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Writer's pictureWilliam Gladhart

Financial Reward for Measuring Human Capital & Performance – Improved Valuation

Updated: Oct 25, 2024

Case Study Overview - Owner Gains 18% Valuation, Unites Multi-Generational Workforce, Streamlines Communication & Performance


Read Time: 3 minutes


Client: Data Technology Company


Product: Culture 5 – 12 Check-Ins, 5 Questions, 12 Months


Anxiety Rating: Managed


Staff Connecting: 62% Connecting


Value to Leadership

  • After 12+ months of culture work, an updated company valuation yielded an 18% increase for the owner; data was available on the human capital assets of the business

  • Consistent collaboration and communication by the owner to staff showcased the owner’s goal of strengthening the company culture and improving staff well being

  • Management learned effective, open communication styles, which improved how they managed expected/ unexpected challenges with a multi-generational staff

  • Team-facilitated discussions were lean and on point; any challenges were quickly addressed, which was appreciated by all employees.


Leadership Profile

  • Company was comprised of a smaller, agile, three-generation workforce that operates in a highly demanding, technical data field

  • Owner was seeking an effective way to respond to staff needs, implement team-building activities and support staff well-being in June 2020

  • Owner expressed there were workforce areas they sensed needed improvement, but could not ‘put their finger on the issues

  • Owner sought to capture the human capital metrics that could showcase the strength and value of the company culture


Outcomes

  • Participation rate was 100% for each of the 12 Check-ins

  • The owner and manager were extremely committed to working on the 1-2 staff-identified leadership needs every month and communicating next steps to staff

  • Tracking well-being & anxiety as leading indicators was key for the owner to react to changes in the business and manage the ever-changing workforce environment

  • Well-being and feelings of connectedness improved significantly when staff requested additional training & skill development and the owner moved to secure a sizable, industry-specific training grant for all employees


Requested Leadership Behaviors Expressed:

At 30 days:            Help Balance the Load/ Avoid Burn Out

At 120 days:          Share What Leadership is Working On

At 6 months:         Offer Job Training/ Skills Development

At 8-9 months:      Help Balance the Load/ Avoid Burn Out

At 11-12 months: Help Balance the Load/ Avoid Burn Out


Metric Goal

Culture Score = Contributing/ Performing

Well Being Index = Stable/ Energized

Anxiety Rating = Managed/ Minimal

Feelings Index (Connecting) = Higher % the better


Assessment Check in Highlights of the Case Study

Milestones


At 120 Day Check In

  • Connecting moved from 33% to 75% – Employees had taken the Check In for four months, owner/ manager consistently responded to staff requests for frequent, consistent communication and feedback on company projects & customer status updates

  • Decreased anxiety & improved well-being – Staff felt heard and that their concerns were being addressed by the owner/ manager


At 6 Month Check In

  • Connecting rose to 86% – Leadership responded to staff requested need – Help Chart Career Development – by procuring a high-value, industry-specific technical training grant, employees felt heard

  • Owner responded to staff requested need – Be Approachable & Open to New Ideas – by implementing online games & social activities that formed bonds, improved communication when staff was in a 100% virtual work setting


At 8-9 Month Check In

  • Anxiety Concentration doubled from 2.0 to 4.0

  • Business has a demanding seasonal component that was driving anxiety, contributing to staff overload

  • Owner then realized the training grant had a pending completion deadline that was due in the middle of the company’s busy season


At 12 Month Check In

Win for All: – The owner responded to the high anxiety by securing an extension on the training grant deadline.

The grant extension reduced anxiety dramatically, well-being went to Energized; this brought the entire team and company back together.

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