Human capital strategy is a system of choices that influences and, indeed, often drives business results on the people side of business design. It is a system of choices that influences and, indeed, often drives business results. Fact-based metrics provide a strong business case for human capital decision making. The management of human capital policies and practices remains largely without the objective.

For most companies, people are the greatest single investment they make. Yet they often struggle to answer questions like:

• How do we measure pay and benefits, training and development, and workforce structure, from a human capital investment perspective?
• What is the most effective way of delivering optimal performance through people?
• In a downturn in the market, how do we best manage our workforce?
• How do we determine where certain segments of the workforce add significantly greater value than others?
• How can HR practices be slim-lined to create higher value without harming business performance?
• How can we change human capital practices to adapt to the new business environment or business strategy?

Strategic management is essential given the size of human capital investment and the potential risk. The power of Human capital strategy means it can drive organisational goals.