute your products?

6. Proprietary Advantage
- Do you have control over your idea?

Sir Matthew Webster Jenkinson

Though your balance sheet’s a model of
What balance sheets should be,
Typed and ruled with great precision
in a type that all can see;
Though the grouping of the assets is
commendable and clear,
And the details which are given more
than usually appear;
Though investments have been valued
at the sale price of the day,
And the auditor’s certificate shows
everything O.K.;
One asset is omitted – and it’s worth
I want to know,
The asset is the value of the men who
run the show.

The Role of Human Resources Accounting in Corporate Sector: An Indian Perspective by Nageswara Rao

Human resources accounting system consists of two aspects namely:
1. The investment made in human resources
2. The value human resource

Factors affecting Human Resource Accounting:

- Physical
- Financial

- Positive
- Negative

Significant Items in HR Accounting
- Cost per Employee
- Human Capital Investment Ratio (HCI)
- The amount of wealth created by each employee
- The profit created by each employee
- The ratio of salary paid to the total revenue generated
- Average salary of each employee
- Employee absenteeism rates
- Employee turnover rate and retention rate

Help organization in decision making in the following areas:
- Direct Recruitment vs promotion
- Transfer vs retention
- Retrenchment vs retention
- Impact on budgetary controls and organizational behavior
- Decision on reallocation of resources

Cost based approaches
1. Historical Cost
2. Replacement Cost
3. Opportunity Cost
4. Standard Cost

Monetary Value based approaches
1. Lev and Schwartz Model
2. The Eric Flamholtz Model
3. Morse Model

Non-Monetary Value-based approaches
1. Likert Model
2. The Flamholtz Model
3. Ogan MOdel

Reading List
1. Eric G. Flamholtz. “Human Resources Accounting: Advances in concepts, methods & applications”

Human Resources Key Performance Indicators by Gabcanova Iveta

The aim of the paper is to show the possibilities of using the modern Balanced Scorecard Method

Intro –
Ulrich and Brockbank (2005)
Strategic view: Scorecard has to tell the story of company’s strategy.

Kaplan and Northon (1996)
Financial | Return of Capital Employed
Customer | Customer Loyalty
On-time Delivery
Internal/Business Process | Process Quality + Process Cycle Time
^ ^
| |
Learning and growth Employee Skills

Griffin (2004)
KPIs to goals from goals to objectives and from objectives to strategies.

Eckerson (2007)
Sparse: The fewer KPIs the better
Drillable: Users can drill into detail
Simple: Users understand the KPI
Actionable: Users know how to affect outcomes
Owned: KPIs have and owner
Referenced: Users can view origins and context
Correlated: KPIs drive desired outcomes
Balanced: KPIs consist of both financial and non-financial metrics
Aligned: KPIs don’t undermine each other
Validated: Workers can’t circumvent the KPIs

Hursman (2010)
Time bound

Determine your company goals, identify metrics to grade progress against those goals. 4-10 measures.

HR Strategy Map
Goals of the organization –
1. Preferred Employer i.e. be the employer of the 1st choice
2. Cost Optimization
3. Profitability increase
4. Customer Interaction

Reading List
1. Metrics Pave the path to world class. Anderson K
2. The Power of Metrics. Bauer, K
3. Navigating the road to KPI success. Bean, C. & Geraghty
4. Performance Management Strategies. Eckerson W.w.
5. Developing Strategic KPIs for your BPM System. DM Review
6. The ROI of human capital: measuring the economic value of employee performance. Fitz-Enz
7. The Balanced Scorecard. Kaplan, S.R.

Peace with God

When viewed in an inertial reference frame, an object either remains at rest or continues to move at a constant velocity, unless acted upon by an external force.
- Newton’s First Law of Motion -

Inertia ultimately comes back to the beginning.

My current state of inertia  -

Typing –> fingers –> musculoskeleton –> neurons –> central nervous system –> ?? –>??

The universe is ever so infinite and in constant motion. There was a time when the universe was naught; no motion, no inertia – complete vacuum and nothingness.

Out of this nothingness, was a force, the force of creation.

Alpha Omega, God, The Creator. So powerful, so infinite and vast…

God, as people call the ultimate force, exists.

Make Peace Now.

Fourth of July

Skylight confetti with sparks and pops, this fatuous celebration devoid of substance, tastes like McDonalds and Bud-light.

Instant food and beer, fireworks and Fourth of July. There is something about this picture. Tainted and veiled, a dose of penicillin.

Unlike the tranquil blue sea and the contemplating trees, we possess a rather peculiar proclivity to adorn the truth with a red carpet.

Red carpet is bullshit and so are the fire works.

Here’s what you’re celebrating here, Mike.

“When in the Course of human events, it becomes necessary for one people to dissolve the political bands which have connected them with another, and to assume among the powers of the earth, the separate and equal station to which the Laws of Nature and of Nature’s God entitle them, a decent respect to the opinions of mankind requires that they should declare the causes which impel them to the separation.”

Separation. Separation from the association. Not only from a community and political band, but from a stifling essence of a collective consciousness that binds and chains a free-spirited, earth-embracing, open and spiritual. Separation from the old, conservative, backward thinking; it’s the promise of a new, exciting and creative mind, a new consciousness made up of hope, love, respect and divine providence.

“We hold these truths to be self-evident, that all men are created equal; that they are endowed by their Creator with certain unalienable rights; that among these are Life, Liberty, and the pursuit of Happiness;”

Life. Liberty. The Pursuit of Happiness. The pursuit of happiness, which may never be obtained, but one that teeters in-between the perpetual struggle and the being.

“…Prudence, indeed, will dictate that governments long established should not be changed for light and transient causes; and accordingly all experience hath shown that mankind are more disposed to suffer, while evils are sufferable than to right themselves by abolishing the forms to which they are accustomed. But when a long train of abuses and usurpations, pursuing invariably the same object, evinces a design to reduce them under absolute despotism, it is their right, it is their duty, to throw off such government, and to provide new guards for their future security. Such has been the patient sufferance of these colonies; and such is now the necessity which constrains them to alter their former systems of government. The history of the present King of Great Britain is a history of repeated injuries and usurpations, all having in direct object the establishment of an absolute tyranny over these states. To prove this, let facts be submitted to a candid world.”

Truth triumphants over despotism, usurpations and suffering. There is nothing more beautiful and celebratory than the recognition, acknowledgement and understanding of the truth.

“WE, THEREFORE, the REPRESENTATIVES of the UNITED STATES OF AMERICA, in General Congress assembled, appealing to the Supreme Judge of the world for the rectitude of our intentions, do, in the name and by the authority of the good people of these colonies solemnly publish and declare, That these United Colonies are, and of right ought to be, FREE AND INDEPENDENT STATES; that they are absolved from all allegiance to the British crown and that all political connection between them and the state of Great Britain is, and ought to be, totally dissolved; and that, as free and independent states, they have full power to levy war, conclude peace, contract alliances, establish commerce, and do all other acts and things which independent states may of right do. And for the support of this declaration, with a firm reliance on the protection of Divine Providence, we mutually pledge to each other our Lives, our Fortunes, and our sacred Honor.”

FREE AND INDEPENDENT STATES. Freedom. Not only from oppression and the delineating relations, but from the mind-spirit-conciousness of old, binding, closed-minded, bureaucratic bullshit of the decrepit civilization.

Fourth of July, the celebration of American Enlightenment.